IB 60x

Discussion in 'Retail Brokers' started by Ripley, Oct 3, 2011.

  1. Interactive brokers is leveraged 60 times. For each dollar it has, it has $59 in debt.

    IB is a house of cards waiting to collapse. This European sovereign debt issue could very well take them out.
  2. How did you come up with that absurd nonsense?

    IB has $4.6 billion in equity. Their only debts are $178 million in senior notes and $43 million in short term borrowings.

    IB has nothing to do with the European sovereign debt issue.
  3. Some of the debt is customer accounts. But, there is a massive blackhole in their books, akin to a leveraged to the hilt Chinese hedge fund. I would tread carefully.
  4. zdreg


    how many shares short are you in ibkr?
    you think that u have a knowledge of brokerage accounting.
    back it up with money.
  5. I'm not a IB fan, but I guess I don't see the debt you are talking about, care to elaborate? Baseless claims on internet forums are not immune to lawsuits.
    I haven't traded there in years, but complaints I have are the terrible customer service I have gotten in the past. They act like pricks, or idiots, and that may have changed in the years since I have been there, but claims of insolvency could get your bank account cleaned out by the lawyers.
    Prove it if you can, I'd be interested.
  6. Ditto.

    This could cause IB's stock to tumble, or your personal stock to tumble. Better have the evidence.
  7. Your numbers are completely and utterly wrong. You maybe looking at the MF Global numbers.

    IB has approximately 500 M in equity, and total liabilities of 30 B. Meaning that IB is leveraged 60 times. Some of the liabilities is customer funds, but most likely they have access to customer accounts to place trades. Making it even more risky than the leveraged pig that it is.

    MF Global down, is IB next? or will it be Penson?
  8. tman


    Shouldn't we include customer assets ($16.7 billion) if we are going to consider customer debt?
  9. ditto
    #10     Nov 4, 2011