The Securities and Exchange Commission Wednesday concluded that Stanford victims, like those of Bernie Madoff, should be compensated by the Securities Investor Protection Corp., which handles claims for investors if their brokerage firm fails. The long-awaited decision came after a two-year battle that started with an SIPC opinion that Stanford victims were not eligible to file claims. It also came a day afer U.S. Sen. David Vitter put a hold on two SEC member nominations.
In its decision, the SEC said people who bought so-called certificates of deposit through the Stanford Group Co., Stanford’s U.S. brokerage arm, are entitled to protection by SIPC. The SEC said it would formally ask SIPC to institute a liquidation proceeding that would allow claims to be filed.
Allen Stanford is awaiting trial on charges he defrauded $7 billion from investors, about $1 billion of which came from investors in South Louisiana (there are 1,800 Stanford victims in the state), including a significant number from the Lafayette area.
Though its Wednesday recommendation is a major victory for Stanford’s victims, the SEC’s Stanford problems are far from over, as local investors have sued the regulatory agency, alleging negligence and misconduct.
In announcing his intentions to block the SEC nominations Tuesday, Vitter said: “Unfortunately, the SEC has not yet given the Stanford victims an answer despite my repeated conversations with Chairwoman Mary Schapiro. Many of these folks in Louisiana and along the Gulf region lost their life savings, and they at least deserve a direct answer on their request for coverage. After months of delay the commission has now met a number of times to consider SIPC coverage for Stanford’s victims. It would be salt in the wound of these victims for Congress to force those discussions to start over by approving new commissioners.
“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,” Vitter continued. “I will continue to hold them accountable – including holding these nominations – until these fraud victims get an up-or-down answer from the SEC on SIPC so they can move forward in the process, and if necessary, file a judicial appeal.”
SIPC said it is analyzing the SEC’s recommendation and indicated it would make a decision soon.
MAY 23 Here's a story in the Picayune about some statistics that must come as a blow to folks who believe that any private school can do a better job of educating kids than any public school: Danielle Dreilinger reports that only 30 percent of the voucher kids are passing. That's less than half of the state wide average, she says. It's an interesting statistic because most of the schools (if not all) taking voucher kids have never had their students' standardized test scores released to the public before.
MAY 23 Stephen Sabludowsky blogs on Bayou Buzz about auditor requests here. Recently the state GOP started crowing about a request from the Legislative Auditor, claiming they were being targeted because of their anti-tax stance. (Uh, your what?) Denial and hyperbole aside, the state Democratic party blew holes in that theory with an email announcing they'd received the same request, Sabludowsky writes here.
MAY 23 Jim Brown blogs about the senate race in this post. He says that, given Bobby Jindal's "lack of traction" on the national stage, it might make more sense for the governor to consider running against Mary Landrieu for the senate seat. Since Tim Teeple left the Cassidy team, it makes sense he might land on a Jindal for Senate team, Brown opines.
MAY 23 In this Louisiana Voice post, blogger Tom Aswell writes of rumors that his nemesis, state Superintendent of Education John White, may be soon departing Louisiana for a federal post. It's hard to believe, given his performance, Aswell says, but stranger things have happened. An anti-White BESE member says that, if true, White is quitting before he can be fired.
MAY 23 In this post on American Zombie, blogger Jason Berry writes about the Mother's Day shooting. Mayor Landrieu said that "this is not who we are," but the fact is, this is New Orleans, Berry writes. The violence infused in the city is the result of a culture created by "sins of omission or sins of commission," Berry writes. It's not a problem that can be solved by legislating, policing, praying or publicizing, he says: Someone's got to understand what's happening first.
MAY 23 This post in the Westside Journal tells us what Port Allen Mayor Deedy has been up to lately: vetoing ordinances, apparently. This story is most interesting, however, when it delves into a petition that has been circulating around the city lately. It accuses the former mayor of a lot of nasty things; the former mayor says it is full of lies and "broken syntax" which may be a larger offense in his eyes.
MAY 23 This editorial posted in The Advocate is a bit confusing. The writing is poor - definitely not up to the usual editorial writing standard there - and the point is hard to grasp. Apparently, the writer is saying that privatization of state efforts is OK, as long as there is oversight and transparency, but Jindal's not good at that, and the legislature shouldn't over-react. Okey Dokey. Can't they get one of them Pulitzer-winning people to write an editorial?
MAY 23 This post on The Lens gives you links to a new Google Earth tool that allows you to see any spot on earth transform over the past 30 years. Bob Marshall, who covers the coast for the paper, says that in the case of Louisiana's coastline, it's possibly something you don't want to see, because it's not a pretty picture. There are several clips here, showing critical areas erode away. For Marshall, it was vindication for all those times he was met with eye-rolling when he talked about erosion.
Most Read
in case you missed it
Many readers of this article may not believe we deserve the SIPC insurance. I hope you would take the time to understand the facts of this case. There where no high interest rates promised to me or the many others i know that lost money. The money invested never went to buy CD's it just went to the brokerage firm, to Stanford and his brokers. A scam the SEC Dallas office was concerned about since 1999.
It it a good day for many in South Louisiana... everyday people mostly retired people who saved their whole lives...
It is the first good day in a long time...............