[michael_vo]

There’s a Forbes article that cites the FDIC stating that you are only covered if you open a bank account in your name - which isn’t the case here for all these users. And they further warned to not use these neobanks for every day banking.

Since synapse isn’t a bank, technically there hasn’t been a bank failure so fdic doesn’t step in.

There’s over 128BB in the fdic fund so we can easily bail these customers out. But they should figure out if it’s fraud or what not.

[lxgr]

There’s also pass-through coverage, which can apply in situations such as this, but that also only helps if the actual bank goes bankrupt, not any intermediary.

What really frustrates me is that many financial products state that pass through FDIC insurance may apply, sometimes listing various pretty arbitrary-sounding requirements for that.

As I see it, either a fintech makes sure these preconditions apply for all customers, or they shouldn’t get to mention FDIC insurance at all.

[stackskipton]

>There’s over 128BB in the fdic fund so we can easily bail these customers out. But they should figure out if it’s fraud or what not.

If FDIC is going to step in, it's clear regulation needs to be created that saying "We are FDIC Insured" is only allowed if your money directly transfers to bank account in your name.

[zer00eyz]

https://archive.is/psIUU This is the article. This answers some questions and leaves more.

How the hell do you get a checking account and a debit card from "not a bank"?

[figassis]

Those are essentially virtual accounts. A de it card does not have to link to a bank account, only a funding source. There are crypto debit cards.

[RecycledEle]

> 128BB

That's $128 Billion.