Interactivebrokers & Citibank

A

Aaron Copland

I am getting a little concerned about my account with IB and the fact it's Citibank who hold the money.

I remember Refco, Citibank can go under any company can go under.

So what happens to my segerated account with IB if Citi goes under??
 
Quote from Aaron Copland:

I am getting a little concerned about my account with IB and the fact it's Citibank who hold the money.

I remember Refco, Citibank can go under any company can go under.

So what happens to my segerated account with IB if Citi goes under??
More...

Your wire may go into Citibank but funds do not necessarily remain there. Client funds are spread out amongst a number of the major banks.

Please read here for more info:
http://individuals.interactivebrokers.com/en/general/about/ibgStrength.php?ib_entity=llc

and an FAQ:
http://individuals.interactivebrokers.com/en/general/education/faqs/safetyFAQ.php?ib_entity=llc#3

specifically:
How Much Exposure Does IB Have to a Single Bank?

IB spreads its assets in segregated accounts for the benefit of customers across at least six of the largest banks (as of September 2008). IB’s customer segregation account at Citibank is used as the “conduit” account for deposits and withdrawals but funds are then spread across these federally-approved depositories.

It is our belief that the U.S. government would do everything in its power to prevent the failure of any of the major money-center banks with whom IB maintains deposits. In the event that such a bank did fail, and in the further event that the federal government did not arrange assistance for the bank, then IB’s own, significant, proprietary capital would be required to be used to guarantee IB’s obligations to our customers.
 
Quote from stevegee58:

Damn, that was fast. And good info too.
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no kidding, i've been on 'hold' longer than that, and no 'Psycho' string music in my ear
 
you can protect yourself frome C going under by buying tons of stones. you will need them to build you tools
 
Quote from def:

Your wire may go into Citibank but funds do not necessarily remain there. Client funds are spread out amongst a number of the major banks.

Please read here for more info:
http://individuals.interactivebrokers.com/en/general/about/ibgStrength.php?ib_entity=llc

and an FAQ:
http://individuals.interactivebrokers.com/en/general/education/faqs/safetyFAQ.php?ib_entity=llc#3

specifically:
How Much Exposure Does IB Have to a Single Bank?

IB spreads its assets in segregated accounts for the benefit of customers across at least six of the largest banks (as of September 2008). IB’s customer segregation account at Citibank is used as the “conduit” account for deposits and withdrawals but funds are then spread across these federally-approved depositories.

It is our belief that the U.S. government would do everything in its power to prevent the failure of any of the major money-center banks with whom IB maintains deposits. In the event that such a bank did fail, and in the further event that the federal government did not arrange assistance for the bank, then IB’s own, significant, proprietary capital would be required to be used to guarantee IB’s obligations to our customers.
More...




I worried about all the banks. We may see bank runs any day now.
 
From what I've read from Def in the past he is pretty much a straight shooter and little reason to doubt what he says, at the same time if you are worried get out until you feel confortable. You obviously don't have to keep your money there. You could go elsewhere, but I don't know that you are going to find any place using a bank where there isn't a risk at this point in history. Def has a point though that the gov if they are going to step into to save it'll be the big boys first, not to mention you are covered up to $250,000 right now, unless they loan out all the money to the various failing institutions and businesses and run out. But then who cares your screwed as is the rest of the world.
 
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