It turns out that the "tragedy" includes the fact that his opponents on Wall Street and the GOP get to laugh at his hypocrisy. 

A further tragedy here, beyond the personal one of the Spitzer family and the damage he has done to the reform cause, is that Mr. Spitzer's targets are now relishing their tormentor's torment. Those on Wall Street who fumed at having to make their world fairer for ordinary shareholders can now chortle with satisfaction in their private enclaves. For New York Republicans, who have blocked some of the most important reforms in Albany, it is hard to imagine the private glee - especially at a moment when they are fighting desperately to hold their majority in the State Senate.