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State Enforcement: An Interview with Eliot Spitzer

BY Jodi Misher Peikin
January 26, 2005

The corporate scandals of the past several years have shaken the investing public. In response, state attorneys general like New York's Eliot Spitzer have shown what state regulators can accomplish with an ambitious agenda, talented personnel, and the right statutory tools. With Attorney General Spitzer leading the charge, state attorneys general have played an increasingly active role in matters traditionally handled without state intrusion by the SEC and other federal regulators. This increased state activism has not been free of controversy. In a recent interview, we asked Spitzer about the causes and consequences of that activism and what the future holds. His answers, and the recent activities of his counterparts in other states, confirm that state attorneys general are in no hurry to return to the status quo ante. Like it or not, the states are here to stay.

Increased State Activism

The stimulus for this increased state activism is easy to discern. Spitzer believes that the SEC and other federal agencies are the ones that opened the door to state regulation: “Six years ago, these agencies were doing nothing … there really was a void.” State regulators like Spitzer, California Attorney General Bill Lockyer, and Massachusetts Attorney General Tom Reilly have been more than happy to fill the perceived void.

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