The Truth About the Security of Funds in the U . S . Banking System
What EB-5 investors need to know to best protect their investment .
By Reid Thomas
The recent turmoil in the U . S . Banking Sector hit close to home for EB-5 stakeholders . When Signature Bank was taken over by the Federal Deposit Insurance Corporation (“ FDIC ”), many questions , and concerns about the safety of investor funds arose . Signature Bank , who was thought to be the go-to bank for EB-5 deposits and ranked as the 29th largest bank in the country 1 , was even promoting their strong and stable balance sheet up to the day before the FDIC came in .
For investors , regional centers , and developers that require banks to be part of the overall solution , what should they know about the safety of the US banking system and what can they do to protect themselves . When a bank fails , is their money lost , how quickly can they get access to it , is there a better way ? What are the top things to know about bank safety and how to protect EB-5 funds ?
THE BIGGEST AND SAFEST BANKS DON ’ T WANT EB-5 DEPOSITS
At the end of 2022 , there were 4,135 FDIC insured commercial banks in the US2 however less than 10 banks would actually open an escrow account and take EB-5 deposits from
94 EB5 INVESTORS MAGAZINE