Penson The next shoe to drop after MF?

Discussion in 'Wall St. News' started by KINGOFSHORTS, Nov 2, 2011.

  1. I wonder if those with assets held at Penson are spooked after the sudden collapse of MF Global. Now it seems is not the time to wait for the bad news and end up having your account frozen and unable to wire it out before the lock.

    Penson to shut down Asian operation as losses grow
    Tom Osborn

    On August 5, credit rating agency Moody’s downgraded Penson to B2 from B1, five notches into junk territory, and placed it on review for further possible downgrades. Explaining the move, Moody’s said: “Penson's financial flexibility is severely limited as a result of continued operating losses due to industry-wide low trading volumes and the current historic low interest rate environment.

    “In addition, Penson's cash flow leverage has increased significantly over the past several quarters, and the company may find it increasingly difficult to service its debt obligations without an improvement in operating performance and/or strategic asset sales.”

    Moody's also raised concerns around the company's governance and risk management controls.
  2. antaram


    i wouldn't keep my money at penson, but you should make a note that the article is from oct 12
  3. most here have accounts at Muriel Seibert and less than $5000.00
  4. You must be at least an octogenarian to throw around the name Muriel Siebert.

    The average Muriel Siebert customer has an account worth $148,000, way more than the great unwashed here. Probably has to do with the fact that Muriel Siebert customers are investors, not traders.
  5. octogenarian ? I mentioned her name, didn't say I dated her in High School

    time to call the exterminator