Wall Street laughs at Spitzer's expense
New York Governor Eliot Spitzer at a press conference after the announcement of his involvement in a prostitution ring.
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Scott Jagow: A cheer went up on the floor of the New York Stock Exchange yesterday. It had nothing to do with share prices. Some people were happy to hear that New York Governor Eliot Spitzer is in trouble for his alleged ties to a prostitution ring. Spitzer made a lot of enemies on Wall Street. Nancy Marshall Genzer reports.
Nancy Marshall Genzer: Eliot Spitzer made a name for himself as New York's Attorney General. He was a crusader against Wall Street corruption. Spitzer investigations led to the resignation of the chairman of American International Group, and a continuing case against the former CEO of the New York Stock Exchange.
Now, some on Wall Street are having a good laugh at Spitzer's expense.
Edward Fleischman: He scared the living bejesus out of me. And now look at him! Ha, ha ha!
That's how Linklaters attorney, Edward Fleischman, sums it up. The former SEC commissioner says Spitzer's problems won't affect ongoing corruption cases.
Fleischman: He has been acting as a governor. Not a . . . he hasn't been acting as the DA or the Attorney General.
But the scandal will affect efforts Spitzer had been making to stabilize the shaky municipal bond business. The Financial Times reports he recently called top bankers asking them to help bail out a bond insurer.
In Washington, I'm Nancy Marshall Genzer for Marketplace.