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Reporting and analysis from ABC News Chief Washington Correspondent and "This Week" Host George Stephanopoulos

George Stephanopoulos reports on events in politics, Congress and the White House for ABCNews, on the air and online. He interviews top newsmakers, discusses the events of the week and looks to the week ahead each Sunday on 'This Week.'

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Staff Trouble At Treasury Department?

March 06, 2009 1:23 PM

Nm_geithner_090202_mn Obama administration officials are pushing back hard at critics who argue that failure to fill key Treasury Department positions is hampering their response to the economic
crisis.

The Obama administration has argued that they have more appointees in place than previous administrations and have done big things: housing, stimulus, and the beginning of their bank plans.

But in the wake of last night's news that the top two candidates for key posts have withdrawn, White House and Treasury aides are promising to "expedite" the nomination process and have a slate of candidates before the Senate "very soon."

As I reported last night, Annette Nazareth was forced to withdraw from consideration for the deputy treasury slot because senators made it clear she would face tough questioning over her time at the Securities and Exchange Commission -- tenure that overlapped with the agency's failure to catch Bernie Madoff.   

The candidate for Undersecretary for International Affairs, Caroline Atkinson, was told she had to withdraw after a "tax problem" was revealed early in the vetting process, according to officials.

Now the man in line for Deputy Secretary -- Sullivan & Cromwell Chairman H. Rodgin Cohen -- has his nomination complicated by his work for blue-chip Wall Street clients. 

The experience that enhances his ability to do the job is also making it harder for him to get it. Like the new Deputy Secretary of Defense, Bill Lynn, he is likely to need a waiver from the strict conflict of interest standards set by President Barack Obama. 

"That's what you get when you run as a good government type," said one Senate source. 

"No one can meet the standard they set for themselves," added another.

An administration official concedes that "it's not easy to find qualified people who don't have conflicts"
adding that "dozens of candidates" across the government have been forced to pull out because they
couldn't meet the Obama standard or overcome "nanny tax" and other vetting issues. 

But even though more waivers will be necessary, there are no plans now for a broader reconsideration of the ethics regulations. 

"How do they do it in a face-saving way?" asked one Obama ally. 

One official in the financial services industry suggested they should find a way, comparing it to a life-and-death situation. The official told my colleague ABC's Matt Jaffe, "If a patient was having a heart attack, then even if the best cardiologist available is a jerk, you would still want that doctor operating on the patient."

--George Stephanopoulos

March 6, 2009 in Barack Obama | Permalink | Share | User Comments (42)

User Comments

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Our Greatest Smartest Clueless Leader is so smart in finding all types of crooks and tax cheaters to help him advance the ideals of common good.

Annette Nazareth was to withdraw because of failure to catch Bernie Madoff.

- Hey, maybe she invested with Madoff, too, and would be a victim.

The candidate for Undersecretary for International Affairs, Caroline Atkinson, had to withdraw after a "tax problem".

- Maybe, PB0 can make another exception. Keep her in, we need 3 more women in the government.

Posted by: kat | Mar 6, 2009 1:47:06 PM

Geithner needs help. There is no if's, ands, or buts.

Posted by: Sara | Mar 6, 2009 2:23:20 PM

It seems he can't even find a good Republican who can pass the test.

It just points out that perhaps we should start with cleaning out Congress.

Posted by: Thinking | Mar 6, 2009 2:30:41 PM

Why is everyone suddenly so eager for this President to fail? Is it so we can have something to complain about a few months/Years down the road? I for one would like for him to succeed so hopefully this country can make the economic turnaround it needs. I'm tired of struggling and living from check to check.

Posted by: Jenny | Mar 6, 2009 2:45:15 PM

Posted by: Did he fail | Mar 6, 2009 2:48:42 PM

This really shows what kind of people we have in the "Washington Environment". So many of these people are turning down nominations, perhaps because they have something to hide. After all, look how many tax cheats and other crooks were exposed through Obama's vetting process (one good thing he's done as President). As for a broader consideration of the ethics issue, the ethics standards should NOT be relaxed despite what the financial official mentioned wishes. Decades of weak/non-existent ethics standards is what got us in this mess. A return to strong ethics, common-sense judgement, and putting the average citizen first instead of the elitists will save us.

Posted by: Terrence O'Day | Mar 6, 2009 2:56:18 PM

These (insert word here) don't even pay taxes, yet they the top 1% want to RAISE yours after they took your job overseas, and let their Wall St. cronies steal your social security and retirement savings! Are you Mad as Hell YET!!! What will it take to get you to hold somebody, ANYBODY accountable. Democrat, Republican, they ALL STOLE from YOU!!! Why are you supporting the same people who took everything you own from you???

