thanks, yes i agreeThey may not want to disclose the actual amount because it is confusing -- not because it is low but because it appears low.thanks that's really helpful.
i think i see now why vanguard doesn't want to disclose details on the excess insurance coverage above SIPC. It would actually be somewhat confusing to their average customer i think. For example take Interactive Brokers: $150 M aggregate cap and $30 M per customer. If there is a crisis and Interactive Brokers somehow lost $300 M, does that mean all of their customers get 50c on the dollar for their losses above SIPC limits? Cause that's how i think it would work.
cheers,
grok
If Interactive Brokers only lost $300M, wouldn't SIPC + $150M additional in aggregate cap coverage likely be sufficient to make all investors whole or at least go a very, very long way?
With $540B in client equity at IBKR, losing $300M would be a loss of 0.06%. At that size loss, wouldn't only accounts over $833M exceed the $500k coverage per account SIPC limit?
So yes I think you are right that the accounts with over $833M that have exceeded SIPC coverage would be splitting that $150M in additional insurance. At that point though, probably the real value is in the regulations requiring assets to be held separately (which is probably why the loss was limited to $300M). Getting 99.94% of your money + up to $500k (SIPC) + up to $30M (additional insurance limit per customer with the total for everyone capped at $150M) back doesn't seem too bad.
Statistics: Posted by grok87 — Mon Dec 02, 2024 5:37 am — Replies 24 — Views 1226