Obama still vetting Clinton, may pick Daschle for health secretary

Nov 19, 2008, 18:12 GMT

Washington - President-elect Barack Obama on Wednesday unveiled who will develop his key policy priorities during the transition as US media speculated on his potential cabinet picks for health, justice and the top US diplomat.

Former president Bill Clinton has opened up his books to the Obama transition team in an effort to pave the way for his wife Hillary Clinton to get the job of secretary of state, the Wall Street Journal reported.

Clinton has travelled around the world and raised millions for his charitable foundation since leaving the presidency in 2001. His financial dealings were being investigated by Obama's people to ensure no conflicts of interest if Hillary Clinton were to head the State Department.

Tom Daschle, a former Senate majority leader and co-chair of Obama's presidential campaign, has been given the job of health and human services secretary, CNN reported Wednesday.

Daschle is known as a passionate advocate for health care reform, which is likely to be one of Obama's top domestic priorities in 2009.

On Tuesday, media reported the position of attorney general had been offered to Eric Holder, who would become the first African American to lead the Justice Department. Holder was deputy attorney general under Clinton.

Obama faces an economy in crisis and the first wartime transition in the United States since Vietnam, forcing him to quickly put a team in place ahead of his inauguration January 20.

Obama said in an interview with CBS News on Sunday that he will soon begin naming cabinet positions - but no names have been unveiled to date.

Clinton, Holder and Daschle were going through an extensive vetting process before they are formally announced. All cabinet positions will also have to be confirmed by the US Senate.

Few details are available about Obama's pick for Treasury secretary, possibly his most important choice as the US faces a financial sector threatened with collapse. Names floated include Larry Summers, who was Treasury secretary under Clinton, and New York Federal Reserve Chairman Timothy Geithner.

Obama's office did issue details Wednesday on who would be directing policy in various key areas during the transition phase, a sign of who may get some of the top jobs in an Obama administration.

Daschle was tapped to develop policy on health care, while Georgetown law professor Daniel Tarullo will lead economic policy. Tarullo worked in the Clinton administration and may join the White House Council of Economic Advisors, a group of three individuals that advise the president on economic issues.

James Steinberg and Susan Rice will direct national security policy during the transition. Both worked in the State Department in the 1990s and have been mentioned as possible national security advisors, the top foreign policy position in the White House.