WASHINGTON, D.C. – February 2, 2010 - Stephen Harbeck, president of the Securities Investor Protection Corporation (SIPC), which maintains a special reserve fund authorized by Congress to help investors at failed brokerage firms, issued the following statement today:
"Regarding the question of 'net equity', for which a hearing is being held today at the United States Bankruptcy Court for the Southern District of New York, we believe the calculation being used by Irving H. Picard, the court-appointed trustee for the liquidation of Bernard L. Madoff Investment Securities LLC of New York, NY, is correct.
This determination is completely consistent with past precedent on the matter.
SIPC has filed two extensive briefs with the Court, which explain our position in detail. At this time, we must await the court's ruling on the matter. We look forward to the decision resolving this matter."
SIPC's primary brief can be found at 519_Memorandum_of_Law-1.pdf.