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Eric Holder as Attorney General

Newsweek is reporting that Obama is set to tap Eric Holder as his nominee for Attorney General.

Holder, who served as deputy attorney general during the Clinton administration, still has to undergo a formal "vetting" review by the Obama transition team before the selection is final and is publicly announced, said one of the sources, who asked not to be identified talking about the transition process. But in the discussions over the past few days, Obama offered Holder the job and he accepted, the source said. The announcement is not likely until after Obama announces his choices to lead the Treasury and State departments.

The biggest hurdle he apperently faces is that he did not raise a red flag at the pardon of fugitive financier Marc Rich when Holder worked in the Clinton administration. The pardon continues to haunt Clinton and anyone associated with it.

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