So says the New York Times:
Hillary Rodham Clinton has decided to give up her Senate seat and accept the position of secretary of state, making her the public face around the world for the administration of the man who beat her for the Democratic presidential nomination, two confidants said Friday.
Mrs. Clinton came to her decision after additional discussion with President-elect Barack Obama about the nature of her role and his plans for foreign policy, said one of the confidants, who insisted on anonymity to discuss the situation. Mr. Obama’s office told reporters Thursday that the nomination is "on track" but this is the first word from the Clinton camp that she has decided.
Here we go. More as it develops.
Update 1: To me, the interesting process point was how they would handle getting information from and about Bill Clinton. I saved room tho post a third paragraph from the NYT for when that information came out; here it is.
People close to the vetting said Mr. Clinton turned over the names of 208,000 donors to his foundation and library and agreed to all of the conditions requested by Mr. Obama’s transition team, including restrictions on his future paid speeches and role at his international foundation.
I think cases can be made for and against the appointment, though I am going to be optimistic. However, ensuring that this doesn't dilute the ethical standards of the new Administration is critical -- it's not like people aren't going to ask questions about this -- and if the Obama Administration did successfully work out an acceptable deal, more power to them, and more power to the Clintons for agreeting to such limitations.