Spitzer versus Schwarzman

The news this week is deeply ironic: the main
building of the New York Public Library at Fifth Avenue and 42nd Street will be engraved with the name of Stephen A. Schwarzman, while the periodicals inside may sadly chronicle Eliot Spitzer, the
governor of New York state, as Client Number 9 of a prostitution ring. Both men made their name on Wall Street:
Schwarzman rose from his first job in investment banking at Lehman
Brothers to run the Blackstone Group, a private equity firm, that has
allowed him to stash away an estimated $4 billion today, while Spitzer
got corporations from Samsung to investment bankers like Lehman
Brothers to return almost the same amount to the public
trust.

The Wall Street financier is now giving $100
million to support a worthy cause that taxpayers cannot afford: a new library to lend books, wireless Internet access
and new rooms for children and teenagers, to attract as many as three
million new users, most of whom are expected to be from low-income
minority groups. It will be financed by the profits that Schwarzman
made
at Blackstone by exploiting tax loopholes to cut his tax rate
from 35 percent to 15 percent, costing the U.S. taxpayer tens of millions
of dollars. 



Doubtless one of the books
that will be available at the new library will be the play Julius Ceasar, where Mark Anthony is quoted as
saying: "The evil that men do lives after
them; the good is oft interred with their bones." Yet
Schwarzman, like many wealthy people before him, will be able to escape
the curse of history, by buying fame at a public auction.


Spitzer may not escape the curse. The name
"Mr. Clean" may never be applied to him again. But for those
of us that track corporate fraud, who can forget his shining moments

For example, in 2002 when ten Wall Street
banks from Bear Sterns to UBS Warburg were forced to pay $1.4 billion to settle
charges of "spinning" stock prices to make millions for
wealthy investors? Or in 2003, when his office uncovered how mutual fund brokers allowed select clients
privileges deprived to ordinary customers? Another billion dollars was
paid back to the small investor. How about the $50 million in royalties that his office
discovered that record companies hid from musicians in a
2004 investigation? And let's not forget the
$730 million in fines paid out in 2006 when his office discovered
price-fixing among computer chip manufacturers.

When Spitzer offered his apologies for his
private folly
, he asked that the media remember that politics should
not be about individuals but about ideas and the public good. That surely is also the role of
libraries -- ideas and the public good -- not about celebrating the
titans of greed and excess. Perhaps if Wall Street were to pay its
fair share of tax dollars to spend on libraries, then there would be
no need to name the Central Library after one of the men who robbed
the public purse.

Will children who pass through those two stone
lions to enter the library notice that their names are Patience and
Fortitude? Or will they hope that one day they become as rich and
famous as the man after whom the building is named?

I hope that when they look through the shelves
of the New York public library, they will find books and magazines
that remind generations of New Yorkers to come of Eliot Spitzer's
true legacy: of an honest man -- human and fallible no doubt -- who
spoke truth to power.

(And for those on Wall Street who are crowing
about Spitzer's misfortune, shame on
you; your turn may be next to lose your job in
the reckoning over the real scandal on Wall Street: the sub-prime mortgage crisis that threatens to leave many a poor family without a
home of their own.)



AMP Section Name:Money & Politics