3 ms·

That's very odd, the entire first page was full of hits for me. What were you searching? Take a look at https://www.forbes.com/advisor/banking/ways-to-insure-e

by IncRnd 4y ago

That's very odd, the entire first page was full of hits for me. What were you searching? Take a look at https://www.forbes.com/advisor/banking/ways-to-insure-excess-deposits/ https://www.forbes.com/advisor/banking/ways-to-insure-excess.... It explains several methods, including extra deposit insurance from CDARS, MaxSafe, Depositors Insurance Fund, etc. It also explains cash management accounts, credit union overflow, using multiple banks, and so forth. I can't help but think a good CFO or comptroller would be well aware of these.

DennisP 4y ago
Yes, I'm aware that I can put money in multiple accounts, or get an account that spreads the money to multiple accounts for me. None of these are what I was responding to: the suggestion to "purchase 3rd party insurance." The closest in that article is DIF but even that isn't insurance you go and buy, it's another kind of special bank account available at DIF's member banks. As far as I can tell, you can't just go buy supplemental deposit insurance, but for some reason people keep suggesting that as something SVB's depositors should have done. (And as someone who's worked as the first employee of a startup, I can tell you it was while before we were able to get a CFO.)
- IncRnd 4y ago
  You can purchase DIF, when the account is at a participating bank. SVB chose not to participate in that non-FDIC program. However, SVB knew all about the program, even commenting on FDIC rule changes for it over a decade ago. [1] Ultimately, people will have to accept that SVB wasn't as trustworthy of a guardian as some other banks. It appears that people were pushed into using SVB, because it was part of the VC ecosystem. It's an individual CFO or Founder's decision as to whether to insure deposits or not, but claiming ignorance of the possibility is going to be ignored by a lot of others. [1] fdic.gov/resources/regulations/federal-register-publications/2010/10c20ad66rates.pdf
  - DennisP 4y ago
    I mentioned DIF above, and as I said there, it's not third-party insurance that you can go purchase. What you can do is get certain accounts that automatically include it for free: https://www.difxs.com/DIF/Home.aspx https://www.difxs.com/DIF/Home.aspx Here is the complete list of DIF-covered banks: https://www.difxs.com/DIF/DIFmemberbanks.aspx https://www.difxs.com/DIF/DIFmemberbanks.aspx It's a short list, they're small banks, and they all have addresses in Massachusetts. Wells Fargo and Bank of America, for example, are not on the list.
    - IncRnd 4y ago
      If you have an account in need of insurance in excess of the FDIC limits, you can speak with your CFO about depositor bonds or contact the appropriate party about any of the other methods in the links that were posted in this thread.
      - DennisP 4y ago
        Unless you have a link for these depositor bonds, I'll remain skeptical since they weren't mentioned in your previous link, google produces nothing obvious and DIF isn't at all what you'd claimed.
        IncRnd 4y ago
        You want me to google for you? You don't seem serious. Here you go anyway with 5 out of the top 6 links on the first page from Google.com. Hopefully, these links will help someone who is looking for information on how to secure their bank account. The normal method for this insurance is to call an insurance company and ask for excess deposit insurance. This should be your first step. But, it seems very strange to me that you are beligerently asking people on the internet for financial information that you don't appear to need. 1. Understand How a Depositor Bond Works [1] 2. Depositor bonds for FDIC-insured deposit accounts [2] 3. Excess Deposit Guarantee Surety Bond [3] 4. Bond Penalty: Based on Coverage Requested Excess FDIC Limits [4] 5. Hello old friend – The reappearance of excess deposit bonds [5] Here is the summary copied from the first link, in case you don't want to load the link from here or from Google. In summary, the Depositor Bond provides a third party guarantee (from the insurance company who is called the Surety) that deposits will in fact be returned to the depositor. Depositor bonds are designed to be “Excess FDIC Insurance Coverage” and coverage begins at the point where the $250,000 FDIC insurance obligation ends. [1] [1] https://www.depositorbonds.com/understand-how-a-depositor-bond-works/ https://www.depositorbonds.com/understand-how-a-depositor-bo... [2] https://www.travelers.com/iw-documents/surety-bond/59375-depository-bonds.pdf https://www.travelers.com/iw-documents/surety-bond/59375-dep... [3] https://surety1.com/bond_info/excess-deposit-guarantee-surety-bond/ https://surety1.com/bond_info/excess-deposit-guarantee-suret... [4] https://suretyone.com/bank-depository-bond https://suretyone.com/bank-depository-bond [5] https://www.cuinsight.com/hello-old-friend-the-reappearance-of-excess-deposit-bonds/ https://www.cuinsight.com/hello-old-friend-the-reappearance-...

