Aides say Obama has settled on Clinton to become secretary of state

President-elect Barack Obama intends to name Timothy F. Geithner, president of the New York Federal Reserve, as his Treasury secretary to confront the nation's economic turmoil, senior Democratic officials said yesterday. The stock market soared on the news.

Word of Geithner's likely selection emerged as New York Sen. Hillary Rodham Clinton, in line to become secretary of state, said through a spokesman that discussions were on track for her appointment but no final arrangement had been made. Friends and advisers to both camps said last night that Obama had settled on his former rival. They added that she has not yet accepted the job but was prepared to do so.

After an extensive examination of former President Bill Clinton's complicated finances, the Obama transition team is satisfied that the nomination will not pose any conflicts of interest, an aide to Obama said.

Obama plans to announce Geithner's appointment Monday in Chicago, barring an unforeseen snag in a background check that nearly is complete, said one of the senior officials.

If nominated and confirmed by the Senate, Geithner, 47, would assume chief responsibility for tackling an economic slowdown and credit crunch that threaten to create the deepest recession in more than a generation.

In his current post in New York, he has played a key role in the government's response to the financial crisis and has worked closely with Treasury Secretary Henry Paulson and Federal Reserve chief Ben Bernanke.

As a Treasury Department official during the Clinton administration, Geithner (pronounced GITE-ner) dealt with international financial crises and helped negotiate assistance packages for South Korea and Brazil.

Officials also said New Mexico Gov. Bill Richardson had emerged as a likely choice as commerce secretary.

Also yesterday:

School chosen: The transition team announced that Obama daughters Malia and Sasha would attend Sidwell Friends School, a private institution that another White House child, Chelsea Clinton, attended.

Sidwell is a private Quaker school with a campus in northwest Washington for grades 5-12 and another in suburban Bethesda, Md., for kindergarten through fourth grade. Malia is in fifth grade and Sasha is in second grade, suggesting that the girls would attend schools at different locations.

Workers fired: Verizon Wireless fired an unspecified number of employees it said had accessed Obama's old cell-phone records without permission. Obama aides said no voice mails or e-mails were accessed.