Five years on – Madoff Investors still in the Cold

Written on December 11, 2013 – 2:18 am | by ibkent

Five years ago today, the world became aware of the fraudster of the century, Bernard L. Madoff. It’s been 5 years and thousands of Madoff investors are still waiting for the organization sworn to protect investors – the Securities Investor Protection Corporation – to live up to its promise to pay investors up to $500K per account in a failed investment firm.

Through all sorts of shenanigans the SIPC has continued its policies of paying more to lawyers to fight claims than actually paying the claims. But for SIPC’s refusal to charge its members reasonable assessments (more than $150 per year that they were charging each Wall Street firm for SIPC insurance for 18 years), Madoff investors would be satisfied.

Madoff investors are not asking for a bailout … just for the SIPC to live up to their obligations as per the Securities Investor Protection Act of 1970 which President Richard Nixon applauded as provided for investors what the FDIC provided for depositors in commercial banks. Madoff and Stanford investors are NOT asking for one dime of taxpayer dollars. SIPC is 100% supported by assessments from its members – Wall Street.

Right now folks – your investments may well not be protected. If the Bankruptcy Trustee can make his own rules in this instance, he can do so in the future. HR 3482 – the Restoring Main Street Protection Act, sponsored by Cong. Scott Garrett (R-NJ) and Cong. Carolyn Malone (D-NY0  is a step in the right direction and already enjoys bipartisan support with 33 sponsors.

Find out how you can encourage your elected representative to support this piece of legislation. Your financial future could depend on it.

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