The SEC, under political pressure from Senators, has ordered the SIPC to pay back victims of Allen Stanford’s Ponzi scheme. It might be the right thing to do – certainly the victims believe it is – but it’s troubling when a law is reversed not by legislative action but by pure political pressure. Or I think so, anyway.
UPDATE: I’ll confess that I wish the SIPC was working this way when I was chasing stock brokers. I once, in a masochistic mood, went through my files and figured I had $3 million in arbitration awards against defunct penny stock firms. One third of that would have been nice to have. Oh well.