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Tim Geithner: Too Close to Goldman Sachs to Be Treasury Secretary, Critic Says

Posted Jan 21, 2009 12:22pm EST by Aaron Task in Newsmakers, Banking

Tim Geithner apologized for not paying his taxes and some Republicans criticized his involvement in the TARP program at today's hearing, but Barack Obama's nominee for Treasury Secretary appears on track for confirmation.

Congress is "all in a panic" and "really clueless" about this all-important member of Obama's cabinet, says Christopher Whalen, managing director and co-founder of Institutional Risk Analytics. "I'm just not sure Tim Geithner is the guy we should have driving the bus."

Beyond his tax gaffe, which will mainly serve to politically weaken Obama's pick, Whalen says Geithner is the wrong many for the job because of his decision-making as President of the New York Fed.

"I believe Tim Geithner only represents part of Wall Street - Goldman Sachs," he says, suggesting Goldman was the "primary beneficiary of the AIG bailout" and notes Goldman alum Stephen Friedman serves on the board of the NY Fed. (Hank Paulson and Robert Rubin, with whom Geithner had frequent meetings in the past year, are also Goldman alum.)

Whalen further questions the inconsistency of the Fed's decision to rescue Bear Stearns - in the end, their debt and shareholders got something - while letting Lehman Brothers "go to hell." 

In the end, Whalen says he'll fully support Geithner if and when he's confirmed: "We have to be successful," he says. "This is not about personality." 

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219 Comments

Robert
Robert - Wednesday January 21, 2009 12:41PM EST

At first I thought this was a comical comment "too close to Goldman Sachs," tounge in cheek saying that people are for some reason suddenly looking for any reason to not like him and are bringing up stupid things out of no where (since we never had a discussion like this about Paulson). Only to unfortunately realize that some idiot came out and said this in seriousness. Look, you try to find anyone who has done a better job with the cards he was dealt with the credit crisis. Stop talking just to hear the sound of your own voice.

Yahoo! Finance User
Yahoo! Finance User - Wednesday January 21, 2009 12:43PM EST

The same song different verse! Wall Street and politicians are joined at the hip regardless of which party is in power. The common man is always the last to be represented.

__A_YAHOO_USER__
__A_YAHOO_USER__ - Wednesday January 21, 2009 12:43PM EST

I hope he will not be a friend or make any favot to all greedy thieves and sucker in the financial sector executives........Otherwise he will be gone on the history Like Pauson,Bernanke and Cox with very worse reputation...........My advice be firm and honest to your country and be patriotic........

George H,D
George H,D - Wednesday January 21, 2009 12:44PM EST

Lets face it, anyone who has the experience and smarts for this job has been in the business, one way or another, for some time. We really don' want "on the job training" for this position; too much is riding on it. George

Robert
Robert - Wednesday January 21, 2009 12:45PM EST

And he (Geithner) forgot to pay $36,000 + in SS and Medicare payments, Gee bet he didn't have to pay any interest for the 4 year late-filing-loan either. just another Crook hired by our civil voted in bums. Is this a great country or what?

Tank
Tank - Wednesday January 21, 2009 12:45PM EST

What do the talk about? The Yankees?

Paul
Paul - Wednesday January 21, 2009 12:46PM EST

Goldman Sachs is like Bernie Madoff, they have the system rigged. Of course GS own's Geithner & it's criminal that Congress won't touch the subject.

STORMSTOCKER1
STORMSTOCKER1 - Wednesday January 21, 2009 12:46PM EST

HERE IS ANOTHER "GOLDMAN INSIDER"-too closely connected to the Big (CORRUPT) Money of Wall Street and our US Treasury. Just as MadeOff made off with Billions, we are witnessing the meltdown and disappearance, of the Middeclass' Pensions, Benefits, Homes,Jobs,and Payrolls. How is this happening? FOLLOW THE MONEY TRAIL..............It goes out of our pockets directly to the government's house of cards, who turns around and gives it away to people who are not qualified in the first place to enjoy, let alone spend, our tax dollars. We are blind if you think that "Spending More and More of our Taxes, for TARPS and BAILOUTS will somehow create an economic stimulus! Where, Pray TEll, is the revenue going to come from? The Middle Class People? YEAH RIGHT!! The Middle Class is broke,..most people, "are over their heads in debt", with less income, less benefits, certainly less home equity, less 401K money, less and less savings, more and more "family problems"....at what point is the government going to say "WE Need More Taxes" to pay for you.......not here not now. The World economy of Socialism is heading over the cliff. The private sector has been so severely damaged by taxes, regulations, fees, laws, etc.etc. there is no money left to pay for all the social and government programs. Good Luck Obama! The Crisis Continues.

