Government, Industry Agree On Securities Insurance
The Nixon Administration ' and the securities industry an-. nounced accord yesterday on an insurance plan designed to Û¢ protect stock market investors I against losses because of the i failure of brokerage firms.</br></br>The proposed corporation, comparable to the Federal Deposit Insurance Corporation which protects savings deposits, would cover up to $50,000 in securities investments by any one investor in the event of failure of a broker-dealer firm.</br></br>The plan was submitted to the House Subcommittee on Commerce and Finance by Hamer Budge, chairman of the Securities and Exchange Commission, and supported by Treasury and industry representatives.</br></br>Along with confirmed bank credits and assessments of member broker-dealers, these funds will comprise a $75 million bankroll for the corporation. Within five years after passage of the plan, the corporation fund would be required to reach $150 million.</br></br>tration, said the proposed cor-try sufficient to assure broker-poration will ÛÏhelp substan-^ge house solvency, tially to preserve (investor)' In the new plan SEC has au-confidence.Û	thority to require stock ex-