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EARLYBIRD

Wednesday, February 4, 2009 8:30 AM

Top Transition News - 2/4

Tax experts say the "innocent mistakes" that have sunk two Cabinet candidacies "were not cases of something really esoteric" and could have been avoided. (Washington Post)

Nancy Killefer, President Obama's nominee for White House deputy budget director and chief performance officer, withdrew her candidacy, citing unpaid taxes. (AP)

Leon Panetta, Obama's choice for CIA director, earned more than $1 million last year from speaking and consulting fees and board directorships. (Politico)

While calling for a "more narrowly focused Afghanistan policy," the Obama administration has been disappointed to find the situation on the ground worse than they previously realized. (Washington Post)

After being sworn in Tuesday, Attorney General Eric Holder pledged to restore the credibility of the Justice Department, "which has been so badly shaken by allegations of improper political interference." (Politico)

Gene Robinson, an openly gay Episcopal bishop, says that after meeting Obama, he had no doubts the president was "right where I wanted him to be" on gay issues. (The Advocate)

All Daschle, All The Time

After watching Tom Daschle withdraw his candidacy for Health and Human Services secretary, some observers think the former majority leader pulled out too soon. (Time)

"I screwed up," Obama admitted Tuesday night in an interview with NBC after Daschle dropped out. (Wall Street Journal)

The founders of two nonprofits linked to Daschle sprinkled campaign contributions around town. (Wall Street Journal)

While the White House insisted that health care reform is "bigger than one person", Daschle's abrupt departure puts a kink in Obama's plan to ram legislation through early in his term. (New York Times)

The Obama administration is unsure how to proceed without Daschle, aides confess, saying "there were no other names" for the HHS post. (Washington Post)

Indeed, Sen. Edward Kennedy, D-Mass., called the withdrawal a "major blow" in the health care reform efforts on the Hill. (CongressDailyAM -- subscription)

This Judd In

White House Chief of Staff Rahm Emanuel and Senate Majority Leader Harry Reid, D-Nev., pushed Obama to consider Sen. Judd Gregg, R-N.H., for the top job at the Commerce Department. (Politico)

Gregg will likely be tasked with winning over Republican lawmakers, but some say he could have been more valuable to Obama as a senator than as a Cabinet member. (Roll Call -- subscription)

The Congressional Black Caucus is calling for a "detailed examination" of Gregg to ensure, among other things, that minority-owned businesses are "fully integrated" into the country's economic recovery. (CongressDailyAM -- subscription)

Gregg owns between $1 million and $5 million worth of Bank of America stock -- and voted in favor of the $700 billion rescue package last fall to pump billions into the bank. (Los Angeles Times)

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