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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Mike M2 who wrote (34797)	10/29/1998 1:11:00 PM
From: Knighty Tin	Respond to of 132070

Mike, That was pretty good stuff from a Cornell guy. <G> I never let my brokerage accounts get over SIPC levels. MB

To: Mike M2 who wrote (34797)	10/29/1998 3:20:00 PM
From: Knighty Tin	Read Replies (4) \| Respond to of 132070

Mike, I went back and reread the part about Pru. Yes, that is legal. As long as they collateralize it, they can pledge or lend any securities you hold in street name. As far as Banker's Trust knows, Pru is the owner on the record. Of course, if they lose everything, the SIPC will someday give you back your shares and money. You may lose your shirt missing the market in the meantime, but you can hedge that if you have another account. The thing is, we have entities that can borrow money on assets they don't have. Sounds like one of my cousins. Nobody in his right mind would do it. In all honesty, I think Pru has been in so much trouble for limited partnerships and other flim flam that their lawyers would have required the bolier plating even if they had no potential problems. Which means that we still haven't got a clue about the depth of the problem. MB