Bring Back Eliot Spitzer! Bring Back Eliot Spitzer!
Yesterday (Oct. 28) on Morning Meeting, Dylan Ratigan had on Eliot Spitzer and Glenn Greenwald to discuss Banking Reform the lack of any meaningful Banking Reform Spitzer was on fire!
Everything Tim Geithner is doing right now on Capitol Hill, and Barney Frank as well, unfortunately looks to the next crash, and what we do after the crash, rather than how to prevent it, and learn the lessons of what caused this crisis in the first place.
I would not let Tim Geithner negotiate a house purchase for me; he has done the public more harm than just about anybody I know, the way he has failed to stand up for the public.
He and Ratigan went on to talk about Larry Summers, Geithner, and Rubin backing the 1999 bill to legalize the de-regulation of credit default swaps (Gramm-Leach-Bliley, or the Commodity Futures Modernization Act) and the hell it has caused. He points out:
Today's GDP uptick is not about the real economy, Wall Street is not the real economy, the Banks aren't helping us get out of this slump, there are structural issues that need tending to, and they're not doing anything about it. It's an abomination...
Ratigan asked, "At what point are we dealing with fraud?" and listed various kinds: bank, motgage, etc. against the American people? Glenn Greenwald took a stab at it, then Spitzer talked about investigations and what the Angelides commision needs to find out, and what regulations need to be enacted.
Ratigan explained the legalization of proprietary-trading casino gambling using Grandma's money; asked Spitzer what needs to happen. Spitzer spoke about the 12.9 billion the government gave Goldman Sachs, they traded in the market, made a ton of money, and none of it helped the economy. The banks still aren't lending, he complained
Ratigan asked what do we need to do right now? Spitzer:
They've got to stop proprietary trading with government with federally-guaranteed money; end it.
Please watch it, and read about the Angelides Commission.
Let us forgive him his "sins" and get him working for us again!
(this was a quickie, I just watched it online; I wanted to get it up so you could watch it.)
















Spot on Wendy. Oh and highly rec'd.
C
October 29, 2009 7:06 PM | Reply | Permalink
He was the terror of Wall Street for awhile, wasn't he, C? This is just one I found:
http://www.slate.com/id/2108509/
October 29, 2009 7:43 PM | Reply | Permalink
Spitzer's a very smart guy and a street fighter. We need him back, and I'm happy to say he seems to be coming back.
And by the way, I'm tired of seeing politicians rise or fall because of their sexual peccadillos. Whether they are Republicans or Democrats, whether they pay big bucks for call girls, meet streetwalkers in dingy hotel rooms or exchange signals under the dividers in men's bathrooms, I don't much care. It's usually the hypocrisy that gets them, of course.
If we could get beyond giving a damn about their sexuality, perhaps they could get beyond their hypocrisy.
October 29, 2009 9:48 PM | Reply | Permalink
The other day I did the Eliot Spitzer cheer on someone's blog, and someone mentioned afterward that he was probably set up by someone(s) on Wall Street. He left himself open to it, no doubt, but it is time to let him back in. I have conflicted feelings about prostitution and legality, but on balance, I will let it go in his case now. He has been punished, eh wot, Planet?
I hadn't finished his piece on the Angelides Commission yet, though. Could be interesting.
October 29, 2009 10:08 PM | Reply | Permalink
I'm told the U. S. Justice Department has better things to do than target members of the opposition party who make enemies of their friends. But in Spitzer's case they made an exception.
Yes, time to encourage him to come back in.
October 29, 2009 10:30 PM | Reply | Permalink
If I were President I would make Spitzer the chief prosecutor of Wall Street.
I really would.
October 29, 2009 9:49 PM | Reply | Permalink
Me,too, Dick!
October 29, 2009 9:59 PM | Reply | Permalink
YES!!!
October 29, 2009 10:38 PM | Reply | Permalink
Your big YES!! gets enlarged and enhanced by your leaping avatar, Saladin. Cool.
October 30, 2009 6:38 AM | Reply | Permalink
From a Greg Palast article you might like, wendy:
And here is Spitzer's Washington Post op-ed from February 14, 2008: Predatory Lenders’ Partner in Crime.
