Want to know why Tim Geithner is getting rolled by Sheila Bair?
The new Treasury Secretary is still at a huge disadvantage when dealing with his Washington DC rival in matters related to the finanical bailout. Bair, the FDIC boss, is one of the few financial regulators who has stayed in place through the change in administrations, which means she has her team in place and working to build the bad bank she plans to run. Geithner is still trying to assemble his team, which means he is distracted from poilicy matters and lacks crucial support.
The Wall Street Journal’s Real Time Economics blog has an item on who Geithner is trying to recruit. It’s a long list, which shows just how far away the Treasury is from having a fully operational staff.
Among those said to be under consideration for the key position of Treasury Undersecretary is Suzanne Nora Johnson, a former vice chairman at Goldman Sachs Inc. But Ms. Johnson, who headed Goldman’s global investment research division, may not have an easy time being confirmed. Between her ties to Goldman and the fact that she sat on the board of American International Group, Inc. — which was taken over by the government this fall — Ms. Johnson could face an icy reception in Congress.
Others said to be in the running for the job are Annette Nazareth, a former Securities and Exchange Commissioner. Both she and her husband — Roger Ferguson, head of TIAA-CREF and a former Federal Reserve governor — know Mr. Geithner well.
Mr. Geithner is also said to be considering Caroline Atkinson as his undersecretary for international affairs — a critical post given the global economic turmoil. Ms. Atkinson knows the building at 1500 Pennsylvania well — she was an advisor to Treasury secretaries Robert Rubin and Lawrence Summers.
Peter Henry, an international economics professor at Stanford University, is said to be Mr. Geithner’s pick for assistant secretary for international affairs.
Mr. Geithner is also expected to tap Al Fitzpayne, a former advisor to Rahm Emanuel, as his deputy chief of staff.