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29 Oct 2009

Over Half a Billion Dollars Advanced to Madoff Customers

HedgeCo Archives - The total amount of Securities Investor Protection Corporation (SIPC) advances committed to customers in the Securities Investor Protection Act (SIPA) liquidation proceeding for Bernard L. Madoff Investment Securities LLC (BLMIS) has topped half a billion dollars ($534.25 million), with a total of 2,861 direct customer claims determined to date, according to BLMIS Trustee Irving H. Picard, who is a partner of Baker & Hostetler LLP.

In another major milestone: Securities Investor Protection Corporation President Stephen Harbeck announced that the SIPC advances committed in the Madoff proceeding now exceeds the total of all advances made in the 321 prior liquidations handled under SIPA since the act creating the Securities Investor Protection Corporation (SIPC) was passed by Congress in 1970.

"The fact that one liquidation proceeding has now involved more in advances from SIPC's reserve than all 321 of the liquidations that preceded it is a testament to both the wisdom of those who created this safety net for investors and the resiliency of the safety net itself." SIPC President Harbeck said.

"I am pleased to report that we have made significant headway in recent months in the processing of BLMIS customer claims under what have been very challenging circumstances." BLMIS Trustee Irving H. Picard said, "With more than $4.43 billion in customer claims already allowed and advances of over half a billion dollars committed by SIPC, the Trustee's office is working tirelessly to ensure that every BLMIS customer with a valid claim is given full consideration and handled as expeditiously as possible. That will continue to be our focus in the coming weeks and months."

At a briefing, Picard and Harbeck said that as of noon EDT on October 27, 2009, SIPC committed advances to Madoff customers now totals $534,250,113.22. In SIPC's previous liquidations of brokerage firms from 1970 up to the time of the Madoff case, a total of $520 million has been advanced to pay customers and for the expenses of those cases.

SIPC maintains a special reserve fund authorized by Congress to help investors at failed brokerage firms.

For more information about SIPC liquidation proceedings, see "The Investor's Guide to Brokerage Firm Liquidations".

BNY Mellon Wins HFMWeek Hedge Fund Award

HedgeCo Archives - BNY Mellon was one of eight industry-leading companies to be nominated for the honor as part of HFMWeek's 2009 U.S. Service Provider Awards, which were presented in New York on October 22. BNY Mellon's Alternative Investment Services (AIS) group received the 'best single manager administrator' award.

"BNY Mellon stood out in this category; a truly global administrator which has increased its market share and boasts substantial single manager assets," said HFMWeek's panel of judges.

"Recognition like this is noteworthy because it validates and reinforces our commitment to clients and the investments we're making to better serve them," said Brian Ruane, executive vice president and head of global client management North America at BNY Mellon. "It also speaks to the talent and collaboration of our global team to receive this honor from HFMWeek."

BNY Mellon Alternative Investment Services has more than $200 billion in assets under administration and an extensive global presence, including locations in Bermuda, Cayman Islands, Hong Kong, Ireland, Luxembourg, Singapore and the United Kingdom, as well as US offices in California, Florida, Massachusetts, New Jersey, New York, Pennsylvania and Texas. In addition to administration the company offers a wide range of accounting, cash management, collateral management, custody, corporate trust, asset management and wealth management services to the hedge fund industry.

HFMWeek's U.S. Service Provider Awards are designed to recognize companies that have outperformed their peer group over the course of 2008 and 2009. BNY Mellon AIS captured the best single manager administrator award as a result of its robust technology platform, range of value-added fund services, and overall client service excellence.