Assets, including certificates of deposit, but not cash, held in managed accounts for which the Wealth Management Group also serves as custodian are neither assets nor liabilities of the bank. By law, assets held in these accounts must be segregated from all other bank assets. Likewise, the books and records of these accounts must also be kept separate from the books and records of other bank activities, such as routine deposit and withdrawal transactions.

The ownership of these assets remains vested in the individuals or entities for whose benefit the bank is acting as investment manager and custodian. In addition, many institutions use third-party entities, such as Federal Reserve banks or the Depository Trust & Clearing Corporation, to hold these assets. In all of these instances, the assets are not subject to the claims of a bank’s creditors.