Some predictions state as many as 1/3rd of US banks could go under over the next few quarters. Thats about 2500 banks.
I really cant give an opinion on a number like that. However, I have seen some pretyt strong data that shows about another 1 Trillion in sub prime write downs to add to the 1 Trillion already written down....give or take a few billion.
I know of only a few FX banks that protect your account to a certain guaranteed limit if they fail. Some of those banks have poor liquidity, some of those banks serve local markets in language other than English, and a couple offer the full gamut...English language, high liquidity, and the gaurantee.
Personally, I as an American am not that happy with protection under American law for investors, specifically FX investors. The US is, if not the most, than one of the most regulated markets (futures, insurance, equities) in the world. Yet, all that regulation does little to ensure greater financial stability or protect investors anymore than other western democracies. It seems the system just promotes a great deal of opportunities for legal action and the lawyers who conduct such actions.
The UK offers segregated accounts which is still far from any certain guarantee of protection. Which is odd, considering London is the center of the Universe for FX. Oddly, the best protection is found in continental Europe.
