Crains New York - July 15, 2013 - (Page 18)
Weiner and Spitzer
Continued from Page 1
egos and reputations as political
wrecking balls running the city is
perhaps an even greater concern.
“This is very serious business,”
one business leader said last week.
“The mayor is a very serious thing.
Comptroller is very serious. And
they have a big impact on the economy and quality of life.So the question
is, do either of these guys deserve to
do that, or would they be good at it?”
Mr. Spitzer may be the more
nerve-racking of the two to some,
given his crusades against the financial industry as state attorney general and his comments as a new candidate last week. When asked on
CNBC by guest host and former
Citigroup and Time Warner Chairman Dick Parsons what attracted
him to the comptroller’s job, Mr.
Spitzer answered: “It’s an exciting
position. I want to do to that office
what I think people will say I did
with the attorney general’s office.”
As comptroller, Mr. Spitzer
would oversee the city’s $140 billion
in pension funds, audit city agencies, approve contracts, administer
prevailing-wage rates, vote on the
mayor’s subsidy deals for businesses
and even wield subpoena power.
“More than a few business leaders are concerned about whether the
next comptroller is focused on at-
tacking the exploding pension and
retiree health costs that threaten the
long-term stability of the city’s finances, or whether he has a greater
interest in being activist-investor in
chief,” said political consultant Stu
Loeser, a former press secretary for
Mayor Michael Bloomberg.
If Mr. Spitzer gets on the ballot,
his Wall Street enemies, such as
Home Depot founder Kenneth
Langone and ex-stock exchange
Chairman Richard Grasso, will
likely fund attack ads on TV. A year
ago, Mr. Langone told Bloomberg
Businessweek that he could never
forgive Mr. Spitzer for his headlinegrabbing lawsuit against the New
York Stock Exchange, saying he saw
the “evil of personal ambition blinding to his responsibilities.”
Guarded reactions
But that might not be enough to
stop the self-funded Mr. Spitzer
from besting Manhattan Borough
President Scott Stringer, who has
solid political and institutional support in his Democratic Party primary run for the comptroller’s office
but is unknown to roughly half of
New Yorkers outside Manhattan.
Initial reactions from Wall Street
have been guarded. In an earnings
call with investors Friday morning,
JPMorgan Chase Chairman and
CEO Jamie Dimon said in response
to a question about Mr. Spitzer as an
activist comptroller: “The American people have a right to vote for
who they want. We have good governance. I’d be happy to talk with
him about it.” Mr. Spitzer has said
he favors separating the jobs of
chairman and CEO at JPMorgan
Chase and other public companies.
Mr.Weiner doesn’t have the same
kind of powerful detractors, as he focused his congressional career on
constituent services, building a
YouTube following and preparing
for a mayoral bid rather than passing
legislation in Congress. But in more
than a dozen conversations with executives in real estate, finance and
telecommunications, Crain’s found
reactions ranging from despair to
amusement to resignation that the
2013 election has been hijacked by
flamethrowing ex-politicians who
had trouble keeping their pants on.
One former government official
who is now in business said: “I think
most folks look on the situation with
disgust, but they are practical—they
are looking at the polls. So if these
guys continue to be viable electorally, no one is going to write them off.”
One top executive in the technology industry said of Mr. Spitzer, “I
think he’ll approach the job differently [than did previous comptrollers] … as he did the [attorney general] job.He’ll make a lot of enemies,
which will be interesting, considering it may or may not be a stepping-
stone to be the mayor.”
A real estate insider noted that Mr.
Spitzer has more enemies on Wall
Street than he does in real estate, the
industry in which his father, Bernard,
made his fortune; Mr. Spitzer has
helped run the family business since
leaving politics.“He’s one of our kin,”
said the source.“I don’t think you find
the same antagonism.”
Punch lines
The day after the release of the
poll showing him ahead in the
comptroller’s race, Mr. Spitzer
sought to assure the public that New
York could get past the punch lines.
“We’re a city that appreciates humor,” he said in a radio interview
with Geraldo Rivera. “A few more
jokes about the nature of our politics
certainly aren’t going to put a dent in
this amazing place.”
A spokeswoman for Mr. Spitzer
told Crain’s,“Eliot will make his case
to the voters, including those in the
business community,based on the issues, his experience and his record.”
A spokeswoman for Mr. Weiner
did not return a request for comment.
New York would not be the first
to elect unorthodox candidates.
Californians
elected
Arnold
Schwarzenegger governor, while
Minnesotans put former wrestler
Jesse Ventura in charge of their state
and sent comedian Al Franken to
the U.S. Senate.
“I mean,Mark Sanford just got reelected,” said the tech executive, re-
ferring to the former South Carolina
governor who resigned amid a sex
scandal, then won a seat in Congress
two years later.“I don’t think it makes
politics any more or less scandalous,
especially considering all of the corruption that goes on—which is way
worse in many ways.”
Both Messrs. Weiner and
Spitzer are hyping their credentials
as independent from special interests—a strategy that worked for Mr.
Bloomberg, albeit under vastly different circumstances, but that might
be a liability if either is elected this
fall.Their notoriety could overshadow their ability to recruit both
private- and public-sector talent to
city agencies and the mayor’s office,
in Mr. Weiner’s case, or asset managers and pension experts, in Mr.
Spitzer’s. Their relationships with
Washington and Albany, respectively, are strained, to put it mildly,
and Mr. Weiner’s constraints in securing federal and state funding
could prove even tougher than the
many roadblocks encountered by
Mr. Bloomberg.
“Neither one of these guys has
any friends in the business they were
in,” said one business leader. “That’s
part of the reason they fell so hard,
and it tells you something about
how effective they would be as executives. They’re great solo operators;
they’d be lousy executives.” Ⅲ
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Table of Contents for the Digital Edition of Crains New York - July 15, 2013
Crains New York - July 15, 2013
IN THE BOROUGHS
IN THE MARKETS
SMALL BUSINESS
THE INSIDER
BUSINESS PEOPLE
OPINION
STEVE HINDY
GREG DAVID
REAL ESTATE DEALS
REPORT: HEALTH CARE
CLASSIFIEDS
FOR THE RECORD
NEW YORK, NEW YORK
SOURCE LUNCH
OUT AND ABOUT
SNAPS
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