Two Democratic strategists outside Obama's transition team told CNN that Obama aides pushed the withdrawal because they did not want an ethical distraction in the wake of controversy surrounding embattled Illinois Gov. Rod Blagojevich. Federal prosecutors allege that Blagojevich, a Democrat, had hoped to barter Obama's Senate seat for either money or influence.
One of the Democratic strategists described Richardson as "stunned." But Democrats who talked with CNN noted the withdrawal is in keeping with the Obama philosophy of resolving issues quickly.
Also see http://www.cnn.com/2009/POLITICS/01/04/richardson.withdrawal/index.html and http://transcripts.cnn.com/TRANSCRIPTS/0901/04/cnr.01.html
...remember, Richardson's endorsement of Obama. It was a very big deal for the then junior senator from Illinois. Richardson had of course served in the administration of Bill Clinton as ambassador to the U.N., and both Hillary Clinton and Obama lobbied for his endorsement.
It was a bit of a surprise, considering his ties to the Clintons, that he didn't throw his weight behind her and instead threw it behind the now president-elect.
...And one of these democrats told CNN that Richardson was stunned by this sudden turn of events
http://www.msnbc.msn.com/id/28493919/
New Mexico governor cites pending investigation of business dealings
BREAKING NEWS
NBC News
updated 1 minute ago
The Associated Press contributed to this report.
New Mexico Gov. Bill Richardson, tapped in December by President-elect Barack Obama to serve as secretary of Commerce, has withdrawn his name for the position, citing a pending investigation into a company that has done business with his state.
"Let me say unequivocally that I and my Administration have acted properly in all matters and that this investigation will bear out that fact," he said Sunday in a report by NBC News' Andrea Mitchell. "But I have concluded that the ongoing investigation also would have forced an untenable delay in the confirmation process."
A federal grand jury is investigating how a California company that contributed to Richardson's political activities won a lucrative New Mexico state contract.
A person familiar with the proceedings has told The Associated Press that the grand jury is looking into possible "pay-to-play" dealings between CDR Financial Products and someone in a position to push the contract through with the state of New Mexico.
Richardson said he plans to continue in his role as governor. "I appreciate the confidence President-elect Obama has shown in me, and value our friendship and working partnership. I told him that I am eager to serve in the future in any way he deems useful. And like all Americans, I pray for his success and the success of our beloved country."
Obama said Sunday he accepted Richardson's decision to withdraw with 'deep regret.'
"Governor Richardson is an outstanding public servant and would have brought to the job of Commerce Secretary and our economic team great insights accumulated through an extraordinary career in federal and state office," Obama said.
Richardson, 61, was United Nations ambassador and energy secretary during the Clinton administration, and he is in his second term as New Mexico's governor. He also served seven terms in the House of Representatives.
If he had been confirmed by the Senate as secretary of Commerce, he would have taken over a sprawling department that oversees the National Weather Service, the Census Bureau, economic development programs and more.
One of the nation's most prominent Hispanic politicians, Richardson had pledged at the time of his nomination — in English and Spanish — to work to renew the economy.
Obama on Sunday gave no indication whom he might name to replace Richardson as the nominee but said "we must move quickly to fill the void left by Governor Richardson's decision."
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