Eliot Spitzer, the New York governor who made his name taking on the titans of finance, has apologized in vague terms after reports that he used the services of a prostitute in a case being investigated by federal prosecutors.

The news stunned traders on Wall Street, where Spitzer long has been viewed with fear and contempt. Some view the revelations as a huge hypocrisy for a man, who as attorney general, had aggressively pushed for ethics and fair play on Wall Street earlier this decade.

"He actually believes he's above the law," said Ken Langone, a former New York Stock Exchange director who directs a small investment-banking firm. In his role as prosecutor, Spitzer sued Langone for his role in doling out the large pay package of former NYSE CEO Dick Grasso. "I have never had any doubt about his lack of character and integrity - and he's proved me correct."

Spitzer's fall from grace could mark the end of the public career of a man who has had a profound impact on Corporate America. Amid the rash of scandals that plagued Wall Street early this decade, he was the most visible force trying to weed out abuses and bring down wayward CEOs.

Spitzer brought fines against some of America's largest companies for industry practices that were routine, if not accepted. He rarely sent anyone to jail, but in the process, he changed corporate behavior in lasting ways, putting many industries on alert that state officials would take a more aggressive role.

"I'm a huge fan of Eliot Spitzer, and I'll be very sorry if this is the end of his political career," says Nell Minow, a corporate-governance expert. "Wall Street is singing, 'Ding, dong, the witch is dead,' but Spitzer set an expectation of better oversight by officials that will continue."

Spitzer has been governor for a little more than a year, and has struggled to adapt his combative approach to a job requiring more tact. But in his eight-year run as attorney general, Spitzer appeared at times to get personal in pursuing individuals. Critics said he bullied opponents, threatening to reveal embarrassing details of a company's business or an executive's conduct to force management changes. In the case against Grasso, lawyers working for Spitzer asked the former Big Board chairman in a deposition about personal relationships and collected information about Grasso's spending habits.

Grasso couldn't be reached for comment, but a person familiar with his thinking said Monday that Grasso felt bad for Spitzer's family.

Grasso has argued that he did nothing wrong as Big Board chief and has been fighting in court against Spitzer, and his successor as attorney general, Andrew Cuomo, to keep the $187.5 million pay package he received from the exchange.