SIPC Victims Fund Cannot Afford Stanford Claims

Discussion in 'Wall St. News' started by Options12, Mar 8, 2012.

  1. Options12

    Options12 Guest

  2. JamesL

    JamesL

    I think the courts will back up the SIPC in this case if it goes that far. Can't see how they would be forced to payout to customers of a foreign firm that was not a member of the SIPC. "Seems" like a slam dunk, but more info needed to back SEC claim.
     
  3. It is absurd that the SEC expects the SIPC to pay for losses for a foreign firm that is not a SIPC member.
     
  4. Options12

    Options12 Guest

    Yet the foreign firm (Stanford Bank) was an offshore affiliate of Stanford U.S.

    Brokers with offshore affiliates have advertised SIPC protection of their foreign affiliates' customers based on the fact that the securities are held in the U.S. and shown on the U.S. member's books.