Front office shake-up at the O-man's White House

Washington - White House chief of staff William Daley is stepping down at the end of the month, paving the way for budget director Jack Lew to take his place.

He is the brother of former Mayor Richard Daley and the son of legendary long-term Mayor Richard Daley.

The change will be effective at the end of the month.

One senior administration official tells NBC News that Daley offered his letter of resignation to the president last Tuesday and Obama asked him to think about it. Daley returned on Wednesday and re-affirmed his decision to leave Washington and return to his hometown of Chicago.

"Obviously this was not easy news to hear," said Obama on Monday. "But in the end, the pull of the hometown we both love ... was too great."