21–30 of 55 posts
Both Wealthfront or Betterment are not banks but offer high-interest cash accounts that are FDIC insured. I've been curious what would happen if your money disappears from one of these high-interest cash accounts since they are technically not banks.
Earlier quoted context omitted.
JPMC bough First Republic and already I’m ready to leave. Fees are high and many, and there’s no direct relationship like there was with SVB or FRB. Just a call center.
Were you using FRB for private banking or commercial banking? Private/Relationship banking might be lackluster with JPM depending on your account size. Idk if I'd trust a non-FDIC insured bank and any bank that isn't Basel 1/2 compliant so most Neobanks seem too risky. They anyhow prefer to use state chartered banks which tend to be significantly more brittle than nationally chartered banks.
I’m not sure what to do about my startup’s account though. Chase doesn’t seem to understand startups anyway — you’re a small business or a big business. For the company’s money I want someone who gives a shit.
Earlier quoted context omitted.
So then Mercury waving a big flag about how accounts are FDIC-insured is more about them being made whole if one of the banks they contract with goes under, not about ensuring that their customers are ultimately made whole?
The big risk is that Mercury goes out of business. This leaves the bank with money in Mercury accounts but no way to get back to customers. The funds may be considered to be the companies in bankruptcy, when means that customers would have to wait and may not get back all their money.
Earlier quoted context omitted.
Have you considered JPMC? FRB's tech portfolio and team is now part of them, and a number of SVB accounts ik of move there as well.
JPMC bough First Republic and already I’m ready to leave. Fees are high and many, and there’s no direct relationship like there was with SVB or FRB. Just a call center.
True, I am not wealthy enough for Chase to care, but they send me marcom as if I had zero understanding of finance, to the point of it being offensive.
I am in the process of moving my personal accounts out, to another bank who is willing to put me in the correct cohort (I realized I’m paying them ~$500/year for that btw. Which is very little considering the costs). My mortgage would stay at Chase, because of interest rates, and I’ll have to keep getting marcom that assumes I think of it as a IOU and not a financial instrument.
Both Wealthfront or Betterment are not banks but offer high-interest cash accounts that are FDIC insured. I've been curious what would happen if your money disappears from one of these high-interest cash accounts since they are technically not banks.
Neither Wealthfront nor Betterment appear on the FDIC’s own list of insured institutions, so my guess is that if something wrong your money could disappear between the cracks, as in the example in the article. https://banks.data.fdic.gov/bankfind-suite/bankfind
Wealthfront and Betterment are tiny compared to others, but share the same field with the big players who have interest to not make people scared shitless.
It is the fast and loose, innocent because proving guilt is an effort, fintech I am sacred of: crypto, binary options etc.
And it's gone!
Earlier quoted context omitted.
Neither Wealthfront nor Betterment appear on the FDIC’s own list of insured institutions, so my guess is that if something wrong your money could disappear between the cracks, as in the example in the article. https://banks.data.fdic.gov/bankfind-suite/bankfind
There are very strong guarantees of that not to happen. Wealthfront and Betterment are tiny compared to others, but share the same field with the big players who have interest to not make people scared shitless. It is the fast and loose, innocent because proving guilt is an effort, fintech I am sacred of: crypto, binary options etc.
Earlier quoted context omitted.
Were you using FRB for private banking or commercial banking? Private/Relationship banking might be lackluster with JPM depending on your account size. Idk if I'd trust a non-FDIC insured bank and any bank that isn't Basel 1/2 compliant so most Neobanks seem too risky. They anyhow prefer to use state chartered banks which tend to be significantly more brittle than nationally chartered banks.
I had both. I switched my personal to the Sanford credit union (I don’t keep a lot of cash in my account anyway). I’m not sure what to do about my startup’s account though. Chase doesn’t seem to understand startups anyway — you’re a small business or a big business. For the company’s money I want someone who gives a shit.
For your startup, check out HSBC as well then - a lot of SVB and FRB staff specialized in tech commercial banking switched there as well.
Also maybe try and find where your former SVB banker with whom you had a relationship went - they could help with the transition and give you the care needed.
Earlier quoted context omitted.
The big risk is that Mercury goes out of business. This leaves the bank with money in Mercury accounts but no way to get back to customers. The funds may be considered to be the companies in bankruptcy, when means that customers would have to wait and may not get back all their money.
That’s not really how it works. The keyword to google is “fbo”.