Tim Geithner To Be Treasury Secretary. Stocks Soar.
By Justin Gardner | Related entries in Barack, Business, Economy, Money
Was it the news that the current president of the New York Federal Reserve Bank would be Obama’s new money man that saw the market close up by almost 7% or was it just a fluke?
The Federal Bureau of Investigation began calling Geithner confidants this week, starting a vetting process of getting Fed veteran in place almost as soon as Mr. Obama is inaugurated the 44th president.Picking Mr. Geithner gives the new administration someone with a deep, personal experience of handling the crisis. He was central to the government-backed sale of Bear Stearns Cos. in March, the talks before the failure of Lehman Brothers Holdings Inc. in September, and the rescue of American International Group Inc. days later. For some, that also may be grounds for criticism.
The decision for the Obama administration rested partly on the question of what the new president wants from his Treasury secretary, and also how much the appointment needs to represent the campaign’s promised “change.” Mr. Geithner, young and relatively little-known, in some ways is a break from the recent past. But his role in this year’s bailout complicates that picture.
Many had thought (including myself) that Lawrence Summers would be tapped for the top job, but he will be joining the administration as well, albeit it in a senior advisory role. It was probably questions about his management style and that controversy about him questioning female aptitude for math and sciences that ultimately denied him the catbird seat.
Many of you know this, but Geithner is the one pictured above with the full head of hair. Ben Bernanke, the current Chairman of the Federal Reserve Bank, is the other guy.
Fun fact, Obama is only 14 days older than Geithner. Both were born in August 1961, which makes both 47 years old.
This entry was posted on Friday, November 21st, 2008 and is filed under Barack, Business, Economy, Money. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
November 22nd, 2008 at 12:48 am
I thought Geithner was more likely. No particular reason, except Jimmy Cramer was railing against him, and Cramer is wrong more often than he is right.
Seems like a solid pick, and certainly someone who can literally be ready day one for the financial mess, since he has been working in it up to his neck for the last two years in his role as President of the NY Fed. Here is the really interesting part-
Right now, the absolute Center of the Financial Clusterfork Universe is Citibank, which may or may not be on the verge of collapse. CNBC was reporting that something would have to be negotiated over the weekend, will probably need some government intervention, and be announced before the Market opens on Monday. Guess who is the primary federal regulator for Citibank? The New York Fed. And - all together now - The President of the NY Fed is today… The presumed Secretary of the Treasury of the next administration. So…
The Obama administration actually kicks in this weekend.
This is going to be fascinating to watch, and I do believe it will turn out well. Both Obama and Geithner know how important it is to get this right. This could set the tone for the Obama administration right now, as the shadow government comes out of the shadows.
Oh - and Justin - I don’t think you can give Geithner credit for that 500 point rise on Friday, unless you want to also give Obama credit for the several thousand point drop in the market since election day.