BoA as broker - what happens if they're nationalized?

Discussion in 'Retail Brokers' started by Ivanovich, Feb 23, 2009.

  1. 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?
  2. LAtoLV


    Same as FDIC for brokers
  3. My bad for not clarifying my question. Do the positions I have open get closed instantly? I'm assuming they do.

  4. 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.
  5. 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.