Bill Daley Named New White House Chief Of Staff

UPDATE (2:45 pm) — President Obama has asked former Commerce Secretary and current Wall Street executive William Daley to serve as his White House Chief of Staff.

Daley will be replacing Rahm Emanuel, who left the White House left last fall to pursue a mayoral bid in Chicago. Pete Rouse has served as an interim replacement since October.

In brief remarks on Thursday, Obama praised Daley, whom he referred to as a “fellow Chicagoan.”

“Few Americans can boast the breadth of experience that Bill brings to this job.”

The President also announced that Rouse had agreed to stay on as his counselor for the next two years.

Former DNC Chair and Vermont Governor Howard Dean gave Daley a glowing endorsement during remarks before a breakfast sponsored by the Christian Science Monitor this week.

“[Daley is] a grown-up who doesn’t treat people like they don’t know anything and you know everything,” Dean said.

The news was met with both praise and admonishment from groups in Washington. The pro-business U.S. Chamber of Commerce called Daley “an accomplished manager and strong leader.” However, the liberal group MoveOn said that the selection of the J.P. Morgan Chase executive “sends the wrong message.”

Geopolitically speaking, Daley is a natural fit for the Chicago-oriented White House. He is the brother of outgoing Chicago Mayor Richard M. Daley and the youngest child of long-serving Mayor Richard J. Daley.

Correspondent Geoff Holtzman contributed to this story.