The Next Secretary of Treasury According To Wall Street

The second most important cabinet post President Obama will have to choose immediately?  Secretary of the Treasury.  Here are the names buzzing around Wall Street and the Water Cooler.  Which one do you prefer or do you have another idea? 

 First round draft choice (so to speak) is Timothy F. Geithner (born August 18, 1961) is the 9th president of the Federal Reserve Bank of New York. In that role he also serves as Vice Chairman of the Federal Open Market Committee (FOMC). Geithner was born in New York City. He graduated from International School of Bangkok, Thailand. Mr. Geithner graduated from Dartmouth College with a B.A. in government and Asian studies in 1983 and from the Johns Hopkins School for Advanced International Studies with an M.A. in International Economics and East Asian Studies in 1985. He has studied Japanese and Chinese and has lived in East Africa, India, Thailand, China, and Japan. He worked for Kissinger and Associates in Washington, D.C., for three years and then joined the International Affairs division of the Treasury Department in 1988.

In 1999, he was promoted to Under Secretary of the Treasury for International Affairs and served under Treasury Secretaries Robert Rubin and Lawrence Summers.

Just recently Geithner played a leading role in this year’s Bear Stearns drama that was a critical point in the credit crunch. Should he win the post, it would be at the expense of several prominent current and former Wall Street bankers–including prominent Democratic contributors–who names have been floated as candidates for the job.

Jamie Dimon, 53, is CEO of JPMorgan Chase, a man of big bold strokes who is betting   that he  can turn bank and brokerage junk into solid gold for his firm and his reputation.  Just hours after lender Washington Mutual went  belly-up Thursday in the biggest bank failure in history, Chase gobbled it up. There were others interested in WaMu – Citigroup and Bank of America among them – but Dimon won out with a $1.9 billion bid.

Jamie Dimon has been an economic adviser to the Obama campaign, but his reputation for bluntness could be seen as a drawback in Washington circles and he already has his hands full with the fallout from the credit crunch.

   Prior to his political career, Corzine worked in banking and finance. In the early and mid 1970s, he worked for Midwest banks (Continental-Illinois National Bank in Chicago, Illinois and BancOhio National Bank in Columbus, Ohio) during and after his master of business administration (MBA) studies at the University of Chicago Graduate School of Business. Then in 1975 he moved to New Jersey and began his career with Goldman Sachs. He eventually rose to become Chairman and co-CEO of the firm, but after he became involved in the rescue package for the Long Term Capital Management in 1998, he was squeezed out of the firm. Despite his departure from Goldman Sachs, he earned what has been estimated to be $400 million during the 1999 initial public offering of the company

    One would think that Former Secretary Robert Rubin would be a shoe in.  President Clinton called him the “greatest secretary of the Treasury since Alexander Hamilton.” “During his tenure as Treasury Secretary,” Senator Chuck Hagel (R-NE) said, “Bob was an ideal public servant who put policy before politics.”

Yet critics credit Rubin with helping create the conditions for the Financial crisis of 2007–2008, as a result of the policies he pursued as Treasury Secretary. Together with then-Federal Reserve chairman Alan Greenspan, Rubin strongly opposed the regulation of derivatives, when such regulation was proposed by then-head of the Commodity Futures Trading Commission (CFTC), Brooksley Born. Over-exposure to credit derivatives of mortgage-backed securities – or credit default swaps (CDS) was a key reason for the failure of US financial institutions Bear Stearns, Lehman Brothers, Merrill Lynch, American International Group, and Washington Mutual in 2008.

Arthur Levitt Jr., a former chairman of the Securities and Exchange Commission, has said in explaining Mr. Rubin’s strong opposition to the regulations proposed by Ms Born that Mr. Greenspan and Rubin were “joined at the hip on this.” “They were certainly very fiercely opposed to this and persuaded me that this would cause chaos.”

According to the New York Times, “In November 1999, senior regulators including Mr. Greenspan and Mr. Rubin recommended that Congress permanently strip the CFTC of regulatory authority over derivatives.” This advice was accepted and derivatives were kept clear of regulation by the CFTC.

Warren Buffett later called derivatives “financial weapons of mass destruction”, and the lack of regulation of derivatives played a key role in the 2008 financial crisis.

 

Advertisements

99 Comments

Filed under Uncategorized

99 responses to “The Next Secretary of Treasury According To Wall Street

  1. chefsheila

    Night Folks! 😕

  2. Thanks Sheila for the update on the treasurer’s nominees. Does anyone know who McCain have tapped? I dont know. I guess it will be someone who is going to buy up all the bad loans….

