December 26, 2004
Spitzer's Holiday Gift?
The NY Times reports in an article titled, "Spitzer, in a Shift, Will Yield Inquiries to U.S. Regulators" that Attorney General Eliot Spitzer has decided to let federal regulators handle future investigations of possible violations of federal agency regulations. The article sends the message that Spitzer's high profile prosecutions of "investment banks, mutual funds and insurance companies" are over.
Why? Well the NYTimes reports that Spitzer said, "[h]e was concerned that 50 different investigations would balkanize regulations, and added that once-lax federal agencies had become more aggressive about rooting out fraud and wrongdoing."
Spitzer has been a tough prosecutor, going after the insurance industry with unusual force. The Atlanta Jrl. Consitution in an article of Nov. 30th titled, "Wall Street's Crusading Sheriff," reports how Spitzer recently "urged a Senate committee to scrutinize the insurance industry, calling it a 'Pandora's box that should be opened.'"
Addendum. See NYTimes Correction.