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Obama Taps Geithner to Head Treasury, Prepares Economic Team for Roll-Out Next Week

November 21, 2008 4:25 PM

From Jake Tapper and George Stephanopoulos:

After a very fluid process in which the identity of President-elect Obama's leading candidate for the job seemed to fluctuate like the market, on Friday New York Federal Reserve President Timothy Geithner emerged poised to become the next Secretary of the Treasury.

Mr. Obama intends to announce his nomination early next week.

As one of the government's point people dealing with Wall Street, Geithner has earned much respect from politicians and CEOs alike. He has been working closely with the current Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke.  As evidence of Geithner's popularity on Wall Street, when the news leaked to two prominent business media -- CNBC and the Wall Street Journal -- the Dow Jones Industrial Average soared almost 500 points.

Geithner, a registered independent, has long been respected in Obamaland, referred to as "Obama-esque" for his outside-the-box thinking, relative youth, his overseas upbringing (elementary school in New Delhi, high school in Bangkok) and his love of a good game of pickup basketball.

The only other serious candidate for the Treasury slot has been the man who served that role at the end of the Clinton administration, Larry Summers. The formidable Summers is a man of great intellect but also controversy -- he was forced out as president of Harvard for any number of perceived slights, including suggesting that females are innately inferior in engineering and math.

Obama has been encouraging Summers to serve in his administration in some other role, perhaps as chair of the National Economic Council. Some Democrats suggest that Obama plans to name Summers chairman of the Federal Reserve when Bernanke's term expires at the beginning of 2010.

If for some reason Summers does not go to NEC, the leading candidate is Jack Lew, currently the Chief Operating Officer of Citigroup's Alternative Investments unit. Lew served as director of the Office of Management and Budget for President Bill Clinton. He and Dan Tarullo, a former Assistant Secretary of State for Economic and Business Affairs under Clinton -- who was earlier this week named leader of the Obama Transition Team's Economic Policy Working Group -- may both end up working at NEC. Peter Orszag, the director of the Congressional Budget Office, will become Obama's OMB director. New Mexico Gov. Bill Richardson is a strong contender to be Obama's Secretary of Commerce.

Some high profile women are being considered for key economic slots.

Laura D'Andrea Tyson, the former chair of President Clinton's Council of Economic Advisers, and could also play a key role in the Obama administration. The question right now -- what job to give her? Would deputy Treasury Secretary be enough to lure her east from the San Francisco area, where she's a professor at the Haas School of Business of the University of California, Berkeley.

Interestingly, though it's unclear what the Obama Team will decide, there is a lot of support among Democrats on Capitol Hill for Sheila Bair, the Republican chairwoman of the Federal Deposit Insurance Corp., to stay on board.

In addition to wanting the best team he can put together, the Transition Team's goal is to assemble a group that can work well together, with as few confirmation issues as possible.

-- Jake Tapper and George Stephanopoulos

November 21, 2008 | Permalink | Share | User Comments (32)

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I don't see one thing wrong with Obama surrounding himself with some of Clintons staff. Clinton brought our country out of debt, as such I am sure his cabinent had given him great advice. The Bible says something about surrounding yourself by many counselors. I think that is what he is doing, and he is wise to pick counselors that worked for a president in the past. I give him all my respect for his humility in that respect. Most would pick a total new cabinet out of some kind of Man ego thing. That is human nature. He is fighting against that nature, and being a very humble man. My humble opinion of course.

Posted by: Holly | Dec 1, 2008 4:02:06 PM

ISB graduate ??

Posted by: Patricia A Hight | Nov 23, 2008 7:30:39 PM

International School of Bangkok Graduate!! Yeah !!!!!!

Posted by: Patricia A Hight | Nov 23, 2008 1:45:21 PM

Chould it be that Nancy, Harry, and Howard are making the pick for Obama? I strongly believe that Obama does not have voice in the picking of his cabinet since the matter of his birth certificate is still in question by the U. S. SUPREME COURT. The DNC are going to bat for Obama and going to ensure he keep his seat if he does not provided an official BO to the U. S. SUPREME COURT on December 1, 2008 to show he is a national born.

