Published On: Tue, Jan 6th, 2015

Former NY Governor Eliot Spitzer Calls for Insider Trading Law

Eliot Spitzer Visits FOX Business' "Power And Money With David Asman"

Former “Sheriff of Wall Street” Eliot Spitzer told CNBC on Monday that a law defining insider trading should be passed.

“I think it is time for a statutory definition of insider trading, ” the former New York attorney general and governor said.

In a landmark ruling last month, a federal appeals court overturned the convictions of two former hedge fund managers charged with making illegal trades in technology stocks. The ruling held that prosecutors needed to prove a trader knew the original source of nonpublic information received a benefit in exchange for the tip, the report said.

“[In] tipper, tippee liability there’s this area of ambiguity. That’s not good. We need certainty and clarity so people know what the rules are, ” Spitzer said Monday in an interview with CNBC’s “Squawk Box” business show, according to the report.

“Define the lines and then play by that line. That’s it. It’s very simple, ” he continued. “We don’t need regulations. We don’t need uncertainty. Establish a bright line and live by it.”

Spitzer resigned as governor in 2008 amid a prostitution scandal, the report said.

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