Liquid Savings and CDs - Where Do You Keep Your Cash?

you believe that retail clients of SVB should have lost their deposits because of a bank run initiated by a few jittery startups?

Am I the only person who keeps enough cash in a business checking account to immediately pay for overhead costs while making sure I spread out the rest of my cash to different banks to keep under the $250k FDIC insured limit? Yeah it’s annoying to have to open different accounts and move things around from time to time but it’s better than the alternative. At a different point in my life I might have been like these people so I hope they’re made whole, but my mind is boggled by those who are willing to let 3 million in deposits just sit in any one account.


These players have 50mill. How many accounts would you need? 200?

Also most of the loans from sivb were contingent of the company keeping their banking with them. Thiel apparently started the run by telling his clients to get out the last few weeks.

The real money keeps their cash in the carib and Swiss banks. They don’t make the same risky loans, they’re basically fortresses so big money can get their cash out fast when needed. Sometimes you have a matter of hours to buy up another company, these small retail banks can’t handle those transactions. Takes days to get money typically.

I believe brokerage accounts are protected up to 1M. I’ve been preaching about treasuries because of better yields and tax benefits but this is just another argument in favor.

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yes why do they get special treatment? if a bank can’t operate properly because of startups or peter theil or they over-invest in long term treasuries and can’t manage balance sheets properly, why is this the responsibility of the american taxpayer to solve it?

Because maybe you should read up on who is actually footing the bill on this. Hint, it’s not the taxpayer. Banks pay into a bailout fund after 2008. It comes from there

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Yes and this means eventually the extra cost will trickle down to us. But we’re LH, we can game any system to mitigate the fallout; there are many bank bonuses to be had in our future.


Reading is hard…

The transfer of all the deposits was completed under the systemic risk exception approved yesterday. All depositors of the institution will be made whole. No losses associated with the resolution of Silicon Valley Bank will be borne by taxpayers. Shareholders and certain unsecured debt holders will not be protected. Senior management has also been removed. Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.

Someone else mentioned re-insurance, there are options for > $250k

reading fairly simple, complex thought difficult. let me ask you - where do you think all this excess money supply that the Fed is going to pump into the market to cover these investments will effect us? how do you think that will effect the inflationary period we’re currently stuck in?

the potential cost to the american citizens isn’t even the most egregious part of this. not by a long shot.


Couldn’t agree with you more on this point. We will be paying for this one way or another as it’s always passed to the end user. We the people.

The same people backing the banks and the whole FDIC is paid independently are the ones that parroted the inflation is transitory theme of 2021. Not to mention the fact the fdic doesn’t have unlimited funds and we won’t know the extent of what’s needed here prob for months.

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Looks like they’ve cracked the 5% mark. Anybody jumping in?

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Like ass.


LOL! Same email & same reaction.

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Betterment uses partner banks to help keep your cash FDIC insured, if that matters to you. Pays 4% currently. I’m not sure why anyone would have 4 million in cash but :man_shrugging:t3:.

My first wave of T-Bills, bought on Valentine’s Day, reached maturity and auto-deposited back into my checking account — $3.52 per $1,000. It’s no Citibank new money bonus, but it was less than 5 minutes work and 30 days of waiting. :bank::moneybag:

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Waiting for an opportunity. Many people that buy companies need to have cash on demand as there’s a short window to complete a deal before someone else takes it. They’re usually in short term treasuries or yields that don’t have early withdrawal penalties

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