Stern prof. plans run for attorney general

One Stern professor is doing more than grading papers this year — he's planning his campaign for New York State Attorney General.

Eric R. Dinallo, a visiting finance professor, is looking to run for the office on the Democratic ticket, even though Andrew M. Cuomo, the current Attorney General and a Democrat, is fundraising for his re-election campaign in 2010.

But as Gov. David Paterson's approval ratings plummet and his chances of securing reelection dim, Cuomo is increasingly speculated to be a major contender in next year's gubernatorial race. If Cuomo does choose a run for governor instead, Dinallo wants to be in position to run for the Attorney General's seat.

"I have to be ready for Cuomo to leave," Dinallo said. "I can get out there early to raise finances and put myself in a position to give New Yorkers an opportunity to support me."

Jack Downey, Dinallo's campaign manager, said friends and family have already begun donating money to the campaign.

Although some reports have said that President Obama asked Paterson (who took over for Eliot Spitzer in 2008 after Sptizer was linked to a prostitution scandal) to step aside to let Cuomo run for the office, he has yet to do so.

"Some observers said that it was such an affront to Paterson that it kind of made him redouble his efforts," NYU politics professor Patrick Egan said.

Egan believes Cuomo is playing his cards carefully by waiting to make a formal announcement to run.

"Ideally he would like Paterson to step aside," Egan said. "But if he doesn't, Cuomo could contest him in the primary, which could get ugly."

If Cuomo does go for governor, Dinallo believes the time is just right for him to step in.

Dinallo, an alumnus of NYU School of Law, left his post as New York State insurance superintendent in July. At the same time, a squabble in the New York State Senate broke out when two Democrats temporarily defected to the Republican party, shifting power from the Democrats to Republicans and stalling major legislation.

Dinallo thinks that episode influenced his chances, saying that many New Yorkers have lost faith in long-serving elected officials.

"We're the Empire State, but at times we look like the infant state," he said. "I think it's getting worse. The Senate coup gave outsiders an advantage."

Egan said Dinallo's inexperience could possibly not harm his chances to run for attorney general, saying the post "is an elected office that you don't necessarily need to be a party insider to win."

"I would imagine that Dinallo would start with fair amount of connections from his previous work," Egan added. "So the question is, can he raise the money and get the endorsements he needs?"

Dinallo is certain that he can, and is already laying out his potential, post-victory plans.

"We've got to find ways to both enforce the laws and be tough on crime, but at the same time recognize that we're in a fragile environment economically and make sure that business can come to New York," Dinallo said. "It's one area where I have a proven track record."

Should he continue his campaign, that track record will likely undergo further scrutiny. While working for the New York State Insurance Department, Dinallo was criticized for his involvement in last year's controversial government bailout of AIG.

As part of the state's financing plan, Dinallo eased regulatory restrictions for AIG. In March, Dinallo testified before the Senate Banking Committee and was slammed for failing to properly monitor AIG securities dealings.

"I don't think I, or the department, deserve criticism for that," Dinallo said. "The department was the regulator over the AIG insurance section, but it was the banking section that failed. We're actually the jolt of confidence for people."

Jordan Mazza is a staff writer.