Obama’s Treasury Secretary is in trouble. Yesterday, we heard the first public discussion of a resignation. That theme will likely gain steam over the next few days.
A recap of what everyone is frustrated about:
- Geithner approved the AIG bonuses
- Geithner forced his boss (Obama) to step in and overrule him (recoup the bonuses)
- Geithner arranged the AIG bailout that has since ballooned to $170 billion
- Geithner participated in the decision to hide the AIG counterparty bailouts
- Geithner still has no coherent plan to fix the banking crisis
- Geithner still thinks the problem is “liquidity,” not solvency
- Geithner has persuaded no one that he’s the right man for the job
In a normal environment, the country might have time to wait for Tim Geithner to recover from his early missteps. In the current crisis, however, we don’t.
We expect to begin hearing calls for his resignation momentarily.
Business Insider Emails & Alerts
Site highlights each day to your inbox.