Lawyer John E. Mendez has been nominated by President Barack Obama to serve as the chairman of the board of the Securities Investor Protection Corp. (SIPC), replacing Sharon Bowen, acting chair who stepped down in June, officials say.
Mendez, a partner practicing in the New York and Los Angeles offices of Latham & Watkins, will need confirmation by the U.S. Senate before he can assume the post.
Mark Kaufman, counselor to the deputy secretary at U.S. Department of the Treasury, was also named to the SIPC board in September, officials say. Kaufman’s 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, officials add.
“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,” Stephen Harbeck, SIPC president, says in a statement.
SIPC officials say Mendez has a wide range of financing experience in both US and international transactions. In the U.S., he has worked with diverse financial institutions, including commercial and investment banks, insurance companies, private funds and pension funds. He has also 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.
The SIPC can either act as trustee or work with an independent, court-appointed trustee in a brokerage insolvency case to recover funds, officials say.
SIPC helps 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, officials say. 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, officials add.
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