by IncRnd 4y ago

DennisP 4y ago

Yes, I'm aware that I can put money in multiple accounts, or get an account that spreads the money to multiple accounts for me. None of these are what I was responding to: the suggestion to "purchase 3rd party insurance." The closest in that article is DIF but even that isn't insurance you go and buy, it's another kind of special bank account available at DIF's member banks. As far as I can tell, you can't just go buy supplemental deposit insurance, but for some reason people keep suggesting that as something SVB's depositors should have done. (And as someone who's worked as the first employee of a startup, I can tell you it was while before we were able to get a CFO.)

IncRnd 4y ago
You can purchase DIF, when the account is at a participating bank. SVB chose not to participate in that non-FDIC program. However, SVB knew all about the program, even commenting on FDIC rule changes for it over a decade ago. [1] Ultimately, people will have to accept that SVB wasn't as trustworthy of a guardian as some other banks. It appears that people were pushed into using SVB, because it was part of the VC ecosystem. It's an individual CFO or Founder's decision as to whether to insure deposits or not, but claiming ignorance of the possibility is going to be ignored by a lot of others. [1] fdic.gov/resources/regulations/federal-register-publications/2010/10c20ad66rates.pdf
- DennisP 4y ago
  I mentioned DIF above, and as I said there, it's not third-party insurance that you can go purchase. What you can do is get certain accounts that automatically include it for free: https://www.difxs.com/DIF/Home.aspx https://www.difxs.com/DIF/Home.aspx Here is the complete list of DIF-covered banks: https://www.difxs.com/DIF/DIFmemberbanks.aspx https://www.difxs.com/DIF/DIFmemberbanks.aspx It's a short list, they're small banks, and they all have addresses in Massachusetts. Wells Fargo and Bank of America, for example, are not on the list.
  - IncRnd 4y ago
    If you have an account in need of insurance in excess of the FDIC limits, you can speak with your CFO about depositor bonds or contact the appropriate party about any of the other methods in the links that were posted in this thread.
    - DennisP 4y ago
      Unless you have a link for these depositor bonds, I'll remain skeptical since they weren't mentioned in your previous link, google produces nothing obvious and DIF isn't at all what you'd claimed.
      - IncRnd 4y ago
        You want me to google for you? You don't seem serious. Here you go anyway with 5 out of the top 6 links on the first page from Google.com. Hopefully, these links will help someone who is looking for information on how to secure their bank account. The normal method for this insurance is to call an insurance company and ask for excess deposit insurance. This should be your first step. But, it seems very strange to me that you are beligerently asking people on the internet for financial information that you don't appear to need. 1. Understand How a Depositor Bond Works [1] 2. Depositor bonds for FDIC-insured deposit accounts [2] 3. Excess Deposit Guarantee Surety Bond [3] 4. Bond Penalty: Based on Coverage Requested Excess FDIC Limits [4] 5. Hello old friend – The reappearance of excess deposit bonds [5] Here is the summary copied from the first link, in case you don't want to load the link from here or from Google. In summary, the Depositor Bond provides a third party guarantee (from the insurance company who is called the Surety) that deposits will in fact be returned to the depositor. Depositor bonds are designed to be “Excess FDIC Insurance Coverage” and coverage begins at the point where the $250,000 FDIC insurance obligation ends. [1] [1] https://www.depositorbonds.com/understand-how-a-depositor-bond-works/ https://www.depositorbonds.com/understand-how-a-depositor-bo... [2] https://www.travelers.com/iw-documents/surety-bond/59375-depository-bonds.pdf https://www.travelers.com/iw-documents/surety-bond/59375-dep... [3] https://surety1.com/bond_info/excess-deposit-guarantee-surety-bond/ https://surety1.com/bond_info/excess-deposit-guarantee-suret... [4] https://suretyone.com/bank-depository-bond https://suretyone.com/bank-depository-bond [5] https://www.cuinsight.com/hello-old-friend-the-reappearance-of-excess-deposit-bonds/ https://www.cuinsight.com/hello-old-friend-the-reappearance-...