You're joking, right? FDIC limit is $100k which is an immaterial amount for businesses, thus FDIC is not a consideration.
In the US, the banks and brokerage firms are in bed with the criminals - rather than jailing bank/brokerage execs that enable banking account thefts and credit card thefts, Congress permits the creation of an industry where consumers are suppose to buy credit protection.
Look no further than an SI poster that said his entire Ameritrade account was completely liquidated by a thief while Ameritrade actually knew about the theft in progress yet did nothing.
Ameritrade allowed the thief to take the money from his Ameritrade account, even though the person phoned Ameritrade and told them someone was selling every stock he had, one by one that day, and he was telling this to the Ameritrade representative precisely as the thief continued to sell every stock position he had at Ameritrade. The Ameritrade representative refused to put a lock on the account, so the thief continued to sell every stock he had and was then further able to actually withdraw his entire brokerage account - even though Ameritrade had been forewarned.
And this person was protected by so-called American "consumer laws", so you can imagine how crappy the laws are for businesses which have no protection whatsoever.
For example, do you realize that in the USA, any thief could enter your online corporate US banking accounts and steal the entire funds without the bank ever returning the money? You have zero protection.
Corporate banking accounts are not protected from any thefts conducted online.
In fact, America's legislatures have enabled an entire industry around theft that's specific to 401ks. Even for bank negligence, corporations are asked to PAY for theft protection for their 401ks. Have you ever seen an Erisa bond contract for a 401k corporate plan? It has a line-item cost for "theft" protection. Another line-item cost for "employee theft". Another line-item cost for "online theft". Another line-item cost for "fraud". Another line-item cost for "Erisa compliance" which is the only item you are legally required to buy. Another line-item cost for "forgery."
You'd think the first line-item "theft" should cover all thefts, but it doesn't - they love to find ways to charge you for the banking industry's own negligence.
Meanwhile, in some foreign countries a thief would lose a hand for stealing, so take your pick.
The US banking industry is not globally competitive because Congressional laws permit the banks to enable thefts.
Regards,
Amy J PS Another huge negative for keeping money in the USA, everyone has easy access to information on any corporate US-based banking accounts. For $79, they could find out how much your company spends if you use USA accounts, how much your company has if you use USA accounts, and how much your company deposits into US accounts, but that's only true if you do banking in the USA.
.................... However, if you keep corporate funds in overseas accounts, no competitor will be able to find out how much money your corporation has, nor how much your corporation spends, because that information is not available overseas. I've known some pretty desperate executives that once asked me how much money this one particular competitor was earning overseas because the executives had absolutely no way of finding out how much money was in their foreign accounts. Keeping any money in US bank accounts, is basically like writing your corporation's private information on a toilet stall, so it's a competitive disadvantage if a private corporation keeps any money in US banks or if one does any transactions via any banks in the USA. You're much better off not doing US-based banking transactions. No one could ever guess how many millions of dollars we raised by looking at our US bank accounts. If you want your financial information to be kept confidential from your competitors so you take them by surprise, you must not keep your funds in any bank in the USA and you must also refuse to fill out the form (forgot what it's called) the USA govt asks you to fill out when you raise money in the USA - because it is precisely this specific govt form that becomes public information into DNB, VentureOne, etc. The govt only charges a small fine to your corporation if they ever find out your law firm did not submit the form because they didn't get your signature. |
