- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: How will BR/LSU/TAF handle the Stanford crisis?
Posted on 2/20/09 at 10:14 am to JPLSU1981
Posted on 2/20/09 at 10:14 am to JPLSU1981
quote:
That said, there are not that many people who would have put over 500,000 in these illegitimate brokered CDs, which is what the SIPC will cover (and therefore a lot of people will get their money back). As has been mentioned, a lot of the money at Stanford was in legitimate securities.
Can you go into more depth? Does the SIPC cover "offshore CDs"?
Posted on 2/20/09 at 10:23 am to Tiger JJ
quote:
Can you go into more depth? Does the SIPC cover "offshore CDs"?
I don't think that is exactly clear at this point. SIPC does not cover individual securities per se. They insure against the failure of SIPC member institutions (like Stanford). Regardless, however, I have a feeling - given the size of this fraud and the media attention given to this particular case - that even if SIPC doesn't step in that the federal government will step in to help investors recover some of their funds.
quote:
Terms of SIPC help. 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.
This post was edited on 2/20/09 at 10:30 am
Popular
Back to top
![logo](https://images.tigerdroppings.com/images/layout/TDIcon.jpg)