GOP Senator Gregg Says He May Head Commerce

Republican Senator Judd Gregg of New Hampshire confirmed on Friday that President Barack Obama may nominate him as U.S. commerce secretary.

"I am aware that my name is one of those being considered by the White House for Secretary

CNBC.com Judd Gregg, New Hampshire Senator

of Commerce, and am honored to be considered, along with others, for the position," Gregg said in a brief statement issued by his office.

"Beyond that there is nothing more I can say at this time," Gregg added.

A Democratic source said late Thursday that Obama was considering Gregg and even conferring with members of the Senate about the prospect of picking him.

The source said Obama had backed off Silicon Valley executive John Thompson, who just days ago was viewed as the front-runner.

If Gregg left the Senate, the state's Democratic governor, John Lynch, could name a Democrat to replace him. If that occurred and Al Franken survives a court challenge to his apparent narrow victory in Minnesota, the Democrats would have a majority of 60 seats in the Senate, enough to prevent procedural roadblocks to legislation by Republicans.

But the Democratic source predicted Lynch would more likely to appoint a Republican, saying that naming a fellow Democrat "could be a highly unpopular move in the state."

The source said the governor may name a moderate Republican though, one who frequently votes with Democrats.

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