The more I watch the dynamics of the political prosecutor, the more I believe that attorneys general should ideally be individuals who labor out of the public eye in modest solitude, their ambitions and drive segregated from the basic duty of representing "The People" against would-be wrongdoers. Particularly in the face of what the financial press has dubbed a "worldwide backlash against capitalism" the dangers presented by cults of personality married with broad investigatory powers are significant. Are we so taken with charisma, be it dark or light, that we are doomed to endure these cyclical characters?
Apparently, no one, including the Wall Street Journal, has learned from the saga of Eliot Laurence Spitzer, his naked ambition, or his aggressive tactics in bringing low both the various financial institutions that became his favorite shoe pounding crusade, and political opponents like Joseph L. Bruno upon which he unleashed various state police surveillance teams. That "fast-and-loose" became Spitzer's calling card, along with the adroit ease with which he manipulated the press and the public, should have been alarm bells aplenty, hinting urgently at the deep, throbbing vein of hypocrisy and duplicity you just sort of knew (but likely could not articulate) lurked beneath the contours of Spitzer. That he even revealed his fatal flaw at all is more a function of some ingrained pathology of self-destruction, than the realization any kind of inevitability. No one who pointed to questionable behavior in Spitzer could do so credibly. He was, most likely, already investigating them. Yet, he was beyond careless- hung by his own tactics, the wiretap, the money trace and the threat of public exposure. But how many public officials are simply better at concealing their ethical malignancies?
And so, what are we to make of his successor, Andrew Cuomo? Well, certainly the Wall Street Journal has de facto dubbed him the new Spitzer in the growing investigation of Auction Rate Securities. This is ironic given the history of mild animosity between the two. Indeed, the Journal takes pains to paint Cuomo's investigation as an industry-wide one, though Cuomo himself has been happy to egg along that particular interpretation. Whatever one's view on the investigation, and personally I think the behavior of various parties in the Auction Rate business are, in equal measure, poor business sense and mild ethical lapses- the former being anything but criminal and the later being potentially criminal, it is difficult not to wonder if Cuomo too will draw the gravity-bound character arc that begins with the iconic smiling Wall Street Journal hedcut and ends with a flashbulb-whitewashed behind-the-podium portrait on page six.
Auction Rate Debt Market Faces Probe [WSJ]
Posted by guest , Apr 18, 2008 7:36AM
EP - starting the day off with a big suckup to the douchebags, eh?
Posted by guest , Apr 18, 2008 7:36AM
I would bet that some of the investigations are spawned by children of the wealthy and politically connected losing their high paying, little to no work jobs at Wall St firms, and then same children go home and complain bitterly to Mom and Dad.
There is no scorn like the scorn of children of the wealthy. (And their parents.)
Posted by guest , Apr 18, 2008 7:37AM
Actually, read with a sense of irony, this is satire that is actually, uh, funny! You're getting better at this, EP.
Posted by guest , Apr 18, 2008 8:01AM
Cramer makes another great call.
http://www.streetinsider.com/Insiders+Blog/Cramer+Said+Wait+To+Buy+Google+%28GOOG%29+Under+%24400/3555723.html
no, not his citigroup long..this is better.
Posted by guest , Apr 18, 2008 8:21AM
"deep, throbbing vein" eh?
that is not an image i need friday morning
Posted by guest , Apr 18, 2008 8:24AM
This is the kind of writing that keeps me coming back for more. Intelligent and insightful. Thank you EP, and bravo!
Posted by guest , Apr 18, 2008 8:45AM
I'd say this post would read much better in the afternoon. The post is too long for the time of day: early mornings people just want to scan the headlines -- there is already information overload from all the overnight news, no time to appreciate all the subtleties and complexities. But keep it up.
Posted by guest , Apr 18, 2008 8:49AM
I agree, this makes for better Fri. afternoon material. Interesting points made nonetheless.
