Etrade Potential Bankruptcy?

[stephenNUTS]

[ QUOTE ]
SIPC standard insurance is 500,000 with a 100,000 sub-limit for cash for your brokerage account. I would guess that ETrade has an Excess SIPC insurance that would insure your account even further.

[/ QUOTE ]

Sounds correct^^^

But as to E-Trade declaring BR...your stocks are held in a clearing house,unless they self-clear,and they are required to insure anyway under SEC/NASD rules

Many small brokers have gone under/bankrupt with many investors in a panic over their holdings.Until they find another BD to deal with it is DEF. a hassle.

Most B/Ds have separate clearing houses,where your stocks are held in street name,and even if the BD falters....your stock holdings are insured and SAFE until they find a new BD home [img]/images/graemlins/smile.gif[/img]

It can be a pain in the Azzz to gain access to them,move them to another company,esp if a stock is falling and you want to sell

It is similar to an ACAT transfer...which is when you transfer your existing holdings/portfolio from one broker to another.It usually takes about a week or so....but you cant sell any holdings until the receiving BD takes control of the account.Again it sucks if your stocks are affected in an up/down/volitile market for that matter during this wait,and esp during a market like this one

E-Trade declaring bankruprtcy,has NOTHING to do with your holdings...their comments regarding liquidating securities most likely means THEIR OWN holdings

Find out from E-Trade who they clear through...and we can go from there? But RELAX!

Stephen [img]/images/graemlins/cool.gif[/img]

****All B/D's have a minumum net capital requiremnt based on their size,that they are required to maintain....periodic statements/disclosures regarding these financial details are required as well.

I would believe with E-Trade being one of biggest on-line firms...not only will they be OK...any # the big firms would jump at a cheap opp. to service your accounts if they had to sell/merge the company

[ahnuld]

http://www.cipf.ca/c_home.htm

for etrade canada, they are members and here are the conditions

[Your Mom]

I believe Etrade clears through ADP.

[stephenNUTS]

[ QUOTE ]
I believe Etrade clears through ADP.

[/ QUOTE ]

I dont use E-Trade and just did a quick search...but it looks like they might have a self-clearing arm to their firm?:

E Trade Clearing, LLC

If anybody has an account with ET,...see if you can make a call and ask directly?
Either way ...they should be insured.

SF [img]/images/graemlins/cool.gif[/img]

[ArturiusX]

lol at people thinking they'd lose their stocks if e-trade went heads up.

[stephenNUTS]

[ QUOTE ]
lol at people thinking they'd lose their stocks if e-trade went heads up.

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Art,
Now you see why I try and keep my responses simple?
[img]/images/graemlins/smirk.gif[/img]

[octaveshift]

Well, I just rolled the dice and got in at 3.60.
I think it's way oversold.

[etizzle]

[ QUOTE ]
lol at people thinking they'd lose their stocks if e-trade went heads up.

[/ QUOTE ]

is there any chance of losing the cash in there? obv we would still have the stocks

[ahnuld]

no, cash is protected to I believe up to 100k. If you have a huge cash position just buy a bond etf for the time being.

[slideaway]

According to reports from Bloomberg, BMO Capital analyst Michael Vinciquerra said it is "highly unlikely" that E*Trade Financial (Nasdaq: ETFC) will declare bankruptcy, as was suggested by a Citigroup analyst yesterday.

Shares of E*Trade sank 59% yesterday as investors fled after Citigroup downgraded the stock to Sell and said the company could see clients pull their money and there was a 15% chance of bankruptcy. The downgraded followed a disclosure of more mortgage and CDO exposure from the company.


Share price seems to be recovering today, think it will persist?

LC