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>In June, the FDIC made it clear that its insurance fund doesn’t cover the failure of nonbanks like Synapse, and that in the event of such a firm’s failure, rec
by hammock 2y ago
>In June, the FDIC made it clear that its insurance fund doesn’t cover the failure of nonbanks like Synapse, and that in the event of such a firm’s failure, recovering funds through the courts wasn’t guaranteed.
Apparently not FDIC insured, despite the advertising. How is a consumer supposed to know whether their money is with a true “bank” or with a “fintech”?
Edit Re-read your comment again and we are saying the same things
- rachofsunshine 2y agoIt's usually in the fine print of their website, something like "insolvency.io is not a bank, your funds are handled by <some bank you've never heard of>".
- hammock 2y agoYes, brokerages do this with your cash sweep funds, but they always name actual partner banks. I believe the issue here is those banks moved the funds into non-banks