Am I concerned more after this incident than before? The answer is NO. This "big event" of a 9% loss of equity is within the framework of normal business operations, and it doesn't seem to me at all to be "warning signs" of more to come, as existed with financials that have subprime exposure.
is sipc insurance is per individual or per account? for instance, if you have $100k cash per account at two different brokerages and both fail, does sipc reimburse you $200k?
Well investors in Penson obviously think there is a problem. Granted its been in a long term decline.. potentially due to market conditions. But that roughly 30% gap down on this news was because everyone could be heading for the exit door at the same time. Why in the world would you want to risk that some other clearing firm is going to buy out the accounts??? Hell, if its my money, it would be irresponsible for me to sit on my hands and hope for the best!
Sammybea you're a freakin fear monger. When wm went under who lost a cent?Penson and each broker has 100k cash- 500k security sipc ins and 100's of mil's of additional ins. Penson clears for over 200 companies from think or swim to zeeco to das trader to mb trading. they have million of customers. They have the mkt cornered and theres not many other firms that offer low commissions that don't use penson. i have mid 5 figures at penson and have zero worries about the safety of my money
Guys I doubt you have much to worrry about, sure they lost money but im sure they be able to raise funds. They have a lucrative business, and I really doubt that 25 million will kill them. I'm sure they have sources to raise that 25 million.
That potential loss represents almost 9% of their total capital, which is VERY significant. I am not suggesting you immediately close your accounts, but I would also say monitor the situation closely.
A little off topic but, I was talking to a lawyer the other day and apparently ETRADE is in dire financial straits. We heard awhile ago about a possible bankruptcy but this is more recent news.