Post ATY82ZT6Y8fILHdSca by walshman23@mastodon.social
(DIR) More posts by walshman23@mastodon.social
(DIR) Post #ATXzAJqvaqaidkOlGa by jschuh@infosec.exchange
2023-03-12T16:36:21Z
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TBH I'm surprised that no one offers a B2B service to conveniently distribute funds across multiple FDIC insured accounts. Way back when I was a consultant I pentested/audited a few of these systems, so I know they exist and are used by big companies. Just seems like a pretty obvious business idea.
(DIR) Post #ATXzAKQNT2woPgz4WO by Viss@mastodon.social
2023-03-12T16:41:47Z
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@jschuh our accountants emailed us yesterday offering that sorta thing
(DIR) Post #ATXzAKuVf13Bv958UK by jschuh@infosec.exchange
2023-03-12T17:13:50Z
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@Viss As a standard package, or as more of a boutique thing? Because I'm not surprised that accounting firms will provide the service (I assume at a non-negligible price), but I'm just wondering why there aren't already businesses just doing this as a low-margin, high-volume, standalone service.
(DIR) Post #ATXzALNZuwIpNIgLnU by Viss@mastodon.social
2023-03-12T17:31:44Z
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@jschuh there probably are, but they dont have commercials or banner ads, heh. in our case it seems like a sorta last minute thing they pitched as a service they can provide if need be but id never seen it advertised before
(DIR) Post #ATXzALqICBGsoM7HYO by jschuh@infosec.exchange
2023-03-12T17:45:54Z
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@Viss I went searching around the last few days and couldn't find anything publicly advertised. Although, I wouldn't be surprised if all of a sudden a bunch of new startups pop up offering this sort of thing.The systems I looked at ~20 years ago appeared to use any FDIC insured bank that had an e-banking API. We're talking about thousands of banks of all sizes, spread out across the country. Seems like building something to tap that for SMBs would be a really good thing, and could also work out great for a ton of smaller regional banks.
(DIR) Post #ATXzAMQ633uYbOrsMS by alex@cybervillains.com
2023-03-12T18:04:09Z
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@jschuh @Viss I think this is what you are looking for, insured cash sweep accounts. Provided by a network of smaller banks that split your money into $250k chunks and park it at each other.https://en.wikipedia.org/wiki/Insured_Cash_Sweep
(DIR) Post #ATXzfEAKmsZHymDJWS by jschuh@infosec.exchange
2023-03-12T18:09:42Z
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@alex @Viss Yes! That's exactly what I was looking for. It had just been so long that I had no idea what the correct name was for it, and none of my searches were turning up anything useful.
(DIR) Post #ATXzvulIBSW2ipSQgS by alex@cybervillains.com
2023-03-12T18:12:45Z
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@jschuh @Viss It's the perfect old-school banking product. Extremely useful, and named in such a manner that it's impossible to find unless you already know about it.
(DIR) Post #ATY82ZT6Y8fILHdSca by walshman23@mastodon.social
2023-03-12T19:43:36Z
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@alex @jschuh @Viss At https://www.intrafi.com/network-banks/, SVB is listed as a participant.
(DIR) Post #ATYD4Gm5WVQWiM8zh2 by Viss@mastodon.social
2023-03-12T20:39:58Z
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@alex @jschuh this is a neat find! thanks Alex!
(DIR) Post #ATYGbDGZt5FVFio0lE by alex@cybervillains.com
2023-03-12T21:19:34Z
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@walshman23 @jschuh @Viss Yeah, but you would have needed to explicitly ask for a sweep account and actively managed moving money in/out as necessary to get the coverage.Practically, I'm wondering if people with sweep accounts still have access this weekend or if they are also waiting, if just because SVB is still the gateway by which they get to their deposits. I haven't seen anybody talking about that yet.
(DIR) Post #ATYGjj0Xl29S0tMf4a by Viss@mastodon.social
2023-03-12T21:21:06Z
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@alex @walshman23 @jschuh the "everything works as advertised" possibility is that they saw this coming, and moved stuff out of svb, and that in part contributed to the run on the bank. the more realistic scenario is that they also didnt see it coming, but in theory their customers are still protected because the 250k-per-account architecture functions as advertised
(DIR) Post #ATYHLUvuXG1NMjD20G by alex@cybervillains.com
2023-03-12T21:27:52Z
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@Viss @walshman23 @jschuh Right, if you have an SVB sweep account you are feeling a lot better about your chances, I'm just wondering if an ACH transfer on Monday for Wednesday's $1M payroll run will work.
(DIR) Post #ATYIaZdjPy4sGGSUeu by Viss@mastodon.social
2023-03-12T21:41:47Z
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@alex @walshman23 @jschuh well i can tell you guys mine go - ours are well within the limits tho