View Single Post
  #45  
Old 09-11-2019, 01:14 PM
Corry El is offline
Guest
 
Join Date: Jan 2013
Posts: 3,907
Quote:
Originally Posted by Beckdawrek View Post
What I meant was the bank will never be the loser. The wronged depositer and the thieves will lose. The banks ass is covered.
Actually the bank (its shareholders) *is* a loser if the stupid couple can't pay back what they owe or can't for years, time value of money, which seems likely. Because the bank definitely cannot tell the rightful owner of the money 'sorry, we can't give you back your money because in the meantime we gave it to the wrong person and they spent it'. The bank still owes the rightful depositor the money, and that depositor could absolutely take the bank to court in the far fetched scenario where the bank tried to give an excuse like that to not pay. And if paying depositors back money the bank had lost drove the bank to insolvency, the FDIC would make whole any depositors who got shorted, up to the applicable limits.

The law is as it is from POV of knuckleheads employing 'finders keepers' as a blanket legal axiom in part as a logical result of the principal that banks aren't released from their liabilities by mistakenly giving the money to the wrong person. The integrity of the system would be compromised by saying errors by bank employees were strictly the problem of the bank's owners or particular depositors or (if big enough) all depositors if the people erroneously receiving the money, and who had to know it was an error, were free to squander it.

Last edited by Corry El; 09-11-2019 at 01:15 PM.