Washington, DC- U.S. Senator Bob Casey (D-PA) pushed for legislative action that would strengthen the position of the Securities Investor Protection Corporation (SIPC) in order to defend investors and bolster confidence in U.S. capital markets. SIPC, created by Congress in 1970, oversees an insurance-like fund that allows investors to recoup certain losses resulting from brokerage failures and fraud. The Restoring Main Street Investor Protection and Confidence Act, which Casey is co-sponsoring, expands SIPC’s ability to compensate victims, and significantly increases the SEC’s authority to refer cases to SIPC without judicial interference.
“SIPC was created to protect investors from certain losses, but recent failures and fraudulent schemes have exposed problems with the system,” Senator Casey said. “The Restoring Main Street Investor Protection and Confidence Act would help compensate victims of fraud by preventing delays caused by judicial interference. This is a commonsense, bipartisan proposal that will help countless investors in Pennsylvania and throughout the country.”
Senator Casey has previously supported efforts to expand SIPC coverage of victims in the Stanford and McGinn-Smith cases. He wrote letters after both incidents urging the SEC to allow SIPC to compensate victims that were ineligible for coverage.
The Restoring Main Street Investor Protection and Confidence Act was introduced by Senators Charles Schumer (D-NY) and David Vitter (R-LA) on November 19th, 2013. Companion legislation was introduced to the house on November 14th by Reps. Scott Garret (R-NJ) and Carolyn Maloney (D-NY).