Traders stop to watch Spitzer fall on his sword

By Mark McSherry

NEW YORK (Reuters) - Trading desks across the United States stopped on Wednesday to watch the resignation speech of New York Gov. Eliot Spitzer, fascinated by the downfall of the man who built a career on investigating Wall Street crimes.

Spitzer had faced growing pressure to quit after The New York Times reported on Monday that he was caught on a federal wiretap arranging to meet a prostitute at a Washington, D.C., hotel last month.

At around 11:45 a.m. EDT on Wednesday in New York, Spitzer finally resigned, with traders across the country agog.

"This is bigger than (Fed Chairman Ben) Bernanke, bigger than oil, and it may be even bigger than the Super Bowl," said Brian Taylor, head currency trader at M&T Bank in Buffalo, New York.

"Everybody is glued to their desks. No one has made as many enemies on Wall Street as Spitzer did -- The Street is loving it and I wouldn't be surprised to hear a big cheer throughout the trading desk when he goes," Taylor added.

Spitzer, 48 and married, is a former New York State chief prosecutor who built his reputation investigating financial crime on Wall Street and probed prostitution rings.

"He's had such a big impact on Wall Street over the past decade that desks are following this story like it's Anna Nicole Smith or O.J. Simpson in the courtroom," said Edward Bretschger, director, equity sales and trading, at Calyon Securities in New York.

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