Annette Nazareth, former senior staffer and commissioner with the Securities and Exchange Commission, is out as the leading contender for chief deputy to Treasury Secretary Tim Geithner.

Although Nazereth calls it "a personal decision" to withdraw, she was expected to come under fire for laxness in oversight of banks that some feel led to the current financial crisis.

Treasury secretary’s pick for deputy withdraws

March 4: In testimony before the Senate Finance Committee, Treasury Secretary Tim Geithner says he sees both the recession and credit crisis deepening. CNBC's Mary Thompson reports. (CNBC)The person Treasury Secretary Timothy Geithner wanted as his chief deputy has withdrawn from consideration, dealing a setback to the agency as it struggles to address the financial crisis.