Investors will receive up to $2.5m of FDIC protection
LIDs Capital and Reich & Tang Asset Management have entered into a license agreement to offer Liquid Insured Deposits. The investors who participate in the program will receive up to $2.5m of FDIC protection while maintaining 100% liquidity with their cash.
On track to launch in January 2010, the company anticipates a long-term partnership with Liquid Insured Deposits.
Michael Lydon, president and CEO of Reich & Tang Asset Management, said: “We are pleased to add an FDIC deposit solution to our current offering of cash management services. The flexibility of the Liquid Insured Deposits program is what initially attracted us, and now we are pleased to be implementing a robust program from which all of our all clients can benefit.
“Our clients are seeking the safety of FDIC insurance for their customers while maintaining 100% daily liquidity. With Liquid Insured Deposits, we can offer them this safe, flexible solution.”
John Drahzal, managing director of LIDs Capital, said: “The addition of Reich & Tang to the Liquid Insured Deposits’ growing list of clients is outstanding. Reich & Tang has a long history of providing superior cash management programs to their clients. Adding Liquid Insured Deposits to their list of offerings underscores their commitment to addressing the most pressing concerns facing investors and savers today.”
LIDs Capital offers its Liquid Insured Deposits program to broker-dealer and clearing firm clients. The technology enables brokerage firms to protect client cash holdings with up to $2.5m of FDIC insurance through one account while maintaining 100% daily liquidity.