Penson

As someone said before, they do not run a prop desk, so they should not be stealing customers money. Hopefully. So perhaps a straight up Chapter 11 would allow them to shed debt, restructure, and get a fresh start. Trading volumes are way down compared to the past 5 years or so, so their income stream is hurting yet their monthly bills keep coming in. Gee, I think a lot of people can relate to that. Agree that the race track deal was pure stupidity and that must have hurt. But they do seem to run a clean day to day operation, so there does exist something of value. It seems a smooth chapter 11 would be the way to go. When an airline goes 11, you don't even notice. Perhaps this could be the same.
 
Penson has dug themselves into a financial hole from which they will not escape intact. They lost 233M or $8 a share of common last year. This company has obviously been mismanaged from its inception. The company leaders take pay/year of 305K to 737K to create a corporate financial disaster for the company creditors and share holders. I expect this company will inevitably be dissolved and its accounts absorbed by other firms.
 
I have spoken with my introducing broker who I have been with for 15 years, and they are watching this carefully. Who wouldn't. It seems Penson made a mistake regarding the racetrack, and trading income is down for everybody in the business as volume has tanked over the past few months in particular. Time will tell.
 
Let me check if I understand this: Penson is weak financially yet there are guys in this thread that continue to leave money with them and/or one of their IB's?

No one over the age of 16 or 17 should have trouble understanding what is wrong with that equation.
 
Quote from high99:

I have spoken with my introducing broker who I have been with for 15 years, and they are watching this carefully. Who wouldn't. It seems Penson made a mistake regarding the racetrack, and trading income is down for everybody in the business as volume has tanked over the past few months in particular. Time will tell.
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very true trading vp;ume has kaputted. Not only that, all the buy side desks are swatting at flies everyday
 
Quote from rmorse:

Then they realize they can't run their business in the same way they need to, because of restrictions at other brokers, margin call requirements at other brokers, and risk controls at other brokers.
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A pretty interesting comment. Translation into lay-speak: Penson is letting its client take larger than normal risks. Or put another way, Penson attracts (even) riskier than normal trading profiles.

And that, IMO, is the working definition of Dead Firm Walking.
 
Quote from Swan Noir:

Let me check if I understand this: Penson is weak financially yet there are guys in this thread that continue to leave money with them and/or one of their IB's?

No one over the age of 16 or 17 should have trouble understanding what is wrong with that equation.
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So Swan, have you moved your money out of Penson, or are you still watching prior to making your strategic move? Or perhaps you are simply bored with nothing constructive to do, other than to chime in with some sarcastic shit? :)
 
i took a chunk of money out of my penson brokers a couple weeks ago, and reduced them to a level where i'm comfortable if something happens with penson and i have to use it as a tax write-off.

but i wouldn't leave all my money in a penson-cleared account, nor would i have that broker as my main brokerage.
 
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