Washington, DC - August 31, 2012 - The Securities Investor Protection Corporation said today that it will continue to defend itself vigorously following the SEC's appeal of a federal court ruling rejecting the SEC's efforts to require SIPC to provide financial guarantees for investors who bought offshore CDs issued by an Antiguan bank.

"As we have stated from the beginning, we have enormous sympathy and respect for the victims of the Stanford fraud," said Stephen P. Harbeck, President of the Securities Investor Protection Corporation.  SIPC analyzed this case thoroughly and concluded that the SEC's unprecedented theory that SIPC should provide financial guarantees for investors who chose to purchase CDs issued by an offshore bank in Antigua was in clear conflict with the agency's Congressionally mandated responsibilities.

SIPC entered into the litigation reluctantly, after great deliberation, because the issues at stake were so fundamental to its charter.  As the federal court recognized, SIPC's role is to protect customers against the loss of cash or securities in the custody of failing or insolvent SIPC member securities brokerage firms. SIPC was not chartered by Congress to combat fraud or to guarantee the value of bank investments. While SIPC continues to have great sympathy for the victims of the Stanford Antiguan bank fraud, SIPC must continue its mission of protecting the custodial function of member securities brokerage firms under the Securities Investor Protection Act.