Remember when Caroline Kennedy was, you know, thinking about, you know, taking over Hillary Clinton's, you know, Senate seat? Governor Paterson seemed poised to appoint her but then she dropped out quickly and all these rumors about tax problems or issues with a domestic worker popped up...and it turned out the leaks were from Paterson's own staff! Well, nine months later, Paterson won't have to face heat over that, because the state's Ethics Panel doesn't think there's anything to it.

According to the NY Times, "It was not clear whether a significant review was actually undertaken in the eight months since the investigation was requested. Several central players in the matter were not interviewed, people with knowledge of the investigation said, and it was not clear whether anyone had been." NYPIRG's Blair Horner was aghast, "In this particular case, a very well known individual had her private tax information disclosed to the public. Everyone agrees that it came out of the administration, but no one is subject to a penalty? It’s mind-boggling."

The Post points out, "The decision saves the governor from rehashing an embarrassing episode that corresponded with a precipitous drop in his popularity last winter."