Chicago Tribune (July 19)
“The Chicago-based futures industry needs to better protect its clients.” Unlike banks (backed by the FDIC) or brokers (backed by the SIPC), the futures industry lacks a backstop to protect customer accounts. Last year MF Global went bankrupt, with customers losing up to $1.6 billion of their own supposedly safely segregated funds. More recently, Peregrine Financial Group went bankrupt. Customer funds are again missing. “There is no substitute for a well-capitalized insurance fund covering customer accounts…. The industry’s version of the FDIC and SIPC needs to be put in place soon — before the next firm goes belly up and takes its customers’ money with it.”
Boston Globe (April 23)
The Pension Benefit Guaranty Corporation (PBGC) receives small premiums from corporate pension plans. In return PBGC ensures that workers receive their benefits even if their employer goes bankrupt. Congress needs to raise these premiums to put “the corporation on more solid footing.” Doing so will protect the 44 million Americans covered by company pension plans “and spare taxpayers another costly bailout.”The Pension Benefit Guaranty Corporation (PBGC) receives small premiums from corporate pension plans. In return PBGC ensures that workers receive their benefits even if their employer goes bankrupt. Congress needs to raise these premiums to put “the corporation on more solid footing.” Doing so will protect the 44 million Americans covered by company pension plans “and spare taxpayers another costly bailout.”