Posted by: connectdoc | Nov 22, 2008 3:37:37 PM

We need to get Chris Cox and get a new SEC chief who will work for the investors and not the hedge funds.

Posted by: pieceof cake | Nov 22, 2008 3:36:52 PM

Paul O'neill, the first Treasury Secretary under President BUsh says "Bush's economic policies were irresponsible, Bush was unquestioning and uncurious, and the war in Iraq was planned from the first National Security Council meeting, soon after the administration took office, even though Bush had promised not to engage in nation building during his campaign."
Now we are paying for the Bush bad decisions now in a way that all Americans ca understand.

Posted by: isaiahcalif | Nov 22, 2008 2:26:26 PM

Obama is during a good job.Obama is picking the right people for the job. I feel that we will get jobs, healthcare, and other needs meet.OBAMA and BIDEN.

Posted by: Tina WALLACE | Nov 22, 2008 2:20:28 PM

The intelligence in my response was in pointing out the obvious - Obama is NOT surrounding himself with progressives; rather, he is surrounding himself with pro-NAFTA, pro-Wallstreet, center-right cabinet members. They say he is even considering keeping Gates - a Republican war hawk - in Defense. I am sorry, but I don't see ANY change in his choices. Not a whit of it. If anything, he is putting together a more right leaning group than the Clintons put together. The Clintons - please try to remember what they honestly did - they started the systematic shipping of our jobs and manufacturing base out of our country. They signed the credit card laws that hurt the consumer and helped the banks. They deregulated the banking and credit industries. And if you remember, the growth in our economy, even then, was rapidly increasing the wealth of a few and not of the many. Also, they helped create the dot.com bubble (with the help of the diabolic Greenspan) - which made it look like some average joes were getting ahead (only to have it all ripped out from under them).

What exactly is Obama thinking that he would have his Cabinet ENTIRELY filled with those same people? Not ONE true progressive in the lot.

His own foreign policy advisors are truly upset because they see that their voices are going to be ignored in his administration. They aren't getting the jobs. He won the campaign on their platform - yet they are being left out.

Like I said, WAKE UP!

Posted by: Yana | Nov 22, 2008 1:56:28 PM

I'm starting to think that some have truly nothing intelligent to say so they just keep spouting the "where's the change" line.

Posted by: AnaB | Nov 22, 2008 12:03:19 PM

I don't know - the man is good at what he does. I too think that Obama is surrounding himself with too many of past President Clinton's staff persons, but it still might work. Obama has a strong personality, and I am sure he will be just as strong when he really get into the whitehouse. I don't think he would have a problem making moves to oust those that does not do what they are nominated to do.

For God's sake - give the man a break. Wait for a couple of years to see if he and his staff can pull us out of this rut we are in. God knows he cannot do it alone. Just as he said.

You republicans - quit crying and pray for the man and his cabinet.

Praise God

Posted by: Margaret | Nov 22, 2008 11:21:27 AM

respectfulcitizen

yawn......

anything new from the 'right' yet?

Posted by: Blue | Nov 21, 2008 11:48:21 PM

Adding to this discussion of parental involvement and success in education. It needs to be understood that the school should not be relied on to provide all the education. My kids could read before kindergarten. The parents need to do this, they can't farm out the education. Another thing, my wife worked at an alternative school, the place where kids are sent for making bomb threats and fights that get them kicked out of school. Almost without exception, these kids had parents who couldn't get it together. The mom who shows up drunk to the kid's conference. The boyfriend who returns from prison and the girlfriend with kids who takes him back. The uncle who is initiating his nephew in a gang. These kids actually still have a spark of goodness and hope, but it is being snuffed out by the adults in their lives. Try as they may, the school can only do so much. The parents who don't do right by their kids, who send the kids to school to disrupt the education of the rest of the students, it is really a shame. Unfortunately these parents are mostly a lost cause. There are some interesting early edu programs that try to change some basic factors in the parent/child interactions in terms of education, with the understanding that the adult generation is lost, concentrating on key elements of the kids, to help lift them out of continuation of the parents life patterns. Some show promise. Obama’s work with the Annenberg school initiative actually did not show much success, but hopefully he is open to trying some of these alternate methods.

