Is Your Cash in a Real FDIC-Insured Bank or a Look-Alike? Are You Sure?
MarketWatch covered the current confusion many consumers are facing about which financial institutions are actually FDIC-insured and which are not. A report by the U.S. Government Accountability Office noted that "in some cases, fintech companies funnel multiple consumers’ funds into a single account established with a partner bank. If certain requirements are met, each of those consumers is insured up to the $250,000 FDIC limit." Ron Vaske added, "The account must be clearly identifiable as holding money beneficially for others, and there needs to be a ledger of who the beneficial owners are and the amounts attributable to them." Ron co-leads our Fintech and Payments Team.
Read the full article here. (Subscription may be required.)