After the collapse of a banking software company, which left users of cash management apps unable to access their money for months, the Federal Deposit Insurance Corporation, FDIC, proposed new rules to prevent similar situations from occurring again, Emily Flitter of The New York Times reports. The FDIC is now pushing to require traditional banks holding funds for fintech customers to know each person’s identity and keep daily tabs on their balances. This would help if a bank at the end of a long chain of software companies were to fail. Companies in the space include JPMorgan (JPM), Robinhood (HOOD), Block (SQ), American Express (AXP), Bank of America (BAC), Goldman Sachs (GS), Ally Financial (ALLY), Discover (DFS), Affirm (AFRM), Wells Fargo (WFC), and PNC Financial (PNC).
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