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. lescor


    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.