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Sarah Palin Resigns as Alaska Governor

By Matt Murai on July 3, 2009

Sarah Palin, pictures, picture, photos, photo, pics, pic, images, image, hot, sexy, latest, newWASILLA, Alaska — David Letterman may have some new material.

Alaska Gov. Sarah Palin pulled a shocker Friday, announcing that she plans to resign her post on July 26.

"We know we can effect positive change outside government at this moment in time on another scale and actually make a difference for our priorities," said Palin during her shocking news conference.

Early speculation is that Palin's decision to step down is centered around her desire to focus on earning the 2012 Republican nomination for president.

Alaska Lt. Gov. Sean Parnell will succeed Palin, who is departing before the end of her first term.

"I know when it's time to pass the ball for victory," Palin said of her decision to leave office.

In June, Palin and Letterman exchanged a war of words after the late-night host joked that her daughter had sex with baseball star Alex Rodriguez.

The CBS funnyman later apologized, saying that the joke wasn't meant for Palin's teenage daughter, Willow, but rather older sibling, Bristol, who had a child out of wedlock.

"Am I guilty of poor taste? Yes," Letterman told his viewers. "Did I suggest that it was OK for her 14-year-old daughter to be having promiscuous sex? No."

While she refused an offer to clear the air on the "Late Show," Palin later accepted Letterman's apology.

"Of course it's accepted on behalf of young women, like my daughters, who hope men who 'joke' about public displays of sexual exploitation of girls will soon evolve," she said in a statement.