Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse

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

[ Parent | on HN ]

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.

[ Parent | on HN ]

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???

[ Parent | on HN ]

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.

[ Parent | on HN ]

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

[ Parent | on HN ]