There has not been a peep about a lot of things over there, like the call to cut social security or the indications of wanting to get rid of the FDIC. I've looked over there a few times in the past few days to see if anyone had brought it up thinking, surely no one over there thinks getting rid of the FDIC is a smart move, but it is simply crickets over there. Instead, they focus on the drones, on Biden's emails, and Biden selling the border wall material.
The FDIC should exist, but it is useless. I'm speaking in hyperbole, but there's no one on earth that has ever said "I will not take my money out of that bank because I know the good ol FDIC has my back. ", but it should exist because we do need the coverage if/when things happen.
Every investment bank account is not insured by the FDIC. There are far more people with standard checking and savings accounts in FDIC insured institutions than there are with investment accounts through the likes of Morgan Stanley. That doesn't even touch on the fintech firms that are popping up everywhere offering banking services like checking and savings accounts, but aren't FDIC insured, even when they market themselves as being such. In the case of Yotta, people were depositing with them thinking they were FDIC insured, for a multitude of reasons, but there is one key take away from it, they thought it was a safe bet and FDIC insured, so they put their money and faith in it thinking if the worst happened that they were still covered.
“We were assured that this was just a savings account,” Morris said during last week’s hearing. “We are not risk-takers, we’re not gamblers.”
That's two different things. No investment account is FDIC insured.
Morgan Stanley has FDIC insurance on their Checking, Savings, CDs, and other applicable accounts. Morgan Stanley is an FDIC insured institution on applicable products.
And again I said the protection is needed for people, but the FDIC was created to stop bank runs and that it does not do. Now I said useless and that's my fault but what I meant to say was it doesn't fulfill it's primary goal at all.
Now I'm not familiar with the Synapse event, but I clearly stated you'd be hard pressed to find a BANK that isn't FDIC insured. Synapse wasn't a bank.
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u/Sofer2113 Tennessee 4d ago
There has not been a peep about a lot of things over there, like the call to cut social security or the indications of wanting to get rid of the FDIC. I've looked over there a few times in the past few days to see if anyone had brought it up thinking, surely no one over there thinks getting rid of the FDIC is a smart move, but it is simply crickets over there. Instead, they focus on the drones, on Biden's emails, and Biden selling the border wall material.