Possible banruptcy for E*trade

[LeTim]

Blimey.

This is starting to look a bit nasty. I wonder what the T&Cs are on nominee accounts if your online broker goes bust?

http://www.bloomberg.com/apps/news?pid=20601087&am...

[jamesw2000]

What is the deal if they do go bust I have a few of my holdings in a nominee account with them... :S

Edited by jamesw2000 on Monday 12th November 17:10

[LeTim]

jamesw2000 said:

What is the deal if they do go bust I have a few of my holdings in a nominee account with them... :S

Well that's what I'm wondering, as IIRC technically speaking the client doesn't own the shares in a nominee account the broker does, so I wonder if that means that the creditors would/could have a claim on them.