JP Morgan Clearing will no longer have excess SIPC coverage, and depending on how one reads the following quote from a brokerage statement, possibly CAPCO itself itself is getting out of the excess SIPC coverage business. (Given that its bonds are down to BB, I'm not sure how good that protection is in any case.)
"Non-Renewal of CAPCO Surety Bonds.
"J.P. Morgan Clearing Corp. ('JPMCC') purchased and maintained surety bonds from the Customer Asset Protection Company ('CAPCO'), a Vermont licensed insurance company, for the protection of customer losses in excess of the coverage provided by the Securities Investor Protection Corporation ('SIPC'). CAPCO will not be renewing any of its surety bonds at their termination on February 16, 2009. JPMCC remains a member of SIPC and Customers (as defined in the Securities Investor Protection Act ('SIPA')) of a SIPC member that fails financially are afforded special benefits under SIPA. Should you have any questions regarding SIPC coverage, pleas consult your financial representative or visit the SIPC web-site at
Mark Freeland snipped-for-privacy@nyc.rr.com