SIPC ISSUES STATEMENT ON THE PASSING OF U.S. BANKRUPTCY COURT JUDGE BURTON R. LIFLAND
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WASHINGTON, DC - January 14, 2014 (www.investorideas.com newswire) Stephen Harbeck, president of the Securities Investor Protection Corporation (SIPC), which maintains a special reserve fund authorized by Congress to help investors at failed brokerage firms, issued the following statement today on the passing of U.S. Bankruptcy Court Judge Burton R. Lifland:
"We express our condolences to the family, friends and colleagues of Judge Lifland. He was an extraordinary jurist. His knowledge of bankruptcy was encyclopedic. He also never forgot the human consequences of the bankruptcy process, and that was reflected in his extensive writings.
Judge Lifland handled a number of cases under the Securities Investor Protection Act, including, of course, the Madoff case. His opinions in that case will be studied by anyone interested in the application of complex statutes situations deeply affecting the lives of many. He will be remembered as a fine judge and a fine man."
The Securities Investor Protection Corporation is the U.S. investor's first line of defense in the event of the failure of a brokerage firm owing customers cash and securities that are missing from customer accounts. SIPC either acts as trustee or works with an independent court-appointed trustee in a brokerage insolvency case to recover funds.
The statute that created SIPC provides that customers of a failed brokerage firm receive all non-negotiable securities - such as stocks or bonds -- that are already registered in their names or in the process of being registered. At the same time, funds from the SIPC reserve are available to satisfy the remaining claims for customer cash and/or securities held in custody with the broker for up to a maximum of $500,000 per customer. This figure includes a maximum of $250,000 on claims for cash. From the time Congress created it in 1970 through December 2012, SIPC has advanced $2.1 billion in order to make possible the recovery of $ 120.7 billion in assets for an estimated 770,000 investors.
Published at the Investorideas.com Newswire - Big ideas for Global Investors
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