2008 Consolidation, The way forward for investors

[DaInvestor]

couldnt think of a better way of presenting this issue

how do u know which stock broking firm will make the target for 2008 as per consolidation

Got an account with one of the small brokerage firm when i first started and cos of sentimemts still retained the account, but with this consolidation around the corner i dont know if the firm would be able to meet the target

what are the plans for investors in case the firms dont get consolidated

its key to discuss this topic especially for the new guys who dont know about some of these firms and their capital base.

Dec 2008 is the deadline

wishing u a happy new year and u guys should keep up the good work

[faoogoke]

I don't believe you have any reason to be skptical about your stockbroking meeting with the recapitalisation requirements. I also have accounts with a small broking firm, and while discussing the subject with my account officer, he said they thought the requirement would be higher than what the regulatory authorities came up with. He described the amount as "small".
All of those companies have made lot and are still making lots of money with the boom in the market.
Those of them that have dome private placements and will still do are those that want to grow beyond being just stockbroking firm or issuing firm. The are aspiring to be bigg financial conglomorates.
BGL securities is raking about N60B from it private placement. What do you think it will do with such big money?

[nezvest]

Hello Dainvestor,
You have to understand that the so called recapitalization of Stock Brokig firms is quite different from banking recapitalization. This is because, the brokers are actually not the real custodians of the stocks rather the cscs. This is unlike the banks that are the custodians of your money! In this way, there is nothing to worry about. As Faoogoke rightly said, most brokers will meet it. The ones that do not meet will merge and moreso in the event that none of the above held, you can simply apply for movement of your account to another broker which SEC has said she would see to it that it won't be a difficult process as it used to be. Cheers

[chidiohaz]

The earlier investors start thinking about the status of their stockbrokers the better to avoid having their deposited fund trapped as in the case of distress banks and we start getting promises up promises when they would pay.

I have read through the Background of my stockbroker and they have already met with the 2Billion mark capitalisation. Therefore, let everyone cross-check the background of their stockbrokers to confirm this situation if not, look for one that has already met the capitalisation or about to