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Obama's Chief of Staff Calls It Quits

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    Budget director Jack Lew to step in for Bill Daly

  • Duration 3:05
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To replace.

Is replacing his right hand man.

President Obama's chief of staff is calling it quits after just one year.

Chief White House correspondent Ed Henry reports this comes in the wake of a new book about problems in the west went.

Officials say President Obama was caught by surprise when bill -- confided last week he wanted out as chief of staff a year earlier than expected obviously this was not easy news to hear.

And -- -- except builds.

Decision right away after rethinking it Daly who had been sidelined last fall after giving up some of -- duties came back and told the president he was shore.

So the White House is getting its second shake up in just twelve months with budget chief Jack -- a Clinton veteran taking the range is chief of staff at the end of the month.

During his first war.

At OMB under President Clinton Jack was the only budget director in history to provide -- preside over budget surpluses for three consecutive years.

It was only a year ago this week the president also touted -- -- Clinton credentials as a sign he was moving to the middle -- improving his relationship with big business.

To right the ship after what mr.

Obama called the shellacking of the 2010 midterm elections fuel.

Americans can boast a -- of experience that bill brings to this job.

He served as a member of president Clinton's cabinet as commerce secretary.

While there were victories on Daley's watch from the raid that killed Osama bin Laden to the payroll tax cut fight last month.

He never quite clicked with the inner circle which is dominated by people like senior advisors David -- -- Valerie Jarrett who have other power centers.

Those tensions are on display in a new book the -- by Jodi Kantor of the New York Times.

Full of anecdotes about the man Daley essentially replaced Rama Manuel clashing with -- and First Lady Michelle Obama over Health Care Reform.

They haven't disputed any answer -- tax.

And the book is very clear about the fact that it's based on interviews with people closest to the Obama -- Is this the book features then press secretary Robert Gibbs cursing the First Lady.

After Jared told -- mrs.

Obama was not happy with the way he handled a report suggesting she hated being in the White House.

Quote you don't know what the expletive you're talking about Gibbs said.

Jarrett responded the First Lady would not believe -- speaking this way gives fired back then expletive her to.

While White House aides are not denying that incident they say various anecdotes are exaggerated this is.

-- A remarkably.

Harmonious place -- and everything that's at stake and the enormity of the issues that are discussed and debated here every day.

Very rare for president to change his chief of staff at the beginning of a reelection -- -- -- deal bill -- will still be involved.

He's been named a co chair of the campaign back in his home of Chicago and they'll be a spot for Robert Gibbs to aides here say he still valued member of the team.

Despite -- the First Lady -- And Henry lot of us -- in north lawn it's not even snowing here in Manchester had -- -- value if.

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