By Michael D. Shear & Jackie Calmes
The New York Times
President Obama formally named William M. Daley to be his chief of staff calling him an experienced public servant" and a devoted patriot" and said he is the right person to help direct the White House.
Speaking at a ceremony in the East Room Mr. Obama said Mr. Daley has a deep understanding of how jobs are created and how to grow our economy."
I know Bill to be somebody who cares deeply about this country" Mr. Obama added. He will bring his tremendous experience his strong values and his forward looking vision to this White House."
Doug Mills/The New York Times
In his short remarks Mr. Daley pledged not to let the president or the nation down.In brief remarks after the introduction Mr. Daley compared Mr. Obama to President John F. Kennedy. A former commerce secretary under President Clinton Mr. Daley said he believes that public service is an honorable calling and I am pleased to answer your call."
Of the staff he will now lead in the West Wing Mr. Daley pledged This team will not let you down nor the nation."
At the ceremony Mr. Obama praised his friend Pete Rouse who served as interim chief of staff after the departure last fall of Rahm Emanuel who is running for mayor of Chicago.
Mr. Obama said that he had prevailed upon Petes sense of duty or sense of guilt" and that Mr. Rouse had agreed to serve as the presidents counselor for the next two years.
Mr. Daley a senior executive with JPMorgan Chase will bring an outsiders voice and decades of business experience to the West Wing.
At JP Morgan Chase Mr. Daley the brother of Mayor Richard M. Daley of Chicago is responsible for its Midwestern operations. He has been a player in national politics both publicly and behind the scenes since the early 1990s when President Bill Clinton enlisted him to use his connections with business and labor leaders to shepherd the North American Free Trade Agreement with Mexico and Canada through Congress. It was enacted over the strong opposition of labor unions and many Democratic lawmakers.
Mr. Clinton made Mr. Daley 62 his commerce secretary in his second term. Mr. Daley left in mid-2000 to become chairman of Vice President Al Gores presidential campaign and he was given credit for stabilizing what had been a troubled election team.
During the Bush administration Mr. Daley worked for a time in Texas as president of SBC Communications Inc. but in 2004 he returned to Chicago to help manage the merger of Chicago-based Bank One with JP Morgan Chase working closely with the new chief of the merged institution Jamie Dimon.
Before the 1990s Mr. Daley was a lawyer and banker in Chicago where his father and older brother have been mayor for most of the past half-century. Despite his Chicago roots he does not have a prior close relationship with Mr. Obama but he has for years been a political ally of Rahm Emanuel Mr. Obamas first chief of staff and a former Chicago congressman who is now the lead candidate for mayor.
It was Mr. Emanuel and the Obama strategist David Axelrod another longtime Chicago Democratic operative who raised the idea of tapping Mr. Daley as chief of staff associates say. Mr. Daley who has been critical of the administration at times particularly for pursuing the health care overhaul once it became unpopular is seen as bringing a sort of wise man" personage and fresh blood to the White House with an ability to reach out to the alienated business community.
Hes an honest-to-god moderate" said Michael Berman a lobbyist and longtime Democratic operative who is a friend of Mr. Daley. Hes the kind of person whos going to work toward making things happen and without being dramatic about it."
Jon Cowan the president of Third Way a think tank that pushes centrist Democratic politics praised the decision to pick Daley.
President Obama has made a brilliant choice in naming William Daley a member of Third Ways Board to serve as White House Chief of Staff and his selection sends a clear signal that he intends to govern and campaign from the center over the next two years" Mr. Cowan said. In selecting Daley President Obama has hit the trifecta a top notch manager a pro-growth business leader and a moderate Democrat who knows how to work across the aisle."
But Mr. Daleys political centrism and background with business and Wall Street are certain to exacerbate the administrations tense relations with liberal activists in the Democratic base.
One liberal group was quick to comment.
This was a real mistake by the White House" said Adam Green with BoldProgressives.org. Bill Daley consistently urges the Democratic Party to pursue a corporate agenda that alienates both independent and Democratic voters."
Another challenge facing Mr. Daley will be integrating himself into the often insular world of close Obama confidants who have largely run the presidency so far.
He also has big shoes to fill. Mr. Rouse who will remain at the White House is a favorite among staffers who are particularly loyal to him. And Mr. Emanuel was known for his fierce work schedule and a detailed knowledge of the legislative process.
The arrival of Mr. Daley is the latest acceleration of what White House officials have described as an overhaul of the presidents senior staff. Robert Gibbs the White House press secretary announced Wednesday that he would leave next month to become an outside political adviser to the president.
Next week David Plouffe Mr. Obamas campaign manager in 2008 is expected to join the White House taking over the role that Mr. Axelrod has played for the past two years. Mr. Axelrod is leaving the White House to return to Chicago where he will help to prepare the presidents 2012 re-election campaign.
People close to the decision said the president did not offer the job to Daley during their Oval Office meeting on Wednesday but did so very recently.
Mr. Obamas top aides believe Mr. Daley brings national political experience and has been through the roller coaster of national campaigns and Washington battles. They said the president was also mindful of his ties to the business community.
The reorganization of the West Wing is largely following a plan that was started by Mr. Rouse before the departure of Mr. Emanuel. Aides said the president made clear that Mr. Rouse could remain in the chiefs job to implement his plan if he wanted to.
Instead as counselor Mr. Rouse will remain one of the White Houses top fixers operating largely in the shadows to deal with political problems.
