Its a shame Eliot Spitzer had to resign from politics — because we sure could use him now. This thought came to mind while reading a New York Times article, The End of the Financial World as We Know It. A main thesis was: the current financial crisis arose from a disregard for the legal framework and fiduciary responsibilities underpinning free and competitive markets.
The credit-rating agencies didnt bray the fungus ball of securitized subprime mortgages because they wanted their fees. The SEC ignored Madoff whistleblowers because senior staffers didnt want to jeopardize their chances for remunerative jobs with the firms they were overseeing.
This latest breakdown in the U.S. regulatory environment is a hump-backed whale compared to the minnows of Enron and WorldCom. Yet, little is being done about fixing the flaws as politicians rush to fork out trillions of dollars in bailout money.
Now would seem to be an ideal time for a politician of Spitzers ilk. Not only should some people spend time in front of a magistrate, but a new framework of rules and enforcement needs to be created alongside the rescue of the U.S. financial sector.
Its encouraging to see Spitzer has started to write a policy column for Slate.com. That shows he is still interested in the body politic. Could re-entry into public life be far behind?I would welcome it (having previously lamentedhis departure from the scene).
Incidentally, an endnote to one his columns reveals that the Spitzer family had an indirect investment with Bernie Madoff. It looks like they had deposited money with a fund that had invested assets with Madoff.