Avast ye scurvy dogs! Be warned, should ye mateys fail to sail the same course, ye'll kiss yer treasure goodbye in a future market storm!
2024-02-02
Arrr, mateys! Them scurvy lawmakers in South Dakota be settin' sail with a grand notion to safeguard their citizens' booty and booty-holdin' rights. Aye, other states best be takin' a cue from this noble quest, lest they be left swabbin' the decks without a treasure to call their own.
On Monday, lawmakers in South Dakota introduced legislation to protect the retirement accounts and property rights of their citizens. This groundbreaking move highlights the need for similar action in states across the country, as millions of American families could face financial and property losses in the event of a future financial crash.The problem stems from alterations made to Article 8 of the Uniform Commercial Code (UCC) in the 1990s. These changes allowed financial institutions to use customers' investments and property as collateral for their own businesses. As a result, people's investment securities, including those in retirement accounts, are typically owned by the financial institution rather than the purchaser.
This means that in the event of a financial crash, secured creditors of investment intermediaries would have priority over the securities held on behalf of customers. This could lead to a widespread confiscation of wealth, leaving millions of investors, pension funds, and companies with substantial losses.
To address this issue, South Dakota has introduced legislation to prioritize individual investors over securities held by brokerage firms and intermediaries. It also aims to change jurisdictional provisions to ensure cases are determined in the state of the individual investor, rather than the state of the broker.
It is crucial for other states to follow suit and enact similar policies to protect the property rights of American investors and maintain the health of the U.S. economy. By taking action at the state level, lawmakers can safeguard their constituents and prevent a "great taking" of wealth by the world's largest financial institutions.