According to the article, in previous cases the Courts have found the banks responsible for losses held in 3rd party vaults, presumably to discourage exactly this kind of effort to dodge liability.
Oh of course. But someone made the business decision anyway.
Storing money is probably the single oldest operating practice in history of banking. If you time travelled a banker from 1920 to 2020, he’d adapt pretty quickly.
An incompetent company like Garda shouldn’t be able to get away with fraud at this scale.
The regulations and internal controls are fubar.
The banks might be ultimately responsible, but if they go under the FDIC is still responsible for repaying the depositors. What else are you going to tell them? "Sorry grandma, FDIC deposit insurance doesn't cover losses held in 3rd party vaults so all your life savings are lost" would be political suicide.
Storing money is probably the single oldest operating practice in history of banking. If you time travelled a banker from 1920 to 2020, he’d adapt pretty quickly.
An incompetent company like Garda shouldn’t be able to get away with fraud at this scale. The regulations and internal controls are fubar.