This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Spitzer Fumbles in Red Zone

All of the sudden, Eliot Spitzer, Wall Street's dragon slayer, doesn't look so scary.

Over the past five months, the New York attorney general has suffered a series of courtroom defeats that have tarnished his well-crafted image as protector of the small investor. No longer does Spitzer carry the aura of untouchability that marked the first six years of his administration.

The losing streak began this summer when a New York court tossed out most of the criminal case Spitzer's office had filed against former Bank of America (BAC) broker Theodore Sihpol in the mutual fund trading scandal. Close on the heels of that, a federal judge said Spitzer had overstepped his authority in investigating the home-lending practices of the nation's big banks.

Spitzer's latest setback occurred Monday when he dismissed criminal charges against Paul Flynn, the lone investment banker charged in the mutual fund trading scandal. The case against the former Canadian Imperial Bank of Commerce (BCM) financier came to a quiet end during a brief two-minute hearing before New York Supreme Court Justice James Yates.

Flynn's walk plays into the hands of Spitzer's critics, who say he is an ambitious politician who brings cases solely to raise his public profile. Clearly, it's not kind of publicity the New York Democrat wants as he begins his campaign for governor of the Empire State.

A Spitzer spokesman declined to comment on that criticism. He said: "The recommendation for dismissal does not speak to the defendant's legal guilt, but rather to the fact that, in light of post-indictment developments, alternate sanctions for his conduct are more appropriate."

Prosecutors had charged Flynn with providing more than $1 billion in financing to two hedge funds --- Canary Capital Partners and Samaritan Asset Management -- that engaged in abusive mutual fund trading.

But in a five-page order submitted to the court, Spitzer said the dismissal is warranted because Flynn is not as culpable as once thought. "A dismissal of the criminal action against defendant Flynn,'' the order says, "will neither undermine confidence in the sphere of securities enforcement nor adversely impact the welfare of the community.''

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,601.41 +244.54 1.41%
S&P 500 2,042.73 +29.84 1.48%
NASDAQ 4,713.6870 +69.3750 1.49%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs