Quote:
Originally Posted by DoubleK
Is that necessarily bad? Seems like that it was appropriately risk managed. Can't imagine it would be normal for a corporation to have their cash spread across 10 different banks.
Some of the startups likely had most, if not all, of their cash at SVB. Sounds like that bank was favored in that space.
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Not sure if you’re being sarcastic or not, but yes properly run cash management functions at companies would have their cash spread across many banks and have concentration limits based on the bank’s credit risk and exposure to each bank across all other lines of business.