Quote:
Originally posted by Hank Chinaski
a broke bank doesn't mena it's CDs are toast too? by the way, this is my question, and it has to do with liquid cash for a company.
dtb. perhaps you are focusing too much on grammar and not enough on the actual question asked?
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CDs have the same limit, as burger notes. The advantage of going to a broker at Merrill, UBS, or a smaller shop is that you can buy from different banks to make sure that each CD is protected. And then you have the additional protection of whatever insurance the b/d firm might have.
But that doesn't really answer your question, especially since CDs aren't liquid (yes, you can sell them, so they're not illiquid). I think that what I would do is to make sure that my operating account was never above $100,000 at any point. As Burger notes, you could buy short term treasuries with the excess, or have the funds swept to a money market mutual fund held at the fund.
If you're really worried, you could also just switch to a national bank. I doubt that BoA or Wachovia or Chase are at risk.
