The arrest in California of Kinde Durkee, a treasurer for hundreds of Democratic campaigns, on charges that she misappropriated campaign funds is clearly wreaking havoc in Democratic Party circles.

The chairman of the Los Angeles County Democratic Party — the largest county party in the country — tells TPM he’s just trying to “figure out what the hell we had” in the bank.

More on the departure of Carol Bartz as CEO of Yahoo.

The Los Angeles County Democratic Party tells TPM that it is not sure it will be able to make payroll this month after its treasurer was rung up on federal mail fraud charges for allegedly misappropriating the campaign funds of her clients.

Carol Bartz is out as CEO of Yahoo, reports Kara Swisher.