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Old 02-19-2008, 05:39 PM
Augustine
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Default Re: E*Trade Woes

On Feb 18, 4:27 pm, Mark Bole <ma...[at]pacbell.net> wrote:
- quote -

> 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.

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  #1  
Old 02-18-2008, 09:27 PM
Mark Bole
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Default Re: E*Trade Woes

Augustine wrote:
- quote -

> 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
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Old 02-18-2008, 05:49 PM
Douglas Johnson
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Default Re: E*Trade Woes

Augustine <evandro[at]mailinator.com> wrote:

- quote -

> 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
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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
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  #-1  
Old 02-18-2008, 04:10 PM
Augustine
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Default E*Trade Woes

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.

 

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