Penson (PNSN) stock down on heavy volume

[Swan Noir]

Quote from rmorse:
The British have similar rules for segregation. Except what was discovered when Lehman went was down that over three billion was improperly segregated. Clients -- mostly hedge funds -- took the three billion dollar hit.

It is also worth noting customer funds are segregated as a class. That means that your money is not individually segregated but rather co-mingled with all other customers. In the event of insolvency the funds are divided amongst the class -- or more accurately what is ultimately left in that account is divided.

When there s fraud it is quite possible that part of the fraud is insiders or nominees or family have drastically under margined accounts which can easily drain the "class" of significant funds. Segregation is not insurance. The beauty of IB's setup is that free balances sweep to a SPIC insured account every night. A MAJOR EDGE!



Your money is safe in a futures account!

e-CFR Data is current as of May 11, 2011

Title 17: Commodity and Securities Exchanges
PART 1—GENERAL REGULATIONS UNDER THE COMMODITY EXCHANGE ACT
Customers' Money, Securities, and Property

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§_1.20___Customer funds to be segregated and separately accounted for.

(a) All customer funds shall be separately accounted for and segregated as belonging to commodity or option customers. Such customer funds when deposited with any bank, trust company, clearing organization or another futures commission merchant shall be deposited under an account name which clearly identifies them as such and shows that they are segregated as required by the Act and this part.

 

[jackpearson]

http://www.reuters.com/article/2011...feedType=RSS&feedName=financialsSector&rpc=43

 

[Ghost of Cutten]

The only rational thing to do when a firm's solvency is in question is to wire ALL the money out of the account.

Segregated funds don't save your ass in all situations. If in doubt, get out.

 

[Catoosa]

Quote from Swan Noir:
_____________________________________________________________
Segregation is not insurance. The beauty of IB's setup is that free balances sweep to a SPIC insured account every night. A MAJOR EDGE!
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Penson also offers a similar sweep of funds to brokers. MB Trading clears through Penson and has sweeps each day of available cash funds from futures accounts into accounts with SPIC insurance. For large cash positions at Penson, it may be better to leave the cash in a segregated futures account.

 

[mktman]

Sure seem like quite a few brokers use Penson to clear, like scottrade mb not very many self clear IB does.

 

[Swan Noir]

Agreed ... no other way to proceed.

I would add just two additional points:

1) Have them use a Fed Wire NOT ACH.
2) Continue to call them until you get a Fed wire number. Each wire is assigned its own number and it will help your bank track it if needed. Most banks will not even discuss an incoming wire unless you can give them the number.

Quote from Ghost of Cutten:

The only rational thing to do when a firm's solvency is in question is to wire ALL the money out of the account.

Segregated funds don't save your ass in all situations. If in doubt, get out.

 

[zdreg]

Quote from fanews:

another company would just buy the assets(customers) as for pension shareholders well that is another story. pension has a lot of brokers who clear through them. and the trading volume is like 10% of 2007 levels. retail trading peaked in 2006/2007/2008.

and the trading volume is like 10% of 2007 levels. retail trading peaked in 2006/2007/2008.

where do you come up with these numbers that there is a 90% drop from 2007? sounds absurd.

 

[ETF Trader 84]

I have heard that Penson may be going bankrupt.

 

[lifttheoffer]

Quote from ETF Trader 84:

I have heard that Penson may be going bankrupt.

Really? What analyst said that? How is the haircut on a $45MM bond forcing bankrupcy and how would you have such information?

 

[Catoosa]

Pension (PNSN) share price looks like it is headed for zero (low of 1.15 and close of 1.42 on 10-03-11).