News reports indicate the Obama-Biden transition team will likely select Eric H. Holder Jr. as its attorney general (NYT). Holder was the deputy attorney general under the Clinton administration.

MILITARY: Adm. Mike Mullen, chairman of the U.S. Joint Chiefs of Staff, said Tuesday that the U.S. military is crafting a plan to redeploy troops (AP) from Iraq to Afghanistan, per President-elect Barack Obama’s plan. Mullen said troops may exit Iraq through Turkey and Jordan. A new CFR.org Backgrounder looks at how the financial crisis might affect Pentagon spending.