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This is where the doctor says "take your friend out and we'll look at him". If
you trade with anyone look at who or what guarantee organization assures their
accounts/deposits and for how much and how much of that in cash. If a clearing
house were in trouble there would be a concern. If a firm actually fails it's
customers are protected unless you are doing business with some "sham" firm.
Zaitzeff@xxxxxxx wrote:
> Russell, re: access to your account, or any of ours for that matter. Here is
> a personal story colored by my perception of reality: I am no legal beagle.
> You make your own call.
>
> A friend of mine, a pilot, retired from one of the major airlines about 6
> years years ago. He put his money from a 401K (about $1.5 million) in a safe
> place, so he thought, with a big firm, based on a pitch from a broker. A
> month later he got a call from another broker requesting his business. “Sorry,
> I have my money with “---”. “Oh?, I heard they went bankrupt last week.” ?
> --- / ? oops. . . yikes !!!
> The facts: Yes, the firm had gone bankrupt. NO, the firm had not informed
> their client.
> Luckily, he had his funds in a personal account with them with no order for
> further distribution or investment. Did he have access to funds in his own
> account? NO!! (If you think about it, who is going to write you a check or
> authorize a wire transfer.)
>
> The bankruptcy court froze all accounts with that firm. Even 5 months
> after the fact, he still did not have any access. He hired a lawyer (one of my
> relatives) who had connections to some of the big banks and legal firms. He
> had to file letters, prove source of funds and distributions; and finally,
> certifications of hardship to even get access to a distribution of about a few
> thousand a month, and even that was on an ad hoc basis. He was finally able to
> get his money in a little less than a year. My friend showed me the letters
> and paperwork - Wow!!!
> Larry Z. Seattle
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