SIPC Rebuffs Stanford Investors Demands to Cover Losses – US Business News

In a December 2 letter to members of Congress, obtained by CNBC, the head of the Securities Investor Protection Corporation (SIPC) says the organization has a “fundamental disagreement” with the Securities and Exchange Commission, which demanded in June that SIPC pay the investors or be sued…. In the letter to members of Congress, SIPC Chairman Orlan Johnson says providing the coverage would be “unprecedented,” because the investors “chose to purchase CDs issued by an offshore bank in Antigua,” which is not covered by SIPC.

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