By Cydney Posner

As reported in this article in The Washington Post, Sen. David Vitter (R-La.) has blocked the nominations of current SEC commissioner Luis Aguilar to a second term on the SEC and of Daniel Gallagher, a Republican lawyer and former advisor to former SEC Chairman Christopher Cox, to fill a Republican seat on the SEC.

Vitter said yesterday that he would hold up the nominations until the SEC decides whether victims of the scam allegedly perpetrated by Allen Stanford qualify for insurance through the Securities Investor Protection Corp. The article reports that claims by the Stanford investors have been in question because the alleged fraud involved both a brokerage and another entity not covered by the SIPC. According to the Post, Vitter stated: "We've known for some time that the SEC waited far too long to take action against Allen Stanford, and now they're dragging their feet in responding to the victims….I will continue to hold them accountable — including holding up these nominations -- until these fraud victims get an up-or-down answer from the SEC…" (It seems that having been named as a client of the "DC Madam" has not taken the wind out of Vitter's sails – or his rhetoric.)

Apparently, his strategy was effective. Today, the SEC issued a press release announcing its decision that the Stanford investors were indeed entitled to SIPC protection. Presumably, the nomination process will now proceed.

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