By Michelle Nichols
NEW YORK (Reuters) - New York Gov. Eliot Spitzer apologizedto his family and to the public for a "private matter" onMonday but made no reference to a New York Times report that hemay have been linked to a prostitution ring.
Spitzer, who built his reputation going after white-collarcrime on Wall Street as the state's prosecutor and as governorvowed to clean up state politics, said nothing about possiblyresigning.
Fox News television, citing unnamed sources, said beforeSpitzer spoke that the governor was expected to resign.
Spitzer was caught on a federal wiretap arranging to meetwith a prostitute at a Washington hotel last month, the Timesreported on its Web site.
"I have acted in a way that violated the obligations to myfamily and that violates my -- or any -- sense of right andwrong. I apologize first, and most importantly, to my family. Iapologize to the public whom I promised better," Spitzer told apacked room of reporters in New York City with his wife at hisside.
"I am disappointed that I failed to live up to the standardthat I expect of myself. I must now dedicate some time toregain the trust of my family," Spitzer added.
He did not take questions from reporters and Spitzer'saides declined to comment further.
As New York's state attorney general before being electedgovernor in November 2006, Spitzer was sometimes called theSheriff of Wall Street for his prominent role in investigatingfinancial cases.
A Democrat, he entered the governor's office promisingethical reform but soon battled with Republican leaders in thestate Senate, slowing his agenda.
He has been married to Silda Wall Spitzer since 1987 andthey have three daughters.
The New York Times, citing an administration official,reported that Spitzer had told his top administration officialshe had been involved in a prostitution ring.
Shares of bond insurers fell on the news. Spitzer has beena crucial figure in helping the insurers raise more capital andkeep their top credit ratings. The bond insurers, whichguarantee more than $2.4 trillion (1.2 trillion pounds) of debtagainst default, have been scrambling to get capital as theirexpected payouts have been surging.
(Reporting by Michelle Nichols, Joan Gralla, Gary Crosse,Joan Gralla and Ken Barry; Writing by Daniel Trotta; Editing byEllen Wulfhorst, Editing by Frances Kerry)
