[throw123123123]

If a VC firm tells you to keep your funds in a bank that gets a run, and you lose access to it, that VC firm destroys its reputation forever.

Please think about the payoff matrix and the fiduciary responsibility of the actors.

[zfell]

News of which funds sent emails asking their portcos to withdraw funds from the bank that has supported this industry for 40 years is a reputation hit in my view. Although it may certainly not be a popular opinion.

[standapart]

This is a significant simplification of the matter. I doubt it works in reality.

Replace the words "VC firm" with "Sequoia" in the previous statement and see if it rings true that Sequoia's reputation would be destroyed forever.

[throw123123123]

Would take a massive hit for sure.