Credit Union

[FCXoptions]

Quote from CT10Gov:

No, I mean how to do you protect your sweep account from losses due to the failure of the bank with whom you have the sweep account?

Oh sorry, the sweep account is actually with another credit union. They basically act like the fed to us. Several smaller credit unions use them for all the clearing and everything like that. So the sweep account is through them, I don't know all the specifics on that though as far as protection. I haven't dealt with them much.

 

[CT10Gov]

Oh man... this sort of arrangement has the potential of ending up on the wrong side of a pyramid (not saying it is, just that it can run into a whole of problems that banks supposedly have).

Quote from FCXoptions:

Oh sorry, the sweep account is actually with another credit union. They basically act like the fed to us. Several smaller credit unions use them for all the clearing and everything like that. So the sweep account is through them, I don't know all the specifics on that though as far as protection. I haven't dealt with them much.

 

[FCXoptions]

Yea, the sweep account actually has a lot less than I thought. It is just all the funds over a certain balance that are swept out. So it represents a small amount of our capital. The other credit union is very solid financially as well. But of course that can always change I know. We have very minimal amounts at risk though.