
I don't think I have ever been more shocked than I was to hear today that New York Gov. Eliot Spitzer--the former crusading attorney general who brought insurance giants Marsh and AIG to their knees, and toppled titans such as Maurice Greenberg--had been linked as a client to a prostitution ring. Where does the sullied white knight go from here?
Who would have guessed that a politician who has devoted his life to cleaning up corruption in so many industries--insurance prominent among them--would leave himself so vulnerable?
I am no judge of morality, but the problem here is that Gov. Spitzer always comes across so holier than thou, so self-righteous and so contemptuous of anyone who steps out of line legally, I don't think he has any choice but to resign.
Talk about being hoisted by your own petard! What chutzpah, to assume you could get away with this kind of misbehavior, and after prosecuting prostitution rings in his prior life!
It only goes to prove that what goes around, comes around!
The really weird thing is, as I've mentioned in this blog before, Eliot Spitzer has not turned out to be the "monster" (I use that term carefully, following the Obama campaign debacle last week) that many in the insurance industry expected, following his high-profile investigations into insurer bid-rigging, contingency fee abuse and account steering by brokers, as well as cooking of the books by AIG with the use of a bogus Gen Re finite reinsurance deal.
You couldn't have blamed insurers and brokers for anticipating a veritable Godzilla trampling through their industry, once Mr. Spitzer took the oath of office 15 months ago.
However, as it turned out, Gov. Spitzer appointed a very reasonable Eric Dinallo as insurance commissioner--someone who not only had worked under Mr. Spitzer in the past, but who most recently had been general counsel at insurance broker Willis, and was thus no stranger to--and certainly no enemy of--the business.
Over the course of his rocky administration, it has been pretty much smooth sailing under Gov. Spitzer for insurers. The governor pushed through long overdue workers' comp reform, launched a serious, ongoing effort to revamp the shattered medical malpractice market, helped settle longstanding disputes over Sept. 11 claims, and has done a good job managing the bond insurance crisis. (Ironically, the governor was in Washington to testify against federal regulation of bond insurers, when he allegedly had his infamous and perhaps politically fatal liaison.)
So, now what? Gov. Spitzer today gave a cursory statement that took all of 30 seconds to deliver. He did not admit any wrongdoing, other than to his family, but did not deny the story broken in today's New York Times.
One thing he certainly did not mention is whether he would resign. I would find it difficult for someone who has staked his entire political career on being Mr. Clean to ask people to overlook this transgression. He didn't take bribes or do inappropriate favors for major campaign contributors, and he did not steal from the public treasury.
However, if Gov. Spitzer did indeed engage in criminal behavior with hookers, he violated the public's trust in him. For that reason alone, he should step down. People will put up with a lot of personal failings, but most won't tolerate a hypocrite!
What do you folks think?

Comments (23)
Spitzer's a brilliant guy, but this allegation is not a minor transgression. He reportedly paid a prostitute to travel from New York to Washington. That's a federal felony that carries stiff penalties. I don't see how he can stay in office.
Very sad.
Posted by Dennis Jay | March 10, 2008 3:14 PM
Posted on March 10, 2008 15:14
Quite shocking, to say the least.
What is almost amusing is that MSNBC (of all people) was showing a press conference from three years ago, where a reporter asks Gov. Spitzer if this amounted to "gross criminality" (speaking on the topic of the day), to which Gov. Spitzer replied, "is there any other kind?"
On a sidenote, Sam, I'm glad that New York fixed its workers' comp issue with "reform" as you state. From my side of the equation this is but another shot from a city that believes there is nothing between them and the Pacific Ocean.
It must be comforting to know that New Yorkers believe they should be able to take their WC policies with them anywhere in the nation to work, but if workers from my neck of the woods want to work in N.Y., we have to buy a N.Y. policy, from a N.Y. agent in order to work there.
Sorry about the rant, but the N.Y. workers' comp issue rubs the rest of us 49 states a little raw.
