We still have a lot of fence-sitters. Wanting access may signal that many depositors are eager to put their money back in the stock market when they are comfortable it has turned around. California credit unions also are seeing an increase in deposit accounts, with depositors primarily interested in liquid instruments like money market accounts, says Faith Galati, spokesman with SAFE Credit Union. They are not leaving the money with their brokers. They are fed up and they are angry, and they don't want to leave the money with their brokerage.
Brokerages try to adjust.
Like many investment brokerages, Piper Jaffray is owned by a bank. For the most part, Piper customers have left their money in Piper Jaffray accounts, Godt says, but the firm is aware of investors' growing aversion to risk. We've seen our customers move from equities to our money market accounts. People are parking their money, says Jeanne Reaves, president of River City Bank. I do think there is a flu in the market, and people aren't sure what to do.