Wall Street’s former sheriff could be saddling up again.
Eliot Spitzer is the model for brash local crusaders against the financial powers that be. But the disgraced ex-New York governor’s scorched-earth style may not play in the New York City comptroller’s office, which he now hopes to lead. While Mr. Spitzer may have big plans, he must first re-establish trust and credibility.
Political redemption is in the American political air. Former South Carolina Governor Mark Sanford overcame a sex scandal to win a seat in the House of Representatives. And former Congressman Anthony Weiner is now running for mayor of New York. Mr. Spitzer may find his prostitute-canoodling while acting as governor harder to shake.
Mr. Spitzer blazed the path for the current New York state attorney general, Eric Schneiderman, and the state’s financial services regulator, Benjamin Lawsky. Yet as aggressive as those watchdogs have been, neither has matched Mr. Spitzer in propelling shivers up Wall Street spines. Following the 2001 Enron accounting scandal, his then-unprecedented use of New York’s broad anti-fraud Martin Act put federal regulators to shame and cost big banks billions in settlements.
It now sounds as if Mr. Spitzer wants to reprise his role in the comptroller’s office. He even told a public-radio audience that he might use the position to address issues like whether banks should split the roles of chairman and chief executive. JPMorgan Chase’s chief executive and chairman, Jamie Dimon, is no doubt all ears.
The comptroller, however, is essentially the city’s auditor, overseeing pension funds and spending. Mr. Spitzer’s skill at expanding the remit of any public office is unquestionable, but that’s not what either New York or the former governor needs at this point.
The comptroller’s office has had its share of tainted leadership in recent years and could probably use a steadier hand. Mr. Spitzer, meanwhile, ruined his reputation by spending thousands of dollars on prostitutes, misbehavior that one of his potential rivals for the comptroller job, former madam Kristin Davis, will surely highlight for voters.
If Mr. Spitzer does win the race, his first job should be regaining the public’s trust. That requires attending to the mundane matters of fiscal oversight rather than pursuing financial rogues. The headline-grabbing crusades could come later, but Wall Street shouldn’t be shaking in its boots just yet
Reynolds Holding is a columnist at Reuters Breakingviews. For more independent commentary and analysis, visit breakingviews.com.
