Supporters of Judge Samuel Alito on Friday vigorously defended his decision to rule on two companies that handle his personal investments, even as senators examine whether the rulings posed a conflict of interest. Alito, who has been nominated by President Bush to the Supreme Court, owned more than $390,000 in shares of Vanguard Group mutual funds when he ruled in favor of the company as a federal appeals court judge in 2002. Alito also ruled in 1996 on a case involving Smith Barney, another firm handling his investments.
When he won Senate confirmation to the federal appeals court in 1990, Alito vowed in written answers to a Senate questionnaire that he would disqualify himself from "any cases involving the Vanguard companies, the brokerage firm of Smith Barney" and a New York savings and loan. . . .
[B]ut the White House now also argues that Alito had no conflict of interest in either the Vanguard or Smith Barney case and did not need to recuse himself, because he stood to make no financial gain no matter how the cases were resolved.
"Leading legal experts have said any indication that there was impropriety with regard to this Vanguard issue or Smith Barney is ridiculous," Steve Schmidt, the White House aide overseeing Alito's confirmation bid, said Friday. "He had no obligation to recuse from a case involving his broker, the same way he'd have no obligation to recuse from a case involving his cell phone provider or electric provider."
Details here from the Chicago Tribune.