Is IBKR tanking because Citibank is going under?

Discussion in 'Stocks' started by Port1385, Nov 23, 2008.

  1. All the money at IB is held at Citibank. Is IBKR tanking because Citibank is going under? What will happen to IBKR if Citibank is no longer in existence? Obama said he just wants to see the banks go under and disagrees with how Bush handled the situation with bailouts.
  2. Port, your intensions are clear: Trying to discredit IB with false remarks + assumptions.

    DEF stated clearly: no way all the cash is @Citi, YOU have even read it.

    I hope once this mess is over they sue you. Maybe your IP is recorded :p
  3. Thats whats wrong with our financial system is cocksuckers like port are allowed to start panics with zero basis. IB PLEASE SUE PORT TO THE WALL. EVEN IF IB USED CITI 100% WHO CARES? ALL MONEY IN IB,SCHWAB OR ANY OTHER BROKER IS SIPC INSURED. SO GO FUCK YOURSELF YOU SLIM BUCKET PORT.
  4. I'm not particularly worried, but if you are worried and are comforted by SIPC, be aware the SIPC has limits for cash of up to $100,000 per customer. So, it's not a bad idea to spread your investing out a little especially if you have the tendency to end each day flat.
  5. "Each customer's account is covered up to $500,000, including up to $100,000 for cash claims."
  6. This may be over-complicating things, but what is deemed cash?

    Is money held on account in an interest bearing account 'cash?'

    If so, does that mean that assuming you had an exact amount of $500,000 w/a brokerage firm that participates with SIPC, that $400,000 would have to be 'invested' in order to get the full $500,000 worth of coverage under SIPC?
  7. Retired


    Not taking any chances. I am wiring my money out of IB first thing on Monday.

    When Lehman Brothers went under, a lot of investors got hammered.
  8. ByLo, I looked it up and what I was reading was saying if it's reported as cash by the brokerage it's treated as cash by the SIPC. What I'm not clear on though is if it's being swept into a money market how it's handled.

    Also, I looked into it some more and it's *not* $100,000 per customer like FDIC, it's $100,000 in cash per account type, so a joint account still only has $100,000 worth of protection for the cash involved, it being joint doesn't give you extra protection apparently.
  9. #10     Nov 23, 2008