Why Did they Drop the Dime?

I have been thinking about this for a while and I have mixed feelings. It seems that everything we heard about this “Scandal” initially wasn’t exactly accurate. Initially we were told through numerous “anonymous” leaks that the Governor was caught due to an investigation of a prostitution ring by the Public Integrity Unit of the DOJ. Well what, I thought, is the Public Integrity Unit doing investigating a prostitution ring? And why are the Fed’s investigating a state crime?

So, it came as no surprise that the story was exactly backwards. The prostitution ring was discovered because the Public Integrity Unit was actually investigating the Democratic Governor of New York State and that is how the Fed’s fell across the prostitution ring.

I think that Spitzer, who had done quite a lot of good in fighting financial crime, was taken down by both his own hubris and a little help from his enemies. And Lord knows he had plenty. Rumor has it that the bank, Norfolk, which is owned by Capital One, dropped the initial dime. You know I would think that if you indict a bank for sub-prime lending fraud you might take your personal money elsewhere. I am just saying. And not only that, but I would be very careful because I know how financial crimes are investigated. I would likewise be very careful as a Politically Exposed Person (PEP) who is subject to “strict scrutiny” in any transactions I had in any bank anywhere. Again, I am just saying.

So, it seems that my initial reaction which was “what a moron” was accurate but based on different reasons than initially reported. Whether he was targeted or not is actually relevant in part and irrelevant in part. Eliot Spitzer, “The Sheriff of Wall Street” and “Mr. Clean” should have known better.

This is not like electing someone you know is a moron, like say, George W. Bush. We thought we were electing one really smart, and good, guy. He was a bit of a zealot though and that should have been our clue.

Voters: Caveat Emptor!

PS Good Luck Governor Paterson and take a lesson Mr. Cuomo!