' Rationalwalk thinks a startup with $10 million should have had guaranteed $250,000 accounts in 40 different banks, or set up treasury bond ladders, and should have been reading the bank's balance sheets'

I'm not saying they should have been reading bank balance sheets but I am saying that there were simple alternatives such as sweep accounts and, yes, treasury bills. I'm blown away that CFOs didn't take basic steps here and even more blown away that sophisticated VC firms did not oversee their investments in these startups more effectively.

This was a bailout of the VC industry that should not have taken place. Over the weekend there were stories of founders writing checks to keep things afloat and VCs planning equity injections into their promising startups. The FDIC was going to make initial payments on uninsured deposits and provide certificates for uninsured deposits that would receive substantial recovery over time. The system was working as it should.

Berkshire Hathaway FAQ

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