Sen. Chuck Schumer says a bill he’s pushing could benefit victims of the disgraced Albany brokerage McGinn, Smith & Co. by granting the federal Securities and Exchange Commission greater latitude to refer the case to a fund set up to provide restitution in the wake of financial wrongdoing. The Securities Investor Protection Corp. can act as trustee or work with an independent court-appointed trustee in missing-asset cases to recover funds. It can also provide up to $500,000 in restitution for victims to cover any losses not recovered in the regular liquidation of a failed brokerage firm. The relief is paid out of a fund fed by assessments on the financial industry. More in the Times Union here.
