Lawmakers Seek Greater Payouts From Failed Brokerages

Nearly five years after the collapse of Bernie Madoff’s Ponzi scheme, a bipartisan group of lawmakers is renewing a push to alter the way victims of such frauds are compensated, saying current methods are unfair and applied inconsistently. Reps. Scott Garrett (R., N.J.) and Carolyn Maloney (D., N.Y.), along with 23 co-sponsors, introduced legislation Thursday to require a brokerage insurance agency called the Securities Investor Protection Corp. to calculate victims’ claims based on account statements from failed firms. The changes, which also clarify which victims of Ponzi schemes are covered by SIPC, would likely increase the size of their claims. More in the Wall Street Journal here.

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