OTHER NEWS - March 25, 1992
From Times Staff and Wire Reports
Brokerage Regulator’s Power Limited: The Supreme Court limited the power of the Securities Investor Protection Corp., a securities regulatory agency, to protect brokerage customers. The court said SIPC wrongly invoked an anti-racketeering law in its 1983 efforts to recover money paid to customers of two brokerages gone bust. But the court left unanswered a key question: Whether the agency or individual investors who claim they were victimized by stock manipulation while they held their shares ever may use the law to sue brokers.
