What Role Did Langone Play in Spitzer's Downfall?

Conspiracy theorists are having a field day with the Eliot Spitzer story, and they have good reason: Wall Street titan Ken Langone, one of Spitzer’s archest of enemies, made it sound as though there’s more to the story.

Check out this transcript from a CNBC interview with Langone that aired yesterday:

CNBC: Would you say that you were surprised by this news?

LANGONE: Not at all. I had no doubt about his lack of character and integrity. It would only be a matter of time, I didn’t think he would do it this soon or the way he did it. But I know for sure he went himself to a post office and bought $2,800 worth of mail orders to send to the hooker.

CNBC: How do you know that?

LANGONE: I know it. I know somebody who was standing in back of him in line….

Langone’s comments were pretty much ignored after they first aired until I brought it up again today while on Squawk on the Street. And I have to be honest: When I first saw that interview, I did a double-take and wondered if Langone really said what i thought I heard — and I’m not talking about whether the governor really went to the post office himself, waiting in line with the rest of us, to buy stamps, money orders or to mail a package.

Maybe Langone was being somewhat facetious about the post office, but he surely made it appear as though he knew ahead of time what Spitzer was up to.

There’s no surprise that everybody from the most powerful on Wall Street to the mob were out to take Spitzer down. (I mean, if you’re going after the mob, and you’re using prostitutes, my guess is your secret won’t be a secret for very long.) I was part of a discussion regarding this earlier on CNBC. My pal and sparring partner Charlie Gasparino, who has been actively attacking the business press for not being critical enough on Spitzer, tried to make the case it doesn’t matter whether Spitzer was set up.

I argued, or tried to argue, just the opposite. While what Spitzer did was a violation of the public trust, Langone’s comments suggest it wasn’t just the IRS doing its job that did him in. The biz press (especially Charlie, who is believed to be close to Langone) should be trying to figure out what Langone meant in his interview. (Would be a helluva scoop, Charlie, a helluva scoop.)

It was Charlie, after all, who in 2005 wrote in New York Magazine on the Spitzer/Langone feud: “Gesticulating with his big hands, he looks at me and says pointedly, “One way or another, Spitzer is going to pay for what he’s done to me and the havoc he’s caused in the New York business climate.”

So, let me ask the question again: What role did Langone play? Inquiring minds do want to know. I called Langone’s office and was told he’d have to get back to me. Yeah, right. I won’t be holding my breath for a return call. (Though if he does call, I’ll pass what he says along to you.)

Updated: See more on Langone’s respoonse here.

Comments

[jbonefish]

Doesn't matter if he was set up. When you use your position to personally attack others - others who are also powerful - you better be living squeaky clean! The old addage regarding those who live in glass houses applies here for no other reason than Spitzer used every opportuity to tell us about the glass house in which he comfortably resided.

[Johnny1205]

Yea I would not be surprised at all to see Langone hiring an army of Private Investigators just to dig up ANYTHING on Spitzer. I would definitely be interested to see where this story goes..cmon Herb keep calling his office haha

[Tony Soprano]

This is nothing new. Why did MICHELLE CARUSO-CABRERA go after Langone? Just happened to run into him on the street (that was a great scoop by her and her team.) The video says it all. Congrats Michelle!

But you bring up conspiracy?

(agreement between persons to break the law in the future, in some cases having committed an act to further that agreement)

Vendetta or revenge is a much better and reasonable theory. You are trying too hard to stretch this story.

Stick to what has been happening since last August. Godzilla is destroying California real estate, a new black hole is sucking our dollar bills out of the Fed, and Al Gore has decided to stop going green - the economy is more important - he looks for ways to spur new grow regardless of green house gases.

[VennData]

BS. If Ken Langone had this info last year - or two years ago - he would have run with it. He's making it up so he can get a little extra glory, a little extra doubt in his nemesis 's mind.

[huangjin]

So Spitzer uses the power of the state to destroy people with investigative and prosecutorial powers. A private individual may have paid investigators to find dirt on Spitzer. What's good for the goose...

[huangjin]

"I know for sure he went himself to a post office and bought $2,800 worth of mail orders to send to the hooker."

He is probably stating knowledge after the fact. Is a $2800 mail order suspicious in and of itself? But a year later when the guy gets busted, you have an a-ha and go on CNBC.

[Diamond Jim]

I'd bet my diamond stick pin Langone had absolutely nothing to do with Spitzer's unraveling. But this blowhard would like people to think he did. I know this bitter old bully. He'd dance on Spitzer's grave and invite the TV cameras if he had anything to do with the Gov's downfall.