Kennedy's Bid Derailed By Housekeeper And Tax Problems: NY Times

DANNY HAKIM, NICHOLAS CONFESSORE:

Problems involving taxes and a household employee surfaced during the vetting of Caroline Kennedy and derailed her candidacy for the Senate, a person close to Gov. David A. Paterson said on Thursday, in an account at odds with Ms. Kennedy's own description of her reasons for withdrawing.

The account emerged 14 hours after Ms. Kennedy announced that she was taking her name out of contention for the Senate seat vacated by Hillary Rodham Clinton, and as Mr. Paterson appeared to be leaning toward selecting Representative Kirsten E. Gillibrand, an upstate lawmaker in her second term in Congress.

Read the whole story: DANNY HAKIM, NICHOLAS CONFESSORE