“ The FDIC insurance cap is almost always waived for individual depositors. As a matter of policy, my guess is that it will also be waived for corporate depositors in this instance because of the economic and political importance of venture capital.”
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Thanks, I didn’t know that. Why even have an insurance “cap”?
The cap would likely be applied if the FDIC had to as a matter of keeping solvent in a wide scale emergency. Otherwise, the cap helps encourage depositors to hedge the risk by spreading their deposits about so as to keep under the cap in any one institution.