    Zogby’s morning tracker has Obama breaking away at 12, same poll had him at 2 or 3 just 10 days ago.
    http://news.yahoo.com/s/nm/20081023/ts_nm/us_usa_politics_poll

    Hope all are well.

  3. Whenever I think of Rubin, I think of how much better things might have been if it had been Reich making the decisions instead.

    http://robertreich.blogspot.com/

    {sigh}

    STILL ain’t gonna happen, eh…

  4. chefsheila

    Steve,

    I have to stop you there. Obama Campaign isn’t talking about it. These are names buzzing around Wall Street and that certainly isn’t a mandate.

    So this was not an update, it was more like the beginning to some education for us on one of the most confusing cabinet appointments.

  5. chefsheila

    BainSmac.

    Thanks for commenting. I agree with you. Robert Reich is my hero and you can take that to the bank. 🙂

  6. chefsheila

    I’m not sleeping at night right now. Want to sleep……

    Time for coffee

  7. chefsheila

    *** I found this but think its more like Gossip! …..Still this is fun gossip and so have fun just looking over the ramifications.

    The document provided to Whispers is no gag: It comes from one of the key House GOP vote counters.

    The source called it a “death list.” The tally shows several different ratings of 66 House Republicans in difficult races or open seats held by retiring Republicans.

    “Rating 1” finds 10 Republicans “likely gone.” Those districts are New York 13, Alaska, Arizona 1, Virginia 11, New York 25, Illinois 11, Florida 24, Michigan 7, Nevada 3, and North Carolina 8.

    Under “Rating 2,” nine Republican seats are listed as “leaning Democratic.”

    Under “Rating 3,” some 22 GOP seats are listed as “true toss-up.” The fourth rating, “lean Republican,” finds 15 seats in the category that comes with this warning: “If there’s a wave, some could be in trouble.”

    The last “likely Republican” rating finds another 11. Only three Democratic districts are seen as “hopeful” GOP pickups. They are Florida 16, Pennsylvania 11, and Texas 22. Another 10 Democratic seats are listed as “possible” pickups.

    The loss of 34 House GOP seats is among the most dire predictions in Republican circles. Most analysts have suggested a drop of at least 20 seats and at most 30 seats. A key Democratic official refused to provide his own list but said, “I’d rather be us than them.”

  8. chefsheila

    Richard Holbrook spoke some great points about Obama’s leadership and charactor on Morning Joe. He was having a good discussion with Barnicle and Peggy Noonan………oh and snarky Scarbourogh!….

    I hope a YouTube video comes out for you guys so you can see it too.

    Great!

  9. chefsheila

    An Amzing Joe Kein Piece! Just when you think you know enough about Barack Obama, you get just a little bit more to build another layer of understanding of this Human Being.

    “The Fresh Face”

    http://www.time.com/time/magazine/article/0,9171,1546362,00.html

    Obama wanders into a casual disquisition about the sluggish nature of democracy. The answer is not even remotely a standard, pretaped political response.

    He moves through some fairly arcane turf, talking about how political gerrymandering has led to a generation of politicians who come from safe districts where they don’t have to consider the other side of the debate, which has made compromise–and therefore legislative progress–more difficult.

    “That’s why I favored Arnold Schwarzenegger’s proposal last year, a nonpartisan commission to draw the congressional-district maps in California. Too bad it lost.”

    The crowd is keeping up with Obama, listening closely as he segues into a detailed discussion of the federal budget. Eventually, he realizes he has been filibustering and apologizes to the crowd for “making a speech.”

    No one seems to care, since Obama is doing something pretty rare in latter-day American politics: he is respecting their intelligence.

  10. Morning peeps,

    October 23, 2008 – Economy Buoys Obama In Florida, Ohio, Pennsylvania Quinnipiac University Swing State Poll Finds; McCain Gains Some Ground In Florida, But Fades In Ohio — FLORIDA: Obama 49 – McCain 44; OHIO: Obama 52 – McCain 38; PENNSYLVANIA: Obama 53 – McCain 40

    http://www.quinnipiac.edu/x2882.xml?ReleaseID=1223

  11. “As we enter the home stretch, Sen. Obama is winning voter groups that no Democrat has carried in more than four decades, and he holds very solid leads in the big swing states. If these numbers hold up, he could win the biggest Democratic landslide since Lyndon Johnson in 1964,” said Peter Brown, assistant director of the Quinnipiac University Polling Institute.

