Even Austan Goolsbee, who succeeded Romer as CEA boss, has announced that he will be heading back to the University of Chicago this fall to resume his teaching job there. While sources told ABC News' Jake Tapper that Geithner is contemplating leaving his post after the deficit negotiations have been completed, they cautioned that it's too early and there are far too many caveats to say that will definitely happen. If Geithner does depart, it would mark the final step in the changing of the administration's economic guard. Whenever he decides to leave, the fact that Geithner has lasted longer than any other members of the original team is no small feat, especially considering the dire economic situation he inherited in early and the backlash he faced shortly thereafter. In his first few months on the job, Geithner was charged with nothing less than preventing another Great Depression.
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Timothy Geithner Says Obama and Boehner Resume Talks on Comprehensive Deal
Not one deputy in place at Treasury (updated)
By Clarice Feldman and Rosslyn Smith. Besides Secretary Geithner, no one who actually has authority to make key decisions has assumed office. Critics say part of the problem is that Geithner is flying solo: Not one of his top 17 deputies has been named, let alone confirmed. And without senior leadership, lower-level Treasury employees can't make decisions or represent the government in crucial conversations with banks and others. Annette Nazareth, a former senior staffer and commissioner with the Securities and Exchange Commission, made "a personal decision" to withdraw from the process, according to a person familiar with her decision. I can't blame her. Even members of the Obama team are growing restless.
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To achieve that deadline, they need to have a framework that they know with great confidence will pass both houses of Congress, is acceptable to the President, and that should happen today. The first deal would include what Geithner called a "comprehensive, balanced set of savings on the spending side to help secure Medicare and Medicaid for the future, and tax reform that would generate revenues. The other approach would be the plan by Senate Republican leader Mitch McConnell R-KY that would call for Congress to make proposed spending cuts in exchange for allowing the president to raise the debt ceiling. With the imminent opening of Asian markets, Geithner reassured the world economies that the United States would not default on its debt obligations. We are not going to default," Geithner said.
A number of insiders saw him as a poor choice; Tom Schlesinger, executive director of Virginia-based think tank the Financial Markets Center, noted that "there is very little in Geithner's resume that shows experience in regulatory issues," lamenting that his appointment "raises questions about the willingness of the New York Fed to aggressively supervise financial holding companies in its territory. Since Nov. See pictures of Barack Obama's campaign behind the scenes.
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