Is it reasonable for FDIC to provide insurance on corporate accounts for amounts greater than $250k if the cash is held for a specific purpose, such as, say, for employee payroll? Maybe it would make sense to have a short-term insurance class dedicated to something like that where a cash asset can be guaranteed, for a few days, or the ti…
Is it reasonable for FDIC to provide insurance on corporate accounts for amounts greater than $250k if the cash is held for a specific purpose, such as, say, for employee payroll? Maybe it would make sense to have a short-term insurance class dedicated to something like that where a cash asset can be guaranteed, for a few days, or the time it takes to transfer a risk-free asset like a treasury bond account to the payroll disbursement account and then disburse payroll. If a company wants to have its cash insured above a level of $250k, it would have to spread the account over multiple banks so that every account has 250k or less. For a large company that could be quite onerous, although maybe there are intermediaries that can handle transactions like that. Apparently you can't just create a bunch of LLCs specifically for the purpose of insuring more than 250k. If you are doing everything right and need to keep cash on hand to pay your employees, maybe it's reasonable to allow those kinds of transfers to occur in an insured way.
Is it reasonable for FDIC to provide insurance on corporate accounts for amounts greater than $250k if the cash is held for a specific purpose, such as, say, for employee payroll? Maybe it would make sense to have a short-term insurance class dedicated to something like that where a cash asset can be guaranteed, for a few days, or the time it takes to transfer a risk-free asset like a treasury bond account to the payroll disbursement account and then disburse payroll. If a company wants to have its cash insured above a level of $250k, it would have to spread the account over multiple banks so that every account has 250k or less. For a large company that could be quite onerous, although maybe there are intermediaries that can handle transactions like that. Apparently you can't just create a bunch of LLCs specifically for the purpose of insuring more than 250k. If you are doing everything right and need to keep cash on hand to pay your employees, maybe it's reasonable to allow those kinds of transfers to occur in an insured way.