Spitzer Resigns as New York Governor

FROM THESTREET.COM:

New York Gov. Eliot Spitzer on Wednesday said he would step down in the wake of revelations he had an affair with a prostitute, completing a stunning fall from grace.

The Democratic governor, who earned antipathy and the nickname "Sheriff of Wall Street" for his aggressive pursuit of alleged corporate wrongdoing, said his resignation would be effective Monday. Lt. Gov. David Paterson will take the reins of the state's top office, making him the first black governor of New York.

"I have been given much. The love of my family, the faith and trust of the people of New York and I have failed to live up to that," Spitzer said in a brief news conference, in which he took no questions.

Spitzer has been in seclusion since Monday, when he made a brief public apology to his family and the public after media reports identified him as a client of a high-priced prostitution ring being probed by federal authorities. Spitzer is accused of arranging to meet a prostitute from the New York-based Emperors Club VIP during a trip to Washington, D.C., in mid-February.

The Wall Street Journal reported Spitzer was holding off an official resignation while he negotiated with federal authorities to avoid prosecution in the case. Spitzer may have been in violation of the Mann Act, a federal law prohibiting the transportation of people across state lines for the purposes of prostitution.

The U.S. Attorney's office said after Spitzer's resignation that no such deal had been reached.