Below is a short transcript of a letter from Senator Vitter to Sharon Bowen acting chairman of the Securities Investor Protection Corporation’ asking the SIPC board to re-vote on the Stanford case.
Ms. Sharon Bowen
Securities Investor Protection Corporation
805 Fifteenth Street, NW, Suite 800
Washington, DC 20005-2215
Dear Ms. Bowen:
When Congress created the Securities Investor Protection Corporation (SIPC) it mandated that SIPC’s Board of Directors provide unbiased governance that represents the public’s interests. The Board was structured this way to avoid SIPC’s inherent conflict of interest of protecting its member firms’ financial interests versus protecting investors. My fear is that a result of this conflict of interest is that SIPC is not fulfilling its Congressional mandate to protect investors who entrust their savings to a registered broker dealer. SIPC exists to give investors confidence. It was not set up to pick and choose which investors to protect based on cost. Given recent testimony at a House Financial Services hearing, I request that you reconvene the SIPC Board of Directors to fully examine the evidence supporting a liquidation of Stanford Group Company (SGC) and to vote again on the issue.
The full transcript of the letter can be read here
For a full and open debate on the Stanford Receivership visit the Stanford International Victims Group – SIVG official forum http://sivg.org.ag/