News for hackers. Stuff that matters.

A comment on Ask HN: What US bank post-SVB would you recommend?.

Re:Ask HN: What US bank post-SVB would you recommend? by supernova87a on Sunday March 12, 2023 @07:51AM (#35119045)
What about brokerages like Fidelity, Schwab, Vanguard, etc?

Are holdings in money market funds/accounts in such typical brokerages protected / owned like a security? Or should one regard it also like cash, and not FDIC insured greater than $250,000? (but while also trusting those institutions are unlikely to fail or have risky policies)

[ Parent | on HN ]
Re:Ask HN: What US bank post-SVB would you recommend? by bradleyjg on Sunday March 12, 2023 @07:53AM (#35119062)
Money market funds are not guaranteed. Google “broke the buck.”
[ Parent | on HN ]
Re:Ask HN: What US bank post-SVB would you recommend? by arcticbull on Sunday March 12, 2023 @07:55AM (#35119078)
The value of the money market fund is not insured, no, but the failure of the brokerage is. That said regulations are significantly stronger now for MMFs than they were when pre-2008. I guess it depends on what you're trying to protect against exactly. [1]

[1] https://www.sipc.org/for-investors/introduction

[ Parent | on HN ]
Re:Ask HN: What US bank post-SVB would you recommend? by arcticbull on Sunday March 12, 2023 @07:51AM (#35119052)
Money market funds are securities, and are covered by SIPC.
[ Parent | on HN ]