Posted by Michael Burnell CIC, CRIS | March 11, 2008 6:56 AM
Posted on March 11, 2008 06:56
Sam, I knew I could count on you for perspective and thoughtful opinion!
I agree that even with his major accomplishments, the damage is irreparable to his personal reputation and political effectiveness. He needs to step down.
Posted by Emily Huling | March 11, 2008 8:22 AM
Posted on March 11, 2008 08:22
It would be very easy to pile on to the "Sack Spitzer" bandwagon. The point is probably moot, as he has little (if any) chance of surviving the commission of a felony in a federal venue. Since there is evidence that this is not his first tryst, he will be in serious trouble.
It is too bad that he could not follow his own advice. Fair well and farewell, Mr. Spitzer.
Posted by Craig Dolan | March 11, 2008 8:45 AM
Posted on March 11, 2008 08:45
All New Yorkers need to demand Spitzer's regulation. The amount of abuse he created for the Insurance Industry--not to speak of the costs--DEMAND HIS RESIGNATION.
Give him the media trial he did to so many in the insurance industry.
Posted by Andy Barile | March 11, 2008 10:56 AM
Posted on March 11, 2008 10:56
True colors. We don't get credit for what we say, it's what we do that counts.
Spitzer has declared himself. Not only with his behavior as #9, but with his vague and evasive admission of nothing at his brief press conference yesterday.
His arrogance and above-the-law attitude are incompatible with public service. He needs to resign.
Posted by John Heffernan | March 11, 2008 11:10 AM
Posted on March 11, 2008 11:10
Unfortunately, this was also not a one-time thing on his part, which might have made it a non-resignation offense.
According to this morning's N.Y. Times, the investigation of this started a year ago with some unexplained cash transactions. This is an ongoing thing, and he is not fit for public office.
Posted by Aaron Stein | March 11, 2008 11:16 AM
Posted on March 11, 2008 11:16
Eliot Spitzer did some very good things for insurance. He cleaned the clocks of companies “allegedly” committing the serious crimes of bid-rigging and book cooking. Criminal behavior in this industry should not be tolerated at any level. My association—the PIA—agreed with Spitzer’s actions.
Unfortunately, Spitzer and other regulators jumping on his bandwagon were so busy headline-hunting that they didn’t see—or probably even care about—what their actions were doing to insurance.
The real losers in Spitzer’s crusade are the nation’s independent insurance agents. These are the honest, law-abiding businesses that made the companies Spitzer took on rich.
So what did he do?
Spitzer took away those evil contingency commissions. His push to prosecute caused regulators to put the squeeze on insurance companies and independent insurance agents via new disclosure regulations and the loss of legal contingency commissions.
Everyone started screaming for tough new laws when it was obvious that the tough old laws worked just fine. The companies committing the crimes were caught. They were prosecuted. That’s the purpose of law. Anyone wanting to skirt tough new laws will do so just like those companies did with the tough old laws.
Meanwhile, what crimes did independent insurance agents commit? None. Yet Spitzer and other regulators took away a big part of their livelihood without thinking twice. And then to rub our noses in the aftermath, those same regulators have started to relax the contingency commission thumbscrews on those companies.
But nothing is flowing downhill—and it never will. Who really got hurt? Independent insurance agents and consumers.
Spitzer’s narrowly-focused actions put insurance under a microscope. We all became criminals in the eyes of the public. Then along comes Hurricane Katrina, former Mississippi Sen. Trent Lott and lots more trouble.
And who got hurt here? Insurance agents who care deeply for their clients, move heaven and earth when catastrophe strikes, people who are really heroes to their customers in a crisis.
That’s the legacy Eliot Spitzer leaves this industry.
Yes, he has been kind to insurance since becoming governor. But so what? Spitzer and cronies who leaped at the chance to get those insurance bad guys never defended the little people who take good care of their clients and who work so hard on their behalf. And now the finger has spun full circle and it is Eliot Spitzer caught like a deer in headlights.
So what should he do? Resign—of course.
