The Associated Press has an explosive story that shows that Kasich campaign spokesman Scott Milburn instructed state pension executives friendly to the Kasich campaign what to tell the media about revelations of state pension losses attributed to Lehman Bros.

A message obtained by The Associated Press was sent May 3 amid efforts by Democrats to tie the Lehman losses to Kasich. The GOP candidate for governor worked for a time at the now-defunct investment bank.

In the e-mail, Kasich spokesman Scott Milburn told an Ohio Public Employee Retirement System executive to explain that not all the money it lost was a result of the Lehman bankruptcy.

The fund had calculated its Lehman losses at $111 million, significantly lower than a separate figure released by the Democratic state treasurer.

State pension funds are run by boards made up of both Republicans and Democrats.  This shows that the Kasich campaign, while publicly declaring that Kasich was not responsible for anything that happened as a result of the Lehman Bros. bankruptcy, privately were telling its supporters how to “spin” the losses and mitigate Lehman Bros.’s role in state pension losses.

In other words, they owned the story.  Worse yet, they used their friends in state government to coordinate their media strategy.

This is just the kind of thing that will totally make Lehman Brothers a non-issue in the campaign, right?

Game over, man…