Trump withdraws Treasury nomination of ex-US attorney who oversaw Stone prosecution

Liu's nomination was pulled the same day that the four federal prosecutors who had successfully taken Stone's case to trial withdrew their involvement after top Justice Department officials intervened by reducing the government's recommended sentence against Stone.

Liu had been nominated in December to serve as the Treasury Department's under secretary for terrorism and financial crimes. Previously she headed the US attorney's office that oversaw the prosecution and conviction of Trump's longtime political adviser until Attorney General William Barr replaced her last month. She also led the team that worked on the sentencing of former Trump deputy campaign manager Rick Gates. Liu's office inherited many of the major ongoing cases from Robert Mueller's special counsel investigation.

One source Tuesday did not dismiss the idea that the nomination withdrawal was connected to developments in Stone's case. Liu had been slated to be testify in front of the the Senate Committee on Banking, Housing and Urban Affairs on Thursday.

She was informed Tuesday that the White House had withdrawn the nomination, according to two sources.

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