My rather small equities trading account is with BoA. I know the account is not FDIC insured, but what happens if that bank is nationalized? Do I lose my brokerage account money?
My bad for not clarifying my question. Do the positions I have open get closed instantly? I'm assuming they do.
Dear Ivan, They shouldn't close your positions. If BoA goes under or loses its clearing status, cash + open positions could be TRANSFERRED to another broker/dealer. I think you'll be okay.
Nationalized does not mean bankrupt. Even if the common stock is wiped out, you'd have the government now backing the assets of the company. As a depositor at BAC you'd be completely safe. As an equity holder you would probably be none too happy.