I realize many of you don’t care about the royal scandal involving the News of the World catching Fergie in a pay-to-play scandal, but I’m finding the whole situation fascinating. As I summarized on Monday, the NOTW sent an undercover reporter into a meeting with Fergie – the reporter was acting as a “businessman” who was looking for a meeting with Prince Andrew and other members of the royal family. The NOTW got Fergie on tape discussing the pay-off: a wire transfer of about $750,000, plus $60,000 cash. Since the scandal broke over the weekend, many wondered if Fergie was still going to be welcome to events with her ex-husband, Prince Andrew, The Duke of York. The Mirror is running a front-page story which paints Andrew in a very nice light, I think. Apparently, Andrew’s feelings on the whole situation are along the lines of “Whatever.” Fergie offered to move out of the London home they share (with their daughters) but Andrew wouldn’t have it. Aw… that’s kind of sweet, isn’t it?

Tearful Fergie was forgiven by ex-husband Prince Andrew yesterday for her “cash for access” scam. He sympathised as she poured out her heart in an emotional phone call.

The sobbing Duchess apologised for betraying his trust – and even offered to quit the room she has at his Windsor mansion. But Andrew told her: “Don’t be silly, you can stay as long as you like.”

A friend said: “He’s a very caring person. He thinks she was set up.”

It has been four years since their divorce was finalised, but Prince Andrew and Fergie have remained the best of pals. And yesterday the unique bond between the royal “odd couple” was evident again – as Andrew pardoned his ex-wife’s latest monumental indiscretion. He told her he forgave her after she was exposed in newspaper sting operation trying to sell an introduction to him to a bogus businessmen for £500,000.

And in an astonishing show of loyalty to the woman he has loved for 25 years, the Duke of York promised she could stay in his house “as long as you like”.

After emotional talks with the couple’s daughters Beatrice and Eugenie, he has vowed to dig Fergie out of her financial problems and help her to recover from the depths of despair. It will shock royal courtiers and annoy his parents, particularly Prince Philip, who wanted Andrew to make a clean break after their divorce in 1996. But many will welcome the move at a time when friends fear she may be “suicidal”.

Those closest to her say she has been a “quivering wreck” since the scandal broke. Fergie was taped as she accepted a $40,000 “down payment” for access to Andrew, Britain’s Special Trade envoy – even though he knew nothing about it.

Distraught Fergie, 50, had already offered to move out of Royal Lodge, the Queen Mother’s old home at Windsor, where she has lived in a rented room under the same roof as her ex-husband for nearly two years. But a friend revealed the prince has turned that offer down flat, telling her: “Don’t be so silly.”

Fergie spoke to him in a tearful phone call from her suite in the Renaissance Hollywood Hotel in Los Angeles, where she had just picked up an award for her charity work. She sobbed for several minutes, begging his forgiveness. She told him she had betrayed his trust and she would move out as soon as she returned to the UK. But the friend revealed: “Andrew told her to calm down and get a grip. He is a very caring person, a loving father and he told Sarah not to be so silly. He told her she had been set up and although she had clearly made a massive mistake, he wasn’t going to kick her out on to the streets. He knows she can’t afford anywhere – that’s why he let her stay at Royal Lodge in the first place.”

The friend continued: “The other major reason was because Bea and Eugenie like being close to their mum. Whatever else she is, Sarah has always been an excellent parent and Andrew admires her for that. His attitude is that he isn’t going to tear his family apart because of one week’s bad headlines.”

Fergie, who smiled and waved to well-wishers as she left a New York hotel yesterday, is said to be “in limbo” following the weekend’s revelations and does not know where to turn. But she can now at least rely on the support of the one man who has always stood by her, no matter what.

The pal said: “Booting Sarah out would only have made things worse. She wouldn’t be able to cope and it could have tipped her over the edge. The fact is that when say they are the world’s happiest divorced couple, they really mean it. Sometimes you cannot understand why they split up in the first place. They will always be best friends and although the set-up seems weird to many people, it works for them.”

[From The Mirror]

I actually thought the scandal around Fergie would be a lot bigger. She should thank her lucky stars that Andrew and the other royals don’t have their diamond-encrusted shivs out. If I was Andrew, I would be pissed at her – she wasn’t even selling herself, like a proper hooker. She was pimping out Andrew, her EX husband. The fact that Andrew seems to be so understanding and nice about it makes me wonder if he really understands how this scandal impacts his reputation. Still, Andrew was always my favorite of the Windsors. He seems like the most normal one.