WASHINGTON — Goldman Sachs banker James Donovan has dropped out of the running for deputy Treasury secretary. Donovan was nominated in March to become Treasury Secretary Steven Mnuchin's right-hand man.

But he withdrew his name as nominee this week over family concerns, he said in a press release. The news was first reported by Politico.

"I am deeply honored by President Trump's decision to nominate me as deputy secretary of the U.S. Department of the Treasury," Donovan said. "However, at this time I want to focus on my family, and I can no longer accept it. I hope to be able to serve this administration in the future and fully support President Trump and Secretary Steven Mnuchin's ongoing work to reform the tax system and grow the U.S. economy.”

Tony Sayegh, the Treasury's assistant secretary of public affairs, said that "Secretary Mnuchin offers Jim his support and friendship as he focuses his attention on his family."

“Jim has been an enormous asset to the department helping recruit and fill many of the senior jobs at Treasury. The Secretary appreciates Jim’s continued support of the President and his administration," Sayegh said.

Donovan, who still serves as a managing director at Goldman Sachs, was one of several current and former employees of the bank invited to join the Trump administration.

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Lalita Clozel

Lalita Clozel covers fintech regulation, anti-money-laundering, cybersecurity and the Federal Deposit Insurance Corp. in American Banker's Washington bureau.