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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (171540)	12/15/2008 9:47:41 PM
From: Elroy Jetson	Read Replies (2) \| Respond to of 306849

Not exactly. The Securities and Investor Protection Corporation (SIPC) provides insurance coverage after a lengthy claims process IF it chooses to start a SIPC proceeding. It is not automatic. Customers of a failed brokerage firm get back all securities (such as stocks and bonds) that already are registered in their name or are in the process of being registered. After this first step, the firm's remaining customer assets are then divided on a pro rata basis with funds shared in proportion to the size of claims. If sufficient funds are not available in the firm's customer accounts to satisfy claims within these limits, the reserve funds of SIPC are used to supplement the distribution, up to a ceiling of $500,000 per customer, including a maximum of $100,000 for cash claims. Additional funds may be available to satisfy the remainder of customer claims after the cost of liquidating the brokerage firm is taken into account. see www.sonnerez.com for general information about the Madoff case. The SEC in its complaint, also filed in Manhattan federal court, accused Madoff of a "multi-billion dollar Ponzi scheme that he perpetrated on advisory clients of his firm." The agency said it's seeking emergency relief for investors, including an asset freeze and the appointment of a receiver for the firm. Ira Sorkin, another defense lawyer for Madoff, couldn't be immediately reached for comment. stockmarketfunding.com .