Etrade Potential Bankruptcy?

[Arnold_O]

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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.

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okay so anyone.... explain this to me.

if someone bought $750,000 worth of mutual funds 8 years ago under Scudder Funds which later got bought out by CSFB (Credit Suisse) (and lets say $250,000 in stocks were purchased under Credit Suisse), and then later by DLJ Direct, then by Harris Investments, and then by ETrade...

(or something close to that scenario)

you're saying that these funds are PERFECTLY safe being held in the ETrade brokerage account?

if ETrade goes belly up will a person be able to move them to another brokerage company within 1 week?

how does the $500,000 gov't insurance play into this. i assume it must be for something else other than the mutual fund holdings referred to above.

appreciate your help. thanks.



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Your CASH is insured up to $100k per account and stocks INSURED up to $500k.
They are SAFE!!

However...if you still feel uncomfortable...move your account to another BD

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this is what i want to know. what stocks are insured to $500k?????

also if a person has a large cash position over 100k they can put half in the etrade savings earning about 4.7% and the other half in the etrade money market earning crap.

i believe this gives you 100k insurance on both. was also told that if you fax them beneficiary info that the coverage doubles to 200k on each. anyone know if this is true??

again thanks.

[pig4bill]

[ QUOTE ]
[ 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 ]

okay so anyone.... explain this to me.

if someone bought $750,000 worth of mutual funds 8 years ago under Scudder Funds which later got bought out by CSFB (Credit Suisse) (and lets say $250,000 in stocks were purchased under Credit Suisse), and then later by DLJ Direct, then by Harris Investments, and then by ETrade...

(or something close to that scenario)

you're saying that these funds are PERFECTLY safe being held in the ETrade brokerage account?

if ETrade goes belly up will a person be able to move them to another brokerage company within 1 week?

how does the $500,000 gov't insurance play into this. i assume it must be for something else other than the mutual fund holdings referred to above.

appreciate your help. thanks.



[ QUOTE ]

Your CASH is insured up to $100k per account and stocks INSURED up to $500k.
They are SAFE!!

However...if you still feel uncomfortable...move your account to another BD

[/ QUOTE ]

this is what i want to know. what stocks are insured to $500k?????

also if a person has a large cash position over 100k they can put half in the etrade savings earning about 4.7% and the other half in the etrade money market earning crap.

i believe this gives you 100k insurance on both. was also told that if you fax them beneficiary info that the coverage doubles to 200k on each. anyone know if this is true??

again thanks.

[/ QUOTE ]

You could always try something insanely radical, like...

reading about the supplemental insurance on the ETrade website.

[ahnuld]

if etrade gets bought out at 6 lets say, are my jan 7.50 calls worthless?

[stephenNUTS]

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if etrade gets bought out at 6 lets say, are my jan 7.50 calls worthless?

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It depends when and if a deal is announced and subsequentally closes.If it was announced TODAY...they would still have some temporary value of course,albiet very small,as they would still be $1.50 OOTM.But you would still have TIME on your hands(until late Jan.) before your options expire...or the deal closes(which more than likely would be later than Jan,)

The deal could even fall thru(if its a hostile T/O) due to shareholders/BOD feeling the comapany is worth more $$$.

If a white knight steps(Mer,Leh,whoever) up with a higher offer.... much higher OVER your strike price BEFORE the deal closes...your options would be ITM,and be worth whatever price range in relation to the "new takover deal"

What price are they trading now,in comparison to what price you bought them?

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

[ahnuld]

got in on monday at .40 and now they are trading at 1.00. I dumped and am going to wait until tomorrow to see what happens. tomorrow is a big day for them.

[stephenNUTS]

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got in on monday at .40 and now they are trading at 1.00. I dumped and am going to wait until tomorrow to see what happens. tomorrow is a big day for them.

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GG
You will never go broke taking a 150% profit

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

[gonebroke2]

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got in on monday at .40 and now they are trading at 1.00. I dumped and am going to wait until tomorrow to see what happens. tomorrow is a big day for them.

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Nice trade. I don't think etrade has a clue what kind of shape they are in. I am leaving etrade and moving to another brokerage because I made a mental note that I would leave them if their stock dipped under $5.00.

[MrBlue]

Also when a deal is announced, volatility collapses making options much much cheaper.

If you bought ETFC options the last several days, you're paying a lot for the options due to the volatility of the underlying stock.

[ahnuld]

well the CEO cancelled a presentation yesterday which makes me think either they have big news tomorrow on their marking to market or they organized a buy-out. In either case ill take the money and wait and see. If its good news tomorrow I might buy equity, but if you guys, supposedly knowledgeable people, are moving your money off, mom and pop will definitely run out of an illogical fear of bankruptcy as well.

[octaveshift]

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... but if you guys, supposedly knowledgeable people, are moving your money off, mom and pop will definitely run out of an illogical fear of bankruptcy as well.

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I haven't moved a dime out of my Etrade account. Nor do I plan to.

And I think a buyout would be for considerably more than $6 a share. Don't worry.

Etrade has the best trading platform in the business. Their sub-prime exposure is a lot smaller than people think. I believe it's a good company, and still a great buy at these prices.

Lehman says:

ETFC Target $19

"Last week, we hosted management of Etrade for a series of investor meetings. We walked away from the meeting and subsequent analysis of the company's mortgage exposure with the belief that Etrade has envisioned fairly difficult market conditions over the next several quarters, and that the provisions for loan losses that it anticipates taking will more than cover the likely losses through the end of next year. We therefore believe that the shares are overly discounted at current levels, and that stock represents an attractive buying opportunity."