OK sure so the FDIC can just insure FTX then.
Other brokerages lend out their spare cash without your consent, too.
It's not really any different other than that law has (rather arbitrarily) decided to protect one and not the other.
Other brokerages lend out their spare cash without your consent, too.
It's not really any different other than that law has (rather arbitrarily) decided to protect one and not the other.
- https://www.interactivebrokers.com/en/pricing/stock-yield-en...
- https://www.fidelity.com/trading/fully-paid-lending
Some brokerages lend out spare cash (and pay a transparent interest rate, and are subject to strict reserve requirements) but the majority of assets controlled by a typical brokerage are securities. FTX assets were all subject to their leverage strategies, with no specific reserve.