Penson - What's this all about?

You are exactly right....even though accounts are SIPC insured, people should read exactly what that means and how it is different for cash and securities. Also, when (and I'm not saying "if") Penson either files for bankruptcy and seeks protection there is a high probability that accounts will be frozen from trading for a period of time while everything switches to a new firm. Might be a day, or might be weeks.

Either way I would be asking your brokerage firm who they clear through and if they say Penson it might be wise to temporarily change firms.



Quote from FrankSlaughtery:

although a lot of traders initially thought that the tda buyout of tos was all bad, one VERY good side effect was moving the clearing from pnsn to tda. i'd rather have an occasional software prob than wake up one day to find my account frozen and have no idea when i can trade it and/or get my money back.
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I am certainly no fan of Penson but it is "if" not "when". Bankruptcy is far from a certainty.

Quote from Itrade2009:

Also, when (and I'm not saying "if") Penson either files for bankruptcy and seeks protection there is a high probability that accounts will be frozen from trading for a period of time while everything switches to a new firm.
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I think it is morally reprehensible that some brokers who clear Penson are still defending them earlier on as well as at this stage. They are putting their clients funds at risk.
 
I Moved and so can you.

My broker has a bank so I transfered most of my money
to the bank.

Anybody want to buy a racetrack?

GS
 
Quote from rmorse:

the brokerage firm Penson Financial has plenty of cash. The debt is with the holding company.
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If the holding company doesn't have cash, how are they going to repay the loan from Pension Financial that was talked about in the original post in this thread?
 
I believe rmorse has stated on these boards that the firm he represents clears Penson.....blind faith I guess. The price of the stock is all you need to know. Stocks don't trade at $.16 cents for no reason. Wait til they get the notice from NSDQ that their stock is going to be delisted....time to trade on the Pinks with all the other pieces of cr*p.



Quote from jackpearson:

If the holding company doesn't have cash, how are they going to repay the loan from Pension Financial that was talked about in the original post in this thread?
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rmorse
ET Sponsor

Registered: Apr 2011
Posts: 1051


04-11-12 07:20 PM

Quote from Swan Noir:

A better rate than IB?



We were not discussing rates. This discussion was about why use Penson? You can receive competitive rates at many firms for appropriate volume. Rates are only one factor. We are also Introducing Brokers to Interactive Brokers. Their risk premium is higher in many ways than Penson. If you require leverage, Penson offers more.

Some will comment here that more leverage is more dangerous. Sometime yes, sometime no. The fact is that if your business requires it, Penson offer more. Remember, the Introducing Broker relationship places us next in line for losses on our clients accounts, before Peson, if our client blow through their assets. So, we do care about risk.

Bob

__________________

"We are also Introducing Brokers to Interactive Brokers."

is statement above correct?
 
Quote from zdreg:

rmorse
ET Sponsor

__________________

"We are also Introducing Brokers to Interactive Brokers."

is statement above correct?
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Yes. This is from our FINRA Broker check.

Bob
 

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Quote from Grandluxe:

I think it is morally reprehensible that some brokers who clear Penson are still defending them earlier on as well as at this stage. They are putting their clients funds at risk.
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+1. of course the brokers will defend them. what else are they going to say - "pnsn is a POS company w/ no operational controls, a corrupt and inept board and likes to gamble literally at the track".

the brokers will defend them right up until ch 7 or 11. then the brokers will issue the following statement

"we are shocked - shocked - that this unfortunate incident occurred. we will do everything possible to get our customers their money back as soon as possible. we encourage our customers not to leave us for a more financially secure broker. remember it could've been worse - it could've been our money."
 
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