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Here's the key bit: Through our partner banks, customers get access to a sweep network that provides up to $3M in FDIC insurance by spreading your deposits acr
by rkagerer 4y ago
Here's the key bit:
Through our partner banks, customers get access to a sweep network that provides up to $3M in FDIC insurance by spreading your deposits across up to 12 different banks, including Goldman Sachs & Capital One, without requiring you to open or manage separate accounts.
- cryptonector 4y agoMany banks offer this. It's a bit silly in that it's like not having any insurance limits, ah, but only for those in the know.
- mquirion 4y agoHow is this different from an insured cash sweep that practically every other bank offers?
- zamnos 4y agoMost of SVB's accounts apparently weren't sweep accounts.
- chernevik 4y agoYeah, why was that? Oops, sorry, not supposed to ask such questions.
- mcculley 4y agoMove fast, break things.
- p_j_w 4y agoI can't believe you would dare to imply that these companies and VCs actually bear some responsibility and that their incessant whining that it's not actually their fault at all isn't entirely true.
- mquirion 4y agoExactly. It's an abject failure of journalism if a dozen national journalists aren't currently sorting out why this was the case.
- cryptonector 4y agoAnother question is why bother having any explicit limits on FDIC coverage if there's effectively no actual limits on FDIC coverage.
- ac29 4y agoBecause spreading risk across multiple banks is an intended feature of the insurance limit, and reduces overall risk to the banking sector.
- notyourwork 4y agoFidelity does this if I understand correctly.