"Obama suffers blow over nominees", which then reports that:
Only hours before Mr Daschle pulled out of the process, Nancy Killefer, nominated by Mr Obama to be the government's budget watchdog also withdrew over tax issues.In January, New Mexico Governor Bill Richardson announced he was withdrawing from consideration as commerce secretary after an investigation was launched into a state contract that had been given to his campaign donors.
Republican Senator Judd Gregg was on Tuesday appointed instead, the second from his party to join Mr Obama's cabinet.
US Treasury Secretary Timothy Geithner was confirmed last week only after long arguments over his failure to pay $34,000 (£24,500) in taxes he owed until shortly before he was nominated.
Announcing his withdrawal, Mr Daschle, the former Senate Democratic leader, said he would have not been able to operate "with the full faith of Congress and the American people".
He said he would "not be a distraction" to Mr Obama's agenda.
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