Last Monday, exactly 2 1/2 hours apart, state Treasurer Phil Angelides and state Controller Steve Westly issued similar press releases claiming credit for actions to protect investors from Wall Street shenanigans.

Angelides was first out of the box at 3:20 p.m. with an e-mail announcement that he had persuaded the California Public Employees' Retirement System to endorse his "initiative to protect investors, pensioners and their families through a wide range of mutual fund reforms."

At 5:50 p.m., Westly's office dispatched a press release saying that the CalPERS investment committee had endorsed stock trading reforms that would "increase investor freedom and promote competition at the New York Stock Exchange."

Both politicians clearly were aiming at building investment reformer images for themselves in an era when misconduct by big business, including insider dealing in the stock market, is a hot political topic. And the dueling press releases neatly frame the developing rivalry between the two as they look ahead to the 2006 election for governor.

It's widely assumed - although without hard evidence - that newly elected Republican Gov. Arnold Schwarzenegger will be seeking a second term that year, but while he's very popular now, having succeeded a very unpopular Gray Davis, no one can predict with certainty what his standing will be with voters two years hence. Schwarzenegger may pull off his agenda, restoring order to the state's finances and adopting a friendlier business climate, but there are no guarantees, and with the fickleness of voters, today's conquering hero can become tomorrow's laughingstock. Thus, Angelides, Westly and the third potential contender, Attorney General Bill Lockyer, are still gearing up to run - with Angelides and Lockyer under the most pressure because term limits will drive them out of their current offices in 2006.

That said, Schwarzenegger's dominating presence presents the trio with a dilemma - how to position themselves as challengers without running afoul of the current political mood. Lockyer fumbled badly when he first acknowledged that he had voted for Schwarzenegger in last October's recall election and dismissed allegations of sexual harassment as "frat boy behavior." That put Lockyer in the soup with women's activists, and his efforts to right his listing political ship may have worsened his situation - such as referring to angry women as "cranky" during an appearance at the state Democratic Party convention.

Lockyer's been laying low lately while Angelides and Westly have been trying to build their public images as populist reformers - no mean feat for two wealthy businessmen. But Lockyer's not in hibernation. He appears to be using his position - easily the most powerful in state government outside the governorship - to strengthen ties to significant Democratic constituencies. He inserted himself, for example, into the bitter Southern California supermarket clerks' strike by suing the grocery chains for antitrust violations, thus endearing himself to the clerks' union. Earlier in the year, he did much the same for another union, the California Nurses Association, by sending a letter to a Southern California hospital, on official letterhead, pressing hospital executives to sign a contract with the union. And more recently, he sent another letter to Placer County supervisors criticizing their approval of a large-scale development near Truckee and thus throwing his weight behind environmental groups that have sued to stop the project.

Angelides and Westly face the same dilemma about Schwarzenegger. Westly opted to campaign with the governor for Proposition 57, a $15 billion bond issue to refinance some of the state's budget deficit debt, and made many joint personal and television appearances, while Angelides denounced the measure and called, instead, for raising taxes to close the budget gap. Voters' strong approval of Proposition 57 and rejection of Proposition 56, which would have made it easier to raise taxes, were setbacks for Angelides.

Westly believes that basking in Schwarzenegger's glow is the way to gain political credibility, while Angelides is betting that becoming the anti-Schwarzenegger will pay off in the longer run.