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CAMPOS: Was Spitzer targeted?
By Paul Campos, Rocky Mountain News (Contact)
Wednesday, March 12, 2008
As Richard Nixon used to say, let me make something perfectly clear: Eliot Spitzer is a world-class hypocrite and fool, who more or less asked for the political and personal catastrophe that has befallen him.
That being said, the real Spitzer scandal has little to do with his apparent habit of paying young women for sex. Here's what really needs to be investigated:
Spitzer's fall was triggered not by his visits to prostitutes, but by banks reporting "suspicious" transactions of his to the IRS.
A deposit of $10,000 or more in cash automatically triggers a suspicious activity report. It's unlikely that someone as financially sophisticated as Spitzer would transfer $10,000 in cash at once to pay for illicit sex, given that he knew full well doing so would trigger an automatic report to the IRS.
It's a violation of the relevant statute to structure multiple cash transactions with the intent of avoiding the $10,000 automatic reporting requirement (by, for example, depositing $5,000 on the same day with two different banks), but it's quite unclear whether whatever Spitzer did would normally lead to the filing of a suspicious activity report, since such subterfuges are very difficult to detect unless one is already looking for them. This raises the possibility that Spitzer's financial activities were being closely monitored.
It's hardly a stretch to imagine that Spitzer, a man with countless enemies in the financial world, would be the target of such a vendetta.
Link
By Paul Campos, Rocky Mountain News (Contact)
Wednesday, March 12, 2008
As Richard Nixon used to say, let me make something perfectly clear: Eliot Spitzer is a world-class hypocrite and fool, who more or less asked for the political and personal catastrophe that has befallen him.
That being said, the real Spitzer scandal has little to do with his apparent habit of paying young women for sex. Here's what really needs to be investigated:
Spitzer's fall was triggered not by his visits to prostitutes, but by banks reporting "suspicious" transactions of his to the IRS.
A deposit of $10,000 or more in cash automatically triggers a suspicious activity report. It's unlikely that someone as financially sophisticated as Spitzer would transfer $10,000 in cash at once to pay for illicit sex, given that he knew full well doing so would trigger an automatic report to the IRS.
It's a violation of the relevant statute to structure multiple cash transactions with the intent of avoiding the $10,000 automatic reporting requirement (by, for example, depositing $5,000 on the same day with two different banks), but it's quite unclear whether whatever Spitzer did would normally lead to the filing of a suspicious activity report, since such subterfuges are very difficult to detect unless one is already looking for them. This raises the possibility that Spitzer's financial activities were being closely monitored.
It's hardly a stretch to imagine that Spitzer, a man with countless enemies in the financial world, would be the target of such a vendetta.
Link
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March 11, 2008 at 10:05:14
Spitzer Bust Provides a Warning Regarding NSA Spying
by Dave Lindorff
I have no sympathy for New York Gov. Eliot Spitzer, the hot-shot prosecutor of call-girl operations who was hoist on his own petard, as it were. I mean, what a jerk! And aside from the hypocrisy, what a fine message he was sending to his three teenage daughters about the role of women.
Having said that, Spitzer's bust should give pause to those in Congress who are ready to hand President Bush a free pass to continue his six-year campaign of warrantless spying on Americans.
We now know from yesterday's Wall Street Journal article that the spying Bush has been doing through the National Security Agency since early 2001 has included vast computer sweeps of not just internet and phone activity, but also bank and credit card transactions. These are sweeps of ordinary everyday people, with computers looking for odd transactions, or for codewords, or for transactions involving specific targeted organizations or addresses.
...
Now reportedly, this particular investigation was being conducted by the IRS, which allegedly was investigating the Emperor's Club. Once the IRS discovered it had caught the New York governor in its web, it forwarded the case to the US Attorney General's Office, where it was pursued by the FBI, apparently on the instructions of AG Michael Mukasey. The investigation moved from monitoring the bank to monitoring phones, and Spitzer was captured talking to the Emperor's Club dispatcher. Bingo. Promising Democratic political career ruined.
Link
Spitzer Bust Provides a Warning Regarding NSA Spying
by Dave Lindorff
I have no sympathy for New York Gov. Eliot Spitzer, the hot-shot prosecutor of call-girl operations who was hoist on his own petard, as it were. I mean, what a jerk! And aside from the hypocrisy, what a fine message he was sending to his three teenage daughters about the role of women.
