Don’t Be Scammed by Madoff Investor Sob Stories (UPDATED)

Matthew Rafat:

I am deeply concerned that taxpayer monies may be used to reimburse Bernie’s rich investors more than the usual $500,000 SIPC coverage. Taxpayers are already paying Bernie’s investors half a million dollars each. I fear that Congress will increase the cap of SIPC insurance, purportedly as a populist move (I can already hear the words, “For our protection”)–and then make the increased limits retroactive. If that happens, taxpayers will be on the hook for even more money, all to be paid to sophisticated, rich investors.

Plenty of logic within, so read the whole thing. Unfortunately, the setup started almost immediately, meaning some of this bailout may be a foregone conclusion.

UPDATE: The SIPC will probably use the ‘bank exec precedent‘.

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