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  • CA: Gov.'s banking choice questioned (a central figure in the Quackenbush scandal)

    07/31/2007 9:34:11 AM PDT · by NormsRevenge · 5 replies · 202+ views
    LA Times ^ | 7/31/07 | Evan Halper
    SACRAMENTO — Gov. Arnold Schwarzenegger has put a key banking oversight agency under the stewardship of an administrator who, according to a bipartisan legislative investigation, helped arrange the misuse of millions of dollars of public funds and steered government contracts to friends. Michael A. Kelley, appointed commissioner of the Department of Financial Services by the governor in December, was a central figure in the scandal that ultimately drove former Insurance Commissioner Chuck Quackenbush from office in 2000. Kelley, who was Quackenbush's top deputy, was found unanimously by a bipartisan legislative panel to have helped the former insurance commissioner divert public...