Baker and Treasury Secretary Regan switched positions at the beginning of Reagan's second term. Regan centralized power within his office, and he took on the responsibilities that had been held by Baker, Deaver, and Meese, the latter of whom succeeded William French Smith as attorney general in 1985. Regan frequently clashed with First Lady Nancy Reagan, and he left the administration in the wake of the Iran–Contra affair and Republican losses in the 1986 mid-term elections. Regan was replaced by former Senate Majority Leader Howard Baker.