When a Broker goes into forced liquidation

[Maurice]

I remember when Etrade ran into some trouble a few months ago there were questions about what happens if a broker goes under, what happens if your account is over the SIPC limit, etc.


Here's an interesting piece from Willkie Farr on the subject.

http://www.willkie.com/files/tbl_s29...ted_Issues.pdf

[mathjak107]

depends on the broker, fidelity covers brokerage accounts up to 5000,00 with sipc and then have over and above insurance with from what i can see no limit.

it only covers brokerage accounts, no mutual funds you own. . but thats true of sipc also