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Old 03-17-2008, 10:00 PM   #5
Thinks s/he gets paid by the post
free4now's Avatar
 
Join Date: Dec 2005
Posts: 1,139
The article doesn't bother me too much. If my brokerage fails I'll just move my shares from the margin account to the cash account.

And the brokerage cannot legally liquidate my stock certificates for their own benefit or the benefit of creditors. They can only legally swap them for defined purposes specified in the margin agreement.

In short the only way this could become an issue is if someone at the brokerage does something illegal, and there's plenty of other ways the brokerages could damage me by doing illegal things.
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