Obama Says He's 'Indebted' To Greg Craig As Counsel Leaves White House

President Obama has made official what broke late last night - White House counsel Greg Craig is leaving and being replaced by longtime D.C. lawyer Bob Bauer.

"Greg Craig is a close friend and trusted advisor who tackled many tough challenges as White House Counsel," Obama said in a statement announcing the move, effective Jan. 3.

"Because of Greg's leadership, we have confirmed the first Latina justice on the Supreme Court, set the toughest ethics standards for any administration in history, and ensured that we are keeping the nation secure in a manner that is consistent with our laws and our values," Obama said. "I'm indebted to Greg not only for leading the Counsel's office but for his many decades of service to this country as well. He has been a huge asset in the White House, and he will be missed. I will continue to call on him for advice in the years ahead."

The move had been expected - and written about - for more than a month as details leaked out there was inner-White House tension over Guantanamo Bay. Today White House Press Secretary Robert Gibbs told reporters in Asia that had nothing to do with the departure.

Craig will return to private practice, the White House said.

In a letter to Obama, Craig said it had been a busy first year and he felt "lucky" to be a part of it. During the campaign, Craig was an early Obama backer over Hillary Clinton. He played the role of Sen. John McCain in their debate training.

Bauer is married to Anita Dunn, who just ended her interim tenure as White House communications director.

Bauer, a partner at Perkins Coie, will start at the end of the year.

"Bob has served as a trusted counselor for many years to many elected officials and is known as a tough and widely respected advocate," Obama said.

"Bob is well-positioned to lead the Counsel's office as it addresses a wide variety of responsibilities, including managing the large amount of litigation the administration inherited, identifying judicial nominees for the federal courts, and assuring that White House officials continue to be held to the highest legal and ethical standards," he said.

Read Craig's full resignation letter here.