Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse
by dv_dt on Tuesday March 21, 2023 @11:15AM
(#35247412)
Sounds like a perfect HN startup MVP. Split your operating cash among banks to keep under FDIC limits while presenting a convenient front end ui for payroll
Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse
by pjc50 on Tuesday March 21, 2023 @11:25AM
(#35247563)
Google for "insured cash sweep". https://www.cbhou.com/Resources/Customer-Corner/entryid/237/...
The specific problem for SVB was that many VCs got their companies to agree not to do this, specifically to keep all the money in SVB.
Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse
by Pet_Ant on Tuesday March 21, 2023 @11:43AM
(#35247819)
> specific problem for SVB was that many VCs got their companies to agree not to do this
What was in it for the VCs???
Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse
by pjc50 on Tuesday March 21, 2023 @12:20PM
(#35248390)
I have not yet heard a specific explanation for this, although there has to have been some quid pro quo.
Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse
by mos_basik on Tuesday March 21, 2023 @12:36PM
(#35248657)
>Split your operating cash among banks to keep under FDIC limits while presenting a convenient front end ui for payroll
I work for a six-person startup; our CEO landed on Brex after SVB, and one of the reasons he gave was that it does exactly this (up to 9 banks). See https://www.brex.com/product/business-account
And lots of local businesses. 100 employees at 48k a year gets you to 200k a month in payroll. Never mind the money it takes to run that business.
Even if you are under the 250k mark, if your bank closes on a pay day your staff is the group that suffers.