The Democrat who used state laws to lead national enforcement actions against the biggest firms on Wall Street over the past two years, said loopholes must be closed in the measures, one of which provided more power than federal regulatory laws.

"States have always been on the front line in protecting consumers against fraudulent practices," Spitzer said Thursday. "The vast majority of corporate fraud cases in the United States are brought by state enforcement authorities, using state laws."

His measures would also cover nonprofit organizations including charities. The proposals, which would have to be approved by the state Legislature and Republican Gov. George Pataki, include:

• Whistleblower protection. State law currently allows a company to fire an employee for revealing information that the firm is defrauding customers or stealing government funds.
• Securities fraud enforcement. Individuals who commit securities fraud, manipulate stock prices, report fictitious transactions or issue false statements about stocks would face criminal penalties. Currently only civil penalties, mainly fines, can be imposed.
• Corporate officer misconduct. His proposal would make it easier to find a corporate officer guilty of first-degree corporate bribery. Current law requires proof that the bribe-taker's employer didn't consent to the illegal conduct and there was economic harm to the company.

There was no immediate comment from the governor's office, Senate or Assembly.

"Attorney General Spitzer's tough investor protection package fills important gaps in new federal law and will help guarantee the integrity of the markets," said Ed Mierzwinski of the U.S. Public Interest Research Group.

In December, the nation's top brokerages agreed to the settlement in which they would pay more than $1.4 billion to resolve charges they gave biased ratings on stocks to help win investment banking business. The settlement calls for 10 firms, including Citigroup, Goldman Sachs and Credit Suisse First Boston, to pay fines, sever the links between research and investment banking, and fund independent stock research for investors that would complement their own analysts' work.

Spitzer and the National Association of Securities Dealers, a Wall Street regulator, are working on the wording of the settlement now.

In a related $100 million settlement last year with Merrill Lynch & Co., Spitzer used the state's Martin Act, a Depression-era state law considered by Wall Street observers to be more powerful than federal statutes, though it had never been tested. Under the act, usually used to break up schemes such as "boiler room" telemarketing firms that make cold calls trying to sell stock or mortgages, corporate executives could have faced some criminal charges.

The proposals next have to go to the state Legislature, where Spitzer has supporters but -- so far -- no bill sponsors.