Personal Finance (Not Investing) • pretend banks™

SIPC insurance.

I believe that SIPC insurance only will cover it if the intent of the deposit is to buy registered securities, or the deposit is the proceeds of a sale of or distribution from registered securities.

Nope, SIPC explicitly covers cash and securities. https://www.sipc.org/for-investors/what-sipc-protects

That's pretty scary.
So if you have more than $500K in mutual funds and individual TIPS invested at Fidelity, and Fidelity goes bankrupt, you can only recover $500K from SIPC?

"Yeah, but Fidelity will never go bankrupt!"
Neither would Lehman Bros? Or Bear-Stearns?

Is it reasonable to assume that their liquid reserves would cover the balance? Seems like a matter of faith. What happened to Lehman investors?

I'm not worried about my cash in a Fintech. I'm thinking about everything else.

Statistics: Posted by protagonist — Mon Aug 19, 2024 5:34 pm — Replies 86 — Views 10013

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