According to Bill Fleckenstein, SPIC: (1) doesn't cover futures accounts at all, (2) doesn't protect you against fraud, (3) and even if you have T-Bills in your name you still are not protected against fraud. If all of the above is true then no one's money is safe at any broker. Brokers blow up precisely because of fraud. If SPIC doesn't cover fraud then it is not insurance at all. Also, I can understand if futures positions aren't covered but what about cash, stock, and t-bills in a futures account - if all that isn't covered either then again SPIC is worthless. Hopefully Bill is wrong and all cash, securities, and T-Bills in MF Global accounts are restored. http://bloom.bg/u619h9#ooid=dqZzIwMzqxvfE0eGq-mdW4ozD-bzPgcF
I second that, on top of that trading is no easy business, then you wonder why the hell we even bother. FoN
If you can stand up and sleep at the same time and be rude and useless then you will qualify for a job at WalMart.
Yes, it does not seem that client funds are safe in any brokerage account. Let's see how it plays out. When it comes down to it, lawyers on either side can debate how different types of assets should be handled. If clients get screwed out of their 600 million, it will definitely change this industry. To think that IB almost bought the MF brokerage unit...
Canada includes futures accounts in its version of the SIPC and covers up to one million dollars per account. This even applies to customers of the Canadian operations of MF Global Canada and IB Canada! http://www.cipf.ca/HomePage.aspx The U.S. should do no less.
I believe the SPIC does cover fraud in the securities account. They are even paying out to Madoff Securities clients