Treasury secretary, Cobell defendant, resigns

FRIDAY, DECEMBER 6, 2002

The Cabinet chessgame is over. Treasury Secretary Paul O'Neill has resigned at the request of the White House, according to news accounts.

O'Neill is the first Cabinet member to leave the Bush administration and will depart in a few weeks. Top White House economic advisor Lawrence Lindsey also resigned.

O'Neill, in his official capacity, is a named defendant in the Cobell Indian trust fund lawsuit. Keith Harper, a Native American Rights Fund attorney representing the Indian plaintiffs, said he doubted the litigation contributed to the resignation.

Last year, O'Neill asked a federal court to declare that the Treasury was in compliance with its fiduciary obligations to 500,000 American Indians. U.S. District Judge Royce Lamberth denied the request in October 2001.

O'Neill's predecessor, Robert Rubin, was held in contempt of court in February 1999 for failing to produce trust fund records. At the same time the charges were being handed down, Treasury employees destroyed 162 boxes of records, an incident that was kept secret for several months.

Get the Story:
Treasury Secretary O�Neill Resigns (The Washington Post 12/6)
Fleischer Remains Tight-Lipped About Shakeup (The Washington Post 12/6)

Relevant Documents:
O'Neill Resignation Letter (December 6, 2002)

Relevant Links:
The Department of Treasury - http://www.ustreas.gov
Indian Trust: Cobell v. Norton - http://www.indiantrust.com