Penson Worldwide facing up to $25 million loss

lol what fraud? they made a bad investment so what. Both the clearing house and each individual broker are sipc insured. outside the big clearing firms like goldman and mer i believe penson is the biggest. If you're nervous stick your money under a mattress. hell when ms was $6 you could have been nervous. everyone's in the same boat now
 
25 M is no pocket change......but it ain't Billion that the IBanks have lost.

Share holder' s will take the hit and thus you saw the stock down today...but your segregated funds are fine and will not be a problem.
 
25 million represents almost 9% of their total capitalization. So this event is clearly material, as eveidenced by the drop in their stock. I agree this is not "fatal", but any firm clearing them should be cautous.
 
OEC raised margins for the ES to 2800 - half the CME margins - last week

I think we will see more margin rises the next month or so
 
Quote from patchie:
and could this be related to....

U.S., Costa Rican police raid SanJosé office in $100M fraud investigationU.S. agents and Costa Rican police yesterday raided Red Sea/Sentry Global offices in downtown San José, seizing documents in an investigation of a $100 million U.S. fraud scheme, according to wire reports.The raided offices house branches for the firms Red Sea Management, Sentry Global Trust, Sentry Global Securities and Global Financial Logistics, AFP news agency reported.The raid is in connection with an FBI sting in New York that led to the arrest of Jonathan R. Curshen, who is the Caribbean island St. Kitts and Nevis' honorary consul to Costa Rica, on fraud allegations in September.


With rumor out today that a VFinance Branch manager out of Red Bank NJ was just hauled in under SEC Subpoena to discuss while others refused to testify under such subpoena.
More...

I don't see how any of this is related to Penson or Evergreen!

Don't post paranoia. It only makes it worse for everyone.
I don't see the reason to immediately think this is fraud....

It doesn't surprise me that a firm had a margin call they couldn't cough up. If this seems suspicious to someone, please lift up the rock you have been living under for the past few years, and go look at a chart of the broader markets
 
Quote from stefan_777:

I don't see how any of this is related to Penson!

Don't post paranoia. It only makes it worse for everyone.
More...

Everything is related to everything. Never forget that if you want to survive. Curshen is like cancer. If you've got in your stomach, it's in your bowels too.

What do you thnk all the hub hub is about? Who do you think he did business with? Try 'everybody'. What have I been tellihng you here for 3 years? You can't seeit happening?

Just like one of those bad war movies. "It's gangarine, Sarge. I gotta take the leg if he's gonna live."

That is where we are at. Except it's more like two legs, and an arm.
 
What a lot of people don;t realize is that this is only part I...there will be more and Penson will have to do an equity raise or sell a stake..and for the love of man....if it gets dicey DO NOT LEAVE YOUR $$ THERE AND THINK SIPC WILL SAVE YOU!!!.

Even if you don;t lose $$, your funds can be locked up for months and months...also, SIPC only pays 100k in cash...If you have 250k you trade with and go flat every night...SIPC will only pay you 100k...they pay up to 500k in securities but only 100k in cash
 
Of course this happens just as I open my TOS account. :D

If they go belly up then I can simply short the heck out of the market with all my other accounts. I don't think it will be permissible in this socialized market. I'm riding this out.
 
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