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  #1  
Old 11-12-2007, 11:30 AM
xxThe_Lebowskixx xxThe_Lebowskixx is offline
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Default Etrade Potential Bankruptcy?

November 12, 2007

This is a challenging time for the financial services industry. Bad news in the credit, housing, and stock markets continues to dominate and E*TRADE is not immune to these market conditions.

However, you, our customers, should know that we continue to be well capitalized by regulatory standards. As a matter of fact, we could absorb an immediate write down in excess of $1 billion and still remain well capitalized. Nobody knows for certain what the ultimate impact will be from these markets, but it is our expectation that news in the market will get worse before it gets better and, armed with these expectations, we are taking prudent measures to effectively manage the company's balance sheet.

We will continue to earn your confidence, providing state-of-the-art asset protection, including E*TRADE's Complete Protection Guarantee, SIPC Protection for E*TRADE Securities customers and FDIC Insurance for E*TRADE Bank customers.


We appreciate the opportunity to continue to serve you and your investing needs.


Are my stock holdings insured/protected or is it possible that I will lose these holdings if they go bankrupt?
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  #2  
Old 11-12-2007, 11:47 AM
BG1124 BG1124 is offline
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Default Re: Etrade Potential Bankruptcy?

I think it is possible you could lose your stock holdings. As far as Etrade's bankruptcy potential, this is what one analyst is saying..
"Citi Investment Research analyst Prashant Bhatia cut E-Trade's rating to "Sell" from "Hold." Bhatia said there is a 15 percent chance E-Trade will have to declare bankruptcy and the company may be forced to sell loans and securities at a significant discount."

Etrade's stock looks to be down 50%, good time to buy or too risky?
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  #3  
Old 11-12-2007, 11:52 AM
Your Mom Your Mom is offline
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Default Re: Etrade Potential Bankruptcy?

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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  #4  
Old 11-12-2007, 11:56 AM
Mr. Now Mr. Now is offline
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Default Re: Etrade Potential Bankruptcy?

In a bankruptcy, all assets are locked until they sort things out. This means you cannot but or sell until then, whenver that actually is.

That's regarding your positions. Regarding your cash, don't expect the SIPC to "protect" you. If ETRADE is in trouble, who else do you think might be? Do you suppose others like ETRADE have an derivative exposure?

In that scenario, the SIPC can't give you cash, so they give you some kind of illiquid US bond issue, or similiar.

The complexity of derivative exposure is explained here, and in only a few other places:

www.jsmineset.com
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  #5  
Old 11-12-2007, 12:01 PM
xxThe_Lebowskixx xxThe_Lebowskixx is offline
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Default Re: Etrade Potential Bankruptcy?

The website says that I only have $58 available for withdrawal. Might that be because I sold stocks on Friday? How many days after you sell a stock are the proceeds usually available for withdrawal?
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  #6  
Old 11-12-2007, 12:17 PM
Your Mom Your Mom is offline
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Default Re: Etrade Potential Bankruptcy?

[ QUOTE ]
The website says that I only have $58 available for withdrawal. Might that be because I sold stocks on Friday? How many days after you sell a stock are the proceeds usually available for withdrawal?

[/ QUOTE ]

do you not have margin? In a cash account, it's 3 settlement days before you can withdraw. Keep in mind that today isn't a settlement day, because it is a bank holiday. So if you sold on Friday, funds aren't available to withdraw until this Thurs.
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  #7  
Old 11-12-2007, 12:55 PM
stephenNUTS stephenNUTS is offline
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Default Re: Etrade Potential Bankruptcy?

[ 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
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  #8  
Old 11-12-2007, 01:11 PM
ahnuld ahnuld is offline
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Default Re: Etrade Potential Bankruptcy?

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

for etrade canada, they are members and here are the conditions
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  #9  
Old 11-12-2007, 01:28 PM
Your Mom Your Mom is offline
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Default Re: Etrade Potential Bankruptcy?

I believe Etrade clears through ADP.
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  #10  
Old 11-12-2007, 03:49 PM
stephenNUTS stephenNUTS is offline
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Default Re: Etrade Potential Bankruptcy?

[ 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]
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