It's sort of true , banks are insured and unless you are below that insured amount or have it in an account with different criteria to a normal bank account you can lose out.
In Europe a standard bank account will guarantee up to €100k so if you have €99k in an account and the bank goes bankrupt you will get your €99k back but if you have €299k in that account you may only get €100k back depending on the overall situation of the bankruptcy.
Right, but it's not the bank giving this guarantee but some other body, for example the FDIC in the US.
But according to the book, this also applies to securities. So any stocks or bonds you hold, are not actually yours, and in case your custodian goes bankrupt, "your" stocks will go to someone else.
Again it's not cut and dry there are different ways to hold stocks and bonds and they will all have different criteria on how they can be used by the body that is managing them for you.
This is why people need to educate themselves before investing or find a very reputable broker to give them all the information so they can make an educated decision.
But the smoke and mirrors of the classic financial system is the main reason I can to blockchain in the first place. When I lose money here there's only one person I can blame 😂😂
