Libby move helps seal Bush's legacy

By Steve Holland

WASHINGTON (Reuters) - President George W. Bush refused to rule out a pardon for former White House aide Lewis "Scooter" Libby on Tuesday, a day after sparing him from prison in a case that helped seal Bush's Iraq legacy and gave ammunition to Democrats.

Bush, who angered Democrats but reassured conservatives by saving Libby from serving a 2-1/2 year prison sentence, told reporters who asked about an eventual full pardon: "As to the future I rule nothing in and nothing out."

Bush's elimination of Libby's prison sentence -- while leaving intact a $250,000 fine and two-year probation -- was seen in Washington as an act of loyalty by an unpopular president trying to repair ties with disaffected conservatives who had pressed him to keep Libby out of jail.

There were comparisons to pardons issued by his father, President George H.W. Bush, in 1992 to key figures in the Iran-contra scandal -- former Defense Secretary Caspar Weinberger and State Department official Elliott Abrams.

The decision was also likened to President Bill Clinton's 11th-hour pardon in 2001 of financier Marc Rich from tax-evasion charges.

Libby was saved from a jail term for his conviction in March on charges of lying and obstruction of justice in an investigation into who leaked the identity of a CIA officer, Valerie Plame. Plame's husband, former Ambassador Joe Wilson, questioned evidence used to justify the Iraq war.

"It closes one chapter of the sort of life-draining issue of George W. Bush and Iraq," said presidential historian Stephen Hess. "It's totally in keeping with everything he's done up to now, including his sense of loyalty to his people."

Hess said Bush's move will eventually be seen as a footnote to a legacy that will feature Iraq prominently.