Will Monoline Downgrade sink SIPC?

Discussion in 'Trading' started by bestfriend, Feb 4, 2008.

  1. SIPC is not backed by the government, is not a GSE, etc. A failure of a monoline--or even a downgrade by two agebcies of ABK orMBI will result in massive writedowns at major brokerages.
    CNBC is quoting a figure 00I assume including banks and pension funds--of $250 billion.

    SIP supports itself by assessing B/D's. So, all BD's would be assessed even if they have no exposure. My understanding is SIPC has only $1 bill in capital.
  2. SIPC insures "cash and securities MISSING from customer accounts"...