“Given the potential impact of this precedent on the U.S. financial system, Dr. Melgen is taking this case to the U.S. Senate Banking Committee in an effort to urge them to consider convening a special hearing to discuss the effect this could have in further eroding the credibility of U.S. Banking system,” according to that Web page.
“Interestingly, a Senate Banking Committee staffer revealed that one of the issues not addressed in the Dodd-Frank legislation is the custodial responsibility brokers should have towards investors. This omission in US law creates a risk to any investor who places his assets in the custody of brokers, and has to be corrected.”
Menendez serves on the Senate banking and finance committees. While in the Senate, Dodd served on the banking committee, and on subcommittees devoted to securities, insurance, and investment; and international trade and finance.)