If ETrade declares bankrupcy, how will that affect my account?

I own shares of two ETrade mutual funds, ETRUX and ETSPX, as well as ETrade CDs. If ETrade declares bankrupcy, will my investments dissappear?

If there were a problem, they should have insurance to cover it per https://us.etrade.com/e/t/home/accountfe...

"E*TRADE Securities LLC, Member of SIPC, which protects securities of its members up to $500,000 (including $100,000 for claims for cash). Explanatory brochure available upon request or at www.sipc.org.

E*TRADE Clearing LLC has purchased from London insurers additional protection with an aggregate limit of $600 million to pay amounts in addition to those returned in a SIPC liquidation, and providing that (1) the combined return from the Trustee distributions, SIPC and London to any customer does not exceed $150 million, and (2) as a sub limit, return of cash to any customer by London does not exceed $900,000. This coverage does not protect against loss of the market value of securities. Details are available on request.

SIPC coverage is not the same as the insurance on bank accounts provided by the Federal Deposit Insurance Corporation (FDIC). It does not protect investors against a decline in the market value of securities. SIPC generally protects customers against the physical loss of securities if the broker/dealer holding the securities for the customer fails."

I think you would also be going bankrupt. I never did trust etrade!

Citigroup owns them. Your money will stil be there because of FDIC insurance and all that, but it IS possible that there COULD be some lag time between a banckruptcy and you being able to access your funds.

None of the above answers were good or correct - 100%.
I also have etrade - 4 accounts (2 IRA's, 1 brokerage account, 1 savings and 1 checking). I am very nervous about it also. However, savings and checking are insured by FDIC up to 100k (200k if you are filing jointly). IRA's with cash in them are insured up to 250k.

If you have a brokerage account and any other stocks and mutual funds - you are covered by SIPC up to 500k (including 100k of that in cash). This means they will replace your shares should E-Trade go bankrupt and no money is available to transfer your shares to someone else. This is the part that makes me nervous. I don't want to liquidate my stocks and I want to keep them as is, but at least the shares are protected by SIPC.
I also have Etrux and decided to liquidate it today. The reason is not just because of the possibility of E-trade tanking, but also because Etrux ceased to track the Russell 2000 in 2005 - look at the charts and you will see that in 2005, it started falling below...why is that?

I have been hoping it would get better, but today's news gave me the push I needed to sell it at a small profit and get into something else not owned by Etrade.

It would be prudent to try to move out of your positions owned and operated by E-Trade and invest in other funds from other companies - that's my feeling on it.

E-Trade will probably either merge or sell, or in worst-case scenario - file chapter 11. This just means they will reorganize, just like Delta and other companies. Someone will bail them out before it even gets to true bankruptcy.

I panicked today also, but sat back and thought about it and decided to sell Etrux and stay put. If you don't own their stock, and are just a customer - you are covered and you can also move the accounts over later should things get even worse.

But, upon reflection, I think they will be okay and customers within the FDIC and SIPC limits will be okay.

It's the people with money over those limits that will move excess amounts to other banks. Which they should have been doing all along. Why risk losing any of it?

Etrade is just a brokerage company. You still own your funds through the company that issues the fund - etrade can't touch that. If they do file bankruptcy someone else - like Schwab or TD Ameritrade - will take over your account and be your broker. Your CDs should be FDIC insured up to $100k.

idk but if they do you shud sue them