The securities industry is watching intently as the Securities and Exchange Commission and the Securities Investor Protection Corp. get set to do battle in court over SIPC’s refusal to make good on some of the losses suffered by victims of R. Allen Stanford’s alleged $7 billion Ponzi scheme. A lawsuit filed by the SEC last week to force SIPC’s hand is an unprecedented legal test of the limits of the commission’s power over the government-created and industry-funded entity that protects investors in cases where brokerage firms fail, observers said. Read Investment News report here.
