Press Releases

Kanjorski Announces Third Madoff Ponzi Scheme Hearing

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Washington, DC, December 3, 2009 | comments

Congressman Paul E. Kanjorski (D-PA), the Chairman of the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises, today announced that he will convene a third proceeding looking into the $65 billion Ponzi scheme engineered by Mr. Bernard L. Madoff.  The hearing will focus on a variety of policy issues involving the Securities Investor Protection Corporation (SIPC) identified as a result of the Madoff scandal, and these discussions could provide the basis for additional reforms to Chairman Kanjorski’s Investor Protection Act, which passed the Financial Services Committee in November.  The hearing will also occur during the week of the first anniversary of Mr. Madoff’s arrest.

“One year ago, Mr. Madoff’s massive Ponzi scheme came to light.  Since then, we have been able to better understand how to modify the U.S. financial services regulatory system to prevent similar situations in the future.  In particular, we have incorporated several reforms into the Investor Protection Act to address issues raised by the Madoff scandal,” said Chairman Kanjorski.  “Next week, we will continue to move this process forward as we examine SIPC’s efforts to reimburse Mr. Madoff’s victims for, in many cases, their extreme financial losses.  Specifically, we will explore intended and unintended consequences of some legislative proposals that aim to address problems that some victims like retirees, pension funds, charities and others have encountered.  I look forward to a robust debate on these weighty policy issues.”

Chairman Kanjorski’s initial public examinations on Mr. Madoff’s Ponzi scheme in January and February helped to guide the work of the Financial Services Committee and the Capital Markets Subcommittee in undertaking the most substantial rewrite of the laws governing the U.S. financial markets since the Great Depression.  Chairman Kanjorski introduced H.R. 3817, the Investor Protection Act, which included several reforms resulting from findings from those earlier proceedings.  The Committee approved the bill on November 4 by a vote of 41 to 28.  The House is expected to consider these financial services regulatory reforms before the end of the year.


WHO:        Financial Services Subcommittee on Capital Markets, Insurance, and
             Government Sponsored Enterprises
WHAT:       Hearing: “Additional Reforms to the Securities Investor Protection Act”
WHEN:       Wednesday, December 9
                  10:00 a.m.
WHERE:      2128 Rayburn House Office Building


Witnesses will be announced at a later date.



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