Penson

Quote from Catoosa:

I agree with rmorse's post above in that there is much to like about an account cleared through Penson. I like the way Penson has client accounts setup with futures account cash sweeps each night to the brokerage account side, check writing privileges, and access to client account records at Penson. I think Penson as with many clearing firm is suffering due to the Fed forcing interest rates to near zero for an extended period of time.
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couple points...first, avoid PNSN like the plague. just b/c the accounts would be transferred doesn't mean there won't be a problem. you don't want to go through the process of having your positions frozen while they're transferred to another firm - esp options positions. what happens if you're holding a bunch of weeklies and you get a notice saying you can't trade for the rest of the week?

second re to the points above, there are other clearing firms that provide the exact same functionality that you listed above so PNSN isn't special.

third re them suffering b/c of the fed, that is R-0-N-G. the fed didn't force one of their directors to take company money and invest it in one of his race tracks or golf course or collection of beanie babies or whatever the hell he did. PNSN made their bed w/ bad decisions and unfortunately all the traders who clear thru them might have to lay in it.

i think we all agree that the stock price does reflect the ops of a firm (LEH, AIG, BSC, ENE). the only people who saw the stock price is wrong are the CEOs who get stock based compensation.
 
this saga with penson has been going on now for years. other firms have looked at their books and no bids have been announced. that probably says more about the quality or the size of the firms who clear though them it is too bad because the # of brokerage firms is declining which is not good for the public which ends up with less choice. penson is now under strictest regulatory scrutiny. it is doubtful that there are shenanigans currently going on.
 
Quote from FrankSlaughtery:

second re to the points above, there are other clearing firms that provide the exact same functionality that you listed above so PNSN isn't special.

compensation. [/B]
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On the futures side yes. In customer portfolio margin accounts, there is a big difference. No other prime broker calculates margin and risk like they do now. Every other firm has gotten very restrictive. The big issue, is that other firms are changing their requirements often, so the client does not know what to expect. Penson has not done that, yet.

Bob
 
No shenanigans with Penson, huh?

Please explain how Penson ended up with $42million in nonaccruable receivables from Retama Development Corp?

Let's see, the CEO of the company (Call Now) that runs the Retama Park racetrack was a member of Penson's board and coincidentally they allowed him to use the RDC bonds for margin loans with Penson.

Nah, nothing unusual going on there... and when did all this come out? Only when they had to admit the bonds were worthless.
 
Quote from GTS:

No shenanigans with Penson, huh?

Please explain how Penson ended up with $42million in nonaccruable receivables from Retama Development Corp?

Let's see, the CEO of the company (Call Now) that runs the Retama Park racetrack was a member of Penson's board and coincidentally they allowed him to use the RDC bonds for margin loans with Penson.

Nah, nothing unusual going on there... and when did all this come out? Only when they had to admit the bonds were worthless.
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"it is doubtful that there are shenanigans currently going on." because of regulatory scrutiny .
the word is currently.
 
Bottom line....if you can use a different firm do it. If you are stuck for one reason or another with Penson then there is really nothing you can to.
 
you guys should take a closer look. the price has to do with stock holders dillution given the bond holders which will convert to shares.
 
Well today Penson closed at 60 cents. How do they stay listed on the Nasdaq at 60 cents? I thought once below a buck you got tossed?

Also, at 60 cents aren't we getting pretty close to a chapter 11?
 
Quote from rmorse:

On the futures side yes. In customer portfolio margin accounts, there is a big difference. No other prime broker calculates margin and risk like they do now. Every other firm has gotten very restrictive. The big issue, is that other firms are changing their requirements often, so the client does not know what to expect. Penson has not done that, yet.

Bob
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You do not seem to be to concerned about this situation with your clearing firm. I believe Penson clears for a large number of smaller brokers. It would seem to me that a large number of people are going to be very P.O'd if Penson goes belly up, what with all of the advanced warning bells going off. I have been with them for years, and they have been excellent. I hope they get things worked out as they seem to be a well run company from an operations standpoint.
 
Quote from high99:

You do not seem to be to concerned about this situation with your clearing firm. I believe Penson clears for a large number of smaller brokers. It would seem to me that a large number of people are going to be very P.O'd if Penson goes belly up, what with all of the advanced warning bells going off. I have been with them for years, and they have been excellent. I hope they get things worked out as they seem to be a well run company from an operations standpoint.
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+1 to everything except the last sentence b/c of that director buying the racetrack nonsense but very good points.

my 0.02 USD is that someone buys them for next to nothing to acquire their relationships and has to do a capital infusion to put them on solid ground. now b/c i said that they'll prob just file ch. 11 tomorrow.
 
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