Rep. Garrett's Letter to the SEC Chairman Shapiro:

The House Financial Services Committee continues to address concern…Garrett Asks SEC to Get it Right. Click here for Letter to SEC Chairman Shapiro.

Niap’s Statement: Washington, DC – October 3, 2011 – Statement from Ron Stein, President of the Network for Investor Action and Protection, on Rep. Garrett’s Letter to SEC Chairman Shapiro:

“We applaud Chairman Garrett in his efforts to secure a fair and equitable solution for all Madoff victims. The Chairman is wise to shine a light on the SEC’s questionable decision process ridden with misapplications of law and enormous potential conflicts of interest for both SIPC and their Trustee. We hope a rational reevaluation of SEC and SIPC policy can be achieved and that confidence in our investor protection regime can be restored.”
“As we have asserted for some time, SIPC and the Trustee have looked to reduce payouts in order to protect the SIPC fund. Protecting the fund over investors clearly defies congressional intent when SIPA was enacted. Mr. Garrett’s letter correctly indicates that protecting SIPC is not a standard allowed in law, and the entire decision must be fully reconsidered free of conflicts of interest. We hope the GAO will look at the conflict of interest issue to determine if the Trustee is capable of fulfilling his responsibilities responsibly and objectively.”

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