With the giants of the financial services industry disappearing, you might be wondering how safe your investments at TD Ameritrade are. Here is a communication I received from TD today. Hopefully, it will calm any fears you might have.
“We are aware of the reported events that have taken place over the weekend in the financial services industry. As we learn the details and come to terms with their impact on the nation’s financial markets, we remind our clients, associates and shareholders that neither Lehman Brothers’ bankruptcy nor Merrill Lynch’s sale have any overarching impact or reflect on our firm. Our capital structure and liquidity are strong and stable, and our clients’ assets remain secure. TD AMERITRADE continues to have no exposure to the U.S. real estate market and the associated complex financial securities that are at the root of this liquidity crisis.
TD AMERITRADE, Inc., member FINRA (www.finra.org) /SIPC (www.SIPC.org), receives clearing custodial services from TD AMERITRADE Clearing, Inc., member FINRA/SIPC. TD AMERITRADE, Inc. and TD AMERITRADE Clearing, Inc. are subsidiaries of TD AMERITRADE Holding Corporation.
Our capital structure and liquidity are strong and stable, and our clients’ assets are secure. It is unfortunate that a number of firms have failed, or have struggled, over the course of the last 18 months as the result of investments tied to the nation’s struggling real estate markets. We do have immaterial exposure through normal business operations to Lehman Brothers’ broker-dealer subsidiary, but we are appropriately collateralized and expect the Lehman Brothers broker-dealer subsidiary to continue operating.
TD AMERITRADE’s capital structure and liquidity are strong and stable. TD AMERITRADE has no exposure to the U.S. real estate market and the associated complex financial securities that are at the root of this liquidity crisis. The collateral backing our liquidity is in cash or U.S. securities, which are available and marked-to-market daily. The collateral backing our liquidity is not in real estate-related securities (check the source for more details). The credit and liquidity issues currently impacting other firms have not impacted our liquidity, which we monitor daily.
In addition, TD AMERITRADE does not take proprietary risk on its balance sheet. Our clear, transparent business model and commitment to conservative fiscal management has helped us avoid the troubles other firms have experienced from investment risks. “
If you have any further questions, please drop me an email or give me a call.