WASHINGTON, D.C.— Stephen Hall, Better Markets’ Legal Director and Securities Specialist, issued the following statement on a comment letter filed with the Federal Deposit Insurance Corporation (“FDIC”) on its proposal to fight consumer confusion and false claims surrounding deposit insurance:
“In the wake of failures at Silicon Valley Bank, Silvergate, and others, consumers are experiencing growing uncertainty about the safety of their money in their bank accounts, and whether the banks insure their deposits against losses. Making matters worse, we’ve seen a wave of abuses involving misleading claims surrounding deposit insurance, largely from crypto firms that want to lull investors into a false sense of security so they’ll be more willing to part with their money. When these firms go under, consumers often learn the painful truth that their funds weren’t protected. These trends are contributing to large financial losses and also undermining confidence in our banking system.
“This proposal from the FDIC represents an important step toward better informing and protecting consumers when it comes to the safety net they expect from banks offering deposit insurance. But as we detail in our comment letter, it must go further by cracking down on unscrupulous firms that deceive consumers outright or through deliberately vague statements regarding deposit insurance. Recent history shows that public warnings coupled with a string of cease-and-desist orders won’t change the...
Schubert Jonckheer & Kolbe LLP advises Vistagen Therapeutics, Inc. (NASDAQ: VTGN) investors that the firm is investigating potential legal claims arising from alleged false statements about Vi...