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Democratic Lawmaker Laments Geithner's 'Mistake'

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March 09, 2009 11:32 PM

ABC News' Matthew Jaffe reports: Rep. Elijah Cummings, a member of the Joint Economic Committee, told ABC News tonight that Treasury Secretary Tim Geithner had made a "mistake" in announcing the financial stability plan, because it left critics suspecting that "maybe something's missing" and now his chances of success depend more on political sense than economic know-how.

"The guy is extremely bright, but the question is not if he's bright -- it's if he has the political sense to lead us out of this mess," Cummings said in a phone conversation with ABC News after attending Geithner's evening meeting with the House Democratic Caucus. "What he has to do is paint a picture that this can be done."

Cummings said Geithner's ill-fated unveiling of the administration's financial stability plan on Feb. 10 created doubts in the minds of critics.

"One of the worst things he did was that initial speech, because it set a pattern that maybe something's missing here in the minds of some people," said the Maryland lawmaker. "It's about trust."

"One of the biggest mistakes he made was coming out initially with that speech. He was seen as the golden boy ... and then for him to come out, with everyone on the edge of their seats waiting for a specific plan and all we got were some 'rah rahs' and 'go team' -- that didn't sit too well."

Despite the criticism directed at the treasury secretary, Cummings expressed confidence that Geithner is the right man for the job.

"I think he can do the job," Cummings said. "I think the guy is very competent."

"If Geithner were to go, it would hurt," Cummings cautioned. "A lot of this is [about] confidence."

But he added, "Probably the only person that can really keep the confidence of the American people is the president."

To keep the country's confidence, Cummings warned that President Obama will have to "deal with the Shelbys and the Grahams of the world," referring to Republican Sens. Richard Shelby and Lindsey Graham. "What the Republicans are doing is, I think they're saying anything but what Obama wants. They gave Bush eight years of patience and they haven't even given [Obama] eight weeks."

Cummings called Geithner's speech tonight to Democrats "a pep talk to say we are on the right course."

"Members were concerned that constituents want to see some lending and results, but they're getting tired of giving away money," noted the lawmaker, but he said that in response, Geithner reassured them that "your constituents may be doubting the road we're taking, but we've given it a lot of thought."

Cummings said Geithner told them that "we are doing more in weeks than other countries do in years."

As the Treasury Department addresses the financial crisis, Cummings said Geithner believes that some banks may fail, but argues the government has to do everything it can to stabilize the top 20 banks, because they hold 75 percent of the assets.

The Treasury's ongoing stress tests will assess the financial state of the nation's 20 biggest banks.

Cummings said Geithner "made it clear that when banks get money, they will have to lend and do away with these bonuses and junkets and in some institutions there may have to be a change in leadership, because it's important to have confidence."

All at a time when, as Cummings said, the country currently finds itself navigating in "uncharted waters."

March 9, 2009 | Permalink | User Comments (106)

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Who is Obama, really? He has been called the first black president, but is it true? I've heard, he is 50% white, 43% Arab, and 6% black. It may be true that he is the first African American President, since his father was from Africa. Check out the history of Kenya for more details. I've heard his maternal grandmother claims he was actually born in Africa, and that his mother flew to Hawaii a few days after his birth and registered his birth there. Could that be true? Hmmmm. Why won't the President release a copy of his original birth certificate? Is he hiding something? Historians will want to know. Don't the American people have a right to know?

Posted by: Terry | Mar 9, 2009 11:49:47 PM

First

Posted by: first | Mar 9, 2009 11:51:36 PM

20 banks should not have that much power to bring down the global economy.

Posted by: phallon | Mar 9, 2009 11:52:53 PM

Terry, Obama could probably be classified as Arab-Africa-American. His father was a black Arab and his father's family came from a line of slave traders. Just google it and you will see.

On to Geitner. If he was competent,this mess wouldn't have happened at all on his watch. After all, it was his job to oversee the financial institutions just to prevent this very thing from happening. To me, it is like asking the fox to guard the hen house.

Posted by: Fran | Mar 9, 2009 11:58:17 PM

Come on, Secretary Geithner as well as President Obama have not been in office for 100 days yet the critics expect that the biggest economic crisis since the great depression be resolved by the summer? --

Also, Terry get over it! Obama is our President for the next 8 years, yes at least 2 terms.

Posted by: Diana Cardenas | Mar 10, 2009 12:10:23 AM

Fran, you can't be serious that Geitner
can fix the mess that took several years
to manifest miserably. This is Former
treasury Secretary Paulson's baby, along
with the clowns at SEC (Who should all
be fired)! Why did AIG wait until it was
$85 Billion? Flags should have gone up
when they were 1/2 that amount. I'm
wondering if Congress and the Senate
have their pension secured with AIG. Hmmmmm

Posted by: spacerook1 | Mar 10, 2009 12:15:29 AM

Diana cardenas, Americans don't expect Geithner or President Obama to get us out of the recession immediately, but we do expect that they have a plan of action to accomplish this. A plan would at least give people CONFIDENCE that Obama and Geithner can get the job done in the end. Because they have no plan, Americans and Wall Street have NO CONFIDENCE in them. It's as simple as that.

