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Tulpen
11-12-07, 01:06 PM
It is interesting to talk about the billion dollar write downs of banks but when things hit home I can tell you it feels rather different. :)

Most of my accounts are in E*Trade, whose stock today has been halved. One analyst thinks this company has a 15% chance of bankruptcy. Now I know that in case of bankruptcy it is likely that the client accounts will simply be taken over by a buyer, and if not, that there is FDIC and SIPC protection. But getting your money and stocks can take 1 to 3 months in case of SIPC protection, and these stocks cannot be sold in-between.

Just changes the perception of things a bit when one has to start thinking about FDIC and SIPC.

:)

touchring
11-12-07, 01:40 PM
I can't understand how an online stock broker can lose so much money, or did they get attempted and started playing MBS derivatives?

Tulpen
11-12-07, 01:49 PM
They have a portfolio of 300B in ABS, much of it in MBS.

http://biz.yahoo.com/ap/071112/apfn_e_trade_out_of_the_gate.html

Jay
11-12-07, 02:15 PM
Does anyone know how to find out if Schwab or Vanguard are in similar straights?

Jim Nickerson
11-12-07, 03:14 PM
Does anyone know how to find out if Schwab or Vanguard are in similar straights?


schwab is up ~5% as I write.