President Bush's efforts to privatize the Social Security system drew sharp criticism from New York Attorney General Eliot Spitzer, Reuters reports.

Spitzer, who built a reputation as a watchdog in the securities industry and is now running for governor of New York, in a stinging rebuke of Bush, said his administration lacks the integrity to safeguard assets belonging to the most vulnerable Americans.

In a recent speech, Spitzer also said Bush's plan would result in huge debt during the conversion process. He also blasted the current administration for falling down on the job of policing rampant scandals in the financial services and insurance industries. Spitzer said the president's administration gave too much leeway to lobbyists from the securities industry demanding protection for their high-profile customers.

He also cautioned against allowing lobbyists to succeed in pressuring Congress to dilute customer-protection measures enacted shortly after the fall of Enron.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.