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.

See Also:
Geithner Caves On AIG Bonuses, Defends AIG CEO Liddy
Geithner “Out Of The Loop,” Resignation Talk Begins
Time To Fire Tim Geithner


NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.