Posted by: Sandy | Mar 10, 2009 12:24:32 AM

Good point spacerook1....I am with you about Reid, Dodd, Pelosi are probably heavily invested in AIG. since AIG made a lot of campaign contributions to the Democratic party, along with Bank of America... I am really wondering how many banks and other financial instutions are/where cooking their books...

Posted by: camp50 | Mar 10, 2009 12:28:38 AM

I really think Hussein Obama will fail and why he doesn't show an original copy of his birth certificate?

I really think republicans wil be in Poweer in 2012. Bush far better than Hussein Obama so far.

Posted by: Peter | Mar 10, 2009 12:35:34 AM

Sandy,
Enlighten us all as to what 'plan' Bush had the past year when this economy was going into the toilet. The recession started in Dec 2007! Who cares about Wall St? They are part of the problem. Greedy.

Posted by: Jwench | Mar 10, 2009 12:44:18 AM

Obama was born in Hawaii. I'm getting peeved w/ all this talk of confidence. It's done, the parties over. Now what? That's my only question. If Obama wants to prove his worth and gain confidence/trust he needs to demonstrate the ability to form a sustainable future. Give us a hint, anything? Anything from anybody, Republican or Democrat? O...nothing? Well then yea there's your lack of coinfidence problem.

Posted by: longtime | Mar 10, 2009 12:44:33 AM

Geithner is like all the rest of obama's team, incompetent. The man has no clue, doesn't even know how to pay taxes and he is going to lead us out of this,ha ha. Obama is trying to distract everyone by focusing on limbaugh,bush etc but the reality of it is that he is lost and has no clue.

Posted by: john | Mar 10, 2009 12:46:12 AM

This whole experience with Geithner and the prez has shown what the true meaning of amateur hour is really like in Washington and have no REAL thought to what they are doing..

Posted by: russ | Mar 10, 2009 12:47:04 AM

It has felt from the second they were all in office they REALLY REALLY are in over their heads and people are loosing their life savings and capital as a result to the comments made from the administration.

Posted by: russ | Mar 10, 2009 12:49:07 AM

The president doesn't have to get us out of it. He only has to blame Bush for 8 years and then Biden gets to do it for 8 more. People do not really want to get out of this mess NEARLY as much as they simply want someone to blame. I hope the American people give the Democrats an even bigger majority in 2010 and then in 2012 if we are better off I will vote for our president. If not, I pray the American people put aside the blame game and actually elect someone with more than empty promises of change and debt.

Posted by: jchilman | Mar 10, 2009 12:49:15 AM

C’mon! Obama has been in office for less than two months and his cabinet for an even shorter period! No, Obama can’t walk on water-----nor has he ever professed to. This is going to take some time and in the presidents own words, “it’s going to get worse before it gets better”. You’d think that the media was running out of stories to report on to have to commit to print something as insignificant as a house members lament------As if there isn’t already enough drama to keep this nation occupied!

Posted by: Leukevent | Mar 10, 2009 12:56:45 AM

Leukevent,
What these people can't handle is a President who is actually telling them the truth on things. It will get worse before it gets better.

Posted by: Jwench | Mar 10, 2009 12:59:23 AM

Obama has a pattern of making open ended promises, nothing with true commitment behind it on anything he has done.
Geithner is another case where Obama and his staff missed glaring problems with their appointees showing that they don't do their most basic homework as Obama touted during his campaign as one thing they do well.
America, we have been had...again!

Posted by: CC | Mar 10, 2009 12:59:43 AM

Terry, Fran & Peter - you have it all wrong! Obama's father was an Arab-ESKIMO and his mother is half-white, half Puerto-Rican and 2/3rds Japanese. His maternal grandmother came from Singapore, though her father was RUSSIAN!!! That's why Obama's a Communist, see?

And his paternal great Uncle was a Born-again Muslim but was born Buddhist the first time. Since he was born twice, he didn't have a birth certificate either!!! Now is it starting to make sense for you?

So Obama is half-black, half-white, 1/4 Mexican, 3/8ths Terrorist, 1/4 Stalinist, 7/16ths Portugese and 3/4 REPUBLICAN!!!

JUST GOOGLE IT!!!

Posted by: R Mutt | Mar 10, 2009 2:01:18 AM

Everyone is a crook. The government is crooked and corrupted, businesses and banks are a bunch of thieves and lowlifes, they are nothing but worms. We are just pawns of their games. They talk and we listen like dummies. Everyone, politicians, government officials, bank and corporate CEOs all will come out rich and wealthy, while we hang on to their empty words of hope. Face it people, we will be just as poorer if not more poorer when all this is over. They will go on with their lives living in luxury and more wealth than when they started this scam. Doesn't make a difference whether Republican or Democrat or Independent, they are all the same, in it for themselves. We are truly the fools believing in them. Want proof, tell me of one President, cabinet member, or politician that has left office poorer than when they started, or a bank CEO or financial house CEO...the answer is NONE. Just pawns, thats all we are, pawns and fools to beleive in any of them.

Posted by: jake | Mar 10, 2009 2:03:37 AM

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