her name is janet kelly. she was the secretary of the commonwealth.and she's actually the second person on the job right now. she is a huge supporter of bob mcdonnell having worked for him as attorney general. the prosecution has alleged that the events and meetings the governor nnie williams was part of that quid pro quo they alleged and in exchange for all the money, $177,000 in gifts and loans from jonnie williams. >> i'm not going to answer any questions this morning. i just need to get in the courtroom. thank you. >> reporter: was it hard to be a part of this? >> maybe we can talk afterwards. i'm not going to answer any questions right now. >> i feel great. i'm glad we get to saturday our case and be able to tell our story. >> reporter: are you ready to get up there? what do you want to say? glil' let you know when i take the stand. >> reporter: do you know if maureen or you are going first? >> i can't. >> reporter: inaudible question. >> we're looking forward to being able to present our case. thank you very much, everybody. thank you. >> report

janet kelly saying she did not want to pile on mohamed morsi, on maureen mcdonnell. >> this morning janet kelly did not say much. >> is it hard to be part of this? >> maybe we can talk afterwards. i'm not going to answer any questions. >> but once inside she offered a blistering critique of former first lady maureen mcdonnell. kellye, a long-time political loyalist to governor mcdonnell who was appointed as secretary of the commonwealth in 2010, calls maureen mcdonnell very difficult, very demanding, very divaish saying there were concerns she was suffering from mental illness. she testified that in january of 2012, the entire staff of the governors mansion signed a letter threatening to quit because of the first lady's behavior. maureen mcdonnell was path logically incapable of taking any spont. she spoke glowingly of her former boss saying he never asked her to hire or appoint anyone associated with jonnie williams calling him one of the best people i know, boy scout of the year, mr. honest. the former governor was eager to launch his defense. >> if you think i'm going to change the gam

but as for maureen mcdonnell her testimony only added to the unflatteri unflattering -- janet kelly says the relationship deteriorated when she worked on the 2009 campaign for governor. it was so bad that when he offered the cabinet spot kelly told him one condition, she didn't want to be the point of contact for maureen. testified kelly, i told the governor flat out when he offered me the secretary of the commonwealth job i couldn't work with maureen. the mcdonnell's defense attorney asked kelly to elaborate on the first lady's difficult behavior she began to cry before composing herself and answering she was very difficult, very demanding, very diva-ish. she didn't handle stress well and would freak out over little things. kelly said she was able to avoid maureen mcdonnell until she realized the first lady's outbursts were taking a toll on the governor. said kelly she was yelling him at night for things that happened during the day. kelly was presented with a mass resignation letter. as for the governor kelly's testimony left little doubt that she has the highest regard for him. she sa

janet kelly broke into tears when asked to elaborate. she was very difficult, very demanding, very diva-ish. kelly said she was able to avoid maureen until she realized the first lady's outbursts were taking a toll on the governor. said kelly, she was yelling at him at night for things that happened during the day. kelly became the first witness to reveal she saw evidence of the crush that maureen mcdonnell had on jonnie williams. she testified they appeared to be fond of each other. it was kind of flirty. it was very, very, very friendly. prosecutors challenged her on cross examination asking why she never mentioned that before to investigators. and yet another important development today, another juror was excused this time because they had a family emergency. that leaves just one alternate as the trial continues. the defense will continue to put on this case tomorrow morning. i'm julie carey, news 4. >>> a troubling trend in our area. 12 of 33 homicides in prince george's county so far this year have been domestic cases. august has bee