Today there are hundreds, maybe thousands of insurance professionals pointing fingers and laughing. Eliot the Great has been humbled. Destroyed even. His career is over.
It’s a shame. And such a waste. Government needs Eliot Spitzers. It needs people who stand firm and consider crime to be crime. We need people who espouse values and keep them. We need fearless crusaders unafraid of big corporations and their big gun lawyers.
But we—the people—need government leaders and regulators with vision beyond the next office they seek. Eliot Spitzer used insurance to go from attorney general to governor. He really didn’t care who he hurt getting there.
What is really important for insurance and for the public is what we learn from the world’s Eliot Spitzers. Yes, we need crusaders, but we need crusaders to be fair and honest and to see the world in 360 degrees and not in such narrow terms.
Crusaders need to know that there are people at the bottom that can be deeply hurt when you make changes to punish people at the top.
We have all been hurt by your self-seeking, Eliot Spitzer. Now it is time for you to go away.
Posted by Gary Wolcott | March 11, 2008 11:41 AM
Posted on March 11, 2008 11:41
I was really surprised by this, too. Although I must confess to at least a smirk.
What is the deal with these politicians railing against something like extramarital sex or homosexuals, and then being found to be engaging in whatever they previously found so morally reprehensible?!??!!
Apparently Gov. Spitzer knows a little something about other types of "fees" aside from contingency??!
Posted by Gail | March 11, 2008 12:34 PM
Posted on March 11, 2008 12:34
The tragedy of Spitzer is that in his role as attorney general and then as governor, he swore on a Bible in front of the people of his state to uphold the law.
In such a role, he is and should be held to a higher standard to apply that law fairly and to everyone, but most especially including himself. He has shattered the trust given him by the people of New York.
That Spitzer took so public of a position to hold others to a high standard of morality makes this transgression that much worse.
His statement that this was a private matter and somehow separate from his public platform demonstrates his arrogance that somehow the law does not apply to him (as he would apply it to others) and it clearly shows his state of denial.
Spitzer wronged his wife, his children, his state and the nation. He cannot and should not function as the most senior law administrator of his state when he clearly admits to breaking his own moral code and likely the law of this land--if, given his day in court, his guilt is proven.
Spitzer must step down.
My sincerest sympathy goes out to his wife and children. They have the greatest burden to bear for this horrible breach of trust (and yes, the breaking of his marriage vows).
Posted by Joan | March 11, 2008 12:58 PM
Posted on March 11, 2008 12:58
Reporters and pundits have presented their arguments over the last 24 hours against and in defense of Gov. Spitzer. Those against Mr. Spitzer argue points of law and morality.
Incredibly, those in defense of him argue that "Others have done it," or "It's personal," or "He should be given another chance."
But there are no shades of grey here. Mr. Spitzer broke the law, broke his trust with the public, and broke his trust with his wife and family.
As my wife observed, in revealing his "transgression," Mr. Spitzer never once looked at his wife, touched his wife, or in any meaningful way acknowledged her. And he displayed a self-centered disdain for the public.
All things considered, Mr. Spitzer made a decision to risk all that is valued for a few moments of pleasure. Accordingly, he no longer deserves anyone's trust.
He will conduct one last act in character, and that is to trade his role as govenor for freedom.
But we have nothing to fear, for just as President Ford showed grace and poise in assuming his role after Nixon, Mr. Paterson will do the same for New York.
SAM RESPONDS:
I, too, have high hopes for David Paterson, New York lieutenant governor, whose background as Senate minority leader showed a far better ability to work with the slim Republican majority in the Senate than did the self-described "bulldozer," Mr. S.
Posted by Edward Kalbaugh | March 11, 2008 1:04 PM
Posted on March 11, 2008 13:04
This is hypocrisy at its best.
There is no question that Mr. Spitzer (a.k.a Elliot Ness)should resign. He also needs to be prosecuted as well to the full extent of the law.
But rather then send him to jail (and cost the taxpayers), he should perform community service at his expense for the same amount of time as the prison term.
