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From the NY Post:

Caroline Kennedy has told Gov. David Paterson that she is withdrawing her name from consideration to replace outgoing Sen. Hillary Rodham Clinton in the U.S. Senate, The Post has learned.

Kennedy cited "personal reasons," according to sources.

Her stunning move comes as sources revealed that Paterson had intended to appoint her to the now-vacant seat today.

Decision was prompted by concerns about Sen. Kennedy's health.

On Wednesday she called the governor, David Paterson, who is making the selection of who should succeed Senator Hillary Clinton. Her concerns about Senator Edward M. Kennedy’s deteriorating health (he was hospitalized after a seizure during the inaugural lunch on Tuesday ) prompted her decision to withdraw, this person said. Coping with the health issues of her uncle, with whom she enjoys an extraordinarily close bond, was her most important priority; a situation not conducive to starting a high profile public job.

She was planning to issue a statement on Wednesday evening.

NY Times

Updated at 10:39 pm by psychodrew:

I walk away from my computer for a couple of hours and come back to find that Kennedy family sources are denying the story.  Then, as I start writing an update, I go back to MSNBC only to find that the initial reports about her withdrawal were true.

ALBANY, New York - Caroline Kennedy has decided to withdraw her name from consideration for the Senate seat being vacated by Hillary Clinton, according to NBC News' Mark Murray.

Several newspapers had reported earlier Wednesday that Kennedy had taken herself out of consideration for the job, but were unable to confirm the decision with Kennedy herself. Murray said she was expected to put out a statement later Wednesday night.

The New York Times cited as its source a person told of her decision and reported that she called New York Gov. David Paterson to express concerns about the health of her uncle, Sen. Edward M. Kennedy, who was hospitalized Tuesday after a seizure. A statement from Kennedy could come as early as Wednesday evening, the Times reported.

Updated at 11:20 pm by psychodrew:

Somebody on the Kennedy team needs to figure what is going on and issue a statement.  This confusion only makes Caroline Kennedy look weak.  The AP now reports that Kennedy hasn't withdrawn.

ALBANY, New York - Caroline Kennedy has decided to withdraw her name from consideration for the Senate seat being vacated by Hillary Clinton, according to NBC News' Mark Murray.

Several newspapers had reported earlier Wednesday that Kennedy had taken herself out of consideration for the job, but were unable to confirm the decision with Kennedy herself. Murray said she was expected to put out a statement later Wednesday night.

The New York Times cited as its source a person told of her decision and reported that she called New York Gov. David Paterson to express concerns about the health of her uncle, Sen. Edward M. Kennedy, who was hospitalized Tuesday after a seizure. A statement from Kennedy could come as early as Wednesday evening, the Times reported.

Final update at 6:48am by psychodrew:

It's official. She's out.  It appears that last night's confusing was due to her wavering.

Caroline Kennedy announced early Thursday that she was withdrawing from consideration for the vacant Senate seat in New York, startling the state’s political world after weeks in which she was considered a top contender for the post.

Ms. Kennedy on Wednesday called Gov. David A. Paterson, who will choose a successor to Senator Hillary Rodham Clinton, to inform him that she was no longer interested.

"I informed Governor Paterson today that for personal reasons I am withdrawing my name from consideration for the United States Senate," Ms. Kennedy said in a statement released by her public relations firm.

SNIP

Her decision appeared to catch the governor off guard, throwing the Paterson administration into confusion and setting off conflicting news media reports. After frantic talks between the governor’s operation and Ms. Kennedy’s camp Wednesday evening, Ms. Kennedy appeared to waver on whether to withdraw, and was preparing a statement reasserting her interest in the job. But just after midnight, she decided to make clear she was taking her name out of consideration and released the statement saying so.

I think that last night's confusion shows that Caroline just really wasn't ready for this job.  She wanted out, then she wanted in, and then she wanted out.  Her staff let the story and the confusion float around out there for several hours.  I think that what this--and the Illinois debacle for that matter--clearly shows is that governors should not be choosing senators.  This is America, where we have elections.  If we can hold a snap special election for an open House seat, then we can do the same for an open Senate seat.

Originally posted to Just PsycoBabble on Wed Jan 21, 2009 at 04:05 PM PST.

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