Commerce Secy nominee bows out

But he said the inquiry could last weeks or months,drawing out his confirmation hearings and distracting the administration as it grappled with economic crisis.

The announcement was a setback for the president-elect. It raises questions about the thoroughness of Richardson’s vetting,deprives the Obama administration of a prominent Hispanic and leaves a hole in the White House economics team at a critical juncture. The investigation concerns CDR Financial Products Inc,a Beverly Hills,California,company that in 2004 was awarded two contracts worth about $1.4 million to advise the State of New Mexico on a bond issue for building infrastructure.

The company’s president,David Rubin,a Democratic contributor,gave about $100,000 to two political action committees controlled by Richardson,as well as $10,000 to his re-election campaign in 2005.