Obama Taps Holder for Justice, Still Eyeing Hillary Clinton for State

Clinton administration veteran Eric Holder has agreed to join Obama's cabinet as Attorney General.

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The question of who would fill two major cabinet seats became less precarious today. Sources said this morning that the job of attorney general has been offered and informally accepted by Washington attorney Eric Holder, while former president Bill Clinton has agreed to several concessions to ensure Hillary Clinton's path to becoming secretary of state.

Holder, a senior official in the Clinton administration's Justice Department and one of the Obama campaign's top advisers, would be the first African-American to be attorney general. One concern he had to overcome was his involvement in a presidential pardon scandal at the end of Bill Clinton's tenure. Still, his experience in Washington and his reputation made him an expected pick as the country's No. 1 law enforcement official. Sources say that while there hasn't been a final decision, it seems all but inevitable that he'll officially take the job.

Meanwhile, Hillary Clinton is getting closer to the post of secretary of state, but is reportedly torn about whether to give up her Senate seat. (That may be a bargaining tactic, some say). At the same time, however, her husband, one major stumbling block in the decision because of his fundraising and international business deals, has offered concessions on his work with his foundation to help smooth the vetting process. These include releasing some of the names of the biggest donors, submitting its activities and paid speeches to an ethics review, and relinquishing daily responsibilities with the foundation.