The next Administration, whoever it may be, will feature a new direction on policies around economic and finance issues. That’s because, even if Barack Obama wins re-election, Treasury Secretary Timothy Geithner has announced that he would leave his post. So you either get a Romney Presidency and an entirely new direction on these policies, or a second Obama term and a potential new direction. With fiscal issues sure to take prominence in 2013, this is a critical changeover.
So who’s on the Washington short list? The Wall Street Journal takes a look at it today. First let’s go down the Romney list.
Among the Republican’s possible candidates to lead the Treasury are Columbia University Graduate School of Business Dean Glenn Hubbard, former World Bank President Robert Zoellick and executives from the business world, such as CIT Group Inc. Chief Executive John Thain and former Wells Fargo & Co. CEO Richard Kovacevich, say people who have spoken to Romney advisers.
So George W. Bush’s former head of the Council of Economic Advisers, a World Bank President and two ex-bank CEOs. The inclusion of Thain on this list is almost incredible; he not only sought a $10 million bonus at the time of the financial crisis, he not only worried more about his compensation getting cut than anything else during the crisis, he also took that time to redecorate his office for $1.2 million.
But if I had to choose between Zoellick, at least, and some of the folks Obama has in mind, it’d be a toss-up:
The two people most frequently mentioned by current and former administration officials as likely successors to Treasury Secretary Timothy Geithner, who wants to leave the post, are White House Chief of Staff Jacob Lew and Clinton administration Chief of Staff Erskine Bowles.
Both are steeped in the minutia of the federal budget and have worked extensively on tax and spending negotiations with Republicans. Mr. Lew served as White House budget director in the Clinton and Obama administrations. Mr. Bowles was co-chief of the White House’s 2010 deficit-reduction commission, which won bipartisan support for a plan to reduce the budget gap by roughly $4 trillion over 10 years.
Gene Sperling, current head of the NEC, gets mentioned, along with current Treasury undersecretaries Neal Wolin and Lael Brainard and a couple financial types thrown in for good measure (Lawrence Fink of BlackRock and Roger Altman of Evercore). Obama is also looking at former DLC chief Bruce Reed to run the Office of Management and Budget. Reed was the executive director of the catfood commission run by Bowles and Alan Simpson.
I think there’s a pretty clear set of evidence in these names about the intended focus of the White House on these matters, should they remain in power. It won’t be about bank profits, at least not directly, or about how to implement financial regulation that properly assesses risk on Wall Street. Bowles and Lew have financial industry pedigrees but in more of a cashing-in-on-a-payday kind of way. No, they would be put in place for the grand bargain. Lew was the lead negotiator in 2011 on the debt limit package. Bowles, well, we know of Erskine Bowles. And the others mentioned with a legitimate chance would all have experience in this sort of dealmaking.
Not that any of this comes as a surprise: I noticed the trial balloon of Bowles-to-Treasury a couple months ago. The President’s ads, and his list of campaign promises, always make a point of mentioning “responsible and balanced $4 trillion in deficit reduction.”
Not that the guy who would redecorate his office for $1.2 million looks much better, but hey, at least he would stimulate the interior design economy.





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So, how about Sheila Bair?
Yeah, right.
One trillion dollar grand bargain. Utter nonsense.
“he also took that time to redecorate his office for $1.2 million.”
1.2 million doesn’t go that far these days. poor guy probably had to cut out a lot of things that he wanted.
hope and change.
One thing this country doesn’t need is a Bowles movement.
Bowles would be enough to get me to vote for Romney. In fact, I’d rather see Geithner stay on.
Regardless of party, what is a short list of reasonable candidates for Secretary of Treasury?
Bair? Barofsky? Buffet?…
Big changes?
The Oligarchs via either D or R puppet will continue the largest transfer of wealth in history.
Serf-in USA!
How about Yogi Bear?
Jimmy Buffet????
I like that!
“Better the devil you know”…… Huh?
Nothing surprises me here; they are doing exactly as expected. These people have sadist sense of humor. Geithner’s retirement announcement is like offering a new topping on the pizza after some sleazy crooked bum has already eaten 7 ¾ (out of 8) slices of pizza. It has been way past time for President Obama to break out of the net of crooks that surround him and get right people to do right things.
MY SUGGESTIONS to Obama is:
SHEILA BAIR for Treasury Secretary
ELIOT SPITZER for Attorney General
RON PAUL for Secretary of State
BILL BLACK for SEC or OCC chair
YVES SMITH for OCC or SEC chair
DEAN BAKER, JOSEPH STIGLITZ for economic advisory posts
More name will be proposed soon
Another cartoon figure who refused to place the blame for the current economic disaster on Bill Clinton and his partners in crime, Phil and Wendy Gramm.
