Las víctimas olvidadas de Stanford ahora disponible en español

Las víctimas olvidadas de Stanford, ahora disponible en español en:

http://victimasolvidadasdestanford.blogspot.com/

Friday, August 1, 2014

Congress Needs to Act Now to Protect Investors from SIPC “Insurance”

On September 25, 2000, eight years before the scams of Bernard Madoff and R. Allen Stanford were uncovered, Gretchen Morgenson (financial journalist for the New York Times) wrote a perceptive column of exacting detail describing the Securities Investor Protection Corporation’s pinched and adversarial practices aimed at favoring the SIPC Fund over protecting innocent customers of failed broker dealers. That column was “dead on” concerning SIPC’s regrettable culture, in which litigation rather than protection is too often the order of the day.

As Comptroller of the Currency (our nation’s oldest bank supervisory agency) in the turbulent economy of the mid-70s, I worked closely with the FDIC in the resolution of many failed banks. The efficiency and fairness with which it fulfilled its guaranteed protection of depositors was always impressive. Equally admirable is its practice of reserving its considerable legal resources for recovery actions against wrongdoers-not the victimized customers.

It is a shame that none of us heeded Ms. Morgenson’s warning entitled, “INVESTOR BEWARE; Many Holes Weaken Safety Net for Victims of Failed Brokerages.” I feel particularly at fault, having had an active role in the enactment of the Securities Investor Protection Act in 1970. Then serving as Special Assistant for Legislative Affairs to Secretary of the Treasury David Kennedy, my associates and I worked in cooperation with the SEC, Congressional committee staffs, key Members of the House and Senate, and leaders of the securities industry to develop the statutory content of SIPA. We were moving expeditiously as the industry had suffered a rash of broker-dealer failures and we were gravely concerned that non-professional, rank and file investors were abandoning securities investment so extensively that the fundamental market function was vulnerable to complete collapse.

Read more here:

For a full and open debate on the Stanford receivership visit the Stanford International Victims Group - SIVG official Forum http://sivg.org.ag/


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