As Wall Street Journal blogger Nathan Koppel put it yesterday, the scandal engulfing New York Governor Eliot Spitzer’s office probably has some in the mutual fund industry gleefully dancing in the aisles.

The governor’s aides turned to state police to gather negative information on Spitzer rival Joseph Bruno, majority leader of the state senate, specifically his use of state-owned transportation to attend GOP fundraisers, according to a report that New York Attorney General, Andrew Cuomo issued. In the past, Bruno has said he relies on state transportation because of death threats. Cuomo’s report concluded that while such usage isn’t illegal, excessive use of state-owned vehicles is questionable as it could be a misuse of taxpayers’ money. Cuomo’s report also stopped short of hitting ally Spitzer too hard, saying his aides’ conduct wasn’t “unlawful” but also questionable.

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