if the government decides to FULLY reimburse Madoff's victims...how would you feel about it...?

[dysfunctional press]

according to what i had read earlier, the accounts are insured up to $500K per investor, kinda like the fdic 100K(200?) on bank accounts.
if the sec is found to be at fault somehow, and the government decides to use taxpayer money to fully reimburse people for their losses- would you be agreeable to it?

[Laelth]

1. Agreeable?

How 'bout grounds for revolution?

I would be furious. In fact, I'd argue they ought not get more than $250K per account. If they got more, we'd need to clean serious house in Congress.

The United States is a LIBERAL Country.

:dem:

-Laelth

[dysfunctional press]

11. they appear to be protected up to $500K per investor...not per account.

kind of like fdic protection- if you have several accounts at one bank, they are fdic insured as a group- NOT individually.

[Laelth]

12. That makes sense. Thanks. n/t

The United States is a LIBERAL Country.

:dem:

-Laelth

[elleng]

2. Not I;

only according to the formula or whatever as already provided by law.

[SoCalNative]

3. Not until they restore the funds my 401K has lost n/t

[stillcool]

4. I think they should print up..

a few hundred billion, oh hell make it a trillion...load it up into helicopters, and drop it all over the country. Just like they did in Iraq.

[Idealism]

5. Absolutely Not

Just because perhaps regulators didn't look into veiled accusations made against another highly-successful investor doesn't give anyone to right to forgo due dilligence when investing your own personal BILLIONS with the man. If you are so ignorant to hand the guy that much money without doing your homework on him because your friend told you he 'gets results' you are a fucking fool and get what you deserve.

[mikehiggins]

6. Hell no

And how do investments in a fund like that get "insured" for a half million bucks, either?

I thought capitalism was all about getting rewarded for taking successful risks. I guess there's a lot of truth to the old claim that the U.S. has capitalism for the poor, and socialism for the rich.

[dysfunctional press]

7. congress enacted the "insurance" in 1970...

Stanton signed the order after the Securities Investor Protection Corporation asked that steps be taken to protect investors in the scheme, which has ensnared several major banks and prominent figures as victims and could result in as much as $50 billion in losses.

Congress created the SIPC in 1970 to protect investors when a brokerage firm fails and cash and securities are missing from accounts. Funds can be used to satisfy the remaining claims of each customer up to a maximum of $500,000. The figure includes a maximum of up to $100,000 on claims for cash.

[burythehatchet]

8. An insured hedge fund? Right.

[dysfunctional press]

9. when iceland recently went belly-up, britian demanded restitution for it's citizens...

as part of any rescue package for the country's banking system.

madoff's investors ARE insured by our federal government to the tune of $500K each thru the SIPC(the fdic of hedge funds)

and if government oversight is found to have been flawed to the point of incompetence where madoff is concerned, i can see some very high-price lawyers finding a way to use that as legal leverage for a government bailout of their clients.

[Sgent]

10. It should be pointed out

that the insurance doesn't insure cash value -- it insures the value of the stocks in the account (and cash held up to 100K).

For instance, if on the day my broker declared bankruptcy I owned:

1K in cash
100 shrs of IBM
200 Shrs of Microsoft
100 Shrs of Bank of America

I would receive payment equal to the value of those shares on the market close that day.

This only kicks in in the case that fraud has been committed by the investment house and they spent money held in trust for customers.

[Vinca]

13. Just wait and see . . . there will be a bailout for rich people.

Maybe I should say ANOTHER bailout for rich people.

[Yavin4]

14. They DO NOT Get FDIC Protection

Madoff's fund was not a bank. It was a private equity fund which means that they did not have to comply with the regulations that a bank must follow. That's why Madoff was able to scam his investors because he did not have to make his financial records public.

[dysfunctional press]

15. that's right- they get SIPC protection...

Securities Investor Protection Corporation, whereas FDIC stands for Federal Depositors Insurance Corporation


Securities Investor Protection Corporation (SIPC)

If your brokerage firm goes out of business and is a member of the Securities Investor Protection Corporation (SIPC), then your cash and securities held by the brokerage firm may be protected up to $500,000, including a $100,000 limit for cash. Some firms obtain private insurance policies to provide protection beyond SIPC limits. When a SIPC member becomes insolvent, SIPC will ask a court to appoint a trustee to supervise the firm's liquidation and to process investors' claims...

http://www.sec.gov/answers/sipc.htm