Committee Wonders How Spitzer's Banking Spurred Fed Interest

Jen Chung

Published Nov 26, 2008

Modified Nov 26, 2008

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Jen Chung

Published Nov 26, 2008

Modified Nov 26, 2008

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Former governor Eliot Spitzer's dalliances with an expensive escort were discovered after the federal authorities noticed "suspicious money transfers." Concerned that Spitzer was being blackmailed, the FBI and IRS found that he was actually paying shell companies set up by the prostitution ring! Now, months later, the NY Times reports a congressional committee is "pursuing what would be the first public examination of the events that prompted the initial inquiry into" Spitzer's banking. House Financial Services Committee member Rep. Michael Capuano (D-Mass.) said, "The question was: Why were they looking for this? Is this political retribution?" Testimony could be heard from the Treasury, North Fork (Spitzer's bank) and HSBC (the prostitution ring's bank).