AP sources: Obama to name ex-Bush aide to head FBI

WASHINGTON (AP) — President Barack Obama is prepared to nominate James Comey, a former Bush administration official with bipartisan credentials, as the next FBI director.

In a possible warning sign, the top Republican on the Senate committee that would review the nomination said Comey would face questions about his ties to Wall Street.

Three people with knowledge of the selection said Wednesday that Obama planned to nominate Comey, who was the No. 2 official at the Justice Department under President George W. Bush. Comey was general counsel to Connecticut-based hedge fund Bridgewater Associates from 2010 until earlier this year and now lectures at Columbia Law School.

Comey would replace Robert Mueller, who has had the job since shortly before the Sept. 11, 2001, attacks, which forced the FBI to transform itself into one of the nation's chief weapons in the war on terror. Mueller's last day on the job is Sept. 4.

The White House may hope that Comey's Republican background will help him through Senate confirmation at a time when some of Obama's nominees have been facing tough battles. But Iowa Sen. Chuck Grassley, the top Republican on the Senate Judiciary Committee, indicated Comey's confirmation hearing would raise questions about the Obama administration's investigations of Wall Street.