The passage, or failure, of a single piece of legislation is going to tell us a lot about whether our Congress represents the people of the United States or just its financial service industry donors. The legislation is the Restoring Main Street Investor Confidence and Protection Act, HR 3482 and Senate bill S 1725. The Restoring Main Street Investor Confidence and Protection Act would define the value of a person's brokerage account - their "net equity" - as the value of the account based on the last statement from the brokerage house. Withdrawing the proceeds from selling some shares at the current price of $90 would eliminate your net equity. In the event of fraud, the appointed trustee can sue the victims to recover money that was distributed from their account. What it and its securities industry backers want us to believe is that we actually have $500,000 of insurance protection against bankruptcy and fraud. The argument for its definition, as seen in court filings, is that when there is fraud, brokerage statements are works of fiction. The industry's own insurance company has hollowed out the assurances that were created to buttress investor confidence.

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