To: RJL who wrote (26511 ) 10/10/2000 9:35:39 PM From: NucTrader Read Replies (1) | Respond to You think the FDIC can cover all the FDIC insured loans they've got? Absolutely not! Remember, banks have different strengths and plenty of banks went bankrupt during the depression. As someone on this thread already pointed out, that's the way people who weren't even in the market went broke -by having their money in a bank! So when you find a bank, it needs to be a strong one, so the FDIC DOESN'T have to bail them out! Because if the FDIC is having to bail out a lot of banks, including yours, well, you might have to "wait a while" for your money.....I guess it's my way of saying your money is never safe anywhere. The concept of dispersal is a good one to follow - if one egg breaks, the others won't because they're not in the same basket. I also think the concept of taking charge of your stock certificates as opposed to leaving them with a broker has some merit. As to whether a FDIC insured account with any given bank is financially safer than a major broker such as Schwab, don't have a good feel for that. Got to tell you one place not to have your money. With a trustee who holds accounts for a variety of market timers. A little over a year ago I had a substantial account with a market timer who was doing well. He started to do less well and I felt his trend following methods were not right for the market we were in, so I liquidated the account and transferred it to a major broker where I have self managed it. Around $2.50 was left in the trustee money market by accident. A year after the account was closed, I got a letter which said: the trustee's money market account was substantially "short" and while the court appointed trustee (Price Waterhouse Cooper) was trying to assess the damage, no money in any money market account could be touched by any client. If you owned stock, you could liquidate up to 1/3 of your holdings on presenting the trustee with a valid excuse of "emergency" (and they had a list of what they considered emergencies). Scary........