Posted by: D.B | Nov 21, 2008 8:43:24 PM

Since Mitch McConnell R Senate Leader) commented that Obama is doing a great job with naming his cabinet, I think true Democrats need to calm down their praise of Obama's picks and start to wonder why he isn't naming ANY of the foreign policy thinkers or economic nobel laureates who are proponents of progressive ideals? Instead, he is making conservatives in both parties very happy. Change? He will not be embarrassing as president. But real change? Come on. This will continue to be the undermining of the working and middle classes. While the top 20% will continue to get richer. The rich want the workers desperate (ergo this "unpredicted" collapse). I predicted the collapse in 2002 when Greenspan was slashing interest rates to make it look like our economy wasn't tanking by creating a massive credit bubble. For God's sake people, WAKE UP!

Posted by: Yana | Nov 21, 2008 8:25:34 PM

obama is no President Lincoln! * You cannot help the poor, by destroying the rich. * You cannot strengthen the weak, by weakening the strong. * You cannot bring about prosperity, by discouraging thrift. * You cannot lift the wage earner up, by pulling the wage payer down.
* You cannot further the brotherhood of man, by inciting class hatred.
* You cannot build character and courage, by taking away men's initiative and independence. * You cannot help men permanently, by doing for them what they could and should, do for themselves. Do you recognize the author?
It was Abraham Lincoln. Very, very wise words, written years ago and we still don't get it...

Posted by: respectfulcitizen | Nov 21, 2008 8:03:02 PM

I take offense in your careless remark about Summers and Harvard. At least quantify those remarks attributed to him.

The choice for Treasury Secretary is interesting, the guy is young and has experience. The market's reaction today may not have been just because of his rumored selection but anything to move the dow is welcomed.

Will be interesting to see how CITI makes out as Tim will have input on this fiasco.

Posted by: i am so I can! | Nov 21, 2008 7:56:15 PM

Obama, Chuck Schumer and Washington Democrats poured almost $1 million into Georgia to defeat Republican Senator Saxby Chambliss. All they need are 60 senators to eliminate the workers' secret ballot, to slash our military, to raise taxes in a recession, and take our country sharply to the left — a liberal agenda so scary its effects will be felt for a generation.


Posted by: respectfulcitizen | Nov 21, 2008 7:43:46 PM

Obama is doing nothing new, he is hiring the same old Clinton folks, so we will have four more years of garbage as we had with Clinton. Americans should have made Obama define his term "Change" thus far there is just the status quo.

Posted by: Valerie Tarantolo | Nov 21, 2008 7:25:34 PM

Obama is doing nothing new, he is hiring the same old Clinton folks, so we will have four more years of garbage as we had with Clinton. Americans should have made Obama define his term "Change" thus far there is just the status quo.

Posted by: Valerie Tarantolo | Nov 21, 2008 7:25:22 PM

Change means the defeat of Bush and McCain policies plus a new president like Obama who will define the way forward. Thats why he needs experience people(non-Bush) to do the job.

What do you not understand.

Posted by: Krista | Nov 21, 2008 6:41:36 PM

55Mariposa, would you give him a chance to form his cabinet first. i would hope for the most qualified candidates. it happens that President Clinton hired some very gifted individuals. the economy was robust and strong and there was a balanced budget. if it takes former Clinton people to help the economy why not. i think most republicans are so partisan they actually want the economy to collapse, for the jobless rate to go up and terrorist attacks just to feel smug. think about the country and not your narrow political interests.

Posted by: Paul Wall | Nov 21, 2008 6:34:03 PM

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