STORMSTOCKER1
STORMSTOCKER1 - Wednesday January 21, 2009 12:46PM EST

HERE IS ANOTHER "GOLDMAN INSIDER"-too closely connected to the Big (CORRUPT) Money of Wall Street and our US Treasury. Just as MadeOff made off with Billions, we are witnessing the meltdown and disappearance, of the Middeclass' Pensions, Benefits, Homes,Jobs,and Payrolls. How is this happening? FOLLOW THE MONEY TRAIL..............It goes out of our pockets directly to the government's house of cards, who turns around and gives it away to people who are not qualified in the first place to enjoy, let alone spend, our tax dollars. We are blind if you think that "Spending More and More of our Taxes, for TARPS and BAILOUTS will somehow create an economic stimulus! Where, Pray TEll, is the revenue going to come from? The Middle Class People? YEAH RIGHT!! The Middle Class is broke,..most people, "are over their heads in debt", with less income, less benefits, certainly less home equity, less 401K money, less and less savings, more and more "family problems"....at what point is the government going to say "WE Need More Taxes" to pay for you.......not here not now. The World economy of Socialism is heading over the cliff. The private sector has been so severely damaged by taxes, regulations, fees, laws, etc.etc. there is no money left to pay for all the social and government programs. Good Luck Obama! The Crisis Continues.

Jesse
Jesse - Wednesday January 21, 2009 12:46PM EST

Please! he's perfect for us. This is exactly what we needed- moral high ground over the IRS. Thanks Tim (o:

Tank
Tank - Wednesday January 21, 2009 12:46PM EST

What do the talk about...The Yankees

Melia Sese
Melia Sese - Wednesday January 21, 2009 12:48PM EST

Why did they let "Lehman go to hell?" Indeed; perhaps the fix was in and the Goldman suits (and their myriad supporters on the Hill) were a little worried that McCain might actually stumble into victory - remember this was when Palin-mania was in full force and the SNL hit job had not had time to work. Better hang the crisis on the Dems in 2009 as Pelosi and crew have scant idea of what to do (which is cut corp tax rates to 10% or lower) and the GOP will happily pick up the pieces starting in 2010; yeah, sounds like a plan...

Tank
Tank - Wednesday January 21, 2009 12:49PM EST

What do they talk about? When? How does this guy know they talk a lot?

Terry F
Terry F - Wednesday January 21, 2009 12:49PM EST

What's one more criminal in Washington gonna matter, The town is full of horse thieves already. He won't even be noticed.

C
C - Wednesday January 21, 2009 12:49PM EST

Agreed, Rob.

DelJ
DelJ - Wednesday January 21, 2009 12:50PM EST

As the head of the New York Fed, Geithner was key in government wasted Trillions thrown irresponsibly at healthy U.S. banks, with no conditions (not even verbally - much less written) for these banks to have to lend any more money, or even conditions on what they could spend the taxpayer's money on. He failed to pay $43k in taxes and apologizes to Congress and so now everything is o.k. What do you think would happen to you or me if we failed to pay $43k in taxes? Now Obama-daly-lama wants to nominate him for Treasury Secretary? How idiotic can our "leaders" get? Lawmakers will also investigate his role in connection with the failure of investment bank Lehman Brothers, sending the "world economy" down towards the abyss. But in the end, after the little "dog and pony show" on Capital Hill, he will be nominated since Congress is utterly ineffective at stopping the irresponsible since they themselves are irresponsible, the majority of which have been bought and receive their marching tunes from the international banking elite, and Geithner & Obama are both part of this crowd. Nothing we do now can stop the momentum of the the master plan now in motion for a New World Order of a one world Socialistic common Government, common global currency, and soon to follow Anti-Christ controlling a one world religion. Just remember that the changes "they" need to assimilate this "brotherhood of man" utopian dream (Carl Marx et all) into reality come about through creating financial crisis through the world bank and Federal Reserve system control of monetary supply in order to foster a "drastic Government intervention to save us all" mentality among the masses. The 2 million Obama cult that showed up for his inaguration are a perfect example of this "mindless huddles masses" concept that will soon be controlled globally. They are incable of thinking for themselves, needing big government to run their lives for them. Its a shame that of the 2 million there, 14 had to actually miss work to attend.

Yahoo! Finance User
Yahoo! Finance User - Wednesday January 21, 2009 12:50PM EST

Yeah........... look at the NJ Governor Johnny Boy, another screw up!!

Yahoo! Finance User
Yahoo! Finance User - Wednesday January 21, 2009 12:52PM EST

Does anyone really think that the ML / BoA deal would've happened if Thain wasn't from the Goldman gang? Now we see how the ML deal is killing BoA or actually how it's now costing the American taxpayer a lot of money. We need to stop this Goldman frat from running American business and money.

Dean
Dean - Wednesday January 21, 2009 12:53PM EST

His character is in question. The dude used either TurboTax or Quicken and supposedly made a dumb mistake and failed to pay $30K (yes, a BIG SUM) in taxes. Listen, people. These programs FLAG the errors for you and TELL YOU what you may have missed. He IGNORED what the program was telling him and now wants it to be swept under the rug..."Oops! My bad!" This is the guy you want directing the biggest crooks in Washington (i.e. the Fed)?

Nick
Nick - Wednesday January 21, 2009 12:53PM EST

and obama is gonna take our guns so when we get mad alls we can do is post on tech ticker. ;)

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