Eliot Spitzer, Wall Street

Crusading Attorneys General Beware

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There is so much blame to go around over the AIG debacle that even “Governor John” Eliot Spitzer is getting knocked around.

Remember Attorney General Spitzer orchestrated AIG founder Maurice “Hank” Greenberg’s resignation, back in 2005. But since then some of the charges against Greenberg have been dropped, while Greenberg continues to fight other allegations.

Greenberg was but one of many “triumphs” Spitzer notched on his bedpost as Attorney General. His zealous prosecution of wall street corruption catapulted him to fame, higher office, and (we now know) abject hypocrisy.

But as the AP points out, it may be a little too easy –and partisan– to blame Spitzer for AIG’s collapse:

“I think the AIG problems were probably even bigger than Hank Greenberg and Eliot Spitzer,” said Professor James D. Cox of the School of Law at Duke University. “I would hope that something of this scale _ which is mammoth, both the bailout and the problems that led up to it _ are bigger than just politics.”

Columbia Law Professor John Coffee blames AIG’s troubles on AIG owns practices: “Ratings agencies don’t downgrade anyone because Eliot Spitzer doesn’t like them.”

Spitzer didn’t break Wall Street, but his particular path to power should be a warning to future attorneys general. Sticking up for the little guy is all well and good. But you shouldn’t use the office to get nice copy for future campaign ads.

Are you listening Andrew Cuomo? Prosecutors are supposed to tackle “corruption” because it is their job, not because it’s a resume builder for higher office. It’s a rule we think both parties should be able to follow.

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Analysis: Some see Spitzer role in AIG’s crisis [Associated Press]

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