Wednesday, December 9, 2009

Madoff victims, SIPC and a zero-sum game...

How would it be to be in charge of deciding which Madoff victims get protection under SIPC and can receive up to $500k in government insurance? That's what Stephen B. Harbeck does as the head of SIPC. A New York Times article today gives some details on how SIPC goes about this process. Here is a quote from Mr. Harbeck:
“Nobody likes to say no to people who are, without question, victims,” Mr. Harbeck said in an interview. “That’s been hard for me. That’s been hard for my staff. But this is a zero-sum game — a dollar we give to someone who is not eligible is a dollar we do not have for someone who is.”

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