October 30, 2009 1:12 AM | Reply | Permalink
Thank you so much for the links, Gasket. I did NOT know that Eliot's take-down was so directly linked. Amazing that Palast is still around, isn't it? Here's the money quote on the sub-prime crime:
'What that means is that they took a bunch of junk mortgages, like the Grinning's, loans about to go down the toilet and re-packaged them into “tranches” of bonds which were stamped “AAA” - top grade - by bond rating agencies. These gold-painted turds were sold as sparkling safe investments to US school district pension funds and town governments in Finland (really).'
On the air with Ratigan, Spitzer differentiated that Congress was ignorant in passing the laws repealing former regulations; the Banks engaged in criminal fraud. I don't think ignorance is such a big excuse for Congress; there were a number of people at the hearings trying to tell them the truth, and giving them the warnings.
Goddamit.
Gold-plated turds. Indeed.
October 30, 2009 6:35 AM | Reply | Permalink
I forgot the Freudian line:
'...now that the Sheriff of Wall Street has fallen on his own gun.'
Ouch!
October 30, 2009 6:41 AM | Reply | Permalink
We could do without Geithner, Somers and Bernanke having anything to do with the nations financial regulatory operations. They were all players in the lead up to the collapse and didn't do a thing to prevent it. Having these born and bred creatures of Wall Street running things is decidedly a conflict of interest. The stench of corruption from Washington and Wall Street is overwhelming. The players are so accustomed to the smell they think nothing of it. They're all rats who are right at home living in a sewer.
The reason we have so many rats is there is so much easy pickings (money) for them. And within government and finance they have devised it so they have unlimited access to vast sums of our money. The Bush attempt to get their hands on social security was just another scheme to get their paws on even more.
October 30, 2009 6:06 AM | Reply | Permalink
The link about the Angelides Commission is interesting, People. Brooksley Born is on it; since it's bi-partisan, there are also soome heavy-hitter Republicans on it:
The other members of the committee appointed by Republicans are Keith Hennessey, a former economic adviser to President George W. Bush; Peter J. Wallison, a fellow at the American Enterprise Institute; and Douglas J. Holtz-Eakin, a former top adviser to the presidential campaign of Senator John McCain.
It sounds like the investigations could go into 2010; I did not know that it was functioning. I thought it was more smoke-and-mirrors when it was announced. It sure gets no attention, does it? Are they issuing subpoenas, for instance? Where are the leaks on THIS commission?
October 30, 2009 6:51 AM | Reply | Permalink
The link about the Angelides Commission is interesting, People. Brooksley Born is on it; since it's bi-partisan, there are also soome heavy-hitter Republicans on it:
The other members of the committee appointed by Republicans are Keith Hennessey, a former economic adviser to President George W. Bush; Peter J. Wallison, a fellow at the American Enterprise Institute; and Douglas J. Holtz-Eakin, a former top adviser to the presidential campaign of Senator John McCain.
It sounds like the investigations could go into 2010; I did not know that it was functioning. I thought it was more smoke-and-mirrors when it was announced. It sure gets no attention, does it? Are they issuing subpoenas, for instance? Where are the leaks on THIS commission?
October 30, 2009 6:54 AM | Reply | Permalink
Sorry, I clicked the wrong button, and it sent this twice.
October 30, 2009 6:55 AM | Reply | Permalink
I agree. Spitzer has the drive for publicity, intelligence, deep knowledge of Wall St., and aggressiveness to do the job best.
October 30, 2009 9:41 AM | Reply | Permalink
Hi wendy. Count me in too. Wall Street hates the guy, which pretty much tells me he's ALL GOOD!
Not nearly enough prosecutions are coming out of this crisis. When are those AIG guys going to get indicted? And then there's goldman shorting securities that they themselves are underwriting, and then....
October 30, 2009 10:55 AM | Reply | Permalink
Remember,too, Obey, that in the summer Obama wanted to give the Fed more power to regulate 'systemic risk'? I got to think about it, and googled a bit; the quotable man on the subject was: you guessed it, Eliot Spitzer!
He asked in polite terms: WTF?
http://www.slate.com/id/2221898/
I wish there were some way to find out what's up in the Angelides commission. I din't know it was for real...Plus, if y'all knew, why didn't someone tell me to shut up when I was screeching about "Where's our Pecora commission??
