Transition News

Leaks and rumors abound on possible nominations and speculation is reaching a fever pitch. Several media outlets are reporting Timothy Geithner to be named Treasury Secretary.

Geithner played a large role in the government's efforts to wrangle the credit crisis, which has damaged markets and economies worldwide. While a number of those efforts have been controversial, Geithner remains a well-regarded figure from Wall Street to Washington.

MSNBC reports Bill Richardson is likely to be tapped for Secretary of Commerce and Janet Napolitano as Secretary of Homeland Security. Although the aides leaking the news to both CNN and MSNBC cautioned neither position was a done deal.

And last but not least, according to CNN (and many other outlets) Hillary Clinton could be nominated for Secretary of State.

President-elect Obama is on track to nominate Sen. Hillary Clinton as his secretary of state after Thanksgiving, three aides on Obama's transition team told CNN Thursday.

Clinton senior adviser Philippe Reines repeated a statement that "any and all speculation about Cabinet or other administration appointments is for President-Elect Obama's transition team to address."

Talking Points Memo has an interesting take on the Clinton nomination. Hillary still owes $7.5 million to various vendors for her campaign.....$5.4 million of that is owed to Mark Penn for services rendered. While she has nearly cut her debt in half since June, all fundraising would have to end if she accepts the position.

Obama is considering Clinton for secretary of state. As a Cabinet member Clinton would face fundraising restrictions to retire her vendor debt.

A 2001 advisory opinion by the federal Office of Special Counsel said a federal employee who still had a campaign debt would be prohibited from "personally soliciting, accepting or receiving political contributions."

Clinton could name an agent from her campaign committee to continue to organize and hold fundraising events to retire the debt. Clinton would be limited to attending a fundraising event and simply stating her appreciation to donors.

In other words, if the SoS job is offered and accepted......it could be very difficult for Mark Penn to get paid. Ouch.

More community discussion on these possible nomiations can be found in Johnny Venom's diary on the rec list.