Posted by John Diesel | March 11, 2008 1:07 PM
Posted on March 11, 2008 13:07
So many politicans seem to have the "do as I say, not as I do" attitude. Spitzer's revelation doesn't surprise me. We were due for another suit to say "My bad. Please forgive." He was just next in line.
If all elected officials were made to resign after behavior similar to Spitzer's, within a year we'd have 99% turnover in all state and federal offices.
What a shame his family has to endure this. If I were his wife, I would not have been by his side at that press conference. I would have been at home, throwing his belongings out on the lawn.
Posted by Lynn | March 11, 2008 1:18 PM
Posted on March 11, 2008 13:18
Those who live in glass houses should not throw stones.
Remember to err is human. Although Spitzer held others to standards he now has failed to comply with, his accomplishments should not all be negated.
Posted by Marc Dubois | March 11, 2008 1:27 PM
Posted on March 11, 2008 13:27
As much as a personal tragedy as this is for Gov. Spitzer and his wife and children, I have one question: Why do sexual improprities result in the kind of righteous indignation exhibited here and the (probably successful) calls for resignation, while lying to lead our country into an unnecessary invasion of a sovereign nation, resulting in thousands of lives lost and trillions of dollars wasted, merits nothing similar?
Please ask yourself: where is your own morality?
SAM RESPONDS:
The points are not mutually exclusive. I am far more outraged by the Bush administration's blatant disregard for the welfare of the troops, for getting us into a war we should never have started, for executing it incompetently once they did start it, and for cavalierly and systematically taking away our Constitutional rights in the name of the War on Terrorism.
But that doesn't give Mr. Spitzer a pass.
Actually, my anger at the governor is not moral at all--it's legal. The guy prosecuted prostitution rings, then frequents one? Gimme a break!
Posted by Ken | March 11, 2008 1:32 PM
Posted on March 11, 2008 13:32
Seems to me that his arrogance and self-centered approach to everything is a result of the Clinton mentality--if I do it, it can't be wrong.
Is it any wonder that Hillary had to go to New York to be elected senator? Two peas in a pod.
SAM RESPONDS:
Now, hold on a minute, Ed! First of all, it was Republican Richard Nixon who told David Frost in a TV interview after he resigned in disgrace that if the President of the United States does something, it is by definition not "illegal."
Also, are you trying to say New York (my beloved home state) is somehow more inherently corrupt than any other? The parade of members of Congress from across this great land committing improprieties is proof that your theory does not hold water.
More likely, it's the fundamental fact that power corrupts, and absolute power corrupts absolutely.
ED HAS THE LAST WORD:
Sam, I'm not saying that N.Y. is more corrupt than the politicians in any other state (or the world, for that matter). What I'm saying is that he may have learned his tactics from your esteemed senator. Has nothing to do with either party--I said the same thing about Nixon and his mentality.
Posted by Ed Donahue | March 11, 2008 1:32 PM
Posted on March 11, 2008 13:32
I agree with you, Sam, on every point you have made, especially your response to Mr. Donahue.
This is not a political issue at all. The fact that Gov. Spitzer is a Democrat is immaterial. He violated his oath and the laws of his state and country.
He needs to resign quickly and heal the open wounds of his family and friends.
I wish the governor-to-be, Mr. Patterson, success in his new position, and hope the legislature cooperates and partners with him in getting my native state back on its feet after this scandal is over.
Posted by Steve Daroff | March 11, 2008 2:23 PM
Posted on March 11, 2008 14:23
I watched this on the news thinking three things:
1. I hope the people who were breaking the law before don't see this as some sort of "pass"--that their prosecutor turned out to be a "bad guy" himself. We need honesty and integrity in this industry, ALWAYS.
2. I feel really sorry for the innocent folks out there who have been negatively impacted by Spitzer's actions.
3. What kind settlement did he promise his wife, in exchange for her standing beside him in front of the cameras?
Posted by Brenda Wells | March 11, 2008 2:48 PM
Posted on March 11, 2008 14:48
I don't believe Spitzer intends to resign--or, at least, he did not appear to have that in mind when he held his press conference yesterday.
