[jqpabc123]

Each bank your money is in increases FDIC coverage by 250K.

Who is the owner of record on these Mercury accounts at "other banks"?

Can I withdraw *my* money from these "other banks" without Mercury involvement or approval? If not, then *Mercury* may have increased FDIC coverage but the Mercury depositor does not.

[MaxGabriel]

"other banks" was a bit ambiguous, here's the list of banks for our partner Evolve: https://www.getevolved.com/openbanking/fdic-mercury/

You as the customer are the owner of record on the funds. The accounts are held by our partner banks at these other banks, as your agent and custodian (something like "Evolve Bank and Trust for benefit of Acme Corp).

The FDIC insurance applies to the business holding the funds; it is definitely not insuring Mercury itself.

You do need to use Mercury to withdraw the funds; we still run all the authorization and compliance rules around this, and there isn't a facility for you to go into eg United Texas Bank and ask for your money. That said, if Mercury were to go bankrupt tomorrow, your funds are held by our partner banks who have full KYC/KYB info on you would be able to access all your funds.

[chernevik]

> you would be able to access all your funds

How fast and how?

You might consider providing a "living will" document that keeps your clients up-to-date on where the $$$ are and how they access them. If I'm using something like this I would want to be sure I can make payroll the day after you vanish.

(Not a potential customer or cash management expert, prioritize accordingly.)

[jqpabc123]

How fast and how?

My best guess, not until OK'd by a bankruptcy judge. You may have a strong claim on the funds but so does Mercury --- hence the fact stated above that you can't withdraw without their approval. On the other hand, they may be able to withdraw without your approval. A bankruptcy judge is the only one who could override their claim and release these funds to you.

Remember, SVB was an FDIC bank. The reason depositors are able to withdraw money today is because of the quick actions of the FDIC.

[chernevik]

That doesn't sound even remotely close to right.

If the client is the owner of record Mercury hasn't any claim at all.

[jqpabc123]

My guess, this is a trust/FBO co-mingled type account of some sort.

Only Mercury knows the exact structural details but based solely on their statement above, they have significant control and claims that you can't easily override yourself.

I wouldn't count on this all being resolved quickly in the event of a bankruptcy.

[qqqwerty]

This is the question that needs to be answered before everyone starts throwing their money at these sweep accounts.

SVB offered sweep accounts. Guess how that worked out for folks with money in those accounts? They lost access just like everyone else. If you had a sweep account and you needed to make payroll on Friday, you were not protected.

[chernevik]

I expect these funds would have been available Monday, but I'm not a cash flow management expert and don't know the mechanics of how sweeps work.