Sense on Cents Supports HR 757
Posted by Larry Doyle on July 31, 2012 6:05 AM |
Earlier this year I came out in support of HR 757, legislation drafted and proposed by Rep. Scott Garrett (R-NJ), to address the sham perpetrated by the Securities Investor Protection Corporation (SIPC) upon innocent investors. As I wrote in support of HR 757 then,
Why are we discussing SIPC today? Recall that post Bernie Madoff, the SIPC fund was depleted. Recall also that for approximately 13 years those paying into SIPC were charged an annual premium of $150 in order to put the SIPC stamp of protection on their brokerage statements.
Did you just spill your coffee and think I must have mistyped that figure. I didn’t. I highlighted that ridiculous figure in November 2009.
$150 annual premium paid by each and every Wall Street brokerage house to put a stamp of investor protection on their statements. What type of insurance do you purchase for a $150 annual premium? Seriously.
What do you pay for auto insurance? How about homeowners? Health? A little bit more than $150 perhaps? Just a little? Yet the crowds at Goldman, Morgan Stanley, JP Morgan, Merrill Lynch, Madoff Securities and elsewhere had the gall to enact (remember SIPC is industry funded) and pay a mere $150 for their annual SIPC premium so investors could “believe” they were protected.
HR 757 is legislation addressed to correct the injustice of the sham perpetrated by SIPC and Wall Street for all those years in which they paid that “astronomical” and “excessive” $150 premium.
I welcome supporting and endorsing this legislation and would ask you to do the same. As Representative Garrett wrote earlier this year,
“When investors see the Securities Investor Protection Corporation (SIPC) seal of approval, they should have the utmost confidence in the account statements they receive. I do not believe these ordinary investors, who knew nothing about the fraud being perpetrated by Bernie Madoff, should be held to a higher standard than the federal government. After all, it was the Securities and Exchange Commission (SEC) that missed the Madoff fraud in the first place. Furthermore, the Internal Revenue Service (IRS) was happy to rely on these same statements to collect taxes from the reported profits.
“My bill clarifies that for the purposes of SIPC protection, customers of registered brokers are legally entitled to rely on their customer statements as evidence of what their broker owes them. Indeed, in a world where customers do not hold physical securities, it could not be any other way.
“I introduced this legislation because I am increasingly concerned that the Trustee in the Madoff case is ignoring the law and failing to provide prompt assistance to those who have been thrust into financial chaos. He is taking positions on a wide range of issues that are contrary to SIPA, the Bankruptcy Code, and federal and state laws that are intended to protect investors against bad acts on the part of their brokers.
Now you can help. How so? Call on your congressmen to support HR 757 which is coming up for a vote TOMORROW.
PLEASE reach out TODAY.
I endorse the following message and would ask you to do the same. Think of the sham perpetrated with the $150 premium. Do you need more reason than that to reach out and compel your Congressmen to support this bill? Interested investors recently put forth this message and I welcome sharing it.
Congressman Garrett is putting HR 757 to a vote in the Subcommittee on Capital Markets. This is something we have been working towards for the past three years. If the bill becomes law, every Madoff investor who had an account will get SIPC insurance based on their last statement and there will be no clawback suits against innocent customers.
It is urgent that you contact the members of the Subcommittee on Capital Markets and explain how much you support this bill. The most important members are Posey, Hensarling, Neugebauer, Campbell, Royce and Manzullo. But please contact everyone.
Please note that due to security procedures, mail may take up to three weeks to reach the offices in Washington, D.C. Therefore, please try to email or call the members on the list below to expedite your message. THE VOTE WILL OCCUR ON AUGUST 1ST!
Additionally, please forward this email and attachments to your friends, families and associates so that we may have a stronger voice.
If you’ve already received this request and have written your letters, thank you very much. All I ask now is for you to forward this to everyone on your contact list so that we can be assured of even more support for this important bill.
CONGRESSMAN PHONE #
EMAIL ADDRESS FOR CONGRESSMEN
Ackerman Gary (202) 225-2601jedd.Moskowitz@mail.house.gov
Biggert Judy (202) 225-3515Nicole.Austin@mail.house.gov
Campbell John (202) 225-5611Wes.McClelland@mail.house.gov
Carson André (202) 225-4165Nida.Zaman@mail.house.gov
Dold Robert (202) firstname.lastname@example.org
Donnelly Joe (202) 225-3915Jessica.McEwen@mail.house.gov
Ellison Keith (202) email@example.com
Fitzpatrick Michael (202) 225-4276Kyle.Whatley@mail.house.gov
Garrett Scott (202) firstname.lastname@example.org
Green Al (202) 225-7508Gregg.Orton@mail.house.gov
Grimm Michael (202) 225 3371Richard.Hoffmann@mail.house.gov
Hayworth Nan (202) email@example.com
Hensarling Jeb (202) 225-3484Kirsten.Mork@mail.house.gov
Himes Jim (202) firstname.lastname@example.org
Hinojosa Ruben (202) 225-2531holly.Bullard@mail.house.gov
Hurt Robert (202) email@example.com
King Pete (202) 225-7896Adam.Paulson@mail.house.gov
Lucas Frank (202) 225-5565Courtney.Box@mail.house.gov
Lynch Stephen (202) 225-8273Cara.Camacho@mail.house.gov
Maloney Carolyn (202) 225-7944Kristin.Richardson@mail.house.gov
Manzullo Donald (202) 225-5676Kelli.Nelson@mail.house.gov
McCarthy Kevin (202) 225-2915Kyle.Lombardi@mail.house.gov
McCotter Thaddeus (202) 225-8171Artur.Suchorzewski@mail.house.gov
Miller Brad (202) 225-3032Corey.Frayer@mail.house.gov
Moore Gwen (202) 225-4572Andrew.Stevens@mail.house.gov
Neugebauer Randy (202) 225-4005daniel.Hilton@mail.house.gov
Pearce Steve (202) 225-2365Kate.Schmucker@mail.house.gov
Perlmutter Ed (202) 225-2645Amanda.Slater@mail.house.gov
Peters Gary (202) 225-5802Jonathan.Smith@mail.house.gov
Posey Bill (202) 225-3671Nicole.McCleary@mail.house.gov
Royce Ed (202) 225-4111Michael.Ahern@mail.house.gov
Schweikert David (202) 225-2190Matthew.Tully@mail.house.gov
Sherman Brad (202) 225-5911Tim.firstname.lastname@example.org
Stivers Steve (202) 225-2015Jesse.email@example.com
Waters Maxine (202) 225-2201Charla.Ouertatani@mail.house.gov
Are you still scratching your head thinking about that $150 SIPC premium paid for those 13 years? Investor protection? Really? Please make the call or write to your Congressmen …today. Thank you.
I have no affiliation or business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.