Sen. David Vitter, R-La., reiterated his dissatisfaction Wednesday with the Securities Investor Protection Corp. for failing to provide compensation for investors who bought fraudulent certificates of deposit from Texas businessman Allen Stanford.
Vitter told a Senate subcommittee Thursday that many brokers "plaster the SIPC logo across their doors," offering assurances that they won't be victimized by a fraudulent investment.
"Investors believe that if their broker dealer fails, SIPC will be there to help them," Vitter told the subcommittee. "I can tell you from experience watching the Stanford case, trying to help them however I can, that is just patently false."
Vitter said thousands of Louisiana investors, many from Baton Rouge, were left in the cold when the SIPC rejected a request from the Securities & Exchange Commission to compensate the victims.
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