Obama Readies for Major Cabinet Shakeup

Departures by Hillary Clinton, Timothy Geithner leave large shoes to fill at State, Treasury dept.
2:45 | 11/26/12

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Transcript for Obama Readies for Major Cabinet Shakeup
We're going to turn now to president obama wack from his post election trip to asia and a thanksgiving break. Rearranging his cabinet a top priority, big shoes to fill in powerful jobs. Abc's jake tapper is here. Top of the list is replacing hillary clinton at the state department? That's right, george, the beginning of a president's second term, one shuffles the deck and president obama faces difficult decisions ahead of him. Reporter: Past priority replacing two cabinet secretaries running for the doors. Secretary of the treasury tim geithner, and secretary of state hillary clinton. A clear front-runner is emerging to replace hillary clinton. Let me tell you about susan rice, he's done exemplary work. Reporter: Susan rice has the inside track though john kerry remains a viable candidate. Based on the information we have at present, is in fact when this began, a spontaneous, not a premet tated response to what transpired in cairo. Reporter: They have vowed a fight, with her air roanous remarks blaming the attack on the benghazi compound on a demonstration over that anti-muss tim video run amok. President obama suggests if they want a fight, they will get one. When they go after the u.N. Ambassador, apparently because they think she's an easy target, then they've got a problem with me. Reporter: To replace secretary geithner at treasury, white house chief of staff jack lew is thought to have the edge. The president likes him for his economic expertise and easy going manner. He's competing with current officials but there's also talk of a ceo type. And michelle flournoy would be the first women secretary of defense but kerry may have the edge. The new strategy is to bore our enemies to death. And, george, one political drawback for picking senator kerry, is opens up the seat once thought to be reliable. But the senator says that's not necessarily the case. The senators I spoke to on "this week" are pretty optimistic about getting a deal. But the staff meeting during that holiday didn't bridge many gaps? No all the reporting I have indicates there really hasn't been any tangible progress made. Of course, nothing has dissolved, there's been no blowups which is good news. But as of now, they are still miles and miles apart, george. Jake tapper, thanks very much.

This transcript has been automatically generated and may not be 100% accurate.

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