You are exactly right....even though accounts are SIPC insured, people should read exactly what that means and how it is different for cash and securities. Also, when (and I'm not saying "if") Penson either files for bankruptcy and seeks protection there is a high probability that accounts will be frozen from trading for a period of time while everything switches to a new firm. Might be a day, or might be weeks. Either way I would be asking your brokerage firm who they clear through and if they say Penson it might be wise to temporarily change firms.
I think it is morally reprehensible that some brokers who clear Penson are still defending them earlier on as well as at this stage. They are putting their clients funds at risk.
I Moved and so can you. My broker has a bank so I transfered most of my money to the bank. Anybody want to buy a racetrack? GS
If the holding company doesn't have cash, how are they going to repay the loan from Pension Financial that was talked about in the original post in this thread?
I believe rmorse has stated on these boards that the firm he represents clears Penson.....blind faith I guess. The price of the stock is all you need to know. Stocks don't trade at $.16 cents for no reason. Wait til they get the notice from NSDQ that their stock is going to be delisted....time to trade on the Pinks with all the other pieces of cr*p.
rmorse ET Sponsor Registered: Apr 2011 Posts: 1051 04-11-12 07:20 PM Quote from Swan Noir: A better rate than IB? We were not discussing rates. This discussion was about why use Penson? You can receive competitive rates at many firms for appropriate volume. Rates are only one factor. We are also Introducing Brokers to Interactive Brokers. Their risk premium is higher in many ways than Penson. If you require leverage, Penson offers more. Some will comment here that more leverage is more dangerous. Sometime yes, sometime no. The fact is that if your business requires it, Penson offer more. Remember, the Introducing Broker relationship places us next in line for losses on our clients accounts, before Peson, if our client blow through their assets. So, we do care about risk. Bob __________________ "We are also Introducing Brokers to Interactive Brokers." is statement above correct?
+1. of course the brokers will defend them. what else are they going to say - "pnsn is a POS company w/ no operational controls, a corrupt and inept board and likes to gamble literally at the track". the brokers will defend them right up until ch 7 or 11. then the brokers will issue the following statement "we are shocked - shocked - that this unfortunate incident occurred. we will do everything possible to get our customers their money back as soon as possible. we encourage our customers not to leave us for a more financially secure broker. remember it could've been worse - it could've been our money."