The first 1000 names in the Boston telephone book, THD.
Not going to make any appreciable difference. The corporatists/Banksters will determine the destiny of USA,Inc.
Actually, anything like this would serve.
Bowles? OMG! Out of the frying pan into the fire. No thanks.
Yeah, whoever it is, they’ll be doing the exact same thing Geithner has been doing, staying the course.
So no William Black or James Galbraith, then? Not even if they, ya know, clear their appointment books for the next four years?
Yup. If it’s not Erskine Bowles, it will very probably be someone who would be proud to carry his case of
catfoodbold policy proposals.Yeah, whoever it is, they’ll be doing the exact same thing Geithner has been doing,
staying the courseaugering in.Went ahead and fixed it up for ya.
Sigh….
In that case, we can put 130 million names in a hat an call it like a jury.
You have it backwards. It was Erskine who carried Simpson’s case of cat food.
Sad that when Simpson-Bowles get done, seniors won’t be able to afford cat food.
Whoever it is the U.S. public will accept the nomination with resignation and grace. They are becoming very comfortable in their new role as passive, docile serfs.
“Replacements for Geithner on Either Side a Fairly Sorry Lot”
Isn’t Obama great. The more you get to know him, the more you get to appreciate his allegiance to the 1%.
It’s gonna be Erskine Bowles.
All those other names are a smokescreen.
It’s catfood time.
I’ve barely heard of Neal Wolin and Lael Brainard but that’s who should get the nod. Since the are trusted insiders of Geithner’s ultra tight ship where all decision making is centralized they are the only logical choices. The only reason not to bring them in is if they are hopeless in public speaking. Not that Geithner is great but he is at least competent and knows how to stay on point. No outsider can know where all the bodies are buried and thus know how to keep them buried. Any other choices are dangerous to the status quo in the markets and the financial sphere. A status quo which is extremely shaky.
Treasury is now every bit as important as the Fed and both are extensions of Wall Street.
No we are not going to let Bowles be the one.
Better let them know it right now.
Warren Mosler for Tres Sec.
It’s important to keep in mind this November that no matter who you vote for you have no way to vote against the interests of Goldman Sachs. None. Zipp. Both candidates are wholly owned subsidiaries of Goldman. And this has happened because time and again you were willing to pick the “lesser” of two evils. Well guess what: now whoever you vote for will be evil through and through.
X2!
Simon Johnson, James Kwak, Sheila Bair, Joe Stiglitz, Dean Baker, James Galbraith, Michael Hudson, David Cay Johnson; there are a lot of good candidates but Obama’s banker supporters will not approve of them, nor will the Ruthugs. AND, Obama himself will not fight for any really good appointee, nor will he suggest a good one. Sad.
Oops: Brooksley Born! (Read “13 Bankers”)
Another possiblity would be Stanford Economist Anat Admati. This is a cautious suggestion because of the Stanford connection and also because info on her is slim, but she wrote a great paper refuting the absolute need to bail out the banks. It has been recommended by James Kwak and Simon Johnson, so it suggests that she is pretty smart and does her homework. I would welcome anyone doing some diligence on her.
You do know that Sheila Bair is a Republican, albeit a moderate.
She helped form and is Chair of the Systemic Risk Council. You can read its mandate here -
http://en.wikipedia.org/wiki/Systemic_Risk_Council
Note the list of members. Alan Simpson and Chuck Hagel are just two.
Just sayin’
We may not know who it will be but, if you want to know how it will feel, Google “urethral catheter replacement.”
Or “endoscopy.”
I heard that Obama was really plugging Ann. L. Raype for the position. She’s the Fed Chief in Denver and the president admires her quantitative easing.
A fecal wizard.
Just a heads-up for the several progs on this thread ,Amy is having Jill and rocky on her debate coverage to answer the same questions in real time .Should be fun .
If you actually think financial policy changes under Obama or Romney, you are the most naive person, walking on this planet.
It’s really pathetic that Obama is so dedicated to being a lap dog for Goldman Sachs that neither Simon Johnson or Joseph Stiglitz are even being considered. You’d think being the economist for the IMF might be a qualification. Or winning a freaking Nobel…
…oh, wait. Obama has a Nobel. A “Peace Prize”, at that. Never mind.
(And of the two, I’d rather have Simpson than Bowles. He’s more forthright about his evil. Plus it would count as “reaching across the aisle”, right? Bi-partisany ponies and gold stars! Yay!)
… or maybe Attila the Hun — someone who REALLY knows how to cut & burn! (and pillage!)
Gee, did Paulson refuse to return?
There is not a dollar that I have spent in my life that I regret more than the campaign donations that I made to Barack H. Obama during the period from the fall of 2007 (early money is like yeast) to October 2008.
Krugman!