News Spitzer Might Resign Met with Cheers on NYSE Floor
Although the news that New York Governor Eliot Spitzer was involved in a prostitution ring was greeted with shock in most circles, Wall Street had a different reaction.
According to CNBC New York Stock Exchange floor reporter Bob Pisani, the news that Spitzer might resign was greeted with cheers on the floor of the exchange.
â[A]s reports came over the wires that Mr. Spitzer might resign, he did not, but as reports came over he might resign, there was a cheer up here on the floor,â Pisani said on CNBCâs March 10 âClosing Bell.â âHe is not a popular figure down here on Wall Street.â
Spitzer earned the title âthe Sheriff of Wall Streetâ for his crusade against Wall Street during his term as New York State Attorney General. Most notably, he went after the investment firm Merrill Lynch, alleging the firm had intentionally misled investors in order to improve its bottom line.
In 2004, Spitzer sued former NYSE Chairman Richard Grasso, the former chairman of the NYSE, alleging he abused his position as the chairman of the exchange. Grasso had stepped down in 2003 after being asked to step down by the exchangeâs board.
âEliotâs one of my oldest friends, so is Silda [Spitzerâs wife],â Cramer said on the March 10 CNBCâs âStreet Signs.â âYou know, look, I hope it's not true. You know, I read it like you did - I hope itâs not true. And there were no rumblings. Someone earlier said there were rumblings. Thereâs no rumblings about this. Eliotâs my friend. So heâs my friend, heâll be my friend after. You know, I just hope itâs not true. If itâs true, itâs obviously very sad. Itâs bad.â