Paul Price

@DropboxSupport @pimpisaur So, it looks like you are still serving up the bad IP on your DNS. I checked TTLs and cache, should have been resolved by now if it was just cache.

@DropboxSupport @pimpisaur When I do a dig using 8.8.8.8 or 1.1.1.1 or 208.67.222.222 on dropbox.com +short www-env.dropbox-dns.com. 162.125.13.18

@DropboxSupport It appears that you are having a major outage this morning, and the status page has not been updated to reflect that. I see that there was system maintenance last night, perhaps something went wrong? When will DropBox Sign API and dashboard be back?

@pimpisaur @DropboxSupport If you are getting IP 162.125.13.18 then you are one of the unlucky ones. If you can modify your host file temporarily to point it at 162.125.1.18 for dropbox.com - it might start working for you.

@pimpisaur @DropboxSupport Some of our customers and employees can access dropbox.com and others cannot. We suspect that in their release last night they dropped one of their IP addresses, but that change hasn't properly propagated through DNS yet. Run nslookup dropbox.com

And I expect next YC class to have a few treasury management startups...

@DavidSacks Easy to argue with. You (VCs) should be advising your portfolio companies to not keep millions in checking accounts. It's called CASH MANAGEMENT. Hire a competent cash manager and put it in a custody account. Own your duration/liquidity management. Don't blame govt and banks.

I find this logic hard to argue with.

The Fed may or may not realize it but it has created a two-tier banking system: 1. Tier 1: Systemically Important Banks. These are the "too big to fail" biggest banks. If you have money there, it's a true deposit. You can't lose it. 2. Tier 2: Everyone Else. If you have money there, it's not a true deposit. It's an unsecured loan to that bank. You can lose it in a bank failure. Now tell me, why would anyone use Tier 2?

@KeepStdTime @cwillis2018 @DavidSacks You don't! Do you think that's how Google and Apple do it? Of course not. You hire a cash manager and put your money in a CUSTODY bank (not a checking account). People that don't understand cash management shouldn't be talking about raising FDIC limits.

By a 2-to-1 margin, those polled said they would move to a Big 4 bank if the Fed doesn’t protect deposits at SVB.

@BillAckman You are right that we need to fix the system. This isn't a government problem, it's a problem with VCs and board members not knowing the difference between a checking account and a custody account. Hit me up if you want to talk about the real solution.

Recent events have made clear in the mind of the average American that there is a risk that they could lose money doing something they used to think of as safe -- Being a depositor. We have had a two-tiered system since the GFC where a few large banks have the explicit backing of the taxpayer and the rest have $250k of deposit insurance. This two-tiered system worked until it didn't work. In a world with @Twitter - speed spread of information and smart-phone-enabled bank accounts where withdrawals can be made with the push of a button, no bank is safe from a run unless the depositor has an explicit gov't guarantee that ensures that they always have complete access to the total value of their deposits. Without this guarantee, the non-systemically important banks (non-SIB banks) will likely continue to experience large withdrawals. This problem is compounded by the stock market. Consumers now understand that when a bank stock collapses, it is only a matter of days before the bank fails due to liquidity demands by their depositors. The rewards for being a depositor are minimal compared with the risk of loss from losing access to funds needed to run your business or household. Until this problem is solved, our banking system is at risk. The more time the public is exposed to a period of uncertainty, the more imprinted deposit risk is on the mind of the public. That is why it is critically important that our gov't promptly puts its full faith and credit behind our deposit system. If in fact, your deposit is safe if a bank fails, as in SVB and Signature, then why is it difficult for the gov't to confirm that your deposit is money good when your bank is still operating? We need a temporary systemwide deposit guarantee that will remain in place until our outmoded $250k deposit guarantee program is modernized. Since this new system can't be created over a weekend, we need a stop-gap measure to get us through the next few days and weeks. The alternative is one bank failure after the next. The weakest three have already fallen. The market is already telling you who is number four. This is not the way one maintains confidence in a banking system. Lastly, the more banks that fail, the higher the cost of capital will be for non-SIB banks. This will have a profound long-term impact on the cost of capital for small and medium-sized businesses, a cost that has already increased materially due to the overall rise in rates. It is not helpful to put even more pressure on these critically important drivers of our economy.

@nealkhosla This is why I've been pitching VCs a Treasury as a Service SaaS platform (which they haven't cared about until now). The answer is much easier than most people assume and it has nothing to do with new regulations or increasing FDIC limits.

