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> Is this not the first time that they've done this? The US averages roughly 3-4 bank failures per year, so no, this is definitely not their first time (SVB wa
by LapsangGuzzler 3y ago
> Is this not the first time that they've done this?
The US averages roughly 3-4 bank failures per year, so no, this is definitely not their first time (SVB was the largest, though). This is a core function of the FDIC.
> Can’t ADP do this on their back end?
I suppose they could, but if there was a market incentive to create a tool like this, then why doesn’t it exist already? I’m not sure, but granting a non-banking 3rd party access to all of your financials does seem like a risk.
- anonymouskimmer 3y agoThat they've made every depositor whole above and beyond the $250k limit. > if there was a market incentive to create a tool like this, then why doesn’t it exist already? As mentioned elsewhere because people had forgotten the lessons of the S&L crisis. There would have been a market for it now had the FDIC not stepped in and said that they'd fully backstop everyone, regardless. Even if the FDIC had just given deposits above $250k 95% back instead of 100% back, there would be a market for such a tool. > but granting a non-banking 3rd party access to all of your financials does seem like a risk Maybe, but doesn't ADP already have this access, as it's doing payroll for you anyway?