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Verret Testifies on the Securities Investor Protection Corporation

On September 30, Professor J.W. Verret testified before the U.S. Senate Committee on Banking, Housing, and Urban Affairs Subcommittee on Securities, Insurance, and Investment. The hearing was conducted on the “Oversight of the Securities Investor Protection Corporation.”

 Professor J.W. Verret
Professor J.W. Verret

Verret argued for a privatization of the insurance function of the Securities Investor Protection Corporation (SIPC). “In the absence of full privatization,” Verret said, “the public-private composition of SIPC’s board should not be viewed as a second best option. It would be better to officially recognize SIPC for the government entity that it is, remove the private-sector board members, establish a similar level of congressional accountability for SIPC to that required of other government agencies, and impose a term limit on its CEO.”

Read the full testimony