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Former New York Governor Eliot Spitzer on his investigations into Ken Langone and Dick Grasso and the future of compensation on Wall Street.
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Somebody we want to -- out what you are prosecuted didn't take much to get you going sometimes in -- the charge was made against you bet that you were going when you didn't have evidence not claims do particularly with Hank Greenberg the former head of AIG we'll look you look.
That -- -- this debate him are gonna rise -- villages so it's clear.
We went through what we prosecuted AIG and where I think one of the earliest voices say AIG was fundamentally flawed.
They settled and paid one point one point 41 point one point six billion dollars -- accounting was completely messed up.
Hank Greenberg was dismissed as chairman by the board not by me.
The board said we made it clear to the board that if they didn't do something with angry -- you would -- charging AIG I don't know that is the you know put give give give him is his credit he's trying very hard.
To write the history books favor in a way favorable them that's -- that's is right that's not what happened.
We said here are the facts we had called -- million.
To be deposed under oath to answer the worst effects that it -- get back to my main point is that you accused -- of illegal behavior -- one at least one television -- -- George Stephanopoulos -- that wasn't -- we -- -- defend what here's what I said.
He here's -- here's what the facts were and here's what we said.
The facts were that they -- Jerry rigged their accounting system by pretending to sell insurance that they could books certain gains to cover the fact that they too had -- capital shortage.
This was brought to our attention.
By none other than Berkshire Hathaway.
And mr.
Buffett.
It was a very complicated issue of reinsurance and accounting.
Was crystal clear that stuff that was wrong had occurred.
It led to an inquiry about their accounting system and -- internal controls that we're disaster the board.
Then said mr.
Greenberg we think that thank you very much for your service but it has come to an -- well a lot of people jumped to his defense because they thought that he was being accused of doing something illegally when in fact you were showing your cards and -- -- habits but let let me just focus -- on.
On some of the defenders of things -- experts on the people came as events like Jack Welch.
That who did and -- like John White edited by the way Jack Welch had this to say about.
About what you said about -- don't and unless it's true or not I will put a spike.
Through kenwood owns part of course -- don't came to the defense of angry -- is Andrew Ward no no not to but he here's what.
Are the Jack Welch's lying here now Jack wasn't there and it looked back and I got along well most of the time we also went real.
Pursued to be silly little it's not so case.
They had some dishwashers that burst into flames when you get the dry cycle and I said the jacketed -- that that is the way is what dishes are supposed to be -- We can settle this thing they refused they ultimately had to run full page ads admitting fraud was the word the judge required and do you put all that aside.
You mentioned the issue of can -- Dick Grasso and and New York Stock Exchange paid.
Dick was paid a 140 million dollars on and on and off for not for profit a report by Dan Webb former US attorney he was that a partner -- -- instrument detail.
Ever after error impropriety after impropriety.
And appellate division court in New York ultimately said he doesn't need to repay it because there were no longer not for profit some other reasons what -- disagreement.
State fair litigation fight I maintain to this day we were right.
It was a case that deserve to be brought we want -- summary judgment motion based on the facts by supreme court judge.
Justice here in New York State but that -- all that is sort of secondary tertiary stuff.
The point is have we learned of the lessons of the past -- You know -- -- gets us to the point of how much.
How much control Washington should have over the way Wall Street be -- Even people as we mentioned the beginning like Jon Corzine who said a lot more control.
Then he turns around what she's -- Wall Street begins behaving in the way he did -- -- it's what we should should firm for example should.
Washington be dictating how much people make.
When they're on walls no actually see -- in the camp that says no I don't think.
The private sector should determine what salary are -- against how much Dick Grasso was he was running a not for profit not for profits are different than -- -- -- Eagle point people should appreciate not for profits don't have shareholders' attorneys general across the nation and every state.
Have jurisdiction over not for profits to make -- charitable money isn't being abused.
Shareholders should control what executives get paid and I would love to see shareholders exercise -- more robust voices.
Ownership trumps regulation regulation.
Is only a secondary mechanism to go to -- ownership is the way to do that in the not for profit world.
That somebody who's running the not for profit in my view shouldn't be paid a 140 million dollars that was my judgment.
