As state attorney general, Spitzer brought legal action against Merrill Lynch for promoting worthless stocks to retail markets to increase the stockbrokerage firms’ investment banking revenue. His efforts led to a 2002 global settlement of $1.4 billion between regulators and the 10 largest Wall Street firms. Later, his team of investigators found that some mutual funds were letting preferred clients take advantage of lower prices after markets had closed.
He was prescient about Wall Street, in other words, long before the recent financial crisis. Who wouldn’t be interested in what he has to say about financial reform today?
I’m not defending Spitzer or condoning his behavior. Ultimately, I decided that his obvious intelligence, insights and potential contributions outweighed his other record. As far as I’m concerned, especially given that he has resigned from public office, the flaws that brought Spitzer down are between him and his family. Like most Americans, I believe in redemption.
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