Governor Spitzer resigns amid sex scandal

New York Governor Eliot Spitzer resigned yesterday amid a scandal over a $1,000-an-hour prostitute, ending a career built on pugnacious investigations of Wall Street crimes and an image of moral rectitude.

Lt Gov. David Paterson will replace him next Monday, Mr Spitzer announced in a brief statement that dwelt on his remorse for "private failings."

Eliot Spitzer, a Democrat, had faced intense pressure to resign and impeachment threats from Republicans after The New York Times reported on Monday that he was caught on a federal wiretap arranging a meeting with a prostitute in a Washington hotel room.

He still faces possible criminal charges. The chief federal prosecutor investigating the prostitution ring in question announced that he has not reached an agreement with Mr Spitzer about settling any criminal matter.

Mr Spitzer, 48 and married with three daughters, is a former New York state chief prosecutor who rose to prominence by investigating financial crime with a publicity-conscious vigour that earned him the nickname Sheriff of Wall Street.

He also broke up prostitution rings as attorney general.

"Over the course of my public life I have insisted, I believe correctly, that people, regardless of their position or power, take responsibility for their conduct. I can and will ask no less of myself. For this reason I am resigning from the office of governor," Mr Spitzer said.

Once viewed as a rising star among Democrats, Mr Spitzer made his announcement in a grim-faced appearance at his New York headquarters, with wife at his side. His disgrace was cheered by some financial power brokers who resented what they considered his heavy-handed and self-righteous ways.

"Wall Street is enjoying he got his comeuppance," said Michael Metz, chief investment strategist at Oppenheimer and Co. Mr Spitzer made no specific reference to the allegations surrounding him. He had also given no details when he apologised to his family and the public on Monday for what he called a "private matter."

"He was an icon, a model of integrity, an enforcer of public and private morality and then you've got this utter hypocrisy," said Douglas Muzzio, professor of political science at Baruch College in New York.

Mr Spitzer became governor with nearly 70 per cent of the vote in November 2006 on pledges to clean up state politics. But 70 per cent of New York voters wanted him to quit, according to a WNBC/Marist poll conducted on Tuesday. His resignation helped resolve the political paralysis that has gripped the state capital, Albany, over the past two days.