Having said that, Spitzer's bust should give pause to those in Congress who are ready to hand President Bush a free pass to continue his six-year campaign of warrantless spying on Americans.
We now know from yesterday's Wall Street Journal article that the spying Bush has been doing through the National Security Agency since early 2001 has included vast computer sweeps of not just internet and phone activity, but also bank and credit card transactions. These are sweeps of ordinary everyday people, with computers looking for odd transactions, or for codewords, or for transactions involving specific targeted organizations or addresses.
...
Now reportedly, this particular investigation was being conducted by the IRS, which allegedly was investigating the Emperor's Club. Once the IRS discovered it had caught the New York governor in its web, it forwarded the case to the US Attorney General's Office, where it was pursued by the FBI, apparently on the instructions of AG Michael Mukasey. The investigation moved from monitoring the bank to monitoring phones, and Spitzer was captured talking to the Emperor's Club dispatcher. Bingo. Promising Democratic political career ruined.
Link
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Predatory Lenders' Partner in Crime
By Eliot Spitzer
The Washington Post
Thursday 14 February 2008
Editor's note: The following article was published in The Washington Post the day after New York Gov. Eliot Spitzer allegedly engaged the services of a call girl at the Mayflower Hotel in Washington, DC. ma/TO
How the Bush administration stopped the states from stepping in to help consumers.
Several years ago, state attorneys general and others involved in consumer protection began to notice a marked increase in a range of predatory lending practices by mortgage lenders. Some were misrepresenting the terms of loans, making loans without regard to consumers' ability to repay, making loans with deceptive "teaser" rates that later ballooned astronomically, packing loans with undisclosed charges and fees, or even paying illegal kickbacks. These and other practices, we noticed, were having a devastating effect on home buyers. In addition, the widespread nature of these practices, if left unchecked, threatened our financial markets.
Even though predatory lending was becoming a national problem, the Bush administration looked the other way and did nothing to protect American homeowners. In fact, the government chose instead to align itself with the banks that were victimizing consumers.
Predatory lending was widely understood to present a looming national crisis. This threat was so clear that as New York attorney general, I joined with colleagues in the other 49 states in attempting to fill the void left by the federal government. Individually, and together, state attorneys general of both parties brought litigation or entered into settlements with many subprime lenders that were engaged in predatory lending practices. Several state legislatures, including New York's, enacted laws aimed at curbing such practices.
What did the Bush administration do in response? Did it reverse course and decide to take action to halt this burgeoning scourge? As Americans are now painfully aware, with hundreds of thousands of homeowners facing foreclosure and our markets reeling, the answer is a resounding no.
Not only did the Bush administration do nothing to protect consumers, it embarked on an aggressive and unprecedented campaign to prevent states from protecting their residents from the very problems to which the federal government was turning a blind eye.
Link
By Eliot Spitzer
The Washington Post
Thursday 14 February 2008
Editor's note: The following article was published in The Washington Post the day after New York Gov. Eliot Spitzer allegedly engaged the services of a call girl at the Mayflower Hotel in Washington, DC. ma/TO
How the Bush administration stopped the states from stepping in to help consumers.
Several years ago, state attorneys general and others involved in consumer protection began to notice a marked increase in a range of predatory lending practices by mortgage lenders. Some were misrepresenting the terms of loans, making loans without regard to consumers' ability to repay, making loans with deceptive "teaser" rates that later ballooned astronomically, packing loans with undisclosed charges and fees, or even paying illegal kickbacks. These and other practices, we noticed, were having a devastating effect on home buyers. In addition, the widespread nature of these practices, if left unchecked, threatened our financial markets.
Even though predatory lending was becoming a national problem, the Bush administration looked the other way and did nothing to protect American homeowners. In fact, the government chose instead to align itself with the banks that were victimizing consumers.
Predatory lending was widely understood to present a looming national crisis. This threat was so clear that as New York attorney general, I joined with colleagues in the other 49 states in attempting to fill the void left by the federal government. Individually, and together, state attorneys general of both parties brought litigation or entered into settlements with many subprime lenders that were engaged in predatory lending practices. Several state legislatures, including New York's, enacted laws aimed at curbing such practices.
