Case in point: ETRADE. Just received an update to the customer agreement. The definition of “Force Majeure Event” (unforeseeable circumstances) was updated to include cybersecurity incidents. Also this: ETRADE ... makes no representation or warranty of any kind ... with respect to security.
https://us.etrade.com/e/t/estation/help?id=1209031000
and the new:
https://content.etrade.com/etrade/estation/pdf/10118customer...
Here's the new force majeure definiton:
> “Force Majeure Event” shall mean any act beyond E-TRADE’s control, including any earthquake, flood, severe or extraordinary weather conditions, natural disasters or other act of God, fire, acts of war, acts of foreign or domestic terrorism, insurrection, riot, strikes, labor disputes or similar problems, accident, action of government, government restriction, exchange or market regulation, suspension of trading, communications, system or power failures, cybersecurity incident, and equipment or software malfunction.
Here's the new force majeure clause:
> No Liability for Indirect, Consequential, Exemplary, or Punitive Damages; Force Majeure In no event shall any E-TRADE Indemnified Parties be held liable for (i) indirect, consequential, exemplary, or punitive damages or (ii) any loss of any kind caused, directly or indirectly, by any Force Majeure Event, and the Account Holder unconditionally waives any right it may have to claim or recover such damages (even if the Account Holder has informed an E-TRADE Indemnified Party of the possibility or likelihood of such damages).
Wow. First they define acts beyond their control to include things clearly within their control. Then they say they're not liable for "any loss of any kind" resulting therefrom.
These contracts are maddening because they won't be enforced as written until they are. Until a loss due to an avoidable issue costs them more to cover than it does in reputational damage. So it doesn't get reported because it doesn't feel like a real policy.
New York law applies here. If you sue them and lose, you pay their attorney fees. You've waived the right to a trial by jury and have likely agreed to forced arbitration unless you've explicitly opted out (see last page).
While the contract states that, that part should actually be unenforceable unless a certain set of conditions is in place.
As I noted in another post, it's important for people to review the rules of governing arbitration forum.[1] That said, law is more an art than a science and weird determinations are often made when major $$ and entrenched interests are involved.
[1] https://news.ycombinator.com/item?id=17566966
edit: speaking only in regards to arbitration
I don't really trust them to keep my money safe (nor do I trust myself, exactly, but I'm in a remote location and an unlikely target).
Easy. Don't keep it all in one place.
Also, don't you care about interest or capital gains?
The interest rate on savings is under 3%. It's like paying that amount on an insurance policy to guarantee that your money isn't stolen by the bank or through the bank's negligence. And considering how banks behave these days, that's not a crazy investment.
It's shocking how many people make this error. Walter White buries millions of dollars in only one spot in Breaking Bad. People make only one copy of their cryptocurrency wallet seed. People have only 1 bank account. Etc.
It’s a pretty sweet deal so I’m wondering if there isn’t anything like that in the US. With SV I’d be very surprised if the U.K. is pioneering this
Retail banking is pretty heavily regulated in the US so maybe that's the issue? I've seen a lot of startups in other banking areas, like Mint or Square, but none for checking/savings accounts.
More here: https://www.moneycrashers.com/best-free-checking-accounts/
The logical maneuvering the insurance companies employed to avoid paying their shares would have been awe inspiring to behold if I was not personally involved and therefore caught in the middle of a devastating situation.
If I learned anything, it’s that marketing B.S. and testimonials mean absolutely nothing when a transportation company is at fault after an accident. Also, always insure your classic automobiles with “agreed upon value” policies. This way you are covered to some reasonable fraction of your restoration outlay...otherwise you end up cry-laughing when the low-ball, hand-selected comparative values show up for significantly under the value of your receipts.
FDIC insures deposits in U.S. branches up to $250k per account, IIRC;
SIPC covers securities held by brokerages, (forget the amount).
Vanguard's user agreement says this:
Data security is, of course, a top priority. To mitigate computer virus attacks and other acts of cyberterrorism, We have implemented controls monitored by a dedicated team of information security specialists. We also maintain a network of redundant systems, off-site data storage, and off-site tape vaults to ensure that all source data are recoverable in a disaster.