Is anyone else worried about Penson Financial?

Discussion in 'Retail Brokers' started by serenfin, Dec 28, 2011.

  1. If the broker is a bank, & clearing firm goed down, would the clients have a problem?
     
    #41     Jan 6, 2012
  2. Magellan

    Magellan

    You would think that losing a client would get their attention. I guess not. I am probably not the only one jumping ship.

    Magellan
     
    #42     Jan 6, 2012
  3. Just to clarify: Penson is not FDIC insured, but they are SIPC insured, right?

    I found this on the SIPC website:
    "If sufficient funds are not available in the firm's customer accounts to satisfy claims within these limits, the reserve funds of SIPC are used to supplement the distribution, up to a ceiling of $500,000 per customer, including a maximum of $250,000 for cash claims. "

    I have less than $100k total, so wouldn't SIPC fully cover me if Penson fails?
     
    #43     Jan 6, 2012
  4. Magellan

    Magellan

    I think the answer is yes, you are insured. Problems may arise actually collecting on the insurance. I am sure it could take months. Not a scenario I want to deal with.

    There has to be some more reliable brokers / clearing houses out there.

    Magellan
     
    #44     Jan 6, 2012
  5. Magellan

    Magellan

    For most of the last five years, PNSN has been trading between $10 and $30. It is now flatlining just above $1. Today it lost 4.2% of its value.

    If the company had some tangible value it would have been bought out by now.

    Magellan
     
    #45     Jan 6, 2012
  6. Is this how the process would look?

    If Penson goes under, all of the brokerages that use them would come to a halt. It might take months for the Penson to be sold and SIPC to pay out claims. After that process is finished, would each brokerage would take their customer accounts to a new clearing firm? Or would all accounts just cease to exist and you'd have to take your assets and open a new account somewhere?
     
    #46     Jan 6, 2012
  7. Is this how the process would look?

    If Penson goes under, all of the brokerages that use them would come to a halt. It might take months for the Penson to be sold and SIPC to pay out claims. After that process is finished, would each brokerage would take their customer accounts to a new clearing firm? Or would all accounts just cease to exist and you'd have to take your assets and open a new account somewhere?
     
    #47     Jan 6, 2012
  8. Is this how the process would look?

    If Penson goes under, all of the brokerages that use them would come to a halt. It might take months for the Penson to be sold and SIPC to pay out claims. After that process is finished, would each brokerage would take their customer accounts to a new clearing firm? Or would all accounts just cease to exist and you'd have to take your assets and open a new account somewhere?
     
    #48     Jan 6, 2012
  9. Is this how the process would look?

    If Penson goes under, all of the brokerages that use them would come to a halt. It might take months for the Penson to be sold and SIPC to pay out claims. After that process is finished, would each brokerage would take their customer accounts to a new clearing firm? Or would all accounts just cease to exist and you'd have to take your assets and open a new account somewhere?
     
    #49     Jan 6, 2012
  10. JamesL

    JamesL

    Hey jack, could you repeat yourself just one more time?
     
    #50     Jan 6, 2012