(Updates x 3 - It's Official) Drudge Headline: "More Obama Drama: Richardson Pulls Out"

Update 3: According to Politico:

A source close to Richardson told Politico, "There are too many unanswered questions and while he thinks the results of the grand jury will turn out in his favor, he doesn't want to distract attention from the administration."

Update 2: Video of NBC's Andrea Mitchell reporting the exclusive:

Update 1: The story is true. It's posted as breaking news on MSNBC.com:

New Mexico Gov. Bill Richardson, tapped in December by President-elect Barack Obama to serve as secretary of Commerce, has withdrawn his name for the position, citing a pending investigation into a company that has done business with his state.

"Let me say unequivocally that I and my Administration have acted properly in all matters and that this investigation will bear out that fact," he said Sunday in a report by NBC News' Andrea Mitchell. "But I have concluded that the ongoing investigation also would have forced an untenable delay in the confirmation process."

... Obama said Sunday he accepted Richardson's decision to withdraw with 'deep regret.'

"Governor Richardson is an outstanding public servant and would have brought to the job of Commerce Secretary and our economic team great insights accumulated through an extraordinary career in federal and state office," Obama said.

Here's what the controversy is about.

Richardson said he will remain as New Mexico Governor. So much for Lt. Gov. Diane Denish's transition team and whoever she had in mind to replace her. And so much for Denish getting the benefit of serving as Governor before the 2010 election, which could well help the chances of Heather Wilson, who has leaked about running on the R side.

So much for the opportunities for New Mexico that might have stemmed indirectly from having Richardson at the helm of the Commerce Department. Of course Richardson could be tapped later by the Obama administration for some role, if he's cleared by a grand jury in the long and wide-ranging investigation being conducted by the FBI -- but that could take many moons.

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True or false? Who knows? It's the slimy, tabloid gossip-monger Matt Drudge making this assertion about Bill Richardson's Commerce Secretary nomination this morning, with zero documentation or explanation. But it's out there. If true (big if), it would certainly throw a monkey wrench into the works here in New Mexico -- not to mention drawing more negative attention to the Obama transition.

Also see my later post on this issue.