Aug 21, 2003

Markets too risky for insurers ?

A number of big players in the "excess SIPC" insurance game are considering pulling out of their coverage deals ( edu note---SIPC insurance is funded by the gov and usually covers brokerage account deposits up to about $500,000-- but brokerages usually buy " excess" coverage for protection beyond that amount, up into the multi-millions usually).
One has to wonder why the insurers would want to kill such an easy buck " golden goose" program that they have been providing for decades ? Might they think that many Large brokerages are teetering on the edge of insolvency--or possibly expecting a big market meltdown in some way ?

3 insurers quietly end a brokerage policy

Big Money knows alot before you and me do... thats for sure !

As Deepthroat once said " Follow the Money !"