Wikinvest Wire

Geithner to make like Kashkari and cash in?

Tuesday, January 26, 2010

There seems to be a growing consensus that Secretary Tim Geithner will become President Obama's sacrificial lamb at the alter of what has become a populist outrage over the U.S. government's much too cozy relationship with rich Wall Street banker types.

In today's commentary at Bloomberg, Caroline Baum adds to the case against Geithner - one that may see its profile elevated after tomorrow's testimony before the House Oversight and Government Reform Committee on the AIG bailout - drawing the following conclusion:

Geithner has been a public servant his whole life, holding various positions at the Treasury, the International Monetary Fund and the Fed. Somehow he managed to shed the stigma of tax scofflaw, but now BOTH Democrats and Republicans in Congress want blood. His may be just the scalp Obama needs to pacify the populist outrage, especially since he’s perceived as being too cozy with bankers.

Following the loss of the late Ted Kennedy’s Senate seat in Massachusetts, Obama is trying out his populist voice. By all rights, he should sacrifice one of his political advisers, who seem to have miscalculated the Massachusetts election and misjudged the public’s appetite for health-care reform when the chief concern is jobs.

Axing Geithner might be good for president and Treasury secretary alike. Obama would be seen as an ally of the people. Geithner would be free to claim his just reward: that plum offer from Goldman Sachs. The circle would be squared. Obama would have his man on the inside.
It seems all but inevitable that Geithner will go. He'll no doubt join former Treasury Assistant Secretary Neel Kashkari, now employed by Pimco, by cashing in big in the private sector, all of which might make his personal, underwater housing situation all the more easier to bear.

Bookmark and Share


Anonymous said...

To the beat of Queens: Another One Bites the Dust, we have Obama: Throws Another One Under The Bus :-)

Anonymous said...

I think Geithner has his nose so far up Wall Street's rectum that he doesn't even really understand the outrage --- he's just parroting the party line about Wall Street and Main Street. In his heart of hearts, he probably believes that people like Blankfein really are doing God's work.

Anonymous said...

Taking a job with the company he bailed out with taxpayer money is just par for the conflict of interest course.

Anonymous said...

  © Blogger template Newspaper by 2008

Back to TOP