How safe is SDCCU

[bsrsharma]

FDIC is really just an agreement

Not true. FDIC is pretty much a guarantee from Federal Government. If the funds run out, they will be replenished by taxpayers. It happened in the 1980s with FSLIC. FSLIC ran out of funds, it was closed down and the obligations were assumed by FDIC.

 

[davidt1]

What about accounts with a broker, like a stock broker?

[davidt1]

What about accounts with a broker, like a stock broker?

[davidt1]

What about accounts with a broker, like a stock broker?

[bsrsharma]

accounts with a broker

 

The government has nothing to do with it. Many times, large brokerages take private insurance from Securities Investor Protection Corporation (SIPC) – to cover some risks (not investment loss risk though). In case of losses due to severe malpractice, the only recourse is legal action (sueing the brokerage, usually class action by lawers who specialize in securities fraud law)

see http://www.finra.org/InvestorInformation/InvestorProtection/SIPCProtection/index.htm

for SIPC insurance offered by FINRA (Financial Industry Regulatory Authority, Inc.)

[bsrsharma]

accounts with a broker

 

The government has nothing to do with it. Many times, large brokerages take private insurance from Securities Investor Protection Corporation (SIPC) – to cover some risks (not investment loss risk though). In case of losses due to severe malpractice, the only recourse is legal action (sueing the brokerage, usually class action by lawers who specialize in securities fraud law)

see http://www.finra.org/InvestorInformation/InvestorProtection/SIPCProtection/index.htm

for SIPC insurance offered by FINRA (Financial Industry Regulatory Authority, Inc.)

[bsrsharma]

accounts with a broker

 

The government has nothing to do with it. Many times, large brokerages take private insurance from Securities Investor Protection Corporation (SIPC) – to cover some risks (not investment loss risk though). In case of losses due to severe malpractice, the only recourse is legal action (sueing the brokerage, usually class action by lawers who specialize in securities fraud law)

see http://www.finra.org/InvestorInformation/InvestorProtection/SIPCProtection/index.htm

for SIPC insurance offered by FINRA (Financial Industry Regulatory Authority, Inc.)

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