  12. dog's eye view

    Always glad to see Tim Geithner get a shout out. If you like intelligence, excellent judgment, dedication and a longterm view, he is your guy.

  13. Obama leading all Midwest states in Big Ten Battleground Poll
    http://www.bigtenpoll.org/

  14. dnd

    Will SNL do a skit of Brian Williams interview with McCain and Palin?

  15. nannymm

    Good morning, everyone.

  16. chefsheila

    Dog,

    Thanks for the shout out When I was reseaching this piece, I became very interested in this guy

    Knowing NOTHING….NADA about what would make a good treasury secretary……well I came away a bit more wonkish and maybe understanding a little.

    However, becoming a little bit more educated is what this is all about. Its about time we at least began to understand how to dig out of this mess.

  17. chefsheila

    My personal choice is still Robert Reich! 🙂

  18. BTW Sheila since Corzine wears an earring he’s my pick!

    🙂

  19. chefsheila

    Brian,

    I was pretty impressed with Corzine……And I think he’s cute for an old man. BUT, I personally don’t think he’d give up his governorship……just my opinion.

    BUT wall street seems to think he’s cool.

  20. chefsheila

    Morning nanny!

  21. You just like guys with beards!

  22. chefsheila

    hhmmmmm……you could be on to something.

    I love great minds. Find a brain so sexy.

    It looks as though all of the ones I personally find attractive are wearing beards right now…… lol

    ……..WAIT! dnd, I forgot about you!

  23. dog's eye view

    Mike Murphy. Off the Straight Talk Express. Off the ranch. Off the heli.

    http://www.nytimes.com/2008/10/23/us/politics/23murphy.html?ref=us

  24. dnd

    I’ve pegged Reich for Labor. Corzine or Rubin would be my pick for Treasury. I don’t know much about Geithner, but he’s got quite a resume.

  25. nannymm

    Those are some impressive choices for Secretary of State. Fortunately, Obama has a wealth of talent to draw on for all his cabinet picks. I agree with you about Corzine, Sheila. He would be a great pick but I think he likes being governor too much to give it up. Jamie Dimon would be good, also. A new face, but I’ve heard good things about him. I know people who work with or have worked with him at Chase. He’s highly regarded.

  26. chefsheila

    dnd,

    What suprised me about Rubin……that he was insistant about deregulation even though the likes of Warren Buffet warned him against and now, Most of the thinking world are saying that he was the last brick in what is now this disaster.

    My last two paragraphs in this piece……

    According to the New York Times, “In November 1999, senior regulators including Mr. Greenspan and Mr. Rubin recommended that Congress permanently strip the CFTC of regulatory authority over derivatives.” This advice was accepted and derivatives were kept clear of regulation by the CFTC.

    Warren Buffett later called derivatives “financial weapons of mass destruction”, and the lack of regulation of derivatives played a key role in the 2008 financial crisis.

  27. chefsheila

    Nanny,

    I was writing about possible Secretary of Treasury. 🙂

  28. It’s beginning to look like all these major upticks in the polls could be due to the Powell endorsement.

  29. chefsheila

    BTW dnd,

    From what I hear, Reich is in consideration for Treasury too.

    Of course, not to say he would be, but his name is on the list.

  30. chefsheila

    Greenspan on the Hill talking live.

  31. nannymm

    Duh! That’s what I meant. Was trying to multi-task again. LOL

  32. You know I like Andrea Mitchel, but how anyone could actually share a bed with Greenspan is just beyond me! How would you like that face to be the first thing you see everyday. And lets not even imagine what he looks like naked!

    *shudder*

  33. dnd

    If McCain won’t talk with Mike Murphy, what does that say to his judgment? His temperament? His ability to listen to those who may disagree with him?

  34. chefsheila

    lol Brian,

    Andrea Mitchel is a deep thinker. They started out emailing for a story she was working on and ended up emailing for 4 years before he even asked her out.

    Their love was a slow cooker. I’m sure it goes beyond the bedroom and is more in the way of best friends and companions now. For all you know they don’t even share the same bed. I know lots of couples that don’t and have very strong marraiges. 🙂

  35. Well she’s no great beauty either, but Alan Greenspan looks like Mr. Burns from The Simpsons

  36. dnd

    Shelia,
    I wouldn’t kill myself if Reich was at Treasury. Rubin just has more financial hands on experience. And maybe he’s learned from his mistakes 😉

    BTW the “term” derivatives covers a huge number of financial instruments. Simple option puts and calls are derivatives. The specific derivatives that got us into this mess were repackaging loans from a regulated industry into securities sold in a unregulated industry. The good news is that practice is coming to an end.

