Cuomo Announces Campaign for Governor, Remake of New York

by Rhonda J Mangus | May 23, 2010 at 01:15 am

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New York State Attorney General Announces Campaign for Governor

New York State Attorney General Andrew M. Cuomo appeared outside Tweed Courthouse in Manhattan on Saturday to announce his candidacy for governor.

According to The New York Times, Cuomo said he was seeking not only to lead New York but to remake a state mired in political scandal and paralyzed by financial crisis.

Tenure at HUD Indicates Cuomo May Not Be Competent to Remake New York

Cuomo's Personal Fortune Soars While America's Suffers

Previous to his election as New York State Attorney General, Cuomo was the Secretary of Housing and Urban Development under President Bill Clinton between 1997 and 2001. Cuomo, appointed by former president Bill Clinton as secretary of the U.S. Department for Housing and Urban Development (HUD), has been called "the father of the subprime crisis" for the policies he orchestrated. Pajamas Media reports that it was Cuomo’s directives that mandated HUD to vastly increase the amount of risky home loans bought by quasi-governmental housing giants Fannie Mae and Freddie Mac leading to the nation's housing collapse.

Though America’s financial fortunes suffered after Cuomo’s time at HUD, his own personal fortune soared. The bulk of this financial “windfall” came courtesy of Andrew Farkas, the billionaire real estate developer who helped Cuomo amass his wealth as a business partner and campaign fundraiser. Farkas — now Cuomo’s financial chairman as he circles the governorship — has personally given Cuomo at least $1.8 million in cash.

And, disturbingly — as Wayne Barrett reported in 2006 for The Village Voice — over $800,000 in campaign contributions from Insignia and Farkas flowed into Cuomo’s coffers, beginning mere months after his departure from HUD in 2001.

Controversy Surrounding Cuomo and Farkas Relationship

While secretary of Housing and Urban Development, Cuomo pursued legal action against the one-time scandal-scarred businessman, Andrew Farkas, who later settled the case quietly with federal officials in an agreement signed by Cuomo's counsel. In 2004, Cuomo went to work for Farkas' new company, earning $1.2 million over two years.

Barrett told the New York Times in September of 2006 that Cuomo and Farkas both tried to suppress or delay his story detailing their relationship. But Barrett followed up the report in 2008 with a cover story detailing how Cuomo, as HUD chief, ordered huge new purchases of risky loans by Fannie and Freddie, which helped trigger the mortgage meltdown.

Financial Analyst Richard Bové Agrees With Barrett's Findings

In a March 3 interview with CNBC’s Maria Bartiromo, Bové charged that Cuomo’s irresponsible stewardship at HUD was a key cause of Fannie and Freddie’s bankruptcy and still-deepening bailout.

Bové goes on to say:

Cuomo would show the same disregard for the interests of New York taxpayers as he did for the subprime homeowners across America who lost their homes in large part because of Cuomo’s reckless policies. “The financial system will be sharply lower, there will be fewer jobs, people will make less money, and the tax base of New York will be significantly less.”

Continue reading claims made by Barrett and Bové, here.

Watch The Plan by Andrew Cuomo

Read Transcript of Andrew Cuomo's Video Remarks Detailing New NY Agenda