(Ping! Zine Web Hosting Magazine) – Securities Investor Protection Corporation (SIPC) today applauded Irving H. Picard – the Securities Investor Protection Act (SIPA) Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (Madoff) – on the announcement of the fifth distribution of recovered funds to Madoff customers. The distribution will total $355.8 million.
The total amount distributed in the Madoff liquidation proceeding to date exceeds $7.2 billion, covering more than 54 percent of the losses of allowed claimants. The overall figure of $7.2 billion includes $823.7 million in committed advances from the Securities Investor Protection Corporation.
When additional settlements awaiting distribution are taken into account, the total recovery to date in the Madoff liquidation proceeding totals $10.551 billion. (For more information, see http://www.sipc.org/news-and-media/news-releases/20141117.)
SIPC President and CEO Stephen P. Harbeck said: “The excellent results to date show that the Bankruptcy Code and the Securities Investor Protection Act give the Trustee the ability to recover assets for the investors who lost their funds in this financial tragedy. SIPC supports the Trustee fully in his efforts to maximize the returns to the victims.”
Harbeck added: “To that end, SIPC pays for all of the administrative expenses necessary to recover assets for distribution in the Madoff proceeding. All of the funds recovered are distributed to customers. No customer money is used for administrative expenses. We look forward to additional distributions as soon as possible.”
More information on overall recoveries to date and the ongoing Madoff liquidation can be found on the Trustee’s website at www.madofftrustee.com.
The Securities Investor Protection Corporation (http://www.sipc.org) is the U.S. investor’s first line of defense in the event of the failure of a brokerage firm owing customers cash and securities that are missing from customer accounts. SIPC either acts as trustee or works with an independent court-appointed trustee in a brokerage insolvency case to recover funds.
The statute that created SIPC provides that customers of a failed brokerage firm receive all non-negotiable securities – such as stocks or bonds — that are already registered in their names or in the process of being registered. At the same time, funds from the SIPC reserve are available to satisfy the remaining claims for customer cash and/or securities held in custody with the broker for up to a maximum of $500,000 per customer. This figure includes a maximum of $250,000 on claims for cash. From the time Congress created it in 1970 through December 2013, SIPC has advanced $2.1 billion in order to make possible the recovery of $133 billion in assets for an estimated 772,000 investors.