I went to the AJC dinner on Wednesday. Eliot Spitzer was the keynote speaker. He talked about his two favorite words "fiduciary duty". I share those favorites and his concern that few care about their duties to society these days. On that line, Spitzer talked about his investigations into the investment banking and pharmaceutical industry. He observed that widespread corporate corruption was like street crime; if you don't enforce against small crime, it becomes that much easier for people to take the next step to larger crime.
Going down the slipery slope of greed and arrogance, many corporate leaders simply no long see any boundaries of behavior or even think about who gets hurt, Enron employees forced to keep their 401K stock during a freeze period while executives were dumping theirs with insider knowledge, neighborhoods losing property value to fraudulent flips and predatory lending practices.
Spitzer also mentioned his favorite T-shirt slogan, "Hubris is Terminal". I like that one too, but I call it the rule of Star Trek. The rule of Star Trek is that the bad guys are always defeated in the end because their arrogance exceeds their ability to cover their tracks and protect themselves. People get sloppy when they become arrogant. Khan was stopped in the End by Kirk (Captain, not Mark) when he became arrogant. The Borg thought the humans were so insignificant that they could ignore them and were ultimately defeated by a small nanovirus created by the Federation. The Ferengi were the ultimate in arrogant humanoids and were always defeated by their lust for profit (huh, sounds familiar, doesn't it?)
I had an incident proving the Rule of Star Trek at work this past week. A man started forging lien releases and passing them around title companies to obtain clear title and bond money. He thought he'd pocket the closing proceeds and walk away. It did not occur to him that someone would check one of those releases, but we did.
I enjoyed hearing Spitzer's stories because I do a fair amount of fraud investigation in my job. My friend Margie did not enjoy the speech because she felt he was telling stories more to show his good works than to prove the point about business ethics. I thought that was a fair comment because he talked about himself a lot. The next day I discussed the speech with my collegue Barry. Barry knows a lot about Spitzer and said that Spitzer was an opportunist because he used these cases to advance his political career. We discussed his comment for a while and in the end Barry changed his mind concluding that there has to be an incentive for someone to make the investigations and do the hard work of challenging the rich and powerful particularly in an environment where they know they will get away with bad acts for the most part. I see Margie's point, but agree with Barry's conclusion. We need someone like Spitzer to prosecute the cases when we have a justice department willing to turn a blind eye to torture, manipulation of the energy industry causing extreme hardship in several states, gender and racial discrimination in the workplace, lying about side effects of drugs, lying about a war killing hundreds of Americans and hundreds of thousands of Iraquis and who knows what else.
One point Spitzer made with which I had to disagree was about TR. He lauded TR as the great trust buster with benevolence in his heart. I see TR as not only a political opportunist, but protector and apologist for the robber barons of his day. Things were so bad in his day for labor, that some reforms had to be made to prevent a socialist explosion. However, the ultimate reforms were so mild that they leave the door wide open for the abuses we see today. Maybe Spitzer appreciates TR because he left the door wide open for Spitzer to do the work he does by providing both the robber barons of industry and the ideas for chasing after them.
In the end, I conclude that every state needs an Eliot Spitzer as states must do the job the federal justice department won't. However, due to an experience my mom recently had with a complaint and my own experience with my own complaint to our Illinois Attorney General, I am concerned that Lisa Madigan's office has not been given adequate funding to do the job that Spitzer is doing in New York and that is an issue that will have to be discussed in the Statehouse this year.