. >> reporter: that is the message the defense team wanted janet kelly to convey to jurors. when asked about his honesty and reputation kelly replied if they had to elect the boy scout of the year, mr. honest, it would be about him. the testimony about the former first lady was harsh. said kelly, i told the governor gnat out when he offered me the secretary of the commonwealth job i couldn't work with maureen. when asked to elaborate kelly said she didn't want to pile on and began to cry before answering she was very difficult, very demanding, very diva-ish. kelly said she was able to avoid maureen until she realized the first lady's outbursts were taking a toll on the governor. said kelly, she was yelling at him at night for things that happened during the day. in 2012 she was presented a mass resignation letter. kelly was the first witness to reveal she saw evidence of the crush that defense attorneys say maureen mcdonnell had with jonnie williams. she said it was very flirty, very, very, very friendly. prosecutors challenged her on cross examination reminding her she neve

. >> leaving court janet kelly kept her remarks short and to the point. >> i was happy to testify on behalf of the governor. he is a good man. that is it. >> kelly a long time aid and allie -- ally to the governor called him honest, gracious and trusting and said he never worked for her to appoint anyone associated with jonnie williams. but he had harsh criticism for maureen mcdonnell saying she would exaggerate, embellish, freak out at little things and take it out on other people. kelly adding there were concerns of mental illness. in 2012, she testified the entire staff at the mansion threatened to quit because of maureen mcdonnell's behavior but all stayed on the job. she also said the first lady was taking out her anger on the governor. "he can't do his job if he's going home and getting yelled at at night." williams telling investigators, "he was a big freaking deal within the inner circle and his relationship was very, very very friendly and kind of flirty." governor mcdonnell's defense has begun and we wait for him to take the stand. >> we started off well, and it's a process

. >> reporter: mcdonnell's secretary of the commonwealth janet kelly reiterated the image of a screaming first lady. kelly said maureen mcdonnell was very difficult, very demanding, very divaish. she said the first lady exaggerated and had secretive behavior and was known to hide things, shopping. kelly said the entire governor's mansion staff wrote and signed a mass resignation letter if the first lady's behavior didn't stop. the letter was never given to the first lady because the staff found her to be pathologically incapable of taking any responsibility said kelly. were you aware there were members of of this? >> i'm not aware. >> reporter: she moved the claim that the mcdonnell marriage was broken and said publicly they were very affectionate but the substance of their marriage didn't seem to back up their affection. on a plane ride kelly said she saw maureen and jonnie williams being kind of flirty and very friendly, but kelly had unbridle ed praise of her boss. she said he's one of the most honest people i know. she said if people had to elect the boy scout of the year, mr. honest

cabinet secretary janet kelly described bob mcdonnell as honest and said she was never asked to do favors for johnny williams. she described mrs. mcdonnell as difficult, demands, and di diva-like. hk dodge's lawyers are trying to separate his behavior from that of his wife in the eyes of the jury. >> they said the staff thought she was mentally ill. they are doing it with her in the courtroom. not only throwing her under the bus, but backing it up a few times. >> the defense continues its case tomorrow. fellow northern virginia bureau chief -- you can follow julie carey on twitter for updates from the courtroom. she'll have live reports on news 4. >> students will be returning to the university of maryland this week. when they do, they will find it harder to cross route one without using a crosswalk. tonight there are just cones. soon lining the center of the street to keep people from cutting across the busy road where there isn't a crosswalk. three people died trying to cross route one in college park this year. the speed limit on the road has been lowered and new pedestrian signals ins

. >> reporter: mcdonnell's secretary of the commonwealth janet kelly reiterated the image of a screaming first lady. kelly said maureen mcdonnell was very difficult, demanding, divaish, that she exaggerated and had secretive behavior and was known to hide things, shopping. kelly said the entire governor's mansion staff wrote and signed a massive resignation letter if the first lady never stopped. the letter was never given to the first lady because the path found her to be pathologically incapable of taking any responsibility said kelly. >> reporter: were you aware there were members that apparently wanted to split? >> i'm not aware of that. >> reporter: she moved the defense's claim forward that the mcdonnell marriage was broken. she said publicly they were very affectionate but the substance of their marriage didn't seem to back up their affect. on a plane ride kelly said she saw maureen and jonnie williams kind of flirty and very, very friendly, but kelly had unbridle the praise of her former boss. >> i was happy to come in and testify on behalf of the governor. he is a good man. >> r

