Well, just because you could technically be a “Private Banker” or “Financial Institution,” it doesn’t mean you will be a successful one. The claim of “become your own bank!” could refer to a number of different ideas, from simply using an app to track finances, into ideas like making money by acquiring profitable commercial paper. This is one of the ideas that Robert Kyosaki recommends in “Rich Dad, Poor Dad,” and it’s a great idea for wealth creation, but one that the majority of people don’t use, or even have any idea about. There could be a number of ways to do such things, maybe that’s what some of those ads are getting at. One of the better concepts I’ve seen is the IBC, promoted by the late Nelson Nash. You might to look up some of his books or videos.
Agents for an entity (like a bank or business) won’t be held personally liable for their actions if they are acting within their delegated authority. It’s the same concept that applies in government. Senator Ted Cruz did a great job illustrating this concept in this line of questioning-
So, and accountant doing some accounting for TD Bank on an account in which some illegal activity was taking place wouldn’t face any personal liability, especially if he had no knowledge of any such activity. But, if that same accountant forged a signature, he would face personal liability.
One of the purposes of vehicles like corporations and trusts is to limit liability. So, someone working in the capacity of a sole proprietor would face personal liability if his company was facing criminal charges, while employees of a corporation (including high level employees, like a CEO) would not. Of course, every case and situation is different, so there could of course be situations where both an individual and a corporation face charges.
There is also the whole issue of exactly what the legal system is, and how it operates, but that’s a different issue. But, there is a huge financial component to the system, even the criminal system. Even commonly known legal phrases have financial lingo in them (eg, CHARGE the defendant, he contacted a Bail BONDsman, he finally PAID his DEBT to society, and so on). Anyone who’s paid a traffic ticket (which is criminal in nature) understands there is a financial component to the legal system. The question is, how big a component is it?
Author
