Why is everyone assuming that the SIPC suddenly told IB they could not do it but they have not told TD Ameritrade anything?
From what I read (and that's only as good as the source....) IB was trying to buy it until it saw hundreds of millions missing .... it might be worth overpaying for bankrupt assets to get customers, but not taking on unknown liability from Corzine....
I just read what Nick wrote and assumed he knows what he's talking about and that it's true. Then I would assume all others (including) TD Ameritrade would also be affected. It's just an assumption and I'd like it to be corrected if it's wrong. It would be good to know which brokers have changed their policy and which have not. Make a list. Input from everyone would be good to have, considering there aren't any announcements that I see anywhere.
I stated this once already, but here it is again. TD Ameritrade/TOS which uses Penson for futures has not stopped their auto sweeps out of the futures back to the securities account, and have stated that they are not planning any changes.
yeah that's the way I heard it also, according to Bloomberg they backed right off when as you say the millions were unaccounted for
From this report it looks like IB was still interested after they learned of the shortfall. So I don't know if it's fair to say they "backed right off." http://www.zerohedge.com/news/must-...nute-breakdown-doomed-brokers-last-week-alive October 31, 2011 12 a.m.: Ferber emails Taylor, stating only: "we may have it." Approx. 12:30 a.m.: At this time: (1) The IB deal is ready to go â apparently including regulatory signoffs; (2) there is still a $900M apparent segregation shortfall and MFGI says it is an accounting error; (3) the transfer cannot happen until it is clear there is no segregation shortfall; (4) MFGI is starting to identify sources of funds available to top up segregation â and the latest report from MFGI is that they may have sufficient funds; (5) IB and MFGI have spoken to CME and both seem aligned on the importance of the transfer occurring promptly, and state they are open to the suggestion of having MFGI top up segregation and TB making corresponding adjustments to the deal economics. Approx. 1 a.m. â2 a.m.: CME learns the deficiency is real: Serwinski and O'Brien call Procajlo into Serwinski's office and tell him there is an actual shortfall; about $700M was moved to the broker-dealer side of the business to meet liquidity issues in a series of transactions on Thursday, Friday, and possibly Wednesday. Additionally, Procajlo is told there was a loan of $175M of segregated funds to MF UK. CME stops its efforts to look for the accounting error. CME understands that MFGI is attempting to find available funds and get Fedwire to open early so they can start transferring money into the segregated account. 2 a.m.: Taylor emails the FSA and CFTC to let them know that IB has gone home to get some sleep, but may still be interested in the transaction.
If you read more carefully, early on 31st they were still looking for assets to transfer into seg accounts. It wasn't entirely clear if it can or cannot be done. Also the information being passed around was unclear, as is commonly the case with accounting emergencies. Yet IB bailed before they had a 100% confirmation that the seg funds are missing, because they didn't like how things were looking. Anyway, let's not get off topic.