US vice president Dick Cheney's chief of staff, Lewis Libby, has resigned after he was today indicted by a federal grand jury on criminal charges of perjury and obstruction of justice in the investigation into the leaking of a CIA agent's identity.
At a brief court hearing today, the head of the grand jury delivered to a federal magistrate judge an indictment on five charges of obstruction of justice, making false statements to a grand jury and perjury.
Mr Libby has resigned and left the White House, White House spokesman Scott McClellan said.
Mr Libby resigned "earlier today, it was accepted, and he is no longer at the White House," Mr McClellan told reporters.
It had been anticipated that Mr Libby, Mr Cheney's chief of staff, would be charged with making false statements to the inquiry into the leak of covert CIA operative Valerie Plame's identity.
I. Lewis Libby, Vice President Dick Cheney's Cheney's chief of staff, rides in the backseat of a limousine after leaving his home in McLean, Virginia yesterday. Pic: Getty Images
Mr Libby (55) has been a quiet yet powerful force in shaping the Bush administration's policies and helped build the case for the Iraq invasion.
He is known to share the vice president's hawkish views on national security and is renowned in the White House for his discreet advice and behind-the-scenes techniques.
He is known for a reluctance to being quoted in the press, but his private conversations with reporters caught the interest of special counsel Patrick Fitzgerald who heads the inquiry.
News of a decision on President Bush's top adviser, Karl Rove has not yet emerged.
He is not expected to be indicted today although he is likely to remain under investigation.
The delay in a decision on Mr Rove will put him in legal limbo
and an indictment would more than likely lead to his resignation.
Karl Rove
Mr Rove's lawyer had no immediate comment. The grand jury is expected to meet with Mr Fitzgerald today to consider the first charges in the two-year investigation. A media briefing is due at 7pm Irish time.
Some lawyers in the case said Mr Fitzgerald may not be prepared at this time to bring charges against Mr Rove and could keep the investigation open.
Mr Fitzgerald's office have indicated to Mr Rove's team they wanted to get some issues "resolved before he decides what he is going to do so Mr Rove will not be indicted today," one of Mr Rove's team said.
The decision means Mr Rove is not out of legal jeopardy, but will continue working at the White House and co-operating with prosecutors.
Indictments could trigger an immediate shake-up at the White House, already on the defensive over the response to Hurricane Katrina, opposition to the Iraq war and the withdrawal of Mr Bush's nominee for the US Supreme Court, Harriet Miers.
Despite initial denials, both Mr Rove and Mr Libby spoke to reporters in June and July 2003 about the CIA operative, Valerie Plame.
It was unclear how Mr Fitzgerald would keep the Rove investigation going, however, since the current grand jury is scheduled to expire at the end of the day today.
The New York Timessaid Mr Fitzgerald was likely to extend its term, but federal guidelines suggest Mr Fitzgerald would have to seek a new grand jury because the current one has served the maximum allowable amount of time.
Other current and former administration officials could also face charges today, lawyers said.
Ms Plame's identity was leaked to the media after her diplomat husband, Joseph Wilson, accused the Bush administration of twisting prewar intelligence to support military action against Iraq.
Mr Wilson said it was done deliberately to erode his credibility.