“Was Madoff’s hedge fund paying for the Investor Insurance?
If not..why would his investors qualify?”
GOOD question. Is this like FDIC insurance for banks..in other words....tax $$$$??? Something that was set up to protect big investors?
“said the firm’s customers can recover up to the $500,000 they’re entitled to under the Securities Investor Protection Act. “
There are small fees that are charged on the exchanges for every trade that go to various things, from SEC, enforcement, regulation, and this type of program.
I did a quick calculation...2,350 claims so far at $500,000 each would mount up to...1.175 Billion $....that would be an upper bound ...if there are no more claims.