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That's some fox news grade reporting alright. Whether the market as a whole is structured around direct "ownership" of share or via a central well established

by Havoc 9mo ago

That's some fox news grade reporting alright. Whether the market as a whole is structured around direct "ownership" of share or via a central well established custody system - it's functionally identical risk. You're counting on rule of law. And not just you - everyone. If it works it works, or it doesn't in which case the global financial system crashes and we've all got bigger problems. Also custody <> ownership. Nor can any of this seize retirement savings: >may seize securities used as collateral in lending arrangements with broker-dealers. i.e. no different from bank seizing your house if your mortgage arrangement blows up. There is nothing to see here

newsoftheday 9mo ago
I'm a layman, I did try asking Google Gemini this question based on the phrasing in the article, "Can the depository trust company seize securities used as collateral in lending arrangements with broker-dealers?" to which it answered, "The short answer is yes" followed by much information on the subject. PS I expanded my question as follows: "Can the depository trust company seize securities used as collateral in lending arrangements with broker-dealers in a financial crisis?". The response contains, "...a systemic crisis triggers specific clearinghouse protections that can override normal operations.".
newsoftheday 9mo ago
You're welcome to use your own research, Google foo, AI, etc. I have and my results indicate the article is correct in its assertions in a highly limited but at least possible scenario.
stogot 9mo ago
It’s not reporting, it is an advertisement for the authors book… Buried halfway down
spwa4 9mo ago
> i.e. no different from bank seizing your house if your mortgage arrangement blows up. No, this would be like the bank seizing your house if SOMEONE ELSE'S loan arrangement blows up (specifically your broker's loans from the securities exchange). And yes, this assertion is correct, your securities ownership will be in question if your broker becomes insolvent, especially if it becomes insolvent due to fraud. But this is just fox news scaring people. They don't even take the scariest laws. If your broker goes bankrupt because it commits tax fraud ... then a much bigger can of worms is opened, which can have even bigger consequences for customers. And it's Fox News, right. Also from the article: "Lawmakers could also enact new legislation that weakens current consumer safeguards" Well, yes. In other news: lawmakers could enact legislation that makes it legal to kill your dog.
tim333 9mo ago
>You're counting on rule of law. The US is quite good like that in practice, like I had some money in ftx.com and they quite rapidly got my money back and put SBF in jail. On the other hand in places like Russia there's a good chance someone of something will steal your stuff.
- cyanydeez 9mo ago
  SBF went to prison and you got your money back because his victims included powerful people. The same outcome is easily differentiable had he focised soley on the retail investors.

by Havoc 9mo ago

newsoftheday 9mo ago

I'm a layman, I did try asking Google Gemini this question based on the phrasing in the article, "Can the depository trust company seize securities used as collateral in lending arrangements with broker-dealers?" to which it answered, "The short answer is yes" followed by much information on the subject. PS I expanded my question as follows: "Can the depository trust company seize securities used as collateral in lending arrangements with broker-dealers in a financial crisis?". The response contains, "...a systemic crisis triggers specific clearinghouse protections that can override normal operations.".

newsoftheday 9mo ago

You're welcome to use your own research, Google foo, AI, etc. I have and my results indicate the article is correct in its assertions in a highly limited but at least possible scenario.

stogot 9mo ago

It’s not reporting, it is an advertisement for the authors book… Buried halfway down

spwa4 9mo ago

> i.e. no different from bank seizing your house if your mortgage arrangement blows up. No, this would be like the bank seizing your house if SOMEONE ELSE'S loan arrangement blows up (specifically your broker's loans from the securities exchange). And yes, this assertion is correct, your securities ownership will be in question if your broker becomes insolvent, especially if it becomes insolvent due to fraud. But this is just fox news scaring people. They don't even take the scariest laws. If your broker goes bankrupt because it commits tax fraud ... then a much bigger can of worms is opened, which can have even bigger consequences for customers. And it's Fox News, right. Also from the article: "Lawmakers could also enact new legislation that weakens current consumer safeguards" Well, yes. In other news: lawmakers could enact legislation that makes it legal to kill your dog.

tim333 9mo ago

>You're counting on rule of law. The US is quite good like that in practice, like I had some money in ftx.com and they quite rapidly got my money back and put SBF in jail. On the other hand in places like Russia there's a good chance someone of something will steal your stuff.

cyanydeez 9mo ago
SBF went to prison and you got your money back because his victims included powerful people. The same outcome is easily differentiable had he focised soley on the retail investors.