Blagojevich investigators met with Obama

Jarrett had no contact with governor
Obama's report states Jarrett did not have any contact with the governor or his staff about the appointment, and had no sense Blagojevich was seeking something in exchange. But she discussed the appointment with Tom Balanoff, the head of the Illinois chapter of the Service Employees International Union, the report states.

SEIU officials are referenced, but not named, in an FBI affidavit filed with the federal complaint against Blagojevich. Blagojevich is quoted as discussing some of his schemes with a union official.

Balanoff, believed to be one of the unnamed parties referenced in the affidavit, told Jarrett that he spoke to the governor about her possible appointment to the Senate, the Obama report says. In that conversation, Balanoff also told Jarrett that the governor "raised with him the question" of being appointed Obama's health and human services secretary.

Balanoff said he told Blagojevich that wouldn't happen, and Jarrett agreed, the report states.

There was no suggestion to Jarrett that the Senate appointment was linked to the Cabinet post, the report states.

Blagojevich mentioned in a Nov. 5 conversation with an aide taped by the FBI that he would take the HHS job or "various ambassadorships" in exchange for appointing Obama's choice, according the affidavit. The affidavit states he discussed again days later with an unnamed SEIU official, believed to be Balanoff.

Sought other favors?
The governor told advisers in a Nov. 10 discussion that "it was unlikely" Obama would give him the HHS appointment or an ambassadorship, and he discussed other favors he could seek, according to the complaint.

Obama's report also addresses confusion over earlier statements by David Axelrod, a top adviser who had said at one point that Obama discussed the Senate appointment with Blagojevich. Axelrod had discussed potential recommendations for the Senate appointment with Obama and Emanuel, and "was under the impression" that Obama would offer those to Blagojevich.

"He later learned that it was Mr. Emanuel who conveyed those names," the report states.

Craig revealed his findings in a memo to Obama. The memo was dated Tuesday, but a transition official said an initial copy was given to Obama on Dec. 15. On that day, Obama announced that the report was ready but that he was withholding it from the public for a week at the request of prosecutors still conducting their investigation.

The report is based on the Obama team investigating itself, and was conducted by interviewing staff and taking their answers about any contacts at their word. Gibbs said this was consistent with the charge given to Craig by the president-elect.

A transition official said Craig doesn't have the legal power to more thoroughly investigate and try to corroborate the accounts The official spoke on condition of anonymity to more freely discuss the thinking behind the inquiry.

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