"It insures brokerage firms just as the FDIC ensures bank accounts, but it insures them only against theft or misappropriation. It doesn't cover market risk or the simple decline of the value of securities. Nonetheless, Mr. Madoff is proposing a pretty clear case of theft and misappropriation and thus SIPC would stand liable for 500,000 per account for each account that's on the books of Madoff."
Quote National Public Radio
"It insures brokerage firms just as the FDIC ensures bank accounts, but it insures them only against theft or misappropriation. It doesn't cover market risk or the simple decline of the value of securities. Nonetheless, Mr. Madoff is proposing a pretty clear case of theft and misappropriation and thus SIPC would stand liable for 500,000 per account for each account that's on the books of Madoff."
tp1murray 2 years ago