“That probably cost New York $1 billion,” Paterson said. “And look, I’m not going to defend these people that run these companies. They’ve frittered away a lot of money in these reckless schemes. But the reality is, in the end, we’ve lost $1 billion dollars because of that act. And there goes that pipe dream legislators engaged in reacting to my cuts.”
About 40 minutes after the words left Paterson’s mouth, his press shop sent out this more diplomatic statement:
While I applaud reports that the Obama Administration is preparing to take steps to limit executive compensation for some of New York’s highest earners, it is not good news for New York’s tax revenue. I share in the populist rage over these CEOs raking in millions while their companies teeter on the brink of insolvency but for a federal bailout. They clearly have not earned their paychecks. However, the reported action also is the latest evidence that New York State can no longer rely so heavily on Wall Street. Once again, I am calling on the legislature to work with me to close our current budget gap and get New York back on sound fiscal footing.
Lieutenant Governor Richard Ravitch is in Washington today meeting with members of the Congressional Delegation (but not anyone from the White House), and this will likely come up.
Attorney General Andrew Cuomo was in Washington two weeks ago meeting with senior advisors to Obama about financial reform. Cuomo says he is not running against Paterson.