from reddit:
The SIPC fund has access to 6 billion. The larger US brokers covered by SIPC have trillions AUM. Even IB as a smaller US broker has about $160 billion AUM. If IB pulls a Bernie Madoff, how exactly will the SIPC fund pay out $160 billion from $6 billion cash and credit line? The $30 million insurance is meaningless if they pull a Bernie Madoff as it has “an aggregate limit of $150 million”.
[note from me: like our bank insurance for 100k CHF…]
I still would like to know how much is really transferring stuff to SQ and mainly which kind of insurance SQ has. I suppose none. Maybe the safest bet is to move all back to PF if they didn’t have implemented those new costs.
source of the source:
https://old.reddit.com/r/eupersonalfinance/comments/j5k94s/is_european_branch_of_interactive_brokers_being/