Nov 21, 2008 7:00 pm US/Eastern
Clinton To Say Yes; Geithner Tapped For Treasury
WASHINGTON (CBS) ―
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New York Federal Reserve President Timothy Geithner, New Mexico Gov. Bill Richardson and New York Sen. Hillary Clinton. (File)
CBS
Hillary Clinton will accept President-elect Barack Obama's offer to become Secretary of State, CBS station WCBS-TV in New York reports.
WCBS has confirmed that Clinton will leave the Senate and join forces with the man she went toe-to-toe with during a bruising primary election.
The official announcement won't come until after Thanksgiving.
Clinton wouldn't answer any questions on the subject Thursday night in Harlem, but sources say she is all set to pack her bags and kiss New York goodbye once Obama announces his choice shortly after Thanksgiving.
Friday's decision comes a week after the two met secretly in Chicago.
As part of the arrangement, former President Bill Clinton will have to submit his speeches and travel itineraries to the White House for approval.
Reports say Obama is also likely to name Federal Reserve Governor Timothy Geithner as treasury secretary next week.
An official close to the senator says the New York Federal Reserve president is the leading contender for the job and is likely to be nominated Monday. The official spoke on condition of anonymity because Obama hasn't finalized his decision.
BS News correspondent Anthony Mason said that Wall Street likes the appointment of Geithner for two reasons. First, it ends all the uncertainty and second, it provides a seamless transition.
"As head of the New York Fed, Geithner was essentially Bernanke's point man with Wall Street," Mason said. "It was Geithner who brokered the deal that saved Bear Stearns back in March."
However, Geithner's known for liking to work behind the scenes and he's never really sought out the spotlight, which could be a problem, Mason notes.
"This is the guy who's going to be the point man in leading us out of the worst economic crisis since the Depression," he said. "He will have to learn how to become a communicator."
The development comes as Obama prepares for how he will grapple with a collapsing economy. Gov. Bill Richardson of New Mexico is under serious consideration to be commerce secretary, according to Democratic officials.
Geithner has played a key role in the government's response to the financial crisis and worked closely with Treasury Secretary Henry Paulson.
Just 17 days ago, Sen. Clinton told Kramer unequivocally that she would not join Obama's administration if he won the election.
"I'm not interested in serving in the administration," she said Election Day morning. "I want to roll up my sleeves and be a good partner in the Senate for the agenda that I hope will be successful in the next two years."
But power is seductive and Clinton obviously did the math. Junior Senator from New York has a lot less clout than Secretary of State, and although the Obama people are guarded, it's clear they want her.
"She's obviously a talented public official and someone who would enhance any team," said David Axelrod, an Obama senior advisor.
(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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