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Nov 22, 2024
12:58:42pm
Jesse Pinkman All-American
The technical reason is that funds weren't on deposit with a bank - they
were on deposit with a non-FDIC-insured fintech company. The lesson here is to make sure you don't have anything other than nominal amounts on deposit with non-insured banks and credit unions (stuff like Venmo). Those fintechs say they offer pass-through FDIC insurance, but like with Synapse, you're largely taking their word for it because the banks today aren't reconciling small fintech deposits against the ominbus account(s).
Jesse Pinkman
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QuickCoug
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Jesse Pinkman
Joined
Feb 6, 2002
Last login
Nov 22, 2024
Total posts
20,912 (36 FO)