Wednesday, March 08, 2006
Harvey Pitt met with some business reporters at New York's 21 Club. Here is what he had to say about the topics of Eliot Spitzer and hedge funds.
Here is his take on Eliot Spitzer.
"Eliot Spitzer is New York's AG, and you know what that stands for - Aspiring Governor," Pitt recently quipped to a small group of journalists who had joined him for a meal at the 21 Club.
"Eliot Spitzer isn't really concerned about public investors," Pitt continued. "He's concerned about moving on to higher public office." And, says Pitt, he's using big companies as "whipping boys."
Pitt says that Spitzer "extracted" a huge settlement from Merrill Lynch and then put the money into the state coffers rather than return it to investors. "Why? Because he wasn't concerned about investors," said Pitt.
And here is his take on hedge funds...
The short version is this: Pitt believes hedge funds will be the next big financial crisis. "What we are looking at, eventually, is that when some of these investments go down - as they absolutely have to - then the pension funds are not going to be able to withstand the losses."
Pitt thinks companies need to act now to protect their employees. If they don't act, government regulators and prosecutors "abhor a vacuum. If the business community sits there and does nothing, then people like Eliot Spitzer and the SEC will rush in and fill the void."