. >> reporter: janet kelly, the former secretary of the commonwealth, but an unflattering spotlight on the former first lady. when pressed to describe for maureen mcdonnell's difficulties, she asked for a be it and became emotional. she said maureen -- tissue and became emotional. she said maureen mcdonnell was very demanding and divaish. she said mrs. mcdonnell had secretive behavior and was known to hide things. the whole staff asked for the mistreatment to stop in a letter. kelly argued against giving it to the first lady because she said she was pathologically incapable of taking any responsibility. as a powerful defense witness, she moved the defense claim forward that the mcdonnell marriage was broken. she said that publicly they were very affectionate but that the substance of their marriage didn't seem to back up their affection. on a plane ride kelly said she saw maureen and jonnie williams being kind of flirty and very, very friendly, but kelly had unbridled praise of her former boss. >> i was happy to come in and testify on behalf of the governor. he is a good man. >> report

secretary janet kelly took the stand on monday and she described maureen mcdonnell as very difficult, very demanding, very divaish. however, she did have high praise for her former boss then governor bob mcdonnell. >> i was happy to come in and testify on behalf of the governor. he is a good man. >> kelly also described flirty behavior between mrs. mcdonnell and former star scientific ceo jonnie williams on a plane ride. three other witnesses testified that jonnie williams' company never received any grant money from the state. >>> the corcoran gallery of art, george washington university and the national gallery of art will soon be one. yesterday a d.c. judge approved the major merger between the institutions. >> the ruling effectively dissolving the independent corcoran art gallery and hands over its $2 billion in assets. a group of students and faculty fought that merger arguing that the corcoran could be saved as an independent gallery through better financial management. >>> 6:05. idling your vehicle at a red light is about to take on a new meaning thanks to vehicle technology. >

janet kelly says there were concerns that maureen mcdonnell suffered from mental illness. abc 7 news at noon. have a great tuesday.

kelly evans at the new york stock exchange. >> and i'm scott wapner in today for bill griffeth. so, kell, the market was waiting for janetg speech, waiting for mario draghi's big speech, and you get the feeling as though the market is still trying to figure out what they said and what it means, because we're not really moving all that much. i don't know what your take is here, but i think people were looking for a little bit more. >> steven stanley i thought nailed it when he said this speech -- referring to janet yellen's -- was far less about making a full-throate

kelly, to you first on whether or not the real recovery is on or not in the economy. protesters at the fed's annual convention today were asking where is my recovery? the fed chair janet a keynote speech that the recent rapid decline in the unemployment rate overstates america's economic health. which means that the job market is not where it's supposed to be or something. what do you make of where we are in the economic recovery, end with this point? . >> to janet yellen's credit, she said the labor market hasn't improved to the point we want it to. she has said that. she was light on it. i would like to see stronger language. the economy is in shatters. the lowest since 1978. the economy double digit employment for young people. the economy is still in trouble. >> is that right, jonas? that characterization? >> shatters? no. >> for young people it is. >> certain people. >> i invest in the -- corporations. >> what i'm trying to say is longer fed policy is the limit to the job market it. has the created a huge asset boom, it is generated a lot of corporate profits on a lot of levels and have time to cool it down. unfortunately week have an underlying job problem that'

kelly, to you first on whether or not the real recovery is on or not in the economy. protesters at the fed's annual convention today were asking where is my recovery? the fed chair janet that the economy overstates the health, and which means that the economic recovery is not what it should be. >> well, to her credit she said that the labor market has not improved to where we want. to her credit, she said it did not improve, but i would like to see stronger economy. and the participation rate as is the lowest since 1978, and the double-digit unemployment for young people and the economy is still in trouble. >> and is that the right, jonas? >> well, for young people, it is. >> for certain people. >> i invest in corporations, and not young people, fortunately. but what i am trying to say is that the longest fed rate policy has done what it can for the job market and it has created a non-asset boom, and it has genera generated a lot of corporate profits on a lot of levels and time to kilt down, but unfortunately, we have a underlying job problem that is going to understood low it. >> and we have to talk about neil's big show tonight, and if we don't do that we will be in

