NY Sun broke the news this AM. NY Times confirmed it and in view of his non-denial apology, he's simply waiting to find out more about the indictment before he maps out a strategy and sees what support he can muster before he takes a stand and responds to the public.
With a 30% approval rating, and very little support in Albany, I think his resignation will be in a matter of days. And its de facto he can kiss his re-election bid in 2010 good bye.
But what most constituents really want to know, before they profess any forgiveness, is where the money from Client #9 came from and if any taxpayer money was involved. There's rumors circling that yes, it came from State accounts, however that would really be the epitome of hubris and stupidity combined.