Posted by guest , Apr 18, 2008 8:53AM
Andy Cuomo and his crew are animals per Spitzer. High praise, eh? As a former "fallen" chief judge of New York said (along these lines), " Politics attracts ego maniacs, cute or cruel and thieves." Good piece, EP.
Posted by guest , Apr 18, 2008 8:58AM
8:49 *CITI CUTS ON TOP OF 4,200 JOB REDUCTIONS ANNOUNCED IN JANUARY
8:49 Citigroup-C CFO says has slowed headcount growth to 8%-CC [MORE]
8:48 *CITIGROUP FINANCE CHIEF CRITTENDEN COMMENTS ON CONFERENCE CALL
8:48 *CITIGROUP JOB CUTS TO BE MADE DURING NEXT 12 MONTHS :C US
8:47 Citigroup-C CFO says this in addition to previously announced 4,
8:47 *CITI HAS SIGNIFICANTLY SLOWED HEADCOUNT GROWTH :C US
8:47 Citigroup-C CFO says will cut over 9,000 jobs-CC [MORE]
8:47 *CITI TO CUT OVER 9,000 JOBS IN ADDITION TO ANNOUNCED CUTS
8:46 *CITIGROUP CUTS IN ADDITION TO CUTS ANNOUNCED LAST QUARTER
8:46 *CITI TO CUT OVER ADDED 9,000 JOBS IN ADDITION TO ANNOUNCED CUT
8:46 *CITI SEES CUTTING OVER 9,000 JOBS :C US
8:45 *CITI SEES CUTTING OVER 9,000 JOBS :C US
Posted by guest , Apr 18, 2008 9:00AM
I have to wonder if Cuomo went after car dealers, or landlords instead of big banks now, if everyone would applaud instead of treating him with derision. Hopefully we'll see some big bankers and their skinny ass Ivy league cohorts do the perp walk and then enjoy some real prison time. Then again, some of them would probably enjoy that.
Posted by guest , Apr 18, 2008 9:35AM
Eh, definitely a broad sword, but it acts in the market as an effective counterbalance to moral hazard. It will be a long time before you hear the words "as good as cash" coming out of some smarmy PWM jockey.
I'm not saying I agree with them killing poor Ken Lay, just saying kicking ML while it's down is not going to be the end of anyone's world.
Posted by guest , Apr 18, 2008 10:36AM
@EP: It's already the pm for your European readers, of which I am one.
@ posters 8:21, 8:45, 8:49: you must work at BSC. No wonder the place went to the dogs. Turn on FBN if you want something that's not going to distract you from your intense scanning of overnight news headlines.
There's no reason why your inability to prioritise should deprive me of my Friday afternoon fun. Especially if it corresponds to the time of day that EP is most productive, though I suspect she worked on it overnight...
Posted by Suits , Apr 18, 2008 10:36AM
"Naked"
"Fast and loose"
"throbbing vein"
"hung"
I feel dirty.
Posted by guest , Apr 18, 2008 10:40AM
also "pounding"...
...and the lost opportunity to use "probing" instead of "investigating"...
Posted by guest , Apr 18, 2008 10:41AM
I don't like Andrew Cuomo. He has never shown any quality other than a desire to advance up the political letter. His education doesn't seem to have given him any depth of understanding, and his law school career didn't temper his aggressive impulses. He hasn't had much experience as a hands-on prosecutor, which can impart a sense of proportionality.
Posted by guest , Apr 18, 2008 11:06AM
@10:36 what kind of idiot are you? jesus tapdancing christ. nobody likes you. go away.
Posted by diablo , Apr 18, 2008 11:57AM
There quite a few wealthy people that got taken by the ARS scam. That by itself can bring people in a position like Cuomo's to action. And since the ARS business has gone through the SEC before, with fines resulting to some obnoxious players, I wouldn't venture to guess that what's going on here is about just a few mild-ethical-lapses.