IB passes $3 billion in liabilities in q2 2006

[just21]

I will use customer deposits when I post this figure next quarter.

 

[Daal]

Quote from juliogonz:

Daal, you are stupid person

Yup, thank god morons like you exist or I'd probably be broke

 

[ddunbar]

Quote from Daal:

Yup, thank god morons like you exist or I'd probably be broke

I.e. I know you are but what am I?

 

[alanm]

Quote from just21:
I will use customer deposits when I post this figure next quarter.

Why post it at all? These threads always turn into nothing but flame wars.

 

[murray t turtle]

Quote from Trader_Herry:

No, I don't think so.

The word liabilities is misleading in this context since the $3,116,641,386 refers only to "Payable to customers". Others liabilities are exlcuded. The total liabilities are $3,245,016,934.

The liabilities here in accounting do not equal to loans or something we need to settle as soon as possible. The figure alone says nothing as to whether a firm is on the verge of bankrupcy.

There are some accounting ratios which may give you the idea of its debt settling capability (eg ratio of current assets to current liabilities)

I hope this helps you to clear things up.

============
Good one, T henry;
same way banks call savings accounts ''liabilities''

 

[just21]

Quote from alanm:

Why post it at all? These threads always turn into nothing but flame wars.

It is of interest to customers that IB is growing quickly and is financially secure. If IB were not growing I would know IB was not competitive and would look for a better deal.

 

[juliogonz]

Quote from Daal:

Yup, thank god morons like you exist or I'd probably be broke

Pig

 

[alanm]

Quote from just21:

It is of interest to customers that IB is growing quickly and is financially secure. If IB were not growing I would know IB was not competitive and would look for a better deal.

Customers who care, though, would already know and see this without having to read about it here. Also, growth in customer assets is not necessarily indicative of anything. For example, I currently have an account with a broker with a balance sheet so small, it's scary. Yet, it's worth the risk for what they offer. A broker works well for me based on what they offer and how they operate. Once they are over a certain size (which IB passed long ago), their size has little to do with it.

 

[ChiBondKing]

Quote from juliogonz:

Pig

oink.

 

[ddunbar]

Quote from alanm:

Customers who care, though, would already know and see this without having to read about it here.

True.

Also, growth in customer assets is not necessarily indicative of anything. For example, I currently have an account with a broker with a balance sheet so small, it's scary. Yet, it's worth the risk for what they offer. A broker works well for me based on what they offer and how they operate. Once they are over a certain size (which IB passed long ago), their size has little to do with it.

Sure but it's not so much the size as IB's rate of growth. The rate of growth is impressive, no doubt. And it says a lot about IB.

But... I worry that they might be growing faster than their systems can handle. Especially worrisome should a market event occur in the near future.

In any event, of course not all of the growth (customer accounts) is in their retail arm given that retail accounts average $5-10k. With that in mind, I believe IB would make every effort to accomodate the needs of their institutional clients especially in the technology department.