Barely 48 hours after news broke of his involvement in a sex-for-hire scandal, Eliot Spitzer resigned, effective Monday, as the governor of New York Wednesday, capping a shocking fall from grace unlike any other in the state's history.

Speaking from his Manhattan office just before noon with his wife Silda at his side, Spitzer once again apologized to his family and the public for his "private failings."

"In the past few days I have begun to atone for my private failings with my wife Silda, my children, and my entire family. The remorse I feel will always be with me. Words can't describe how grateful I am for the love and compassion they've showed me," Spitzer said. "From those to whom much is given, much is expected. I have been given much: the love of my family, the faith and trust of the people of New York, and the chance to lead this state. I'm deeply sorry that I did not live up to what was expected of me. To every New Yorker, and to all those who believed in what I tried to stand for, I sincerely apologize." (See Spitzer's full statement at the bottom of the page.)

The resignation will take effect Monday when Lieutenant Governor David Paterson will be sworn in as New York's 55th governor in a ceremony before the joint legislature at noon. He will be the first African-American to hold the post.

Spitzer left his Fifth Avenue apartment for his Midtown office shortly after 11 a.m. Wednesday, trailed by a swarm of media that included helicopters overhead. He was accompanied by his wife and defense attorney Ted Wells.

Spitzer appeared at the podium where he spoke for two minutes in a calm, resolute matter. He took no questions from reporters.

"There is much more to be done and I cannot allow my private failing to disrupt the people's work," he said. "Over the course of my public life, I have insisted, I believed correctly, that people, regardless of their position or power, take responsibility for their conduct. I can and will ask no less of myself."

Spitzer, a former state attorney general who made his reputation as a law-and-order reformer, is stepping down after a federal investigation uncovered evidence that he brought a high-end prostitute across state lines and paid her to have sex, covering his tracks with a money-laundering scheme.

A rising star in the Democratic Party and touted as a possible future presidential candidate, Spitzer was barely a year into his first term as governor.

"Like all New Yorkers I am saddened by what we have learned over the past several days," Paterson said in a statement released shortly after Spitzer's announcement. "It is now time for Albany to get back to work as the people of this state expect from us." (See Paterson's full statement.)

"I have known Paterson for many years, and I have been in continuous contact with him," said State Assembly Speaker Sheldon Silver of the transition. "David Paterson's intellect, his charisma, his experience in government make him an ideal leader to guide us through the difficult days ahead. The work before us is demanding and must be completed thoughtfully and expeditiously."

A somber Silver, who has long been a supporter of Spitzer's, said the public should also take this time to note his accomplishments.

"I think we can reflect on some of the accomplishments in the short time Eliot Spitzer was the governor," said Silver. "I think he did a historic Workers Comp Reform bill that will go down, clearly, as one of the major accomplishments."

Most city and state lawmakers were resolute in their determination to move forward with their agendas, despite the political shakeup.

"We will do everything we can to help David Paterson and help the legislature get through this difficult period," said Mayor Michael Bloomberg. "There's no reason why we can't have an on-time budget, why we can't enact congestion pricing and do all the other things that this state needs."

Speaking at a news conference Wednesday morning, State Senate Majority Leader Joseph Bruno said he felt sad for Spitzer's family, but stressed the importance of the state staying focused on the future.

"At times like this it is important that we join together and do what affects the 19 million people in this state. We in the Senate, especially in the majority, are committed to that goal and to deal, not only with an orderly transition of government, but to address our most pressing need which is the economic crisis before us," said Bruno, a Republican who was often at odds with Spitzer. "As for Eliot Spitzer, my heart goes out to his wife and family at this time. He must deal with his own problems in his own way, but it is now time for us and all New Yorkers to move forward."

Bruno also said he is ready to partner with Paterson.

"I'm looking forward to a positive, productive relationship as soon as possible," he said.

The most pressing concern for Albany lawmakers is the state budget, which needs to be agreed upon by April 1st.

The Bronx-born Spitzer graduated from Harvard Law School in 1984 and was an assistant district attorney for six years before becoming the state's attorney general in 1999.

In an eight-year span Spitzer built a national reputation as a tough-talking crime fighter, bringing charges of securities fraud and stock manipulation against some of Wall Street's biggest names. He won settlements from Merrill Lynch, Morgan Stanley, Goldman Sachs, Salomon Smith Barney, Lehman Brothers, and J.P. Morgan Chase, earning himself the nickname "The Sheriff of Wall Street."

Spitzer was also known as "Mr. Clean" for his incorruptible nature. In 2006, campaigning on a platform of fiscal reform and ethics in government, he was elected governor with an historic 69 percent of the vote.

In his inaugural address Spitzer said, "Every policy, every action and every decision we make in this administration will further two overarching objectives: We must transform our government so that it is as ethical and wise as all of New York, and we must rebuild our economy so that it is ready to compete on the global stage in the next century."

The investigation that led to Spitzer's political demise was triggered last fall when banking authorities noticed suspicious payments being made from an account that was ultimately traced to Spitzer. The case was assigned to the federal prosecutor's office in Manhattan, which at first suspected they might have a bribery case on their hands. However, authorities eventually traced the payments to a company called Emperors Club VIP, a high-end prostitution service that charged up to $30,000 a night.

When authorities tapped Spitzer's phone they heard him set up an appointment on February 13 with a call girl named Kristen at Washington D.C.'s tony Mayflower Hotel. Three weeks later, on March 6, law enforcement officials busted the Manhattan-based prostitution ring and the next day informed Spitzer that he had been implicated in their investigation.

The New York Times broke the story on Monday when the newspaper reported on its website that Spitzer had informed his senior aides of his involvement in the sex-for-hire service.

After making a vague apology in a brief press appearance Monday afternoon, Spitzer and his advisors huddled in his Fifth Avenue residence as calls for his resignation grew over the next two days. A law enforcement official told the Associated Press that Spitzer had spent as much as $80,000 with the Emperor's Club, while the New York Post cited anonymous sources saying Spitzer had been soliciting prostitutes for at least the last six years.

A WNBC/Maris Poll released Wednesday found that 70 percent of registered voters thought Spitzer should step down, while only 22 percent thought he should stay in office.

"I think since Spitzer came into power, 15 months ago or so, it's just been one downhill slide and this debacle. There is just nothing to do, he's got to leave," said one New Yorker.

"You just should not be able to hold a position like that and have that be a part of your personal life, or any part of your life," said another city resident.

Many said that Spitzer's governorship became void through his accused crime.

"It's weird because when Bill Clinton did his stuff I was like, 'I don't care as long as he can run the country.' But this is different, because [Spitzer] paid for it, and it's illegal, so he has to resign," said another local.

Most New Yorkers interviewed by NY1 were not familiar with Spitzer's replacement, but are hopeful Paterson will do a good job as governor.

Spitzer has still not been charged, and prosecutors have not commented on the case.

There had been speculation that Spitzer might try to negotiate a plea deal in exchange for his resignation, but United States attorney Michael Garcia issued a statement saying, "There is no agreement between this office and the office and Governor Eliot Spitzer, relating to his resignation or any other matter."

The last time a New York governor resigned from office was in 1973, when Nelson Rockefeller stepped down to devote his time to his think tank, the Commission on Critical Choices for Americans, after 15 years as governor.

His lieutenant governor, Malcolm Wilson, finished out his term and Rockefeller was appointed vice president under Gerald Ford the next year, following the resignation of President Richard Nixon.

• See our complete Spitzer coverage.