Madoff, Lehman Trustees' Fees Could Bankrupt SIPC

Law360, New York (April 1, 2011, 3:05 PM EDT) -- Massive payouts to Securities Investor Protection Corp. trustees managing the bankruptcies of Lehman Brothers Holdings Inc.’s brokerage arm and Bernard L. Madoff Investment Securities LLC are threatening to bankrupt the group’s $2.5 billion funding pool, a report released Wednesday said.

If the firm depletes its pool of funds, it will be forced to borrow money from the U.S. Securities and Exchange Commission to maintain its operations, according to the audit report from the inspector general of the SEC, which is charged with overseeing SIPC.

James Giddens,...
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