Posted on 12/16/2008 2:33:41 AM PST by ninonitti
LLS
How, does a gov't with a deficit and a huge debt have a special fund, set aside?
Oh wait I know, we'll just print more money or better yet just electronically create it out of the ether.
The house of cards , that is our economy, just gets taller.
Right, they want to take money from people earning between $30,000 and 100,000 to pay back people so they can enjoy their retirements worry free in their McMansion. Nope, no more. This is making me sick.
These are the special people.....they get a special fund
Anybody think that $500K is really a bailout for the multi-million dollar investors? Only $100,000 if they want cash. This is no bailout. It may help some Mom & Pop investors, however.
According to that Saturday WCBM financial talk show host that's exactly what it is...
The investors should not have any recourse whatsoever.
That as well as going to payoff the early investors. The early investors that got their money out aren't out of the woods. The have to put their money back into a pool to share with everyone else. Not sure if there is a statute of limitations..
Thanks for the answer. I wonder how much of the "losses" can be recovered.
Federal investigators remain at the investment offices of disgraced investor Bernard Madoff, scouring through records to learn the scope of what may be the biggest non-government Ponzi scheme ever in the United States.
Fixed.
I saw this morning that the richest man in the US Senate was knee deep in with Madoff.
Lautenberg, couldn’t happen to a nicer man.
What that means is Lautenberg will see to it that the government cover his loss.
Nice having the government insurance that has no premium attach to the plicy.
Bull Bleepin $hit!!!
What part of this don't you get? These people and institutions went looking for an above average return in some kind of private investment club and got burned by this shyster.
It's kinda like going to the whorehouse and catching the clap and then asking for government penicillin.
Would you not agree?
Initial reports suggest a penny or two on the dollar..
OK, I've read too much total crap and junk on too many similar threads from people who have no clue.
SIPC applies to anyone who had a BROKERAGE account with Madoff's SECURITES BROKER entity, NOT his investment advisory/hedge fund entities, and then only to the extent of 100K cash/500K securities. His brokerage entity is a tiny, miniscule fraction of the total money involved.
He had some SECURITY BROKERAGE customers, they're covered by SIPC, because Madoff's SECURITIES BROKERAGE firm paid their SIPC premiums, just like every securities broker does.
His MONEY MANAGEMENT customers, totally different animals, the ones he was conducting the Ponzi scheme with and upon are probably 99% of the total loss, and they're out of luck. They are not covered by SIPC and will get zip from SIPC. They ain't covered for anything, cash, securities or anything else.
Even if they were covered their recovery would be absolute peanuts compared to their total BILLIONS in claims, maybe 1 or 2%.
They're royally screwed, as they should be, having failed to be skeptical of someone who claimed to earn 10% returns regardless of market conditions.
The requirements for enrollment are very rigorous, and address record keeping, reporting, independent audits, and capitalization.
It is unlikely this mess would have ever happened if the fund had been subjected to Fed regulations and scrutiny.
As a result, I predict the judge's decision is moot. As a matter of law, you can't buy insurance after you suffer a loss to indemnify you against the cost of that loss.
The SIPC is not just for the rich and famous. Anybody defrauded making an investment covered by the SIPC can be reimbursed up to $500K. SIPC is funded by the securities industry, not the Federal government.
“The Securities Investor Protection Corporation (SIPC) was created in 1970 as a non-profit, non-government, membership corporation, funded by member broker-dealers.”
It will be fun to watch these highly connected Democrats try to arrange bailout money above SIPC. Schumer can bailout Lautenberg!
The fund that protects the hedge fund investors is a guarantee of $500,000
If the losses are true, they will only get a tiny portion of their ‘foundation’ funds returned.
It probably won’t even be fun anymore, they will just do it, and thumb their noses at us.
It will be “they” that will have the fun.
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