The NYT is reporting today that HRC is recruiting Jacob J. Lew, the budget director under President Bill Clinton, as one of two deputies, according to people close to the Obama transition team (Clinton Moves to Widen Role of State Dept.). Mr. Lew’s focus, they said, will be on increasing the share of financing that goes to the diplomatic corps. He and James B. Steinberg, a deputy national security adviser in the Clinton administration, are to be Mrs. Clinton’s chief lieutenants.
[…]"The recruitment of Mr. Lew — for a position that was not filled in the Bush administration — suggests that Mrs. Clinton is determined to win a larger share of financial resources for the department. A well-connected figure who was once an aide to Speaker Thomas P. O’Neill, Mr. Lew now works for Citigroup in a unit that oversees hedge funds. “If we’re going to re-establish diplomacy as the critical tool in America’s arsenal,” a senior transition official said, “you need someone who can work both the budget and management side. He has very strong relations on the Hill; he knows the inner workings of how to manage a big enterprise.”
Update: Steve Clemons just posted in the Note that James Steinberg got "the white smoke signal that he gets the Deputy slot."