Securities Investor Protection Corp has asked a federal court to deny the Securities and Exchange Commission’s request to compel SIPC to allow victims of Allen Stanford’s alleged Ponzi scheme to file claims for compensation. In a court filing on Thursday, SIPC said that Stanford’s offshore bank involved in the Ponzi scheme was not a member firm. And because of this the law “does not authorize the liquidation of a non-member, offshore bank,” SIPC said in the court filing. More on Reuters here.
