Comment by itake
1 year ago
FDIC would only get involved if the bank was insolvent?
If your bank and you have a disagreement over how much money should be in your account, then FDIC wouldn't be involved?
1 year ago
FDIC would only get involved if the bank was insolvent?
If your bank and you have a disagreement over how much money should be in your account, then FDIC wouldn't be involved?
Banking regulators definitely would get involved, but you'd have to do some research on who you'd complain to first. For example, with national banks, you would first file a complaint with the Office of the Comptroller of the Currency: https://www.consumer-action.org/links/articles/office_of_com...
But, in all cases, there is a clear process to ensure no money goes missing, either through fraud, mistakes or insolvency. Banks require the blessings of their regulators to operate, so they are highly incentivized to ensure all of their accounting is accurate. With fintechs no such regulatory framework exists (at least not yet).
Yotta or its customers don’t have relationship with the bank though .
This case is like FDIC be involved because say Robinhood or stripe or Shopify or any other saas app went bankrupt and their customers are mad they lost money