Nonetheless, Henry Hu, who teaches securities law at the University of Texas law school in Austin, says Spitzer should have avoided even the appearance of impropriety.

FORBES: Feature

America's Securities and Exchange Commission, whose failures included negligible supervision of investment banks and the Madoff scandal, has set up a new risk division packed with heavyweight thinkers such as Henry Hu, Gregg Berman and Richard Bookstaber.

ECONOMIST: What regulators should do now