Sense on Cents Endorses H.R. 3482: Restoring Main Street Investor Protection and Confidence Act
Posted by Larry Doyle on December 16, 2013 10:10 AM |
A year ago, I strongly endorsed H.R. 757 to restore credibility to the Securities Investor Protection Act that had been decimated by the manner in which the Madoff trustee went about its business.
That act went into committee at year-end 2012 and died there, strangled by those legislators feeding at the financial industry’s trough. Fortunately, the forces behind 757 are not easily swayed and they are back with H.R. 3482, legislation entitled as “Restoring Main Street Investor Protection and Confidence Act.”
I welcome endorsing it. Why?
For one very simple reason: if investor capital is not fully and aggressively protected, then it will choose to go elsewhere and our economy will suffer. We are living with that reality everyday.
I thank those at the Network for Investor Action and Protection for bringing H.R. 3482 to my attention.
What does 3482 specifically look to accomplish?
To amend the Securities Investor Protection Act of 1970 to confirm that a customer’s net equity claim is based on the customer’s last statement and that certain recoveries are prohibited, to change how trustees are appointed, and for other purposes.
3482 is sponsored primarily by Rep. Scott Garrett (R-NJ) and Rep. Carolyn Maloney (D-NY). Who are co-sponsors for this legislation?
Tim Griffin [R-AR3], James Himes [D-CT4], Dennis Ross [R-FL15], Vern Buchanan [FL-16], Patrick Murphy [D-FL18], Ted Deutch [D-FL21], Ileana Ros-Lehtinen [R-FL27], Lynn Westmoreland [R-GA3], Cedric Richmond [D-LA2], Charles Boustany, Jr. [R-LA3], Bill Cassidy [R-LA6], Michelle Bachmann [R-MN6], Ann Wagner [R-MO2], Blaine Luetkemeyer [R-MO3], Alan Nunnelee [R-MS1], Greg Harper [R-MS3], Robert Pittenger [R-NC9], Peter King [R-NY2], Steve Israel [D-NY3], Carolyn McCarthy [D-NY4], Allyson Schwartz [D-PA13], Mick Mulvaney [R-SC5], John Duncan, Jr. [R-TN2], Stephen Fincher [R-TN8], Ted Poe [TX-2], John Culberson [R-TX7], Al Green [D-TX9], Michael McCaul [R-TX10], Pete Olson [R-TX22], Kenny Marchant [R-TX24], Pete Sessions [R-TX32], Scott Rigell [R-VA2], Robert Hurt [R-VA5].
Not many pieces of legislation get such bipartisan sponsorship. Garrett recently offered the following comments:
“Our bill serves two key purposes,” said Garrett. “The first is to protect innocent investors from fraud, abuse, and malfeasance. The second is to foster greater confidence in U.S capital markets, which will help encourage economic growth, increase job creation, and efficiently allocate capital.
“By reforming and modernizing the Securities Investor Protection Act (SIPA) of 1970, we will ensure greater equity for victims of fraud, enhance efficient functioning of U.S. securities markets for main street investors, and strengthen the oversight and accountability of the Securities Investor Protection Corporation (SIPC). Given that physical securities are no longer individually mailed to customers, investors must be able to trust the SIPC seal of approval and have confidence in the account statements they receive.
“I fear, however, that if the current law is not modernized and SIPC coverage is not clarified, confidence in our securities markets could suffer. Indisputably, this outcome runs counter to the policy goal of encouraging investment, which is critical to the economic revival our country needs.”
“Markets run as much on confidence as capital, and this bill will restore investors’ confidence in the markets by modernizing the Securities Investor Protection Corporation, and by protecting innocent victims of Ponzi schemes and other frauds from further clawbacks by the very government agency that is charged with protecting them,” said Maloney.
America knows that the incestuous relationship between Wall Street and Washington is crippling our country. H.R. 3482 alone will not solve the problems of the crony, corruptible relationships that run between these power bases . . . but it is a start.
Sense on Cents strongly endorses H.R. 3482.
Please pre-order a copy of my book, In Bed with Wall Street: The Conspiracy Crippling Our Global Economy, that will be published by Palgrave Macmillan on January 7, 2014.
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I have no 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.