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Originally posted by scrapple
Not saying he is innocent, but simply giving it the old ATS try.
Anyone game?
www.cjr.org...
The Wall Street Journal and The Financial Times report this morning that New York Governor Eliot Spitzer is stoking the fire his insurance superintendent has set under the monoline bond insurers, saying they have five days tops to shore up (subscription site) their capital or be busted up.
Spitzer testified on Capitol Hill to a House subcommittee on capital markets that he could slice off the monolines’ large municipal-bond-insurance businesses if they don’t act quickly. He is trying to prevent downgrades of the bond insurers from sharply raising the borrowing costs of municipalities across the country. Yesterday, credit raters slashed the third-largest monoline’s rating six notches below the top-rated AAA, potentially affecting $300 billion of bonds
Separating the municipal bond part of the business from the structured-finance part that has gotten them in trouble would be bad news for Wall Street, which would face tens of billions of dollars in write-downs because of the resulting downgrading of the bond insurers’ credit ratings. But Spitzer and Eric Dinallo, his insurance regulator, say their primary consideration is to protect municipalities and their bondholders:
If we do not take effective action, this could be a financial tsunami that causes substantial damage throughout our economy.
Originally posted by JBA2848
reply to post by xyankee
We can't even pass a bill to take there pensions away. Theres public officals in prison who still get a check from the tax payers. Convicted of felonies while in office.
Gov. Eliot Spitzer was on Fox Business Network on February 14, the morning after an alleged meeting with a prostitute in Washington, DC. The topic?...Scandals: financial and housing.
Spitzer's first interview of this day, Valentine's Day, was on CNBC at 7amET.
Having sex with prostitutes is always a risky proposition for any public official. But when you've pissed off some of the richest and most powerful people in the world, paying for sex may be one of the more stupid things you could do. Jezus, Eliot, what the hell were you thinking?
...Spitzer is so loathed on Wall Street and in the business community that the U.S. Chamber of Commerce has devoted entire conferences to figuring out how to bring him down. Tom Donohue, the president of the Chamber, once accused Spitzer of using the "most egregious and unacceptable form of intimidation that we have seen in this country in modern time" in his investigation of Wall Street firms back in 2005, when Spitzer was the state's attorney general.
Business leaders despise Spitzer for his holier-than-thou press conferences in which he denounced them as slimeballs. Among his enemies: former chief of the New York Stock Exchange, Dick Grasso; the entire mutual fund industry; dirty power-plant owners; trillion-dollar banks. Spitzer went after all of them, with an aggressive use of state and some federal law that was derisively known as "Spitzerism." His election as New York's governor showed that he had the ability to win over upstate Republicans, a sign that he might have a future in national politics. And imagine the business world's horror at the possibility of a Spitzer-led U.S. Department of Justice, or worse, the Securities and Exchange Commission.
Spitzer had to know that people were gunning for him. Put aside Wall Street, he'd made plenty of enemies prosecuting garden-variety criminals. As head of the state's organized crime task force, he prosecuted two major prostitution rings. He certainly must have realized that prostitution business often has deep ties to mobsters. So by associating with $5,500-an-hour "executive" call-girls who were in bed with wealthy individuals and possibly connected to organized crime, Spitzer put himself in a position where he could be blackmailed or ruined by the very types of people he had pursued.
Sex for hire might not be the end of every politician. Louisiana senator David Vitter, whose phone number turned up in the records of the famous D.C. Madam, is testament to that. Other politicians have survived sex scandals, too, most notably Rudy Giuliani and Idaho senator Larry Craig. But Spitzer made his career on being Mr. Clean. He used his moral authority to fix a lot of things that were wrong with corporate America. As a result, this hypocrisy will be his undoing. Dick Grasso and his friends must be popping the champagne.
Originally posted by kosmicjack
To Scrapple's point - Andrea Mitchell just reported on MSNBC that Spitzer is currently heavily involved behind the scenes in trying to shore up the various financial markets. She would know.
Originally posted by taybes
It's like he wants to admit to the lesser crime rather than let the cat out of the bag.