Any comment on what issues there are with paying somebody to open accounts for you with, I assume- a power of attorney allowing them to do explicitly that?
At that point the only thing at risk is fraudulent use of said POA, and whatever funds are held outside of actual accounts.
> At that point the only thing at risk is fraudulent use of said POA, and whatever funds are held outside of actual accounts
Which exactly the reason why the FDIC didn't intervene in the article: the Fintech startup didn't deposit the unaccounted(!) millions of customer funds into FDIC-insured accounts. The law should be tightened up to prohibit claims of FDIC protection without meeting the reporting and deposit process requirements.
The two scenarios:
1) handing a business your life savings to manage, a
2) authorizing a company to manage your finances so they're in FDIC insured accounts
Are completely different. There's no laws to update, and the FDIC isn't skittering out of paying on a technicality.
And, frankly, if anybody reading this is looking at option #2- do yourself a favor and get an accountant and a wealth manager that both have fiduciary duties. Might as well find a lawyer as well.
At that point the only thing at risk is fraudulent use of said POA, and whatever funds are held outside of actual accounts.