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