Congressmen Raise Alarm Over Whether Madoff Will Bankrupt SIPC

Wednesday, April 13, 2011 07:06
edit
Congressmen Raise Alarm Over Whether Madoff Will Bankrupt SIPC

The massive cost of liquidating the messes left behind by Bernie Madoff and Lehman Brothers has gotten two Congressmen worried about whether SIPC will run out of cash.

 

This Website Is For Financial Professionals Only


 

 

Gary Ackerman and Peter King, both of New York, recently sent the SEC a letter begging Mary Schapiro to step up her supervision of SIPC as that agency spends billions to settle claims from failed institutions.

 

They're concerned that simply managing the Madoff trust alone could cost the Securities Investor Protection Corp. $1.1 billion in the near term when it only has $1.3 billion to work with.

 

SIPC says it's got plenty of cash and notes that the fees it charges the brokerage community bring in around $400 million a year.

 

 

 

 

Comments (0)

Write comment

You must be logged in to post a comment. Please register if you do not have an account yet.

busy