I kinda like it that Spitzer says: Hey, you populists, anger, rage won't get us there. It's these questions that we have to demand be answered. Pretty methodical for a guy whose hair is on fire, eh?
October 30, 2009 11:15 AM | Reply | Permalink
I knew about the Angelides commission, but unless that guy turns out to be a political/pr genius, then there is no chance this is remotely like the Pecora commission. Precisely the fact that it is so low profile pretty much dooms it.
As for Spitzer's piece, it poses a lot of the right questions. And, scarily, you get few serious economists questioning the Fed, because the economics profession as a whole pretty much depends on the Fed regarding career advancement. If you're an aspiring playmate you don't criticize Hugh Hefner - same deal, different business.
The Fed isn't independent, it works for the banks. And academic economists aren't independent - they work *for* the Fed. Which is why so many of these proposals ("yes, give the Fed more powers when it isn't inclined to using those it already has") come out sounding so bizarre, and yet few people emit nary a peep...
October 30, 2009 11:38 AM | Reply | Permalink
'playmate', 'Hefner.' Pretty funny, Obey.
It does seem the Angelides group is awfully low-profile, doesn't it? Bah!
Well, let's peep a bit.
October 30, 2009 12:52 PM | Reply | Permalink
Wendy,
I am all in favor of cleaning up crooked people on Wall Street.
But Spitzer has a history of shooting first and asking questions later.
Maybe if he hadn't ousted Greenberg from AIG that firm would still be around today. Instead they went crazy with credit default swaps and now we're all paying for that.
October 30, 2009 3:51 PM | Reply | Permalink
Until we drop our idiotic prostitution laws and our habit of eliminating politicians from their jobs for doing things that have no connection to their jobs then I'm afraid all we can do with Spitzer is wish. Personally, I see Spitzer as just one in a rather long line of potential Presidents that the Republicans did in. They have been focused, with rather outstanding results, for the better part of 40 years on decapitating the Democratic Party of some of it's strongest leaders. Don't forget "The Monkey Business". Clinton was the only one to outlast their attempts to destroy Democrats with embarassing private pecadilloes.
October 30, 2009 3:59 PM | Reply | Permalink
I've seen Hank interviewed a couple or three times, and I must tell you, I did not find him credible. He maintained that his AIG was spotless, but he also wouldn't allow investigators to see his books. I know he won his case when AIG sued Starr, but there was so much hanky-panky, and even the judge said the bilk of the jury thought he lied a lot. But the judge said the lies "were immaterial" to the preponderance of evidece. Shysters, all, I'd say. I'd say it's too bad Spitzer didn't get to complete his investigation, but that's just me, Bill.
Though I do think I despise Ken Lewis more than any of them, and if you watch his interviews, he was the mega-wronged victim. It's like shuster-vs-shyster-vs-shyster, a la Mad Magazine.
October 30, 2009 4:07 PM | Reply | Permalink
I don't really care about whether he won the case of AIG suing Starr.
More importantly the criminal charges brought by Spitzer were ultimately dropped.
After 5 years of spending lots of taxpayer money to pursue Mr. Greenberg, what have the taxpayers received? A $15mm "no fault" fine? That's it? A five-year inquiry into the company's accounting practices that failed to prove fraud.
Greenberg was such a micro-manager that it's unclear whether he would have let AIG go hog wild selling credit default swaps.
We can get somebody other than Spitzer to fight corruption. Somebody who cares more about putting criminals iin jail rather than just seeing their picture on TV or a newspaper cover.
October 30, 2009 5:35 PM | Reply | Permalink
Spitzer clearly thinks he can be rehabilitated, and I think he should be. The only question is who is willing to abide the crap they'll take in the media if they do it. The other problem is it doesn't seem that Geithner's employer will do it, either, unless Obama has some kind of epiphany on messed up financial reform is.
October 30, 2009 5:14 PM | Reply | Permalink
Let's hear it for an epiphany! Come-to-Jesus! 5t'd be great if David Patterson appointed him Special Counsel to investigate the New York banking dealings, and the NY Fed. Do you suppose the reason he is public now is that he has some idea of a possible appointment? Or is he just being a good guy, and trying to steer the regulation reform discussions toward the right ends?
October 30, 2009 5:23 PM | Reply | Permalink