A View From The Press Box: Spitzer's Comeback

Eliot Spitzer's political rehabilitation is in full throttle, with the latest evidence being the sympathetic cover story in the April 27 edition of Newsweek, headlined: "How Could I?"

The article notes how the disgraced former governor and once crusading attorney general from New York is now spending his days walking the dogs, taking lonely jogs in Central Park, and penning opinion pieces about how he told us so about the financial crisis–how he tried, in vain, to stop reckless lending and credit default swaps before they ruined us, but was stymied by federal roadblocks.

The question is: Should we care what he has to say? I think we should.

There are those who contend Mr. Spitzer forfeited his right to play any role in public policy when he got caught with his pants down in a prostitution scandal that drove him from office.

I beg to differ. For one, it's a free country, and everyone has a right to offer their opinion–especially if they know what they are talking about. After all, even Richard Nixon rose from his political grave to deliver useful commentary on geopolitics after Watergate forced him to resign his presidency.

America, thank goodness, is a very forgiving country when it comes to personal failings–especially when the transgression involves sex. Despite our historic puritanical streak, after the initial hubbub and cries of moral outrage, the majority quickly settles down and shrugs off whatever carnal sin might have been committed.

Then there are those hard-core critics who insist that even before "Mr. Clean" exposed himself to public ridicule with his sexual antics, Mr. Spitzer was nothing more than a blowhard and a bully as AG and governor, and that he should just shut up already!

Here, too, I part company with the critics. While naysayers can cluck all they want about how Mr. Spitzer went overboard in his efforts to punish wrongdoing in the insurance industry, the fact is he did indeed uncover shameful acts of bid-rigging by top insurers and brokers.

We could have used a bulldozer like Mr. Spitzer to crack down on abuses of subprime mortgages and credit default swaps, yet unfortunately he was given a stiff arm by Uncle Sam. Only Washington had the authority to head off this economic crisis, yet all Congress and the White House did–under both Republican and Democratic administrations–was to give rogue bankers and derivative traders the green light.

Mr. Spitzer made terrible mistakes in his personal life that destroyed his political career. But at a time like this, we need all the help, insight and expert advice we can get. For now, Mr. Spitzer will have to satisfy his cravings for power with punditry. Before too long, however, I would not be surprised to see him called upon to take on a more substantial–and official–role.

In his March 30 NU column, my colleague, Associate Editor Mark Ruquet, suggested with tongue firmly in cheek that perhaps Mr. Spitzer was destined to take over AIG from the beleaguered Ed Liddy! The notion was brilliant–talk about poetic justice!–and I am only sorry I did not think of it myself.

But all kidding aside, anything is possible. If those insurers and brokers who pine for federal regulation finally get their wish, they had better brace themselves for the possibility of Eliot Spitzer as National Insurance Czar! Politics has made for far stranger bedfellows.

Sam Friedman is NU's Editor In Chief. He can be reached by e-mail at sfriedman@nuco.com, or go to his blog at www.NUSamSoapbox.com.