How safe are REPO accounts? They are not FDIC insured, but my banker tells me they are safe for amounts in excess of $100K. Is this correct?
We'd have to know about the particulars of the contract for the repurchase agreements to make a judgment call on your particular situation; however, in most cases, repurchase agreements are backed up by a security interest in government securities that are sold to and repurchased from you on a recurring basis. To the extent that the securities behind the agreements are real and the bank is complying with best practices with regard to the offering of the repo agreements, you should probably consider them safe investments.
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How safe are REPO accounts? They are not 
We'd have to know about the particulars of the contract for the repurchase agreements to make a judgment call on your particular situation; however, in most cases, repurchase agreements are backed up by a security interest in government securities that are sold to and repurchased from you on a recurring basis. To the extent that the securities behind the agreements are real and the bank is complying with best practices with regard to the offering of the repo agreements, you should probably consider them safe investments.
