Spitzer falls on his sword
New York Governor Eliot Spitzer, the scourge of insurers and brokers for much of the past five years, has resigned after admitting links with a prostitution ring.
The one-time consumer warrior reportedly spent $US80,000 ($84,765) on the services of high-class call girls.
Mr Spitzer initially admitted the allegations in a press conference last week, but attempted to cling on to his position. He was forced to stand down two days later amid calls for impeachment and potential federal charges.
In his eight years as New York State Attorney-General from 1998 to 2006, Mr Spitzer conducted a widespread campaign into corporate malpractice, including a crackdown on alleged bid-rigging and contingent commissions in the insurance industry.
His high-profile scalps included brokers Marsh & McLennan, which paid out $US850 million ($901 million) in early 2005 to settle a bid-rigging suit.
Despite making a host of enemies in the corporate world, Mr Spitzer’s investigations are widely credited with cleaning up conflicts of interests and improving transparency in the insurance industry.
He has undeniably had a profound impact on the way insurers and brokers conduct their business. The big three brokers Marsh, Aon and Willis have publicly sworn off accepting contingent commissions, and prosecutions of individual transgressors are still working their way through the courts.
The one-time consumer warrior reportedly spent $US80,000 ($84,765) on the services of high-class call girls.
Mr Spitzer initially admitted the allegations in a press conference last week, but attempted to cling on to his position. He was forced to stand down two days later amid calls for impeachment and potential federal charges.
In his eight years as New York State Attorney-General from 1998 to 2006, Mr Spitzer conducted a widespread campaign into corporate malpractice, including a crackdown on alleged bid-rigging and contingent commissions in the insurance industry.
His high-profile scalps included brokers Marsh & McLennan, which paid out $US850 million ($901 million) in early 2005 to settle a bid-rigging suit.
Despite making a host of enemies in the corporate world, Mr Spitzer’s investigations are widely credited with cleaning up conflicts of interests and improving transparency in the insurance industry.
He has undeniably had a profound impact on the way insurers and brokers conduct their business. The big three brokers Marsh, Aon and Willis have publicly sworn off accepting contingent commissions, and prosecutions of individual transgressors are still working their way through the courts.