For close to a century, putting your savings into a federally insured bank has been a sure thing: If the institution fails, up to $250,000 of your money will be protected.
The promise of bank insurance — a tenet of U.S. consumer protection since the Great Depression — is now being tested by a crisis swirling around online-only lenders with hundreds of millions of dollars of deposits between them.
Most depositors have little clue where their money has gone, and whether they will get any of it back.
It operated banking software for fast-growing online lenders with names like Juno, Yieldstreet and Yotta.
Their slick websites advertise insurance from the Federal Deposit Insurance Corporation, the U.S. agency that pledges to pay back lost funds.
Persons:
you’ve
Organizations:
Synapse Technology, Federal Deposit Insurance Corporation, U.S .
Locations:
U.S