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Assets in Lehman brokerage accounts?
- Thread starter Doji7
- Start date
Quote from Daal:
they have SPIC insurance and they are usually seggregated so they are safe
Up to 500K...after that my understanding is you get nothing else unless there is assets available after the bankruptcy proceedings. some of the hosts of Morning Joe have been fretting all morning about this. Wonder why? It is a good idea not to keep much money at these casinos masquerading as banks.
From Forbes:
"The SEC also moved Sunday to limit the damage to brokerage customers of Lehman. They would be covered by the Securities Investor Protection Corp., a form of insurance similar to banking's Federal Deposit Insurance Corp. Under the SIPC, brokerage accounts are insured up to $500,000, and $100,00 for cash, but many firms provide additional insurance coverage. According to the SIPC's website, the insurance fund stood at $1.52 billion.
It was not clear Sunday night how many of Lehman's brokerage customers would be exposed to losses, or in what amount. The SEC says it is working with Lehman to ensure that customers will not be adversely affected by a liquidation of the firm. "
"The SEC also moved Sunday to limit the damage to brokerage customers of Lehman. They would be covered by the Securities Investor Protection Corp., a form of insurance similar to banking's Federal Deposit Insurance Corp. Under the SIPC, brokerage accounts are insured up to $500,000, and $100,00 for cash, but many firms provide additional insurance coverage. According to the SIPC's website, the insurance fund stood at $1.52 billion.
It was not clear Sunday night how many of Lehman's brokerage customers would be exposed to losses, or in what amount. The SEC says it is working with Lehman to ensure that customers will not be adversely affected by a liquidation of the firm. "
Quote from brocklanders:
Up to 500K...after that my understanding is you get nothing else unless there is assets available after the bankruptcy proceedings.
This is bunk, creditors don't have any claim on customer segregated funds which will be paid in full.
If found that LEH commingled customer funds with their operations the S&P would trade somewhere between zero and zero.
Quote from erlewine:
This is bunk, creditors don't have any claim on customer segregated funds which will be paid in full.
If found that LEH commingled customer funds with their operations the S&P would trade somewhere between zero and zero.
I hope you are correct but the fact is that customer funds are theoretically at risk even if they are segregated. Why do you think they offer SIPC coverage in the first place? Do you remember REFCO??? You are naive if you think just because customer funds are segregated that they don't have a risk associated with a bankruptcy. I think it is a small risk at this point considering the statements from Lehman and Neuberger Berman out this morning. Again, I don't know how this will all play out and hopefully no customers will get caught up in this.
If you got $$ there, get to another broker and do an ACAT today.