Tim Geithner to be Named Sec. of Treasury

[StillUnknown]

http://news.yahoo.com/s/nm/20081121/pl_nm/us_usa_obama_geithner

WASHINGTON (Reuters) – Timothy Geithner, the president of the New York Federal Reserve Bank, is expected to be tapped by President-elect Barack Obama to be the next secretary of the U.S. Treasury, NBC News and the Wall Street Journal reported on Friday.

NBC News said Obama was expected to announced his economic team on Monday in an effort to calm markets.

Geithner was considered a top prospect along with former Treasury Secretary Lawrence Summers for the Treasury post, which is in the forefront of efforts to tamp down the worst financial crisis since the Great Depression.

Geithner would take over from U.S. Treasury Secretary Henry Paulson, with whom he has been working hand-in-glove for months while dealing with a crisis that continues to wrack financial markets worldwide.

"This is an excellent choice. He knows where all the bones are buried on Wall Street," said Tom Sowanick, chief investment officer at Clearbrook Financial LLC in Princeton, New Jersey.

Still a relatively youthful 47, Geithner already has a lengthy stint at Treasury under his belt. He joined the department in 1988 and worked his way up to under secretary for international affairs during the Clinton administration under former Treasury Secretary Robert Rubin and then under Summers, who succeeded Rubin as Treasury chief.

Investors gave his nomination an early endorsement.

Stock prices jumped higher within minutes of word flashing around the world that Geithner was expected to get the job -- a key one in any administration but especially sensitive given the crisis that is hurting everyone from pensioners to Wall Street titans as their wealth melts away.

A New York Fed spokesman refused to comment on the reports that Geithner will be tapped for Treasury. His current job is also a highly sensitive one, since the New York Fed president is at the nexus of dealings between Wall Street and policy-makers at both the Treasury and the Fed, the U.S. central bank.

The head of the New York Fed also carries a permanent vote on the Fed's interest rate-setting committee, which would make the selection of a successor to Geithner at the Fed also of great interest to financial markets.

[DCranon21]

And the market jumped up almost 500 points after this announcement

http://www.bloomberg.com/apps/news?pid=20601087&sid=adW9iCvqNoIY&refer=home

[Cooked Crack]

He joined the department in 1988 and worked his way up to under secretary for international affairs during the Clinton administration under former Treasury Secretary Robert Rubin and then under Summers, who succeeded Rubin as Treasury chief

Where's the change? :mad:

I don't care if this guy might be good at his job, he worked for Clinton! That's not change.

[zoony]

Seems like a good choice from what I know about him.

[AsburySkinsFan]

Where's the change? :mad:

I don't care if this guy might be good at his job, he worked for Clinton! That's not change.

My sarcasm meter keeps going back and forth on this C_C.

[Corcaigh]

Where's the change? :mad:

I don't care if this guy might be good at his job, he worked for Clinton! That's not change.

Bill O'Reilly is disappointed too. The change he was expecting was for Al Sharpton would get the job and announce a fitty fitty raffle to raise revenues.

Now where's my mother****ing iced tea?

[SkinsHokieFan]

Seems like a good choice from what I know about him.

I have heard some good things about him also and this sounds like a good move

Of course I also loved Hank Paulson coming on, and he will go down as the worst in history

[SnyderShrugged]

more of the same monetary policy to come

[Burgold]

Solid reputation and Wall Street likes him. That's positive. Then again, Wall Street liking somebody is dangerous considering what Wall Street's been doing to itself recently.

[The 12th Commandment]

Change change change. You guys really want a socialist government or what. It's silly to think he would pick rubes that had never been involved and didn't have any stroke. I expect that when they start doing things in january we'll see some change. From the current to something better. They'll be taking orders from someone with very different motivation.

[JohnLockesGhost]

We're saved.

[Lombardi's_kid_brother]

I think the markets just wanted a name. They seem to have decided that Paulson is a dead man walking and were behaving accordingly.

[daviddsims]

Guys I voted for Obama but this move is very troubling in my eyes. If you dont listen to the mainstream media and listen to some alternative sources you will find out the the NY fed is the worst run arm of the Fed reserve. There is literally 2 trillion dollars missing right now from it and it is solely responsible for the mess on Wall Street right now. It is the one who gives out the money to all the big banks in NY. This is really dissapointing in this pick. Well I guess I better get my garden ready and my soup bowl, I really think this is the final nail in the coffin for most working people and the real economy.

[Burgold]

If you dont listen to the mainstream media and listen to some alternative sources you will find out the the NY fed is the worst run arm of the Fed reserve.

Can you name some of the alternative sources. Not looking to shoot your messengers, just wondering who they are?

[FanboyOf91]

Guys I voted for Obama but this move is very troubling in my eyes. If you dont listen to the mainstream media and listen to some alternative sources you will find out the the NY fed is the worst run arm of the Fed reserve. There is literally 2 trillion dollars missing right now from it and it is solely responsible for the mess on Wall Street right now.

Link?

[Burgold]

I've heard the two trillion figure several times, but I've heard it associated with defense and throughout various branches of the Gov't. I've never heard it pinned solely on NY before. That seems difficult to believe.

[The 12th Commandment]

From what I saw he was one of the only members of the NY fed that had been saying, more than a year ago, that things were coming unraveled.

From his 2006 speech to Morgan Stanley - hmmm spending wildly on credit at both the personal and national level will result in widespread global implications. Seem pretty on the ball to me.

http://cynicsdelight.blogspot.com/2006/01/doubting-timothy-geithner-warns-on.html

“It is not difficult to see that if the [current account] deficit continues to run at a level close to 7 percent of GDP—and most forecasts assume it will for some time—the net international investment position of the United States will deteriorate sharply, U.S. net obligations to the rest of the world will rise to a very substantial share of GDP, and a growing share of U.S. income will have to go to service those obligations…

What does this mean for economic policy in the United States and the rest of the world? The conventional policy prescription includes the encouragement of higher public savings in the United States, the implementation of structural reforms designed to increase flexibility and raise potential growth rates in economies outside the United States, and movement toward increased exchange rate flexibility…

The global nature of these requirements does not imply that the United States can put the principal burden for adjustment on others. If we focus adequate political capital on the factors within our control, we will have more credibility internationally in encouraging policy changes outside the United States that might reduce our collective risks in the adjustment process ahead.”

[daviddsims]

Guys if you listen to Coast to Coast AM they have some really good guest on the financial crisis. I know some people will laugh at it but I think we dont get the whole story from the MSM. I cant remember the guest name but this was a couple months ago he talked about the Fed Reserve in NY and the missing money. It is the most corrupt of all the Fed reserves in the country. I will try to find the guest that had said all of this.

[Ray Brown]

Guys if you listen to Coast to Coast AM they have some really good guest on the financial crisis. I know some people will laugh at it but I think we dont get the whole story from the MSM. I cant remember the guest name but this was a couple months ago he talked about the Fed Reserve in NY and the missing money. It is the most corrupt of all the Fed reserves in the country. I will try to find the guest that had said all of this.

not suprising that its the most corrupt. it's seat is guaranteed on the FOMC no matter what while the the other 11 branches rotate filling the other 4 spots held by Fed branch heads on the Commitee.