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First Take: Schwarzenegger takes Moscow. Senate Republicans elect new leader. Whitman, Brown set for final debate.

October 12, 2010 |  7:36 am

CalPERS has severed ties with an investment manager who worked closely with Alfred J.R. Villalobos, the former pension fund board member now accused of fraud.

California may be joining a lawsuit against banks that allegedly mishandled paperwork in thousands of foreclosures.

Gov. Arnold Schwarzenegger toured Moscow with Russian President Dmitry Medvedev.

Meg Whitman and Jerry Brown will meet at 6:30 p.m. Tuesday for their third and final scheduled debate, moderated by NBC's Tom Brokaw.

Rudy Giuliani continued his tour of California, accusing Democrats of igniting race and class conflicts to scare voters.

Sen. Bob Dutton (R-Rancho Cucamonga) took over as Senate Republican leader Monday, taking the reins from outgoing Sen. Dennis Hollingsworth (R-Murrieta).

Check PolitiCal this evening for live coverage of the third and final gubernatorial debate. Coverage begins at 6:30 p.m.

-- Anthony York in Sacramento

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