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Chimera Capital---a problem ?
- Thread starter executioner
- Start date
vectors101
Guest
bank deposits in banks are protected...so why isn't a trader's deposited in prop trading accounts insured against firm insolvency or embezzlement is common sense but it isn't which means it must be TOO RISKY FOR anyone to insure or uninsurable.
Quote from Don Bright:
Sorry, gotta jump in here. Even though firm's may pay SIPC dues, they are not protected...Bright is not protected by SIPC from Goldman Sachs (that's why we keep our money with someone who we know has the money to always make good vs. some small clearing firm that may have less money than we do).
And, SIPC is hardly enough protection for professional traders with, at times, millions in their trading account....and that's the reason I always preach that everyone "should check the balance sheets" of the Firm they're dealing with. We guarantee a bare minimum of $10 Million of Class A (owners) money to be put with the traders (Class B) money...giving traders basically 100 times SIPC protection....meaning that a trader would have to lose all their money, a (bare) minimum of $10 million of ours, before any possible chance of a trader losing a nickel.
Obviously we keep multiple of that amount in the Firm no matter what.
Anyway, just correcting the SIPC deal...SIPC only "protects" retail accounts (unless something has drastically changed that I don't know about).
Don
vectors101
Guest
It's insuring against embezzlement of client funds and outright fraud.
Quote from yip1997:
MoneyBall,
A good prop firm should have a good risk control system in place. Do you think they will allow you to risk more than your deposit without any control? Usually when you lose more than your deposit, they will close all your positions.
vectors101
Guest
It's insuring against embezzlement of client funds and outright fraud.
Quote from yip1997:
MoneyBall,
A good prop firm should have a good risk control system in place. Do you think they will allow you to risk more than your deposit without any control? Usually when you lose more than your deposit, they will close all your positions.
What was the net capital of Refco when they blew up? Much more than $10M I am sure. I hear there was a big short put position (long net position) in GM and what happen if that caught the credit cruch of the housing or mortgage sector. Timing may have been on your side this time.
Pooled money is a risk no mater how you look at it. You must trust the class A Members with your cash....nothing more to say.
Pooled money is a risk no mater how you look at it. You must trust the class A Members with your cash....nothing more to say.
Chimera is probably one of the most sound goups in NYC as they do not engage in activities that will jeopardize the firm's capital. the guys are very trustworthy and i suggest to anyone who is interested in a group under assent to pay Chimera a visit and talk to either Jared or Jayson. they have been very flexible with me and i strongly recommend them. you can abtain Chimera's contact info my calling assent's main office.