The Eliot Spitzer story

Politicians often decry "negative" campaigning (even as they engage in it themselves).  So sometimes it's a good idea to keep in mind the positive role of an aggressive press and competing candidates in vetting candidates before they win high office.  I was going to write about this anyway, but it particularly comes to mind in light of today's blockbuster story in the NYT about NY Governor Eliot Spitzer. 

Today's story recalls an earlier one in the May 3, 2006 WSJ by Kimberly Strassel, which I noted on this blog. The story began:

* * * Mr. Spitzer, now running for the governor's mansion, has responded to a growing list of accusations of abuse by denying, dissembling and developing convenient cases of amnesia.

Here are some examples Ms Strassel cites:

--Spitzer claims that he had a duty to sue Richard Grasso for back pay when John Reed, then the NYSE's CEO, "walked into my office and gave me the Webb report." Yet Reed says he received a call from Spitzer requesting the report.

-- H&R Block CEO Mark Ernst wrote in the WSJ that Spitzer had offered to settle a case against Block for $30 million, then sued for $250 million at the height of the tax season, when it would get maximum attention. Spitzer told Reuters that Ernst's claims were "flat-out false." H&R Block had released a letter from its chief legal officer to Spitzer weeks before the lawsuit was announced referring to Spitzer's settlement demands.

--A WSJ reporter revealed that Spitzer had threatened to indict AIG unless the board fired its longtime CEO, Hank Greenberg. Business Week reported that Spitzer's deputy, Michele Hirshman, denies the threat was made.

--Former Goldman Sachs Chairman John Whitehead wrote in the WSJ that after he published an op-ed criticizing Mr. Spitzer, the AG told him "Mr. Whitehead, it's now a war between us and you've fired the first shot. I will be coming after you. You will pay the price. This is only the beginning and you will pay dearly for what you have done." Spitzer denied the threat.

--Former GE chief Jack Welch confirmed a Newsweek account that Spitzer told him to tell Ken Langone that Spitzer would "put a spike through Langone's heart." A Spitzer spokesman characterized this as a "hearsay account from a hallway conversation."

--A spokesman for New York Congresswoman Sue Kelly reported in 2003 that after Ms. Kelly disagreed Spitzer he hit her with a "slew of political threats and personal insults" and warned he would come to her district and "cause problems."

Strassel concludes:

Far better for the public if a little more light were directed on these discrepancies. Mr. Spitzer is asking to govern one of the most populous states in the nation. Politicians are certainly allowed "passion," but given the power they wield they also have to demonstrate restraint, honesty and good judgment. Voters deserve to know if Mr. Spitzer has the character to hold such a job.

One wonders what a certain other journalist, who frequently lavished praise on Spitzer, will say now. But at least voters did have the other side of the story.

Comments

[save_the_rustbelt]

Assuming Spitzer did spend the evening with a high priced hooker, that changes nothing in regard to the frequent malfeasance on Wall Street and in corporate America.

I am certain though that many Wall Streeters will meet for a drink tonight and cheer lustily for Spitzer's downfall.

(re Grasso: as I remember NYSE was a not-for-profit subject to state regulation - get over it)

[Alan]

It took me quite a while to learn to which political party Gov. Spitzer is connected. AP apparently doesn't want the public to immediately connect a sex scandal with the Democratic party. Why? If he had been a Republican, the article would have began "Republican governor ..." That you can count on.

[BigFire]

The consensus sentiment among Wall Street trader is "There is a God!"

[M. Hodak]

Funny world we live in. The guy is lionized for criminalizing business conduct and subverting the aims of justice with selective prosecutions, and he's brought down for paying a woman for sex.

Somehow, I think civilization has a long way to go.