GOP’s Tempest In A Spitzer Teapot

Seemingly desperate to discredit the front-runner in the upcoming New York gubernatorial race, Republican rivals reportedly are trying to stir up a little excitement in what may look like a dull and (for the GOP) perhaps hopeless race. According to the New York Daily News, state Attorney General Eliot Spitzer has received nearly $960,000 in campaign contributions from hedge fund managers, a fact that Republican gubernatorial wannabe Bill Weld – himself an alternative investment professional – says raises “serious issues about his ethics.” Opponents, such as Weld, say Spitzer shouldn’t take any money from those that come under his regulatory oversight, such as hedge funds. The News reports that HF managers particularly like to support Spitzer since he publicly told hedgies back in 2003 that he’s not after them as he has been other financial services players, except for an occasional improper practice, and that since he mainly is out to protect the little guy, and hedge funds investors are usually far from that, he wouldn’t be focusing his energy on them. “I think [Spitzer] is brilliant,” JANA Partners President Barry Rosenstein, who reportedly contributed more than $50,000 to Spitzer last June – a figure matched by the HF manager’s wife – explained to the News his motive for generosity. “I think he is tough and I think his heart is in the right place.” Incidentally, lest anyone think that Spitzer’s judgment to pursue an enforcement action be colored by money, an aide told the paper that all campaign contributed are vetted to make sure the donor has no pending matters before the AG’s office.