How secure are FDIC / SIPC protection?

a529612 · Nov 12, 2007

When the credit market is in distresss and banks and brokers are hit by subprime mess left and right?

FAST.AM · Nov 12, 2007

FDIC IS VERY SECURE.. IT BACKED BY THE GOVERNMENT. FOR MAX 100K

IF THE GOVERNMENT CANT BACK YOU, THAT WILL MEAN THERE IS NO PLACE LEFT ON THE PLANET THAT CAN PROTECT YOU..
YOU WONT NEED MONEY ANYMORE AT THAT POINT.. BETTER GET YOU BO AND ARROWS READY TO GET YOUR DINNER

interdigital · Nov 12, 2007

For those of us with over $100K, we'll lose everything except $100K.

a529612 · Nov 12, 2007

That's $100k for cash and $500k for other assets like stocks, etc. right?

kny3 · Nov 12, 2007

Quote from a529612:

That's $100k for cash and $500k for other assets like stocks, etc. right?

Yup. Most firms have "excess SIPC", that's insurance from 3rd parties, not covered by SIPC. That could be interesting too.
Cash & positions can be ties up for days, weeks or months if SIPC steps in. So you are insured but you don't want to be involved in one of these.

kny 3

kny3 · Nov 12, 2007

Quote from interdigital:

For those of us with over $100K, we'll lose everything except $100K.

Maybe not. Depending on what's left over, you may get $0.60 or $0.92 on the dollar for amounts over $100k. But they may have to sell the assets, that could take months or a year or two.

kny 3

Aok · Nov 12, 2007

Quote from FAST.AM:

FDIC IS VERY SECURE.. IT BACKED BY THE GOVERNMENT. FOR MAX 100K

IF THE GOVERNMENT CANT BACK YOU, THAT WILL MEAN THERE IS NO PLACE LEFT ON THE PLANET THAT CAN PROTECT YOU..
YOU WONT NEED MONEY ANYMORE AT THAT POINT.. BETTER GET YOU BO AND ARROWS READY TO GET YOUR DINNER

I believe more in my bow and arrow than I do in the govt covering me for their loss.

a529612 · Nov 12, 2007

Quote from kny3:

Cash & positions can be ties up for days, weeks or months if SIPC steps in.

What if you have positions that must be closed, e.g. expiring options, and you can't while your broker is going under and SIPC is taking over?

mschey · Nov 12, 2007

Quote from FAST.AM:

FDIC IS VERY SECURE.. IT BACKED BY THE GOVERNMENT. FOR MAX 100K

IF THE GOVERNMENT CANT BACK YOU, THAT WILL MEAN THERE IS NO PLACE LEFT ON THE PLANET THAT CAN PROTECT YOU..
YOU WONT NEED MONEY ANYMORE AT THAT POINT.. BETTER GET YOU BO AND ARROWS READY TO GET YOUR DINNER

Give me a shot gun, a rifle and a 4 wheel drive, and a country boy can survive!

daddyeaux · Nov 13, 2007

Quote from FAST.AM:

FDIC IS VERY SECURE.. IT BACKED BY THE GOVERNMENT.

doubled over laughing