As the US Senate prepares to vote on the financial regulatory reform bill, state Comptroller Tom DiNapoli is trying to make the measure into a campaign issue, reiterating his support for it and calling on his GOP opponent, Harry Wilson, to declare where he stands.

I put that question to Wilson’s campaign yesterday as DiNapoli’s campaign was accusing the man they’ve dubbed “hedge fund Harry” of being “silent” on the this issue.

He responded with a very lengthy statement, which appears in full after the jump. But the upshot is: He’s against it, saying that while it has some “good provisions, it doesn’t go far enough to remedy the real problems on Wall Street.

“It doesn’t address address excess leverage at investment banks, mortgage market problems driven by Fannie Mae and Freddie Mac or a lack of ‘skin in the game’ for too many issuers and the rating agencies,” Wilson wrote.

“Without dealing with these root causes, we bear an unacceptable risk of a repeat crisis. I remain hopeful that, as the relevant agencies write the final rules, some of these shortcomings will be addressed.”

Wilson cites Mayor Bloomberg’s opposition to the bill, noting he has raised concerns that it will hurt an industry that serves as the main economic engine for both the city and the state.

“Financial regulatory reform has to strike the balance between addressing the root causes of the crisis and preserving the vitality of Wall Street, the core of New York’s tax base.”

“Unfortunately, this bill does neither. While it has some good provisions, it doesn’t address excess leverage at investment banks, mortgage market problems driven by Fannie Mae and Freddie Mac or a lack of “skin in the game” for too many issuers and the rating agencies. Without dealing with these root causes, we bear an unacceptable risk of a repeat crisis. I remain hopeful that, as the relevant agencies write the final rules, some of these shortcomings will be addressed.

“To compound the problems, I agree with Mayor Bloomberg that this bill will hurt New York’s competitiveness and drive out jobs and tax revenue. It will also reduce the flow of credit at a critical point in our economic cycle, hurting working families and small businesses.

“Politicians will predictably play politics with this important issue. Some, like my opponent, will support it even while they don’t understand it in order to cynically demonize our state’s most important industry to score cheap political points. That is exactly why we need public servants who understand the private sector and can preserve its strengths while necessarily reigning in its excesses.

“As the saying goes, those who don’t understand history are doomed to repeat it. By revealing his ignorance about how our financial system works, and how much further this bill needs to go in order to address the core problems of our financial sector, my opponent has demonstrated that he does not have the skills or expertise to deal with the fallout of our last bubble on Wall Street, or our next bubble in government spending. Of course, this may be because he created our government bubble by supporting reckless tax and spending policies throughout his 20 years in the Assembly and his three years as the unelected Comptroller. New Yorkers need new, professional leaders with the expertise to assess the problems of Wall Street and New York State objectively and come up with common-sense solutions that protect citizens while maximizing tax revenue.” —Harry Wilson 07-13-10

Share|