Who insures your brokerage account if the brokerage goes belly up?
Minyanville - NEWS & VIEWS-Article: "A number of Minyans have asked about protecting their investments against brokerage bankruptcy. Thanks to Bear Stearns, (BSC) this question no longer seems far-fetched.
Most people are familiar with the Federal Deposit and Insurance Corporation, or FDIC. Created in 1933 by the Glass-Steagall Act, the FDIC guarantees deposits held in commercial banks for up to $100,000. But the FDIC does not cover brokerage accounts. If Citigroup (C) were to go bankrupt, asks Minyan George, what would happen to stocks and bonds here there as investments?"
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