Posted by: hmn... | Mar 6, 2009 2:58:37 PM

The notion that Annette Nazareth is in any way responsible for the behavior of Bernard Madoff, is like saying Elliot Ness was responsible for the behavior of Al Capone. It is rediculous, and once again reinforces the claim that the Republicans on the hill are doing every thing in their power to make Obama look bad; misery loves company.

Posted by: Mark | Mar 6, 2009 2:59:26 PM

No the president didn't fail...this country is in such a mess that nothing can be fixed overnight. I'm tired of the bashing...he's only in five weeks. Does everyone realize the huge mess he is facing? This has been going on for years and years, with greed and fraud and no one watching the store.
Now we have someone who is trying to do something. Let's give him a chance....Everyone thinks they know what should be done but he is not an idiot and he is talking with many smart people and asking everyone's opinion...there are way too many things wrong with this country and since it took time to do this it will take time to undo it.

Posted by: Barb | Mar 6, 2009 3:00:37 PM

Kat - could you please not play the sexist card? According to your post, we need three more women in government. What makes a woman better at the job than a man? As a reverse, what makes a man better at the job than a woman? Gender isn't/shouldn't be a qualifying factor for a government job. Otherwise we should turn the Presidency over to Hillary, or to McCain because he had Palin...despite what the voters decided. Let's just focus on the person's intelligence, strong ethics and skills (all gender-neutral).

Posted by: Terrence O'Day | Mar 6, 2009 3:07:47 PM

STE.....Smoothest Transition Ever, right?

Watch Obama blame "GOP obstructionism" and threaten more "catastrophe" when Geithner names some bona fide screamers to his staff.

Posted by: WinstonSmith77 | Mar 6, 2009 3:08:44 PM

Everyone who voted for Obama as our president forgot that he was part of the problem in the Senate over the last 2 years during which time American has spiraled completely out of control. If Walmart wasn't so greedy and corupt polititians under Clinton didn't let Walmart have their way regarding trade with Asia, then American would still be at work today. I am a registered Independant and I believe that Bush screwed up by following in Clinton's footsteps on foreign trade policy. Were it not for greed and corruption America would not be in the mess it is in today.

Posted by: John | Mar 6, 2009 3:10:12 PM

In response to the question "does anyone realize the huge mess Obama is facing?":

Does anyone realize the huge mess Obama is making?

Posted by: WinstonSmith77 | Mar 6, 2009 3:10:40 PM

Not eager to see Barry fail, just want him to do something other than spend taxpayer monies and pat himself on the back. It's the economy stupid, not healthcare, bridge building in 2012 or welfare expansion. Quit giving speaches and campaigning then do something.

Posted by: Bob | Mar 6, 2009 3:12:34 PM

Obama is my president, but he messed with this one.

Tim is incapable of running Treasury. It only took me 40 days to find out. Sad isnt it. We have a tax cheat talking about eliminating tax evasion and has present a good idea yet.

ooooooo! Obama why you do this mane?

Posted by: nubiangent08 | Mar 6, 2009 3:13:28 PM

This man is hurting the economy, not helping it. Those who profited the most from this crisis are now re-evaluating their portfolios. They will make windfall profits over the next 3-5 years based largely in part on this idiots fiscal inexperience. The party isn't over, everyone got caught drunk driving after mowing down the crowd and then got a get out of jail free card! The fact that he has no experts to give sound advice is to blaim. THAT and the fact that he's really a deep deep undercover communist spy for China.

Posted by: concerned | Mar 6, 2009 3:15:04 PM

MARK:

PEOPLE HAVE HAD GREAT SUGGESTIONS AS TO WHAT WOULD HELP THE ECONOMY. CUT TAXES
IF YOU CUT THE CAPITAL GAIN TAX, AND CAME OUT AND SAID YOU WOULD NOT RAISE TAXES THE MARKET WOULD SKY ROCKET. BUT HE WANTS TO GO WITH RAISING TAXES AND SPENDING. ITS NOT WORKING. THE MARKETS WOULD BE UP IF THEY HAD CONFIDENCE. THIS ISNT WALL ST. THIS IS OUR RETIREMENT, OUR HOMES OUR FUTURES AND HE DOESN'T EXACTLY MAKE EVERYONE FEEL THAT HE IS IN CHARGE. WE WANT HIM TO SUCCEED I VOTED FOR HIM. BUT IT SEEMS THAT GEITHENER WASN'T THE BOY WONDER THAT EVERYONE THOUGHT HE WAS. IT COMES TO APOINT WHEN THERE IS NO TURNING BACK.

