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A comment on Yellen says government will help SVB depositors but rules out bailout. Parent comment

Re:Yellen says government will help SVB depositors but rules... by ithkuil on Sunday March 12, 2023 @03:41PM (#35125178)
Sorry, dumb question, I'm just a software engineer:

If it's so easy to get it right, why so many companies got it wrong?

Could it be because startups don't usually start by hiring people with a lot of expertise in finance?

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Re:Yellen says government will help SVB depositors but rules... by mlyle on Sunday March 12, 2023 @04:08PM (#35125535)
I think people mostly just ignored the risk.

Venture capitalists provide banking advice to the companies they fund, and this isn't on the list of things most mention. Now we're reminded why it's a best practice.

I think it's hubris to think that you can have tens of millions of dollars and can ignore vital things with it (account security, systemic risk from counterparties, etc).

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Re:Yellen says government will help SVB depositors but rules... by itronitron on Sunday March 12, 2023 @04:56PM (#35126162)
Most startups aren't around long enough for it to be a problem.
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