[rmilk]

I get what you’re saying, but how many well-intentioned startups have imploded and ran out of money the day before payday due to some unlikely risk? Lots (I was in 1-2 of them). Should we also try to salvage them?

“Well-reputed bank” is not the same as zero risk money management. Look at the fine print of every one of those business checking accounts and you see there is clearly some risk, including loss of capital if you’re over the $250k limit. Everyone who has a retirement account in money markets at a “well-reputed bank” knows about this risk, so how can we let the CFO slide on finance risk management that was clearly their most important responsibility? Business continuity insurance, lines of credit, investor infusion, etc. Debt sales, etc. There are ways to get around an unexpected cash crunch.

But there’s no excuse for not knowing the risk and expecting a $1M checking account to work like your personal checking account. This was the CFOs job at every one of the companies that is now in a crunch.