Yeah, not sure we can really trust any of these firms to lay it all out there as to what their true exposure might be. That said, I'm debating whether to move some my funds from Citi over to IB, simply because Citi's been mentioned in a few of these "next shoe to drop" conversations. Anyone have any opinions on which might be safer - Citi or IB?
A response in one of the other IB threads said IB holds their cash at Citi, if this is correct, putting your money in IB is the same as leaving it in Citi.
I see. Sorry you took that loss. Just a reminder to everyone about the risks involved even at that level. Thanks for sharing your story.
The Refco problems were the direct result of fraudulent actions of the CEO who hid trade losses------- http://www.usatoday.com/money/industries/brokerage/2005-10-12-refco-ceo_x.htm Also, the SIPC probably wouldn't protect account holders of REFCO since they do not protect holdings in commodities etc...
IB the brokerage is most likely fine and whatever securities you own are not going to be effected by IB. We probably only have to worry about cash as it is only insured to 100K by the SIPC and is held at an external bank. If that bank is not liquid there could be problems. In general though I'm not too worried about IB.
Why does the stock price of a company that is rock solid lose almost a third of its value in less than an hour ? Why would this company send a mail like it did to its customers without mentioning the reasons for their stock price dropping as it did ?