Securities Investor Protection Corporation · Washington, DC United States
Company Description
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This link will open in a new window Securities Investor Protection Corporation (SIPC) is an industry-financed insurance plan that protects clients of most broker-dealers registered with the US Securities and Exchange Commission (SEC). SIPC insures customers' securities (up to $500,000 per account) against losses due to the financial failure of brokerage firms. Losses caused by fluctuations in market value are not protected. The not-for-profit membership corporation was mandated by the Securities Investor Protection Act and has more than 6,000 members. Its board is appointed by the US president, the treasury secretary, and the Federal Reserve Board. Assessments from members and investments in government securities provide money for the SIPC Fund. To read the full description, subscribe now.
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Key Securities Investor Protection Corporation Financials
| Company Type | Private - Not-for-Profit Single Location |
| Fiscal Year-End | December |
| Annual Sales (mil.) | $68.4 |
| Employees | 29 |
Securities Investor Protection Corporation Executives
11 executives listed for Securities Investor Protection Corporation's Washington, DC location.
| Title | Name & Bio | Contact |
| Chairman | Armando Bucelo | Network |
| Vice Chairman | Todd Farha | Network |
| President and CEO | Stephen Harbeck | Network |
Competition
Competitive Landscape for Securities Investor Protection Corporation
Demand is driven by demographics and commercial transactions. Demand is also driven by legal or financial requirements. Consumers are usually required by states to buy auto insurance and by lenders to buy homeowners insurance, for example. The profitability of individual companies depends on effective marketing and on the ability to accurately estimate future payments. Large companies have big economies of scale in administration and in access to capital, as well as advertising and marketing. Small companies can compete successfully by specializing in particular products or industries. Average annual revenue per worker is around $400,000, so the industry is not labor-intensive. In the late 2000s recession, insurers saw revenues decline sharply when their investment portfolios lost value after the market fell. Insurance carriers rely heavily on their investment portfolios, which is where they invest premiums collected until they are needed to pay claims or benefits. In addition, deregulation of the insurance and financial services industries led to increased risk taking that hurt insurers' credit ratings. Insurance giant AIG was forced to accept $150 billion in government loans to stave off bankruptcy that was brought on by its overexposure to credit default swaps. Federal government bailouts have primarily targeted banks. Aside from AIG, insurance companies have not been as hard hit by the subprime mortgage meltdown. But some insurance companies are seeking relief from state regulators to allow them to operate with less capital. Other insurance companies are buying financial institutions to qualify for federal aid. To read the full description, subscribe now.Top Securities Investor Protection Corporation Competitors
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