4 ms·
No, fiduciary assets are segregated. See, 12 USC 92a(c) and corresponding implementing regulation 12 CFR §9.13(b). The Fed is not a good example of how banks t
by elliekelly 4y ago
No, fiduciary assets are segregated. See, 12 USC 92a(c) and corresponding implementing regulation 12 CFR §9.13(b).
The Fed is not a good example of how banks typically operate or how banking regulations are typically implemented because the Fed is not a typical bank.
12 USC 92a: https://www.law.cornell.edu/uscode/text/12/92a https://www.law.cornell.edu/uscode/text/12/92a
12 CFR §9.13: https://www.law.cornell.edu/cfr/text/12/9.13 https://www.law.cornell.edu/cfr/text/12/9.13
- lxgr 4y agoRegular bank deposits are not fiduciary assets though, no? If they were, what would be the point of FDIC? Securities are a different story – in that case, a bank or brokerage really only acts as a custodian for the accountholder, not adding them to their balance sheet.