With the recent market turmoil many investors are wondering whether their investment accounts are insured. If you are unsure follow the links below to find out. The first one is for the FDIC. The following exert from their site explains their role.
“The Federal Deposit Insurance Corporation (FDIC) preserves and promotes public confidence in the U.S. financial system by insuring deposits in banks and thrift institutions for at least $100 000; by identifying monitoring and addressing risks to the deposit insurance funds; and by limiting the effect on the economy and the financial system when a bank or thrift institution.”
Follow this link to go to the “Insured or Not Insured page” for a detailed list of which assets are covered and the limits.
The SIPC on the other hand guarantees most assets at failed brokerages. The following exert from their site explains their role.
SIPC is an important part of the overall system of investor protection in the United States. While a number of federal self-regulatory and state securities agencies deal with cases of investment fraud SIPC’s focus is both different and narrow: Restoring funds to investors with assets in the hands of bankrupt and otherwise financially troubled brokerage firms. The Securities Investor Protection Corporation was not chartered by Congress to combat fraud.
Follow this link to find out what coverage they offer and the limits.
It is important to spread your assets among several institutions once you get near the limits. Ask your banker or broker specifically about the insurance for the products in which you are invested. If the answer seems to differ based on the FDIC and SIPC guidelines be sure to ask for clarity.
With the expected restricted short selling in place tomorrow hopefully the markets will find their footing.