I’m trying to open an account with Bison bank. They have been very helpful in guiding us in the process. During our meeting we were assured that our securities are safe even if Bison goes bankrupt.
But when I read the general conditions, I saw a couple of terms that concerned me.
By default Bison Bank can loan our securities to themselves. We have to inform them if we want to opt out of this. If Bison bank becomes bankrupt, while they have our securities through loan, then the securities are in jeopardy.
Bison Bank might use an intermediary to hold our securities. If that intermediary company goes bankrupt, our shares with Bison Bank is in jeopardy as well.
Do all the banks have this condition and it’s just a fine print that doesn’t happen? Or is it specific to Bison Bank?
Knowing this would be really helpful.