4 ms·

They are only covered up to $5 billion for the entire brokerage industry, it may be like 2008 and they all get turned into FDIC insured banks over night if tons

by cma 6y ago

They are only covered up to $5 billion for the entire brokerage industry, it may be like 2008 and they all get turned into FDIC insured banks over night if tons of margin accounts fail.

jjeaff 6y ago
And a max of $100k per account.
ummonk 6y ago
Yeah we'd be looking at losses much bigger than that if the short-sellers go under due to a squeeze.