Paraklete® Financial, Inc.’s Post

In April, the Federal Deposit Insurance Corporation (FDIC) implemented a final rule to simplify deposit insurance regulations for trust accounts. These changes aim to make the rules easier to understand for both depositors and bankers. Here are the key highlights: https://lnkd.in/e4VBST5Y

Dear The Washington Post: I get it. Deposit insurance can be surprisingly complicated. But this statement is patently false and should be corrected. In general, you are insured for up to $250,000 per *BANK*, not per account. This becomes slightly more complicated if you have a mix of sole ownership accounts, jointly held accounts, or are a beneficiary on an account, because coverage is separate for different types of ownership. If you need to know how much coverage you have, the Federal Deposit Insurance Corporation (FDIC)'s Electronic Deposit Insurance Estimator (EDIE) can help (https://edie.fdic.gov/) or consult a trusted financial advisor. A link to the article and the fact-checking failures therein can be found in the comments.

Here's your answer: On January 21, 2022, the FDIC revised the deposit insurance rules for trust accounts, with the changes set to be implemented on April 1, 2024. These adjustments aim to simplify the insurance coverage calculation for revocable and irrevocable trust accounts, though they might result in reduced coverage for depositors with substantial balances in their trust accounts. According to the new regulations, a grantor's trust accounts at any given financial institution will be insured up to $250,000 per beneficiary, for a maximum of five beneficiaries, leading to a potential total coverage limit of $1,250,000. This means that the insurance coverage for a trust account is calculated by aggregating a grantor's deposits and considering only the primary beneficiaries, excluding the grantor(s) and any contingent beneficiaries. If you have any further questions, contact our office! 📲(724) 862-4860

Interesting change to a rule most people likely didn’t realize. It’s worthwhile to review the rules and account titling to be certain you do have the protection you believe you have. The lesson has been learned often that financial conditions for a is an change very quickly and unexpectedly. Remember FDIC insurance doesn’t apply to most investment accounts The reason is your investments are not subject to the general creditors of the custodian that holds your investments, they are yours! So where may these different rules apply to very similar investments? Money Market accounts. If you’re unsure how this all works, make sure you have the conversation with your advisor soon.

#BusinessLawToday | The example of IntraFi Cash Service illustrates how FDIC insurance maximization programs work and how the depositors and their lenders are protected. Read: https://ow.ly/A0hc50UaYp7 #BusinessLaw #FDICInsurance #DepositPrograms #FinancialProtection #BankingSecurity #IntraFi Emily Pollak, Edwin (Ed) Smith, Penelope L. Christophorou Morgan, Lewis & Bockius LLP LLP

DCUC urges the Consumer Financial Protection Bureau to include credit unions in deposit insurance expansion talks. Parity, flexibility, and recognition of the CU model are vital to protect members' deposits. Read more on CUtoday: https://buff.ly/3Z2IwXv #CreditUnions #FinancialSecurity

#PersonalFinance | To ensure that the #money from your #MF investments, bank accounts and term insurance is paid out in phases, similar to a systematic withdrawal plan for MFs, specific legal arrangements need to be made. Got a question? #AskMint

Businesses that want the ultimate protection for their cash reserves have several types of accounts to choose from. Learn the most common types of FDIC insured investments and when to use them in our latest article. #FDIC #businesscash #safety https://lnkd.in/eJEZi3TF

Aggressive with passives On 30 July, the board of the U.S. Federal Deposit Insurance Corporation (FDIC) voted to propose an "Amendment to Regulations Implementing the Change in Bank Control Act" (#cbca), which, if adopted, would put an end to the exemption, enjoyed by passive funds, from the notice requirement for acquisitions of voting securities of a bank with an FDIC-supervised subsidiary institution. Under current practices, when a party's acquisition brings it above a threshold of 10pc of voting securities, it must file a notice OR rebut the presumption of control in a passivity agreement/commitment (which may include promises not to seek board representation or not to seek to influence the policies of the supervised institution, etc.). The FDIC has such agreements with three asset managers (BlackRock, Vanguard, and State Street) and relies largely on self-certification in its oversight of commitments. When the federal reserve reviews a notice, an exemption to file with FDIC currently applies (and the FRB has accepted passivity commitments in lieu of notice) - the FDIC proposes to do away with the exemption so as to increase its oversight of such transactions and of the potential influence of 'fund complexes'. While maintaining oversight over bank control, e.g., to ensure a competitive playing field and protect consumers, is perfectly legitimate, this proposed amendment should also be viewed in the context of the highly successful efforts by the fossil fuel industry to restrict the integration of #climatechange concerns into investment management (see comments). Making transactions in bank stocks more burdensome or uncertain could make owning these stocks less attractive, to the detriment of their issuers. 60-day comment period. #esgintegration #shareholderrights #financialregulation #proxyvoting #engagement

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