Daley exits W.H., but never quite fit in

The exit of William Daley as President Barack Obama's chief of staff Wednesday surprised many, but perhaps shouldn't have come as a total shock.

While there's no bad blood between Daley and the White House, the door was being held open for Daley's exit, reports Bill Plante.

He was brought in a year ago to do three things: smooth the president's relationship with Congress; reassure big business that it could work with this White House; and be one of the public faces of the administration.

None of those things worked out.

Daley upset Democrats as well as Republicans on Capitol Hill during the debt ceiling negotiations last summer and in November gave up his day-to-day management duties in the White House.

Obama chief of staff Bill Daley steps down, budget chief Jack Lew steps up

His friends say that he never had a fighting chance - that he was set up to fail and never made it into the president's small inner circle.

White House budget director Jack Lew will take Daley's place, but that may not necessarily improve Mr. Obama's relationship with Republicans in Congress.

Lew is a highly respected budget and policy expert. But he's not at all political, which suggests that he won't be the one dealing with Congress. And members of Congress say that this White House rarely consults with them. So on that score, Lew's appointment will probably bring no change.

Watch the video above for Plante's full report.