24 replies to this topic

[K Wave]

LPL was doing fine....now getting a bit sketchy

 

 

 

[K Wave]

State Street, the Big Kahuna for a lot of trustee type bank arrangements

 

So Far...holding a hugely pivotal area

 

[slupert]

 

The more I'm amazed by the layers of rank incompetence...

 

And I'm the guy who sez, "You'll never go broke underestimating the intelligence of bankers!" (no offense to any of my banker friends, but...)

 

The sad thing is that it's not just the incompetence of the bank management and especially their investment officer, the regulators were totally asleep at the switch.

 

And the laziness and stupidity of the depositors is what really gets me. Who in the Hell just puts massive sums in a bank with just $250k of insurance?!?!? I have to think that all those businesses with deposits there hired CFO's with degrees in gender studies but no actual understanding of finances.

 

There's a reason why there are custodial banks. And brokerage firms with better, safer cash management options with more insurance. You can wire money in a trice, too, so there's no reason to keep excessive sums in any given bank.

 

I just have to shake my head.

And then I imagine all the old white men who were passed over for positions as CFO's and Investment Officers (and the like) who had 25-30 years of experience and who had been through multiple business cycles and crises, who would have avoided all these rookie mistakes...

Then I shake my head again.

 

Custodian banks do not handle day to day operations, such as payroll.

 

I know what ya nean about holding the securities in a custodian account intead of a held to maturity account though. Hedge funds screw that up all the time not putting securities in street name in custodian banks.

[MikeyG]

Compq looked impulsive off the bottom just now

[K Wave]

This is where Morgan Stanley and LPL have their banking services...at least for check clearing anyway. Trying to find out just how connected they are.

 

 

Be careful out there...

 

 

Check clearing only....so good new for MS and LPL customers, at least in that regard anyway