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A comment on Joint Statement by the Department of the Treasury, Federal Reserve, and FDIC. Parent comment

Re:Joint Statement by the Department of the Treasury, Federa... by jonhohle on Monday March 13, 2023 @05:11AM (#35133060)
Is it feasible to keep active cash flow spread across multiple financial institutions? (Honest question)

Being insured for $250k is payroll for about 10 people for a month. If your other funds were in a line of credit that abruptly closed or in equities that may not be worth as much when everyone shows up on Monday, what options are there?

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Re:Joint Statement by the Department of the Treasury, Federa... by bruce343434 on Monday March 13, 2023 @05:41AM (#35133324)
25k a month for salary? I'd love to work at your place!
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Re:Joint Statement by the Department of the Treasury, Federa... by jonhohle on Monday March 13, 2023 @05:50AM (#35133401)
These are SV companies plus payroll costs 1.25-1.5x employee salary (benefits, taxes, and insurance don’t appear out of thin air).
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Re:Joint Statement by the Department of the Treasury, Federa... by bruce343434 on Monday March 13, 2023 @06:21AM (#35133635)
"Worst case" that's still 16.66K per month. Sign me up!
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Re:Joint Statement by the Department of the Treasury, Federa... by jonhohle on Monday March 13, 2023 @10:06AM (#35135885)
I’d say, go look for a job in the Bat Area, except, that might not be such a good idea right now ;-) that’s not out of line for an engineering salary there.

(The trick is, get one of those companies to pay you Bay Area rates while you live in a much lower cost of living area working remotely!)

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Re:Joint Statement by the Department of the Treasury, Federa... by thallium205 on Monday March 13, 2023 @06:06AM (#35133518)
That would average around 225K/yr salary after payroll tax. With retirement, health, etc benefits it’s closer to reality for an engineering salary than you think.
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Re:Joint Statement by the Department of the Treasury, Federa... by logifail on Monday March 13, 2023 @06:29AM (#35133694)
> closer to reality for an engineering salary

Never mind engineering, how much are SV startups paying their corporate finance and corporate treasury officers?

Not enough, perhaps.

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Re:Joint Statement by the Department of the Treasury, Federa... by thallium205 on Monday March 13, 2023 @07:01AM (#35133978)
The entire banking system was about to be revealed as a total clown show scam (that it is) if they weren’t going to step in here. How do you expect an SVB company to run payroll for more than 10 or so employees in a risk free way? How about 100 employees? If you can’t even ensure a tiny company can do that without losing everything and folding then you have problems with your banking system that are wayyyy more serious. This epiphany was going to happen in an extraordinary way today if they didn’t restore confidence in the (very broken) system.
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Re:Joint Statement by the Department of the Treasury, Federa... by logifail on Monday March 13, 2023 @07:44AM (#35134315)
> The entire banking system was about to be revealed as a total clown show scam (that it is) if they weren’t going to step in here.

It's fairly simple:

When things are going well, entrepreneurs want the state and its oh-so-tiresome regulation to get out of their way.

Then, when things don't go well, it's those very same entrepreneurs who claim it's necessary for the state to step in and save everyone.

https://twitter.com/BillAckman/ is quite the read at the moment.

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Re:Joint Statement by the Department of the Treasury, Federa... by thallium205 on Monday March 13, 2023 @07:15AM (#35134093)
A 10 person company shouldn’t need a “treasury management” strategy in a functional banking environment.
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Re:Joint Statement by the Department of the Treasury, Federa... by logifail on Monday March 13, 2023 @07:57AM (#35134441)
> A 10 person company [..]

Newsflash: there are plenty of places, and plenty of sectors, where a 10-person company hasn't got anywhere near enough cash on deposit to reach the local deposit guarantee limit.

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