Kerik indictment could peril Giuliani's bid.

Federal prosecutors have reportedly told Bernard B. Kerik, whose nomination as homeland security secretary in 2004 at Rudy Giuliani's recommendation ended in an embarrassment for both Bush and Giuliani, prompting Giuliani to call the recommendation a "mistake", that he is likely to be charged with several felonies, including tax evasion and conspiracy to commit wiretapping. For Giuliani, who has extensive personal and political connections to Kerick and is coasting to a probable Republican primary victory -- barring any political firestorms -- this could not have come at a worse time. How Rudy handles this matter and others (he recently said that his wife will attend Cabinet meetings, but backed away after objectors compared it to the Hillary and Bill syndrome) will decide the success (or failure) of his presidential bid.

Update: 7:59 p.m.: Kerik rejects plea deal. Indictments are imminent. We'll see how it all plays out.