My understanding is that SIPC insurance is only available in the event of fraud.

With the failure of a US brokerage firm in the absence of fraud, there are procedures in place for transferring the assets to another firm. It is highly unlikely that I will have to get compensation from the SIPC. It is nevertheless highly disconcerting that this has happened, and I don't trust the "procedures in place" to work well for very long into the future, if there is a cascade of brokerage failures. I am mulling the possibility of pulling out most, if not all, of my assets from whatever brokerage they are sent to. (This is no small thing, as the majority of my assets are in an IRA account--the tax bite would be considerable!).

Thanks to everyone for their thoughts. I am interested in learning more about how to transfer my assets out of the US. Has anyone done this? A link to useful information on the subject would be most appreciated!

Gg