Managing that risk is what the customer CFOs were supposed to do. Your average retiree or semi wealthy person knows the FDIC limits and manages their portfolio around them.

This is not a new risk for businesses in any industry and financial services exist to help manage that risk for companies with cash on hand.

I would instead ask why the SVB customers didn’t manage this risk. Others on HN said that banking with SVB was a requirement placed by many VC companies, which does tie the customer’s hands.