Obama urges Illinois governor to step down

By Michael Conlon and Andrew Stern

CHICAGO (Reuters) - President-elect Barack Obama called on the Democratic governor of Illinois to resign on Wednesday after he was charged with trying to sell Obama's U.S. Senate seat and swap favors for money.

Obama spokesman Robert Gibbs said Gov. Rod Blagojevich needed to step down because "under the current circumstances it is difficult for the governor to effectively do his job and serve the people of Illinois."

Blagojevich left his stately brick house in Chicago on Wednesday, his 52nd birthday, under siege by news media but said nothing. He went to work and attended budget meetings, his office said.

His lawyer has told reporters the governor denies any wrongdoing.

The 50 members of the Senate Democratic Caucus called on Blagojevich to step down and refrain from naming Obama's successor, even threatening to refuse to seat any replacement chosen by the Illinois governor.

"In light of your arrest yesterday on alleged federal corruption charges related to that Senate seat, any appointment by you would raise serious questions," the caucus wrote to Blagojevich.

There were mounting calls within Obama's home state to strip Blagojevich of the power to make the appointment he allegedly tried to barter, either by driving him from office through legal means or letting voters fill the Senate seat with a special election.

Obama, who takes office on January 20, resigned from the Senate after winning the November 4 presidential election.

The two-term governor was arrested at home before dawn on Tuesday and then released without having to post bail.

His office said Bob Greenlee, one of three deputy governors in appointed positions, had resigned. No reason was given.

Obama, who called the charges against Blagojevich sobering and sad, has had a cool relationship with the Illinois governor -- who has been under investigation on other issues for years -- although both of their political careers sprouted in the often corrupt seedbed of Chicago politics.

In Washington, Jesse Jackson Jr., a Democratic U.S. congressman from Illinois who waged a public campaign to win Obama's seat, said he had done nothing wrong.

His lawyer identified Jackson as the unnamed Senate hopeful in a government wiretap whose "associate" Blagojevich claimed was willing to raise $1 million in exchange for a Senate seat.

GOVERNOR UNDER SIEGE

"I did not initiate or authorize anyone at any time to promise anything to Governor Blagojevich on my behalf," said the son of veteran civil rights leader Jesse Jackson.