By a large margin, Steny Hoyer was chosen to lead the new Democratic Majority. Hoyer is a moderate Democrat who isn't tainted by ethics questions. Murtha would have been a very conservative voice (he sponsors flag burning amendments and is aggressively anti-abortion), and his status as an unindicted co-conspirator in ABSCAM would have put a damper on Democratic efforts to push an agenda of ethics reform.
In an interview with TPM Cafe, Hoyer explained: "My job is to help create consensus so we can not be a cacophany of voices but a voice that the American people can hear."
Well done, Dems, and good luck to the new Majority Leader.
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