  37. chefsheila

    Thanks dnd,

    I am learning more about this than I could have thought I was capable. Maybe there is hope for all of us.

  38. horsedooty

    How do you spell Bachmann? TOAST! Bye bye

  39. nannymm

    Hey, Doots, The real beauty of Backman’s political demise will be that she burned herself.

  40. horsedooty

    yup self-inflicted wounds are the worst and the slowest to heal. She is a bitter woman that will probably grow into a bitter OLD woman.

  41. Brad Blakeman (repug scum bag) just criticized Obama for taking his campaign plane to see him grandmother!

  42. dnd

    Well, the good thing about Bachman is that she makes Sarah Palin look smart 😉

  43. dog's eye view

    Would a presidential nominee of a major party be advised to fly hours across the ocean with a planeload of passengers? Especially when the date of departure and return could be guessed at a few days before?

    Brad Blakeman going into the security business (maybe with Bo Dietl?) if punditting doesn’t work out so well for him?

  44. dnd

    I thought Obama was taking his staff and press with him. Can’t really do that on a commercial flight.

  45. And he’s taking members of the press, Blakeman is bottom barrel scraping.

  46. nannymm

    Blakeman was desperate to change the subject from Princess Sarah’s expensive new wardrobe. Just show’a you how low those repugs will go. And btw…would the secret service even let him fly commercial? NO WAY!

  47. horsedooty

    Blakeman has a tough job trying to defend McCain McCranky Pants. Maybe after 11/5 they will slither back into their holes for a couple of years.

  48. dnd

    nannymm,
    Very good point. Secret Service would never let him fly commercial. Nor would they any other of the candidates.

  49. nannymm

    And Blakeman damned well knew it, dnd. He was just deflecting attention from the Empress’ new clothes.

  50. dnd

    I wonder if Blakeman will question Palin flying on a campaign jet tomorrow when she and Todd are deposed in Troopergate?

  51. nannymm

    Bill O’Reilly was on The View. He’s such a PIG!!

    On the subject of Sarah Palin, O’Reilly said that doesn’t know why she won’t come on the show.
    “I want her to come in,” O’Reilly said. “I have outfits she can wear.”
    http://www.politico.com/blogs/michaelcalderone/1008/OReilly_on_Palin_I_have_outfits_she_can_wear.html?showall

  52. dog's eye view

    Rosa Brooks, LATimes columnist, tackles Palin and McCain’s notion of small town [white] America paradise:

    “The “Real” America, really”:

    ..”.I’m not entirely without sympathy. Behind the anger and the us-versus-them rhetoric we’ve seen at recent McCain-Palin rallies, there’s a palpable sense of dislocation and anxiety: the anxiety of those who feel that things are slipping away from them, that the world is changing too quickly and too uncomfortably. Change has come fast — and change hurts.

    But that’s how it’s always been. Our culture was built by immigrants and shaped by wars, social upheavals, economic crises and further rounds of immigration, each time from places that seemed deeply “foreign” to those who had already settled in. Each round of change was painful to those used to the temporary status quo — but each round of change also gave us a richer, stronger nation.

    That’s the real America: a land of change and perpetual renewal. …’

  53. nannymm

    Here’s another example of Republican stupidity:

    Today on Fox News, Sen. Orrin Hatch (R-UT) denied that the America’s standing in the world has fallen under President Bush. He insisted that world opinion of the United States is as strong as ever, though he admitted that other countries “naturally” experience “jealousy” of America:
    http://thinkprogress.org/2008/10/22/hatch-jealousy/

  54. dog's eye view

    The Richmond Times Dispatch (aka the Times Disgrace) gives Obama’s visit yesterday a good package.

    If you need any motivation, plz click on the slideshow — which includes audio of the speech.

    http://www.inrich.com/cva/ric/news.apx.-content-articles-RTD-2008-10-23-0147.html

  55. dog's eye view

    Good advice from Mike Murphy, which I hope John McCain will maverickly ignore.

    http://www.time-blog.com/swampland/2008/10/ready_for_prime_time.html

    Love some of the comments.

    “They spent more time picking out her clothes than vetting her.”

  56. horsedooty

    this just cracks me up….check out the scarf the VP candidate is wearing. It says VOTE and next to it is a donkey.

    http://www.huffingtonpost.com/2008/10/23/palin-fashion-includes-sc_n_137090.html

  57. nannymm

    That is too funny, Doots! Just goes to show you how stupid they are.

