If you don't trust anything your broker offers to you, why do you have money with them? Who do you trust? Is your money under your mattress?
Of course I do, and it's IB (which is why I'm reading this thread) - but that doesn't mean that I must feel 100% secure with my money there. Of course it's a tradeoff between security and the ability to invest in certain things, but it's worth questioning the security of ANY bank or broker during these (or any) times, wouldn't you have to agree? Are you affiliated with IB by any chance?
Here's a link regarding where IB put customers assets: http://individuals.interactivebrokers.com/en/general/education/faqs/safetyFAQ.php?ib_entity=llc It's reassuring to hear what they're doing: "As of mid-September 2008, IB customer cash is held to a large extent in U.S. Treasury bills (under 10%), deposits with multiple large banks (85-90%) and federally-approved AAA rated money market funds (less than 2%) -- all subject to continual review by IB¡¦s senior management. The majority of the bank deposits are held with JP Morgan, Deutsche Bank and Bank of America, with smaller amounts held with Citibank, HSBC and U.S. Bank." "IB spreads its assets in segregated accounts for the benefit of customers across at least six of the largest banks (as of September 2008). IB¡¦s customer segregation account at Citibank is used as the ¡§conduit¡¨ account for deposits and withdrawals but funds are then spread across these federally-approved depositories. It is our belief that the U.S. government would do everything in its power to prevent the failure of any of the major money-center banks with whom IB maintains deposits. In the event that such a bank did fail, and in the further event that the federal government did not arrange assistance for the bank, then IB¡¦s own, significant, proprietary capital would be required to be used to guarantee IB¡¦s obligations to our customers" It's good to know that they dynamically manage the bank risk as I think they used to be dealing big with Citibank and according to the above they only have a relatively small amount with Citibank now. I used to think Citibank is the only bank they deal with and I was freaked... and I used to transfer money in and out everytime I saw Citi stock price drop big... Thanks OP for bringing this issue up again and lead to my discovery of the above link... now I can sleep... they should have advertised this on a front page and they should let their customers know it's spreaded across major commercial banks both within and outside the US. BTW I don't know why they only have small amount with HSBC... I would be feeling even better if they say they've more money with HSBC than say Deutsche Bank... HSBC is the only major bank whose share price hardly drop in this financial storm... well maybe it's beause HSBC is so much bigger than the UK government and in case there is trouble there is no government backup possible...
Thanks OP for bringing this issue up again and lead to my discovery of the above link... now I can sleep.. You are very welcome..and i thank you for this informative link that i missed on IB's website. Good Night.
Nothing to worry about - yet. If IB goes they will be one of the last and if the last go why worry? Anyway, someone says ET is coming in a giant spaceship in 9 days time. That'll give you something to worry about.
Are you a complete imbecile? They were given direct access to the treasury. The Federal Deposit Insurance Corporation would get temporary and unlimited access to U.S. Treasury funds under a Senate rescue bill, The Wall Street Journal reported Wednesday on its Web site. The access would be connected with higher deposit coverage that would extend until the end of next year, according to the Journal. End of Story We have enough trouble, we don't need your idiocy.