I am opening an account with an investment manager that uses a bank for its custodial services (which I will pay for). The bank says that in the unlikely event of its insolvency, all assets in my account would be returned to me the next day because the account is segregated and not commingled with the bank's proprietary assets, so my account would not be subject to claim by the bank's creditors. True? It also says that cash in the account is FDIC insured up to $100 K. So in the unlikely event that the bank becomes insolvent shortly after I open the custodial account, but BEFORE the investment manager has actually invested all the cash I deposit (or all except for a balance that is less than the FDIC-insured amount), I could lose all uninvested cash over the $100 K of insurance, Right?

At least through 12/31/2009, the FDIC standard coverage amount has been increased to $250,000.