Geithner’s background is essentially in the public sector, but he has knowledge of Wall Street as well.
Geithner's Education and Work History
Geithner graduated from Dartmouth College, and has an M.A. from Johns Hopkins University with an emphasis in international studies rather than economics. He apprenticed with Henry Kissinger at Kissinger Associates, his first job.
Geithner at the Treasury Department
He then joined the Treasury Department in the International Affairs division in 1988. He was deputy assistant secretary for international monetary and financial policy (1995–1996), senior deputy assistant secretary for international affairs (1996-1997), assistant secretary for international affairs (1997–1998).
He became an aide to Lawrence Summers (his mentor) and Robert Rubin, Treasury secretaries under Bill Clinton. Later, Mr. Geithner became a treasury under secretary under Mr. Summers at the end of the Clinton administration (1998-2001). (Summers is now the Director of the White House's National Economic Council for Obama and could be a possible successor to Federal Reserve Chairman Bernanke when his term is up.)
Geithner's Bailout Assistance
He assisted them in putting together bailouts, not of companies but of nations, including Mexico and Indonesia.
In 2002 he left the Treasury to join the Council on Foreign Relations as a Senior Fellow in the International Economics department. At the International Monetary Fund he was director of the Policy Development and Review Department (2001-2003).
Geithner Becomes President of the New York Federal Reserve Bank
In 2003 he became president of the New York Federal Reserve Bank, the most powerful of the government’s 12 regional banks.
Geithner, as president of the Federal Reserve Bank of New York, has been deeply involved in tackling the present financial crisis, and has a range of experience. He helped resolve the bailout of Bears Sterns, and was active with the Lehman Brothers and AIG situations.
Shortcoming of Geithner
Geithner served as the point man in the talks that led to the Federal Reserve’s loan of $29 billion to assist J.P. Morgan Chase & Co. in its buyout of the assets of Bear Sterns. That is clear.
What the media doesn’t seem to know is that James L. Dimon, the CEO and chairman of J.P. Morgan Chase, is a Geithner ally and was a member of the board of the New York Federal Reserve Bank. This means that in solving the Bear Stearns mess Geithner approved a $29 billion loan to a company run by a member of his board. Sounds like a blatant conflict of interest.
Second, while Geithner is a great team player, he is not exactly an “idea man,” the guy who puts ideas forward. His connection with Larry Summers (his former mentor) is disturbing. Would Geithner will be Summers’ puppet from the White House, with Summers pulling the strings? Certainly seems possible, and is certainly unsettling.
Citations“Obama Likely to Pick Fed’s Geithner for Treasury” The Wall Street Journal. 22 November 2008
Who is Timothy Geithner?” wsj.com. “Business section.” 21 November 2008
news.muckety.com/2008/06/01/ny-feds-timothy-geithner-has-high-powered-group-of-mentors/3112. 1 June 2008
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