  58. A new low for Brad Blakeman, and that’s saying something!

    GOP Strategist On Palin’s Clothing Allowance: Real Outrage Is “Obama Taking A 767 Campaign Plane To Visit Grandma” (VIDEO)

    http://www.huffingtonpost.com/2008/10/23/gop-strategist-on-palins_n_137226.html

  59. nannymm

    McCain worker allegedly mugged by black man who then allegedly carved a “B” on her cheek when he say a McCain sticker on her car. Story doesn’t sound right to me. In fact, it sounds fishy.
    Has anyone else heard it?

  60. dnd

    Wolf Blitzer reports that the View’s Elizabeth Hasslebeck will campaign with Palin in FL this weekend. Two brilliant political minds…

  61. dog's eye view

    Sounds like there might — might — have been some fraudulent billing or errors in expense reimbursement with the Palin family wardrobe.

    http://thecaucus.blogs.nytimes.com/2008/10/23/wardrobe-mysteries-linger/#comments

  62. dnd

    dog,
    I’m not surprised about McClellen. And remember, he’s no Joe the plumber 😉

  63. CBS News/NY Times Survey Shows Voters Feel More Comfortable With Democratic Nominee, Uneasy About Rival McCain

    http://www.cbsnews.com/stories/2008/10/23/opinion/polls/main4541781.shtml?tag=topStory;topStoryHeadline

  64. nannymm

    It looks like the GOP is conceding the election.

    GOP’s argument: Don’t give President Obama a blank check.
    http://politicalticker.blogs.cnn.com/2008/10/23/gops-argument-dont-give-president-obama-a-blank-check/

  65. horsedooty

    I am getting the double digit fidgets waiting till nov 4

  66. I read that article on my blackberry (techno bragging!) on my way home earlier.

  67. nannymm

    Warms the heart, doesn’t it, Brian?

  68. The repug feeding frenzy has begun!

  69. Absentee and early voting are changing the face of voting in America: Three in 10 likely voters in the latest ABC News/Washington Post tracking poll say they’ll vote early,
    nearly double what it was eight years ago. The trend, which may impact campaign strategies in terms of closing arguments and getout- the-vote efforts, could assist Barack Obama: He leads John McCain by 26 points among likely voters who say they’ll get it done early, vs. a closer 7-point margin among those who plan to hold off until Election Day.

  70. dog's eye view

    dang Brian — you beat me to it!

  71. “Mr. Obama has those qualities in abundance. Watching him being tested in the campaign has long since erased the reservations that led us to endorse Senator Hillary Rodham Clinton in the Democratic primaries. He has drawn in legions of new voters with powerful messages of hope and possibility and calls for shared sacrifice and social responsibility.”

  72. They ripped McCain a new one!

  73. chefsheila

    that was another indepth endorsement. You can be left no doubt that the New York times was a serious one.

  74. This just in: Former Bush White House press secretary, Scott McClellan, whose scathing book about the Bush administration made him persona non grata, has told CNN that he is endorsing Senator Barack Obama.

    http://thecaucus.blogs.nytimes.com/2008/10/23/last-words-breaking-news/

  75. chefsheila

    Hey Brian,

    Sorry, Dog all ready linked that announcement.

  76. Some news bares repeating, bitch!

    😡

  77. Vote From Abroad has moved ND to swing state, and Montana to barely repug!

    http://www.electoral-vote.com/icon.html?

  78. dog's eye view

    Gotcha guys. You betcha.

  79. chefsheila

    http://www.huffingtonpost.com/cc-goldwater/why-mccain-has-lost-our-v_b_137150.html

    WELL!! In the spirit of the Kennedy Clan to the Democrats, here is a gaggle of Goldwaters (for the republicans) that are not voting for McCain!!

  80. chefsheila

    Morning everyone …….Coffee………….

  81. chefsheila

    Don’t let up until November 4th. The war isn’t won until all the votes have been cast.

    I see the Press beginning to call this election and with 10 days to go.

    Obama and Axelrod have said, don’t get complacent and they are right. This is a war of a sorts and the McCain campaign is waiting for an opening.

    Don’t let them have it! (Sheila doing the Wave))))))))))

  82. chefsheila

    Did someone just say they are going to have a massive down selling on the DOW?

  83. dnd

    McCain in Denver today.

    So is Hillary!

  84. dnd

    Shelia,
    They halted trading on the futures it was so far down. Doesn’t bode well for the open.

    Asian and European markets tanked. I think they halted trading in Britain and France.

  85. I here the newcomer. Not absolutely I will understand with topic. Explain, please. http://kopitop.ru/map.html

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s