The year before Lehman’s demise I contacted SIPC and asked how SIPC would handle a financial meltdown. He said he didn’t know.
Hi Jim,
I hope you are doing very well.
The year before Lehman’s demise I contacted SIPC and spoke to one of their attorneys. I asked him how much SIPC, which was funded by brokerage dues. He said $1.5 billion, with a line of credit from the governmentt of another $1.5 billion!
I asked how SIPC would handle a financial meltdown. He said he didn’t know. He said, let’s just hope that doesn’t happen. Now is that "a plan" that one would want to put one’s faith in or one that one should not walk, but run from? $3 billion doesn’t even cover Warren Buffet, let alone the rest of us!
This being the case, SIPC appears to be a fraudulent claim that no brokerage should legally be permitted to make.
You are absolutely correct in your warnings to your readers.
As a lifelong trader, it absolutely pains me to not feel safe in performing what I love doing most. Fund managers don’t mind trading size because it still is OPM to them and a vehicle for them to make money up until the time their clients (OPM) may lose their shirts.
I hope CIGAs heed your advice to protect themselves by either largely exiting the system and/or by certificating their shares, as you are absolutely correct.
Rest well and have a very good evening… and much thanks!
Respectfully,
CIGA Jennifer
Jennifer,
Both the FDIC and SIPC are sick jokes.
Respectfully,
Jimhttp://www.jsmineset.com/2013/07/18/jims-mailbox-1315/
I hope you are doing very well.
The year before Lehman’s demise I contacted SIPC and spoke to one of their attorneys. I asked him how much SIPC, which was funded by brokerage dues. He said $1.5 billion, with a line of credit from the governmentt of another $1.5 billion!
I asked how SIPC would handle a financial meltdown. He said he didn’t know. He said, let’s just hope that doesn’t happen. Now is that "a plan" that one would want to put one’s faith in or one that one should not walk, but run from? $3 billion doesn’t even cover Warren Buffet, let alone the rest of us!
This being the case, SIPC appears to be a fraudulent claim that no brokerage should legally be permitted to make.
You are absolutely correct in your warnings to your readers.
As a lifelong trader, it absolutely pains me to not feel safe in performing what I love doing most. Fund managers don’t mind trading size because it still is OPM to them and a vehicle for them to make money up until the time their clients (OPM) may lose their shirts.
I hope CIGAs heed your advice to protect themselves by either largely exiting the system and/or by certificating their shares, as you are absolutely correct.
Rest well and have a very good evening… and much thanks!
Respectfully,
CIGA Jennifer
Jennifer,
Both the FDIC and SIPC are sick jokes.
Respectfully,
Jimhttp://www.jsmineset.com/2013/07/18/jims-mailbox-1315/