Bloomberg reports that the groups have combined to ask Congress to amend the regulatory overhaul bill now under Senate consideration such that brokerage firms will pay about $4 billion in additional, retroactive fees to SIPC. The victims also reportedly want Congress to require SIPC to compensate them up to $500,000 each for losses.
Duke Law professor James Cox said the lobbying initiative “gives new meaning to the word chutzpah. This is just a tax increase. It’s levied on banks but customers end up paying.”