Washington, D.C. – December 30, 2020 – Amidst the largest bankruptcies and greatest frauds of the last half century, the Securities Investor Protection Corporation (SIPC) has stood steadfast in its mission of protecting investors.
Today, SIPC marks its 50th anniversary.
“SIPC has distributed more than $140 billion for the benefit of more than 770,000 investors who otherwise might have lost their hard-earned savings,” said SIPC President and CEO Josephine Wang. “December 30, 2020, marks a milestone for SIPC: the achievement of 50 years of successfully protecting those investors.”
Since 1970, SIPC has overseen 330 liquidation proceedings including the clearing firm failures of Adler Coleman Clearing Corp. and MJK Clearing Inc.; the liquidation of Stratton Oakmont, Inc., the firm that inspired the film, The Wolf of Wall Street; of MF Global Inc.; and of two of the largest brokerage firm failures in history: the failure of Lehman Brothers Inc. in 2008, followed only months later by the exposure of the Ponzi scheme of Bernard L. Madoff Investment Securities LLC.
“SIPC has meant peace of mind for investors, thereby helping to ensure confidence in the nation’s financial system and stability in America’s economy,” Ms. Wang said.
To commemorate its 50th anniversary, SIPC has released a Special Anniversary Report, which includes a contribution by the Securities and Exchange Commission (SEC), and an anniversary video, with appearances by the Financial Industry Regulatory Authority (FINRA), the U.S. Treasury, the Federal Reserve, trustees in Securities Investor Protection Act proceedings, and past and current SIPC officials.
U.S. Treasury Secretary Steven T. Mnuchin marked the milestone, saying, “Congratulations to SIPC and its team of highly dedicated professionals on SIPC’s 50th anniversary. I’m confident that SIPC, together with Treasury, the SEC and the Federal Reserve, will continue to successfully protect American investors and help support our nation’s capital markets.”
Federal Reserve Chair Jerome Powell added: “Over the past five decades, SIPC has navigated multiple and varied financial market disruptions each of which posed its own unique challenge, whether headline events like Lehman or Madoff or work in the wake of major market crashes.”
Noting the fast-moving change and innovation in the securities industry, Ms. Wang said that SIPC is well-positioned for the future, commenting that “SIPC’s track record is a testament to its ability to adapt and serve investors well.”