[sseagull]

There’s disgust for a few reasons. One is that the wealthy (including VCs) have an undue influence on society and the economy just due to being wealthy. It’s always nice to see them take a hit sometimes.

Silicon Valley is “building the future”, but at the same time can be very disconnected from the lives of many people around the country. That leads to mistrust and lack of empathy when these kinds of things happen.

[snuxoll]

I'll add on an extra layer of disguist: cash management accounts exist. They've existed for a long time. They serve literally to hedge against the risks of bank failures by automatically sweeping funds in them between multiple FDIC member banks to:

1. Increase the amount of funds covered by FDIC insurance

2. Reduce the potential for loss of funds by a bank failure

I get that it's a pain in the ass to manage a bunch of accounts, but any business with >$1mm in cash reserves really should have everything but their operational float in a CMA or manually move it around themselves into multiple banks. When I see comments about a startup that had $x million in cash with SVB I have to wonder what the hell the founder and their investors were thinking keeping all of that in a single place.