E*Trade (ETFC) investors aren’t excited about Citi’s suggestion that the company might go bankrupt (stock has been cut in half). Now the New York Times reminds e*Trade customers that there’s no federal insurance on more than $100,000 of cash (the company does appear to have other private insurance, up to a maximum of $900,000 of cash per account). Citi’s Bhatia, meanwhile, wonders what will happen if a stampede of big customers demands their money and heads for the hills.
No mystery why E*Trade is devoting much of its front page to “asset protection”:
Related: E*Trade to Go Bankrupt?