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Ask HN: What US bank post-SVB would you recommend?

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Re: Ask HN: What US bank post-SVB would you recommend?

#61

Post by bradleyjg »

bank-error wrote: post #36
bradleyjg wrote: post #21

A systematically important bank. They are subject to the most regulation (small, regional, and credit unions lobbied for looser rules) and have an implicit government backstop. The top 3 are JPM-Chase, BoA, and Citi.

[flagged]

It’s true that a 24 year old start up founder can’t just walk into a BoA branch and deposit the entire series A funds into a business checking account. We just had an object lesson in why not.

That doesn’t mean there’s no way for a start up to have a banking relationship with BoA.

Re: Ask HN: What US bank post-SVB would you recommend?

#62

Post by anovikov »

bradleyjg wrote: post #61
bank-error wrote: post #36

Earlier quoted context omitted.

[flagged]

It’s true that a 24 year old start up founder can’t just walk into a BoA branch and deposit the entire series A funds into a business checking account. We just had an object lesson in why not. That doesn’t mean there’s no way for a start up to have a banking relationship with BoA.

Why not? I am 100% missing something here, but how someone trying to deposit money into the banks may increase risks? Unless there's a reason to believe the money is stolen or otherwise could be reclaimed, which shouldn't be the case if it's coming from a major SV fund?

Re: Ask HN: What US bank post-SVB would you recommend?

#63

Post by bradleyjg »

anovikov wrote: post #62
bradleyjg wrote: post #61

Earlier quoted context omitted.

It’s true that a 24 year old start up founder can’t just walk into a BoA branch and deposit the entire series A funds into a business checking account. We just had an object lesson in why not. That doesn’t mean there’s no way for a start up to have a banking relationship with BoA.

Why not? I am 100% missing something here, but how someone trying to deposit money into the banks may increase risks? Unless there's a reason to believe the money is stolen or otherwise could be reclaimed, which shouldn't be the case if it's coming from a major SV fund?

A deposit creates a liability for the bank. It also creates an asset that can be used to generate a return. It also creates various operational costs.

The way those three things play out the more likely it is for a depositor to suddenly ask for a lot or all his money back the more risky it is for the bank. Both in terms of creating a bank run and just in terms of losing money on the relationship.

Re: Ask HN: What US bank post-SVB would you recommend?

#64

Post by op00to »

bradleyjg wrote: post #54
jmclnx wrote: post #38

Seems a lot of people are recommending large banks. That was one of the "fears" I read somewhere this SCB failure will give these big banks more "power". But, I also saw SVB was the 16th largest bank in the US. So going to a big bank mat not be good. Me, I would look into local banks and do some hard work "research" and pick one of them. They tend to be more tuned into you community. Maybe a Credit Union ?

It’s unclear to me exactly what role a local bank is supposed to play in the modern era. In the old days when banks did real underwriting, a local banker would know a small business or would-be homeowner’s reputation and take it into account (for better or worse.) Now banks just originate mortgages and use the standardized underwriting criteria provided by the buyer, usually GSEs. All other consumer lending is almost…

I often see “so and so development funded by Super Local Bank of the US” signs in front of new commercial developments. I’m guessing they’re hooked into the local business community and help facilitate “riskier” transactions like buying pizza shops and hair salons?

Re: Ask HN: What US bank post-SVB would you recommend?

#65

Post by bradleyjg »

op00to wrote: post #64
bradleyjg wrote: post #54

Earlier quoted context omitted.

It’s unclear to me exactly what role a local bank is supposed to play in the modern era. In the old days when banks did real underwriting, a local banker would know a small business or would-be homeowner’s reputation and take it into account (for better or worse.) Now banks just originate mortgages and use the standardized underwriting criteria provided by the buyer, usually GSEs. All other consumer lending is almost…

I often see “so and so development funded by Super Local Bank of the US” signs in front of new commercial developments. I’m guessing they’re hooked into the local business community and help facilitate “riskier” transactions like buying pizza shops and hair salons?

Maybe. I had thought the Blackstones of the world had gotten very deep into the commercial real estate market at this point.

Re: Ask HN: What US bank post-SVB would you recommend?

#66

Post by sowbug »

chrischattin wrote: post #4

Ironically, SVB, or whatever its new name will be. Like how the safest airline to fly is the one who just had an accident.

Like how the safest place to stand is where lightning just struck.

https://en.wikipedia.org/wiki/Independence_(probability_theo...

Re: Ask HN: What US bank post-SVB would you recommend?

#68

Post by amelius »

thallium205 wrote: post #52
amelius wrote: post #34

Earlier quoted context omitted.

No, but it allows me access to my money, which is infinitely better.

Rolling around in your own money is better than paying your employees?

Rolling around in money is better than not even having money to pay employees.
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