Most folks have seen the news about the FDIC’s takeover of Silicon Valley Bank. We felt it prudent, in light of this situation, to discuss how B&C allocates client cash and some additional considerations for personal or business cash holdings.
First, we review and recommend that anyone holding a large cash position carefully adhere to the FDIC limits per account — $250,000 per account title (individual, trust, etc.) If your account is in joint name, then the coverage is $250,000 per joint owner ($500,000 total). This limit applies for corporate accounts as well.
Second, B&C proactively works to allocate a majority of client cash to a sweeping money market fund with FDIC insurance through our custodian, Pershing. This fund provides FDIC insurance for client cash up to and beyond the $250,000 limit by leveraging a network of banks to ensure the limit is not exceeded at any one institution. Pershing offers other money market funds, and, for some clients with municipal bonds, we leverage a money market fund that hold solely tax-free municipal bonds.
In the event you have concerns about your current cash investments, either in your Pershing account or across your net worth, please let us know as we can offer solutions for personal and business accounts.