Bloomberg & ABC TV Say Spitzer Resigning

by: Barry Ritholtz

Both ABC and Bloomberg TV, citing sources, said Spitzer was going to announce his resignation as Governor of NY.

Briefing.com had previously cited Fox News that Spitzer was indicted by Federal Court in NY. Briefing.com: NY's Spitzer expected to resign - WABC TV [Read More]

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Wall Street will be besides itself in an orgy of schadenfreude . . .

Update: March 10, 2008 3:45pm

Briefing update:

Court document in NY Prostitution case is not an indictment; document in NY case doesn't name Spitzer, according to Fox Reporter - DJ

Excerpt from ABC:

Sources tell Eyewitness News that Governor Eliot Spitzer is going to resign, after being linked to a prostitution ring in a published report.

Spitzer officials wouldn't immediately comment on the story. Spitzer, 48, is married and has three daughters.

Details about the prostitution ring were not immediately clear, but last week federal prosecutors in Manhattan filed conspiracy charges against four people accusing them of running a prostitution ring that charged wealthy clients in Europe and the U.S. thousands of dollars for prostitutes.

The Times reported that a person with knowledge of the governor's role believes the governor is identified as a client in court papers.

The Web site of the Emperors Club VIP displays photographs of the prostitutes' bodies, with their faces hidden, along with hourly rates depending on whether the prostitutes were rated with one diamond, the lowest ranking, or seven diamonds, the highest. The most highly ranked prostitutes cost $5,500 an hour, prosecutors said.

Spitzer has built his political legacy on rooting out corruption. He made headlines battling Wall Street while serving as attorney general. He won an historic share of the vote for governor in 2006, and took office vowing to continue his no-nonsense approach to fixing one of the nation's worst governments.