Blagojevich Busted

CHICAGO (CBS) ― President-elect Barack Obama said he was "appalled'' by the arrest of Gov. Rod Blagojevich and reiterated Thursday morning that he had not spoken to the governor on the subject of a replacement for Obama's old senate seat.

"This Senate seat does not belong to any politician to trade," Obama said. "It belongs to the people of Illinois."

Obama said he was "as appalled and disappointed as anybody by the revelations earlier this week."

Speaking at a news conference to unveil his Health and Human Services secretary, Obama said that he was confident that none of his representatives would "have any part" of making pay-for-play deals for his Senate seat.

Obama added that Blagojevich is no longer fit to serve as governor.

"I do not think that the governor at this point can effectively serve the people of Illinois," Obama said. "The legislature is going down to Springfield to make a determination as to how to resolve this issue. I think they're going to come to the same conclusion."

He added: "What I want to see is a quick resolution of this issue. I want to make sure that the next senator from the State of Illinois is carrying on a tradition of service."

Obama said he personally had no contact with the governor's office, and planned to gather all facts about any staff contacts that might have occurred between his presidential transition office and the governor's office.

When CBS 2 Political Editor Mike Flannery asked Obama what the problem is with Illinois politics, with Gov. George Ryan now in prison and Blagojevich now charged with a crime, Obama emphasized that he believes there are two predominant viewpoints when it comes to politics.

"With respect to Illinois, I think in Illinois as is true in American politics generally, there are two views of politics. There's a view of politics that says you go in for sacrifice and public service, and there's a view of politics that says this is a business, and you're wheeling and dealing, and what's in it for me," Obama said, pointing out former U.S. Senators Paul Simon and Paul Douglas as politicians who focused on sacrifice for the people of Illinois.

Obama said his own goals during the presidential race had always been to move politics away from the "business" model and back toward one of service and sacrifice.

The governor of Illinois is constitutionally responsible for selecting a replacement when a member of the U.S. Senate leaves. But Blagojevich allegedly tried to sell the seat, and suggested left vacant by Obama's election. The asking price: secretary of health and human services in the president's Cabinet, big-money jobs or campaign cash.

In a recorded conversation, Blagojevich allegedly told his advisers that he would not give Obama a senator without something in return. Recorded conversations said he would not give "this m***erf***er his senator. F*** him. For nothing? F*** him."

Obama joked at the news conference Thursday that he could not repeat the language for a family audience.

Blagojevich has not yet been indicted. He is only charged in a one-page complaint accompanied by a 76-page FBI affidavit. The government has 30 days to bring an indictment -- a time limit that can be extended repeatedly if a judge gives permission.

When Obama has spoken about the case, he's been cautious.

In brief comments to reporters Tuesday, Obama said "like the rest of the people of Illinois I am saddened and sobered by the news that came out of the U.S. attorney's office today," but he didn't go so far to condemn Blagojevich's alleged actions.

He did add about Blagojevich's process of considering a successor: "I had no contact with the governor or his office, and so I was not aware of what was happening."

Obama reiterated that point in an interview published in the Chicago Tribune and the Los Angeles Times on Wednesday. "I have not discussed the Senate seat with the governor at any time," he said.

Obama is among the chorus of officials who have called for Blagojevich to resign.

Also Thursday, Illinois Deputy Gov. Louanner Peters has been identified as "Senate Candidate 4" in the criminal complaint filed against Gov. Rod Blagojevich.

An unidentified source familiar with the complaint revealed the information to The Associated Press on Thursday. The source was not authorized to speak publicly about the complaint and spoke on the condition of anonymity.

In the complaint, Blagojevich said he would put Candidate 4 in Barack Obama's vacant Senate seat instead of another candidate, if the governor did not get anything in return.

The complaint identified Senate Candidate 4 only as a "deputy governor."

Peters was named deputy governor in December 2006. She was previously Blagojevich's deputy chief of staff for social services and deputy campaign manager.

She did not immediately return a call for comment to the AP.

The Associated Press contributed to this report.

(© MMX, CBS Broadcasting Inc. All Rights Reserved.)

Governor Blagojevich Arrested

• Special Section: Blagojevich Busted
• Details Of Complaint Against Blagojevich
• Exposing Blago: Gov's Style An Obstacle