His was a well-crafted little speech, breaking the subject matter into two components--one relating to "our" effort to build a better N.Y., and the other being "my"personal family problem."
It seems clear to me he's trying to make the argument many made on behalf of Bill Clinton--i.e. we shouldn't be allowing personal problems to bring down an otherwise fine public servent, who was voted into office by the citizens of N.Y., yada, yada--which is exactly why Clinton should have been tossed.
So, I think he should step down--but I don't think he will unless he gets a push from Sens. Schumer, Clinton and the other N.Y. Democrat luminaries. Being an election year and all, he's probably going to get the push--perhaps as early as today.
SAM RESPONDS:
I actually think Gov. Spitzer chose his words very carefully because he still has criminal liability in this mess, and wonder how quick he'll resign, given the fact that all he has to "trade" for leniency from prosecutors is his office. He certainly knows the drill as to how these nasty matters go down.
Posted by Charlie | March 11, 2008 2:52 PM
Posted on March 11, 2008 14:52
It's pure irony that the ethics issues Mr. Spitzer capitalized on in order to become Gov. Spitzer came back to haunt him. What is it they say? Consumed by power to the degree they consider themselves to be untouchable?
We need to be realistic, not shocked at our politicians. Being a former New Yorker myself, I'm well aware of New York's reputation for corruption. Can anyone say Tammany Hall? Corruption still reigns.
Posted by Sue | March 11, 2008 4:18 PM
Posted on March 11, 2008 16:18
I think Spitzer should be made to pay back 14 months of salary. First, he spends all that time trying to convince New Yorkers that illegal aliens should get a drivers license, now this. What a waste of the taxpayer's time and money he has been!
Posted by Tim Tango | March 12, 2008 9:10 AM
Posted on March 12, 2008 09:10
Should Eliot Spitzer resign or be forced to resign because he committed a federal crime, or because it would be difficult, if not impossible, for him to govern because he has lost all moral authority? It would seem the latter.
In a case such as this one that involves affluent, well-educated, consenting parties, prostitution is arguably a victimless crime for which "clients" are almost never prosecuted. Moreover, the legislative intent of the Mann Act was to stem interstate trafficking of women for illicit purposes by criminalizing the non-consensual transport of a woman across state lines.
That is not the case here. There is also no credible evidence that Gov. Spitzer utilized public funds for his "hobby."
It would seem that the only constructive purpose of prosecution would be to compel Gov. Spitzer to testify as a witness against the four people who have been indicted.
At the same time, he has revealed himself to be a different person, with a different moral compass, than the man who won election with 70% of the popular vote only one year ago.
He has also betrayed the trust and emotional well-being of his wife and daughters, as he himself admitted. This compels the conclusion that he has violated the public trust and that his leadership is no longer credible or viable. He should resign.
Posted by Barbara Burns | March 12, 2008 9:42 AM
Posted on March 12, 2008 09:42
Geez, what a surprise--this has turned into a Clinton-bashing festival.
As immoral as you may consider adultery, Bill Clinton wasn't on the hook for visiting a prostitute. These are not similar issues. Why aren't you instead bringing up David Vitter? Did any of you call for him to step down? Oh that's right, GOP hypocrites are above reproach.
The fact that a 10-year-old sexual transgression still haunts the lunatic right as the gravest wrong ever commited by a president is sure proof that you people have towed your party line so far that you have completely lost touch with reality.
"What I'm saying is that he may have learned his tactics from your esteemed senator."
Hillary Clinton taught him to pick up a phone and order a hooker? Seriously? That's your theory? Are you 15 years old?
Also, one last parting shot, the Bush adminstration currently has the lowest approval rating in the history of modern polling--far lower than Bill Clinton at the height of the Lewinsky scandal--and for far greater reasons.
Posted by Anonymous | March 12, 2008 11:05 AM
Posted on March 12, 2008 11:05