NEW YORK (AP) — President-elect Barack Obama has chosen New Mexico Gov. Bill Richardson to be commerce secretary, adding a prominent Hispanic and one-time Democratic rival to his expanding Cabinet.
Obama planned to announce the nomination after Thanksgiving, according to a Democratic official familiar with the discussions. The official was not authorized to speak publicly about the negotiations and did so on condition of anonymity.
Richardson, 61, had a distinguished and visible career in Washington before returning to New Mexico, where he was elected governor in 2002. Richardson served as U.N. ambassador under President Bill Clinton and later as energy secretary. He was in the House from 1983 to 1997.
Clinton sent Richardson on several high-level diplomatic missions while he was in Congress, including direct talks with Iraqi leader Saddam Hussein.
In Richardson, Obama will get a secretary of commerce who has been described as relentless and competitive, with a jocular sense of humor.
Richardson is a seasoned international negotiator who mediated with North Korea over the downing of two U.S. Army helicopter pilots; hammered out a deal with Saddam Hussein for the release of two U.S. oil workers; won the release of three Red Cross workers held captive by Sudanese rebels; and was later sought out by the North Koreans to discuss nuclear issues....
Obama considered Richardson to be secretary of state and brought him to Chicago to discuss the job. The president-elect is on track to name Hillary Rodham Clinton to the top diplomatic post and was expected to announce the pick after Thanksgiving.
Full Article-
The Associated Press: Official: Richardson to be commerce secretary
So Obama considered Richardson for SoS, but ended up with Hillary.

My opinion is it should be the other way around- Richardson for SoS- he's a good, affable diplomat and negotiator. Hillary for Commerce- give her a decent portfolio within the USA. Oh well.
Richardson is Obamas first Hispanic pick too. I doubt this one will be controversial.