I love the people being like “CFOs should have done more diligence on their bank” without even realizing the vast majority of startups affected (I’d guess 80%+) don’t even have a CFO. That’s the scale of small business we’re talking about.

@danprimack Dan, can you please talk about how "real" companies/treasurers manage their cash and don't put it in glorified checking accounts? It is time for VCs and startups to rethink the way they treat their LPs' investments.

Will be on CNBC in 15. Assume we're talking about NFL free agency or the decision to let my 12 year-old watch Scream 6.

@paigecraig Great news! Now, do you want to talk about how to keep this from happening again? And, no, the answer isn't to increase FDIC insured amounts. If you are serious about protecting your portfolio companies' cash (and your LPs' investments) - let's talk about actual cash managemnt.

Our founders at SVB just started getting access to their whole account balance a few seconds ago. Thankful for them

@devahaz Actually, it isn't stupid. FDIC isn't meant to protect giant deposits. It is for the mom and pop businesses and individuals. If you have millions in operating capital you don't put it in a checking account. That's absolutely stupid. Google "Custody Account".

It’s absolutely stupid that if you have $2.5M the government insures $250k of your money if you keep it at one bank, but insures all of it if you keep it at ten banks

@loganbartlett @oyvindreed @zachweinberg If you want to talk to people who understand the right way to manage millions of $ in operating capital, I can hook you up with treasury and cash management professionals who do this stuff for Google, Apple, etc. They aren't depositing their cash in glorified "Checking Accounts"

@oyvindreed who should i have? I’ve put out the bat signal for @zachweinberg

Embarrassing few days for the venture capital industry.

@sweatystartup I agree, startup founders aren't expected to understand treasury/cash management. But their investors and board members should! Rule #1 don't put millions of dollars in an uninsured checking account. If you are a VC/board member and don't understand that, shame on you!

Twitter right now: A bunch of people who couldn't manage a lemonade stand telling business owners they needed to read the fine print when they opened their bank accounts and should spend more time on FDIC risk management.

@DavidSacks Your poll is offering a false dichotomy. The question isn't "Which checking account should I put millions of dollars in?" It is - how do you properly manage operating cash with cash managers and custody accounts. Forget the commercial banking account for $250K+ deposits. Own it!

@aap_twak @VivekGRamaswamy It's called a custody account, and cash management. You own securities, you have an investment policy. You don't trust some regional bank to invest millions of dollars in a black box. Why do people assume $250K FDIC accounts are meant for millions in operating capital?

@VivekGRamaswamy Why is it such an impossible ask that a company be able to keep its money in a single bank account? Surely some financial structure on a bank's side should be able to keep it safe.

If you want to raise the FDIC deposit insurance limit above $250k, then do it prospectively for *all* Americans. Don’t retroactively change rules on the fly after, especially for SVB which itself lobbied for years for loose risk limits claiming it wasn’t “systemically important.”

@amuse @VivekGRamaswamy If you have $400M in operating cash sitting in a checking account?? You should have already hired a treasurer who knows how to do cash management like the big kids. You think Apple and Google have their operating cash sitting in some commercial bank?

The idea that depositors should be BETTER at determining The health of a bank than bank regulators is ludicrous. If they do they need to be accredited investors - unsophisticated Americans shouldn’t be allowed to deposit their money in banks. Depositing money into a banking account should be safe - a no brainer.

@DavidSacks I'll bet more than half (most) of the deposits (by number not dollar) in the US are less than $250K. So, they are probably trustworthy. You screwed up by letting your portfolio companies put millions in a CHECKING ACCOUNT!

In reality, this has little or nothing to do with tech. It’s about whether half the deposits in the US (which are uninsured) can be trusted.

I’m not asking for a bailout. I’m asking for banking regulators to ensure the integrity of the system. Either deposits in the US are safe or they’re not. If not, look out below. We have a very big problem on our hands.

@DavidSacks I don't expect most depositors (e.g. startups) to understand the incredibly risky behavior they DID engage in. But, you as a board member should know better. Do you think Apple and Google put their operating cash in any bank's money market fund? Of course not! Nor should you!

SVB’s customers are being treated like they engaged in some incredibly risky behavior for which they’re being unfairly bailed out. But all they did was open a bank account! That’s not an investment, it’s a deposit.