What did the Bush administration do in response? Did it reverse course and decide to take action to halt this burgeoning scourge? As Americans are now painfully aware, with hundreds of thousands of homeowners facing foreclosure and our markets reeling, the answer is a resounding no.
Not only did the Bush administration do nothing to protect consumers, it embarked on an aggressive and unprecedented campaign to prevent states from protecting their residents from the very problems to which the federal government was turning a blind eye.
Link
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Robert Scheer's Columns
Spitzer’s Shame Is Wall Street’s Gain
Tell me again: Why should we get all worked up over the revelation that the New York governor paid for sex? Will it bring back to life the eight U.S. soldiers killed in Iraq that same day in a war that makes no sense and has cost this nation trillions in future debt? Will it save those millions of homes that hardworking folks all over the country are losing because of financial industry shenanigans that Eliot Spitzer, as much as anyone, attempted to halt? Perhaps it provides some insight into why oil has risen to $108 a barrel, benefiting most of all the oil sheiks whom our taxpayer-supported military has kept in power?
...
Frankly, I don’t care what any of these politicians do in their personal lives as long as the practice is consensual, and the thousands of dollars that exchanged hands in this case would provide a presumption that the lady in question was indeed a willing partner in this commercial transaction. True, Spitzer is an outrageous hypocrite for having prosecuted others caught in what should not be considered criminal behavior, but since when is hypocrisy on the part of a politician, particularly as to sex, so shocking?
I wouldn’t have written this column had I not read The Wall Street Journal’s Page 1 news story headlined “Wall Street Cheers as Its Nemesis Plunges Into Crisis.” The article begins with the crowing statement “It’s Schadenfreude time on Wall Street” and goes on to quote those whom Spitzer went after over what should be considered the criminal greed that has predominated on Wall Street. It was Spitzer, as much as anyone, who sounded the alarm on the subprime mortgage crisis, the obscene payouts to CEOs who defrauded their shareholders and the other financial scandals that have brought the U.S. economy to its knees.
The best rule of thumb these days is that ordinary Americans should be mightily depressed over any news that Wall Street hustlers cheer, for they have been exposed as a dangerous pack of scoundrels quite willing to rob decent, hardworking people of their homes. And of course no one on Wall Street ever paid for sex.
Link
Spitzer’s Shame Is Wall Street’s Gain
Tell me again: Why should we get all worked up over the revelation that the New York governor paid for sex? Will it bring back to life the eight U.S. soldiers killed in Iraq that same day in a war that makes no sense and has cost this nation trillions in future debt? Will it save those millions of homes that hardworking folks all over the country are losing because of financial industry shenanigans that Eliot Spitzer, as much as anyone, attempted to halt? Perhaps it provides some insight into why oil has risen to $108 a barrel, benefiting most of all the oil sheiks whom our taxpayer-supported military has kept in power?
...
Frankly, I don’t care what any of these politicians do in their personal lives as long as the practice is consensual, and the thousands of dollars that exchanged hands in this case would provide a presumption that the lady in question was indeed a willing partner in this commercial transaction. True, Spitzer is an outrageous hypocrite for having prosecuted others caught in what should not be considered criminal behavior, but since when is hypocrisy on the part of a politician, particularly as to sex, so shocking?
I wouldn’t have written this column had I not read The Wall Street Journal’s Page 1 news story headlined “Wall Street Cheers as Its Nemesis Plunges Into Crisis.” The article begins with the crowing statement “It’s Schadenfreude time on Wall Street” and goes on to quote those whom Spitzer went after over what should be considered the criminal greed that has predominated on Wall Street. It was Spitzer, as much as anyone, who sounded the alarm on the subprime mortgage crisis, the obscene payouts to CEOs who defrauded their shareholders and the other financial scandals that have brought the U.S. economy to its knees.
The best rule of thumb these days is that ordinary Americans should be mightily depressed over any news that Wall Street hustlers cheer, for they have been exposed as a dangerous pack of scoundrels quite willing to rob decent, hardworking people of their homes. And of course no one on Wall Street ever paid for sex.
Link
