The new chair of the Senate Banking Committee, Idaho Republican Mike Crapo, said Thursday he wants legislation that would help investors collect unpaid awards they have received through Finra arbitrations.
In 2013, investors were unable to collect $62 million, about a quarter of the dollars awarded.
Crapo and Sen. Elizabeth Warren of Massachusetts spoke on the matter at a hearing
“People cheated are still not getting paid,” Warren said. “Bad brokers have been skipping out on payments for years.”
Warren said that legislation could be written mandating that Finra create a fund for unpaid arbitration award winners to draw on.
Sen. Mark Warner, a Democrat from Virginia, said the problem is that many brokers are thinly capitalized.
Ohio’s Sherrod Brown, the ranking Democrat on the committee, said Congress needs to make sure Finra arbitration winners get the money they were awarded for broker wrongs.