[boppo1]

97% of depositors exceeded the FDIC limit.

[phone[phone]]

That stinks, and I feel for them. Let's hope people will learn a lesson from this - never keep all your eggs in one basket.

[otikik]

What about this other lesson: bankers need to be punished harder.

[youngtaff]

Or perhaps the other lesson is VCs shouldn’t create a run on the bank they holds their funds and the companies they invest in funds

[phone[phone]]

We don't punish bankers in this country.

[fbdab103]

Aren't we talking about hundreds of millions/billions of dollars? At that scale, not a lot of baskets available.

[throwing_away]

Could a tech company have split their accounts into separate $250k accounts? I'm not sure if the bank would offer that.

[x3n0ph3n3]

No, FDIC insurance applies to account owners, not accounts.

Fun fact, if you're married, you can actually turn that into 3 * FDIC insurance limit.

- Account 1: You

- Account 2: Your spouse

- Account 3: Jointly you and your spouse

[paulclinger]

Even more: single, joint, retirement, revocable and irrevocable trust accounts all fall into different categories and are insured independently for each account owner in each bank (the joint account is 250k for all co-owners): https://www.fdic.gov/resources/deposit-insurance/financial-p...

[edulix]

Or you could hold short-term t-bills for any extra money over the FDIC insurance limit. Then you are good unless the US Gov goes bankrupt, which is a non-zero risk but much lower and different.

[tome]

Yes, I don’t understand what systemic forces are making this not the standard practice.

[quesera]

You'd need to split across multiple banks.

This can be done manually, with some logistical challenges.

This can also be done automatically, e.g. via CDARS.

[HyperSane]

Then they should have understood the risk they were taking.

[WeylandYutani]

And chosen a better bank.

Besides common strategy in my country: have more money than 250k spread it around at multiple banks.

[HyperSane]

There are services that do that automatically.