NEW YORK (CNN/Money) - New York State Attorney General Eliot Spitzer slammed the Securities and Exchange Commission's settlement with Putnam Investments Monday, saying federal regulators set the bar "too low" to protect small investors.

In an op-ed piece in the New York Times, the attorney general said neither the Bush Administration nor the SEC has the interests of the public at heart, and that he, along with other state regulators and lawmakers, plans to fight to protect the investing public.

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"My office, while committed to working with the Securities and Exchange Commission in our investigation of the mutual fund industry, will not be party to settlements that fail to protect the interests of investors and let the industry off with little more than a slap on the wrist," Spitzer wrote.

"The public expects and deserves the protection that effective government oversight provides. Until the Bush administration shows it is willing to do the job, however, it appears the public will have to rely on state regulators and lawmakers to protect its interests," Spitzer continued.

Thursday, the SEC said it had settled charges against Putnam. Putnam agreed to "significant and far-reaching corporate governance, compliance, and ethics reforms" without admitting or denying guilt, the SEC said.

The SEC alleged Putnam committed securities fraud by failing to disclose self-promoting trading practices by some of its employees, and that the company didn't take the proper measures to uncover and discourage the activities.

But state regulators were critical of the settlement. Putnam still faces civil charges from Massachusetts regulators. And the U.S. Attorney for the Southern District of New York has issued a subpoena for Putnam documents, which could mean criminal charges are being considered, lawyers told Reuters.

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In his commentary, Spitzer said the SEC acted hastily to settle with Putnam and that many pressing questions failed to be addressed, including: whether investors will be refunded fees; whether future fees will be fair; how fees will be calculated; what fines the company will pay; and whether civil or criminal sanctions will apply to the managers alleged to have acted improperly.

"Whether the commission recognizes it or not, the first settlement in a complex investigation always sets the tone for what follows. In this case, the bar is set too low," Spitzer wrote.

He also addressed concerns with the Environmental Protection Agency's recent decision to close pending investigations into power plants and factories alleged to have violated the Clean Air Act.

A group of 14 state attorneys general plans to sue the EPA Monday to " halt the implementation of weaker standards," Spitzer said in the editorial.