Posted by: KAREN | Mar 6, 2009 3:15:07 PM

what a sad day for our country when we can't find even one qualified candidate who is honest and ethical!!! Is it no surprise that our country is going up in smoke?
Historians are chilled by the similarites between the problems the U.S. is facing and the collapse of the Roman Empire 1500 years ago!!!!

Posted by: SmokeyJoe | Mar 6, 2009 3:17:14 PM

This really shows what kind of people we have in the "Washington Environment". So many of these people are turning down nominations, perhaps because they have something to hide. After all, look how many tax cheats and other crooks were exposed through Obama's vetting process (one good thing he's done as President). As for a broader consideration of the ethics issue, the ethics standards should NOT be relaxed despite what the financial official mentioned wishes. Decades of weak/non-existent ethics standards is what got us in this mess. A return to strong ethics, common-sense judgement, and putting the average citizen first instead of the elitists will save us.

Posted by: Terrence O'Day | Mar 6, 2009 2:56:18 PM


Thats exactly why they are turning them down. These folks are a getting a crash course in an effective background investigation.

I bet Barney, Chris, dodd, beuhner, or McConnell accepted the nomination, their background wouldnt be squeakly clean either.

I am glad Obama was elected b/c more americans are interested in whats happening in Washington. No matter bad, mad and upset at Obama for hiring Geither it maybe worth it in the future for voters to be more curious about who they are voting for.

Posted by: nubiangent08 | Mar 6, 2009 3:36:12 PM

Hey George all of these questions are well and good but here is the most important....Are u gonna let Ali keep the dog she fell in love with on Oprah

Posted by: Tracy | Mar 6, 2009 4:11:52 PM

DOes anyone wonder why George S is till allowed to parade as a journalist given his involvment with the democratic administration>

Posted by: stanjones | Mar 6, 2009 4:15:54 PM

In case you missed this on Politico...it's laugh out loud funny:

President Barack Obama doesn’t go anywhere without his TelePrompter.

The textbook-sized panes of glass holding the president’s prepared remarks follow him wherever he speaks.

Resting on top of a tall, narrow pole, they flank his podium during speeches in the White House’s stately parlors. They stood next to him on the floor of a manufacturing plant in Indiana as he pitched his economic stimulus plan. They traveled to the Department of Transportation this week and were in the Capitol Rotunda last month when he paid tribute to Abraham Lincoln in six-minute prepared remarks.

Obama’s reliance on the teleprompter is unusual — not only because he is famous for his oratory, but because no other president has used one so consistently and at so many events, large and small.

After the teleprompter malfunctioned a few times last summer and Obama delivered some less-than-soaring speeches, reports surfaced that he was training to wean himself off of the device while on vacation in Hawaii. But no such luck.

His use of the teleprompter makes work tricky for the television crews and photographers trying to capture an image of the president announcing a new Cabinet secretary or housing plan without a pane of glass blocking his face. And it is a startling sight to see such sleek, modern technology set against the mahogany doors and Bohemian crystal chandeliers in the East Room or the marble columns of the Grand Foyer.

Obama has relied on a teleprompter through even the shortest announcements and when repeating the same lines on his economic stimulus plan that he's been saying for months — whereas past presidents have mostly worked off of notes on the podium except during major speeches, such as the State of the Union

Posted by: melsg | Mar 6, 2009 4:16:38 PM

WHO WOULD WANT TO WORK ALONGSIDE TG??HE DOES NOT PROJECT CONFIDENCE AT ALL!!HE SEEMS THE TYPE THAT YOU WOULD BE A "SCAPEGOAT" FOR, WHILE HE FORGES AHEAD!

Posted by: Denisea213 | Mar 6, 2009 4:17:02 PM

George, I lost all respect for you this week finding out how you are spending time worrying about a radio talk show host and not the issues we're facing. Obama's dishonesty is rubbing off..thought you'd changed from your Clinton years.

Posted by: melsg | Mar 6, 2009 4:18:14 PM

obama should have let geithner go when the tax problem surfaced. No one has any trust in that man, how can he get qualified people to work for him, when he him self is not qualified. Obama will not be happy untill America is finished.

Posted by: jollypolly2 | Mar 6, 2009 4:23:04 PM

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