|
PureBytes Links
Trading Reference Links
|
Pretty much but he probably is not BSing but believes this to be true. As I
understand it all firm do use customer funds and its why you don't get any
interest from unused margin. So on one hand the money is there always for
you to withdraw at anytime but it is used by the clearing firm as well. I
can tell you this its the same deal at every clearing firm and your
protection comes from the exchanges monitoring the Clearing firm and the
Government monitoring the Exchanges. I think if there was any interment
danger of this ever being a problem the Government would have regulated it
like they did the securities industry. Same reasoning applies to money
markets although its protected up to 100,000 in cash by SIPC and usually
the broker dealer has insurance way above this. The money market is a
market and can trade below a dollar just never has. But there is always a
first time for anything and insurance can't protect you from that.
Robert
TWA7663@xxxxxxx wrote:
>I have an account with LFG. I called my broker. He said that that the
>problem was with some proprietary accounts that lost huge amounts over the
>week end and that the problem had been resolved and business was as usual.
>
>He also confirmed that my money was in a specific account in my name and if
>LFG went bankrupt that money could not be touched by anyone but me. Can
>anyone confirm this or was he just BSing me?
>
>Russ
>
>
|