SIPC: New Board Chair Nominated By President Obama

WASHINGTON, Nov. 13, 2014 /PRNewswire-USNewswire/ -- John E. Mendez has been nominated by President Barack Obama to serve as the newest chairman of the Board of the Securities Investor Protection Corporation (SIPC), which maintains a special reserve fund authorized by Congress to help investors at failed brokerage firms.

Mendez is a partner practicing in the New York and Los Angeles offices of Latham & Watkins.

Mark Kaufman, counselor to the deputy secretary at U.S. Department of the Treasury, was also named to the SIPC Board in September 2014.  His nomination does not require confirmation by the U.S. Senate. Leslie E. Bains, a managing director at Citi Private Bank, was also nominated by President Obama in July 2013 to replace outgoing SIPC board member William S. Jasien.  Bains' nomination is still awaiting action on the Senate floor.

SIPC President Stephen Harbeck said: "We are pleased to be joined in our work by such an exceptional new Board chair.  John Mendez' broad financial experience in both the United States and internationally will serve the SIPC Board and U.S. investors well.  We look forward to a speedy confirmation by the Senate so we can continue our work with a full Board once a vice chair is also nominated and confirmed."

Mendez has a wide range of financing experience in both US and international transactions.  In the US, he has worked with diverse financial institutions, including commercial and investment banks, insurance companies, private funds and pension funds. Mendez also has represented borrowers, sponsors and issuers on various debt and equity financings. In the international arena, Mendez has worked with banks, institutional investors and financing issuers.

Once confirmed, the new SIPC chair will replace Acting Chair Sharon Bowen, who stepped down in June. 

ABOUT SIPC

The Securities Investor Protection Corporation (http://www.sipc.org) is the U.S. investor's first line of defense in the event of the failure of a brokerage firm owing customers cash and securities that are missing from customer accounts. SIPC either acts as trustee or works with an independent court-appointed trustee in a brokerage insolvency case to recover funds.

The statute that created SIPC provides that customers of a failed brokerage firm receive all non-negotiable securities - such as stocks or bonds -- that are already registered in their names or in the process of being registered. At the same time, funds from the SIPC reserve are available to satisfy the remaining claims for customer cash and/or securities held in custody with the broker for up to a maximum of $500,000 per customer. This figure includes a maximum of $250,000 on claims for cash. From the time Congress created it in 1970 through December 2013, SIPC has advanced $ 2.1 billion in order to make possible the recovery of $133 billion in assets for an estimated 772,000 investors.

MEDIA CONTACT: Patrick Mitchell, (703) 276-3266 or [email protected].

All non-media/investor inquiries of SIPC should be directed to [email protected] or (202) 371-8300.

SOURCE Securities Investor Protection Corporation (SIPC), Washington, D.C.