It sounds like Feinstein screwed Panetta over by waffling about whether to run until it was too late for Panetta to launch a viable campaign of his own. That can't have been good for their relationship.
http://www.montereycountyweekly.com/archives/1998/1998-... January 22, 1998
The decision by Senator Dianne Feinstein not to seek the state''s highest office represents the chance of a lifetime--or an opportunity coming too late in the game--for local boy Leon Panetta.
The longtime Central Coast congressman, who was tapped by President Clinton first to head up the Office of Management and Budget and then to whip Clinton''s office into shape as chief of staff, has been mentioned since last spring as a possible contender in the 1998 race for governor of California. All along, Panetta has stated that he had not yet made a decision about running for governor, all the while saying that he would remain in contact with Feinstein, hinting that he would not run against the former San Francisco mayor.
On Tuesday, Panetta--characteristically speaking through a spokesperson--said he was "very disappointed in Senator Feinstein's decision not to run for governor." He also said that he had "urged to run," adding that even though it is "obviously late in the campaign season," he would "spend the next few days reassessing my own plans."
http://www.washingtonpost.com/wp-srv/politics/campaigns... February 3, 1998
Former White House chief of staff Leon E. Panetta yesterday announced he will not run for governor of California, but two other candidates, both with the cash to finance a bid, are considering last-minute entry into the contest.
With the deadline for picking up filing papers today, Los Angeles Mayor Richard Riordan, a moderate Republican, and Rep. Jane Harman, a Democrat representing a Los Angeles-area district, are trying to decide whether they are willing to make the $15 million-plus investment to be competitive in the primary.
The huge fund-raising demands prompted Panetta to drop his bid: "I estimate that I'd have to raise something like a million dollars a week, starting now, to be competitive," he said in a statement.
Both Riordan and Harman are very wealthy. California political operatives expect the contest will break spending records and could cost in excess of $50 million for the winner of the primary and general elections.