[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.