E-Trade Bankruptcy concerns

[realgoogler]

Recent Analyst comments hinting E-Trade Bankruptcy is scary.
What will happen to Customer Assets in Brokerage accounts
1. Cash/Deposits
2. Stocks (ESPP and others)
3. Stock Option (Employer)
4. Mutual funds


Cash/Deposits are FDIC insured upto 100K USD. What about other Assets ?

is it a good idea to move the Assets to another Brokerage firm now?

[realgoogler]

Hi Gurus - Just a simple question on stocks with the Brokerage. What powers does E*Trade have with stocks supposedly owned by you ?

[anandr2i]

I moved deposits from savings to other banks - BAC, ING etc.
Brokerage/IRAs are still intact at Etrade.

[r2i_100]

Recent Analyst comments hinting E-Trade Bankruptcy is scary.
What will happen to Customer Assets in Brokerage accounts
1. Cash/Deposits
2. Stocks (ESPP and others)
3. Stock Option (Employer)
4. Mutual funds


Cash/Deposits are FDIC insured upto 100K USD. What about other Assets ?

is it a good idea to move the Assets to another Brokerage firm now?[/quote]

Here is what I know:
- Cash deposits insured upto (FDIC) 100K
- Securities insured upto (SPIC) 500k http://www.sec.gov/answers/sipc.htm

Really speaking securities(stocks,MFs and options) are "held" by Etrade so they are NOT ETrade assets.

[Ace Novice]

From WSJ, the majority of deposits at E*Trade are FDIC insured. If there is a run on the bank, you won't know until Dec when the Nov figures are released.

[nelly]

From WSJ, the majority of deposits at E*Trade are FDIC insured. If there is a run on the bank, you won't know until Dec when the Nov figures are released.[/quote]

SHIT!!!! I am in India and have not been following up on this news -- sometimes u can get too isolated without CNBC & CNN. The india TV won't focus on specific things like this.

Yikes!!! PRAY PRAY

[Ace Novice]

....Yikes!!! PRAY PRAY[/quote]

Pray ? You should move any money in excess of $100K out of E*Trade. Anything else is covered by FDIC.

[nelly]

Pray ? You should move any money in excess of $100K out of E*Trade. Anything else is covered by FDIC.[/quote]

I know ur trying to help --- but R2 kidding? Ofcourse I am trying to get it out and not just praying :)

Being here in India and getting this done is a pain -- yes they have all sorts of rules -- you cannot wire it without written instructions from a MM account, I don't have a fax machine, I am on the net, but no online way to do this, bank to bank transfer had technical issues and it's only mid-night here :)

Anyways, don't want to bore you with my trials and tribulations glad to tell you that my prayers were answered. I spoke to rep and we worked it out.

I had no issues -- the rep sounded pretty calm and apparently the call volume is not as high -- so no sense of panic -- that said, I know too many people that got rich on paper and then back to rags all on paper....

I was systematically pulling out of the stock market from various areas for quite some time now but I never thought of following my brokerage company!!! What an idiot I am.

I am sure they'll get taken over by ameritrade or Bank of America or some such institution if the problem continues.

Thanks to whoever it is originally posted this. I am just unaware of what was going on with etrade until I saw this post and read up on it.

Now I am going to sleep in peace.

[Ace Novice]

.... I was systematically pulling out of the stock market from various areas for quite some time now but I never thought of following my brokerage company!!! What an idiot I am. .....[/quote]

Quite the opposite. The idiots have been systematically buying lately. :(

[ycl1688]

this about etrade


http://www.usatoday.com/money/perfi/columnist/krantz/2007-11-21-broker-insurance_N.htm?loc=interstitialskip