E*Trade Woes

Financial Planning - Financial planning in general. (Moderated) 

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Subject Author Date E*Trade Woes Augustine 02-18-2008  Re: E*Trade Woes Douglas Johnson 02-18-2008  Re: E*Trade Woes Mark Bole 02-18-2008  Re: E*Trade Woes Augustine 02-19-2008
Posted by Augustine on February 18, 2008, 12:10 pm It seems that the low-cost brokerage got caught in the sub prime fiasco (when lenders lent to borrowers they knew would default when the variable rate kicked in). What's your take on its survivability and the effects of its possible bankruptcy to its customers? TIA -------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup. Posted by Douglas Johnson on February 18, 2008, 1:49 pm >It seems that the low-cost brokerage got caught in the sub prime >fiasco (when lenders lent to borrowers they knew would default when >the variable rate kicked in). What's your take on its survivability >and the effects of its possible bankruptcy to its customers? Morningstar has decreased their estimate the chances of bankruptcy for Etrade from 50% to 10%. The most likely bankruptcy scenario would have ETrade taken over by someone else with little impact to customers. More serious scenarios would have the SPIC or FDIC insurance kick in. Customers might lose anything over those limits and might have insured assets locked up for awhile. -- Doug -------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup. Posted by Mark Bole on February 18, 2008, 5:27 pm Augustine wrote: > It seems that the low-cost brokerage got caught in the sub prime > fiasco (when lenders lent to borrowers they knew would default when > the variable rate kicked in). What's your take on its survivability > and the effects of its possible bankruptcy to its customers? Back in November their main web page prominently announced their plans, now you have to go check out the press release section... but they received a 2.5 billion investment from Citadel Investment Group and shed some 3 billion of risky debt, just in the last few months. Apparently they feel confident enough that they no longer need to promote this news on the main page. I've been a customer for close to 10 years now, and while only an infrequent stock trader, I've been more than satisfied. -Mark Bole -------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup. Posted by Augustine on February 19, 2008, 1:39 pm > > I've been a customer for close to 10 years now, and while only an > infrequent stock trader, I've been more than satisfied. As a customer myself, I've been satisfied with their service too. Much more satisfied than with TDAmeritrade, which though as good in trading, it was a pain to get all the information during needed for tax filing. Anyways, my satisfaction has nothing to do with their survivability. For now, I left my Roth there, but I rolled over a 401k to another brokerage. Thanks. -------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup. Similar Threads Posted before i leave etrade.... April 16, 2007, 5:57 pm etrade s&p 500 index fund February 1, 2007, 7:37 pm Security Guarantee at ETrade, TD Ameritrade, Vanguard, etc. January 26, 2007, 5:01 am