kelly, back to you. >> mary, thank you. i wondered, kate, if this was telegraphed by the questions elizabeth warren had for janet yellen duringest appearance on capitol hill. she pushed hard on the issue of whether the fed had looked through the living wills submitted. >> you have to wonder if that was a catalyst. i think one lesson is we're still very much recuperating from the financial crisis, and not just in the obvious ways. the capital expectations set are now changing fundamentally the way wall street banks do business. they're cutting back on what they're willing to do for hedge funds, especially when it comes to holding their assets, which give them a higher leverage ratio, and they're not going to do that now as freely. so, fundamental changes are occurring, perhaps sales of different units, and at the same time, regulate yofors saying yo haven't gone far enough, you're making overly rosy assumptions. >> and it's bad news if you're an investor in the financial services company. the way they're trading, one times book value, versus multiples back in the day, the book value is probably the new normal, and so we can ge

kelly evans at the new york stock exchange. >> and i'm scott wapner in today for bill griffeth. so, kell, the market was waiting for janet yellen's big speech, waiting for mario draghi's big speech, and you get the feeling as though the market is still trying to figure out what they said and what it means, because we're not really moving all that much. i don't know what your take is here, but i think people were looking for a little bit more. >> steven stanley i thought nailed it when he said this speech -- referring to janet yellen's -- was far less about making a full-throated defense of her personal views and offering a fair and even-handed survey of the issues to be discussed over the weekend about the labor market. >> i heard comments such as wishy-washy, you know, maybe she moved back to the center, it wasn't nearly as dovish as it could have been. >> they don't knoech. >> they're saying it wasn't hawkish either. >> we've seen those before. instant reaction just ahead from pimco's bill gross. we're going to find out what the man they call the bond king makes of today's comments from the top two central bankers in t

kelly, is unambiguous. earnings have been stagnant and this is a big issue. on the first, it's subject to debate and we're doing to hear more from janetellen offen the on friday as to how much slack is left in the economy. i can tell you if labor compensation moves within the next reports, employment reports, then there will be a change in the view of the interest rate paradigm. >> so, mohammed, if we buy your and steve's view that these minutes feel a little more hawkish than maybe we thought an hour and a half ago, why did the market continue to move higher after a little bit of a wobble and now we sit really on the all-time closing high for the s&p? >> so interesting. if you look at the dollar, if you look at the bond market, they are interpreting these minutes as more hawkish. the equity market is wonderfully resilient, wonderfully resilient. the correlations have gone -- >> naively so? >> i don't know if it's naively so because you can argue that the market believe all the cash coming in, including from corporate balance sheet, is a better use for cash for the investor. i could make an argument but it's a really stretched argumen

. >> reporter: mcdonnell's secretary of the commonwealth janet kelly reiterated the image of a screaming first lady. kelly said maureen mcdonnell was very fficult, very demanding, very divaish. she said the first lady exaggerated and had secretive behavior and was known to hide things, shopping. kelly said the entire governor's mansion staff wrote and signed a mass resignation letter if the first lady's behavior didn't stop. the letter was never given to the first lady because the staff found her to be pathologically incapable of taking any responsibility said kelly. as a powerful defense witness, she moved the defense claim forward that the mcdonnell marriage was broken. she said that publicly they were very affect nature but that the substance of their marriage -- affectionate but that the substance of their marriage didn't seem to back up their affection on. a plane ride she said she saw maureen and jonnie williams being very flirty, but kelly had unbridled praise of her boss. she called him one of the most honest people i know and if people had to elect the boy scout of the year, mr.