New York Governor resigns

In New York, Governor Eliot Spitzer has resigned in disgrace after he was caught spending thousands of dollars on call girls, shattering his corruption-fighting, straight-laced image.

Spitzer read a minute-long statement at a news  conference with his wife at his side. (CCTV.com)

Spitzer read a minute-long statement at a news conference with his wife at his side.

He made no mention whether he had reached a deal with federal prosecutors to avoid charges.

Spitzer will be replaced by Lieutenant Governor David Paterson, who will become New York's first black governor.

The case involving Spitzer started when banks noticed frequent cash transfers from several accounts and filed suspicious activity reports with the Internal Revenue Service.

Spitzer, a first-term Democrat, built his political reputation on rooting out government corruption.

He made a name for himself when he was attorney-general as a crusader against shady practices.