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Interactivebrokers & Citibank
- Thread starter Aaron Copland
- Start date
Quote from JackR:
Don't confuse the FDIC insured "personal" bank deposit coverage with the SIPC coverage of $100,000 in a brokerage (not futures) account. Of course IB rolls your idle futures funds into your brokerage account so they are covered to a large degree.
Jack
JPM got trashed today, BAC is trading at 1995 levels. These banks are trading like there going bust.
When a panic run start it's all over. Banks can't function with out the masses deposits.
Sort of funny how banks need our deposits, but if you ask them for money it's a diffrent story.
Quote from Aaron Copland:
JPM got trashed today, BAC is trading at 1995 levels. These banks are trading like there going bust.
When a panic run start it's all over. Banks can't function with out the masses deposits.
Sort of funny how banks need our deposits, but if you ask them for money it's a diffrent story.
Welcome to fractional reserve banking.
I'm a bit confused ... can someone please set the record straight in simple terms?
It seems clear that SIPC covers up to $500k in securities held in a brokerage account, but how much end-of-day cash in an IB margin account (which trades stocks, futures, and options) is insured? I thought it was $100k, despite the recent hike in FDIC coverage to $250k for bank accounts.
It seems clear that SIPC covers up to $500k in securities held in a brokerage account, but how much end-of-day cash in an IB margin account (which trades stocks, futures, and options) is insured? I thought it was $100k, despite the recent hike in FDIC coverage to $250k for bank accounts.
Bank - FDIC $250K per covered account (Currently to revert to $100K at the end of 2009)Quote from tomahawk:
I'm a bit confused ... can someone please set the record straight in simple terms?
SIPC - $500K total per securities (stocks and stock options) account of which up to $100K may be cash.
Futures are not covered in any way by government or quasi-governmental entities.
Jack
Quote from JackR:
Bank - FDIC $250K per covered account (Currently to revert to $100K at the end of 2009)
SIPC - $500K total per securities (stocks and stock options) account of which up to $100K may be cash.
Futures are not covered in any way by government or quasi-governmental entities.
Jack
That was my impression - thanks.
The IB website mentions additional Lloyds of London coverage up to $30mil for securities and $1mil for cash, subject to an overall limit ... but not quite sure how that comes into play or how the cash sweep thing works.
http://www.interactivebrokers.com/en/accounts/accountProtection.php?ib_entity=llc
Quote from JackR:
Bank - FDIC $250K per covered account (Currently to revert to $100K at the end of 2009)
SIPC - $500K total per securities (stocks and stock options) account of which up to $100K may be cash.
Futures are not covered in any way by government or quasi-governmental entities.
Jack
That's why the nice folks at IB do a sweep for you every night, so that your money will be insured.
So lets take an example.
IB account has Liquidation value of $500 000
Security values fo $100 000
IB goes bust, So SIPC pays $100 000 for the securities and $100 000 for the cash and Lloyd's pays the remaining $300 000 assuming that they don't have to pay more than $150 000 000 in aggregate
I am right in this analysis?
IB account has Liquidation value of $500 000
Security values fo $100 000
IB goes bust, So SIPC pays $100 000 for the securities and $100 000 for the cash and Lloyd's pays the remaining $300 000 assuming that they don't have to pay more than $150 000 000 in aggregate
I am right in this analysis?