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Timothy Geithner

Timothy Geithner
Timothy F. Geithner

survival of the automobile industry, the restructuring of banks, financial institutions and insurance companies, recovery of the mortgage market, demands for protectionism, Obama’s new tax proposals, and relations with foreign governments that are dealing with similar crises.[1]

75th United States Secretary of the Treasury Incumbent Assumed office January 26, 2009 President Preceded by Barack Obama Henry Paulson

Biography
Early life and education
Geithner was born in Brooklyn, New York.[2] He spent most of his childhood living outside the United States, including present-day Zimbabwe, Zambia, India and Thailand where he completed high school at International School Bangkok.[3] He attended Camp Becket-in-the-Berkshires-for-boys, a summer camp located in western Massachusetts. He then attended Dartmouth College, graduating with a B.A. in government and Asian studies in 1983.[4] He earned an M.A. in international economics and East Asian studies from Johns Hopkins University’s School of Advanced International Studies in 1985.[4][5] He has studied Chinese[4] and Japanese.[6] Geithner’s paternal grandfather, Paul Herman Geithner (1902–1972), emigrated with his parents from Zeulenroda, Germany to Philadelphia, Pennsylvania in 1908.[7] His father, Peter F. Geithner, is the director of the Asia program at the Ford Foundation in New York. During the early 1980s, Peter Geithner oversaw the Ford Foundation’s microfinance programs in Indonesia being developed by S. Ann Dunham-Soetoro, President Barack Obama’s mother, and they met in person at least once.[8] Timothy Geithner’s mother, Deborah Moore Geithner, is a pianist and piano teacher in Larchmont, New York where his parents currently reside. Geithner’s maternal grandfather, Charles F. Moore, was an adviser to President Dwight D. Eisenhower and served as Vice President of Public Relations from 1952-1964 for Ford Motor Company.[9]

9th President of the Federal Reserve Bank of New York In office November 17, 2003 – January 26, 2009 Preceded by Succeeded by Born Nationality Political party Spouse Children Alma mater Occupation William McDonough William Dudley August 18, 1961 (1961-08-18) Brooklyn, New York, USA American Independent Carole M. Sonnenfeld Elise and Benjamin Geithner Johns Hopkins University (M.A.) Dartmouth College (B.A.) Civil Servant

Timothy Franz Geithner (pronounced /ˈɡaɪtnər/; born August 18, 1961), is the 75th and current United States Secretary of the Treasury, serving under President Barack Obama. He was previously the president of the Federal Reserve Bank of New York. Geithner’s position includes a large role in directing the nation’s economic response to the financial crisis which began after December 2007. Specific tasks include directing how $350 billion of Wall Street bailout money is allocated. He is currently dealing with multiple high visibility issues, including the

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Timothy Geithner
In March 2008, he arranged the rescue and sale of Bear Stearns;[10][19] in the same year, he played a pivotal role in both the decision to bail out AIG as well as the government decision not to save Lehman Brothers from bankruptcy, though claims were made after Geithner’s nomination that distanced him from both AIG and Lehman Brothers.[20] As a Treasury official, he helped manage multiple international crises of the 1990s[12] in Brazil, Mexico, Indonesia, South Korea and Thailand.[13] Geithner believes, along with Henry Paulson, that the United States Department of the Treasury needs new authority to experiment with responses to the financial crisis of 2008.[10] Paulson has described Geithner as "[a] very unusually talented young man...[who] understands government and understands markets."[19]

Early career
After completing his studies, Geithner worked for Kissinger and Associates in Washington, D.C., for three years and then joined the International Affairs division of the U.S. Treasury Department in 1988. He went on to serve as an attaché at the US Embassy in Tokyo. He was deputy assistant secretary for international monetary and financial policy (1995–1996), senior deputy assistant secretary for international affairs (1996-1997), assistant secretary for international affairs (1997–1998).[5] He was Under Secretary of the Treasury for International Affairs (1998–2001) under Treasury Secretaries Robert Rubin and Lawrence Summers.[5] Summers was his mentor,[10][11] but other sources call him a Rubin protégé.[11][12][13]

China
Geithner, and the Obama administration, has adopted a confrontational stance towards China. Geithner, in written comments to the Senate Finance Committee, states that the new administration believes Beijing is "manipulating" its currency and that the Obama administration will act "aggressively" using "all the diplomatic avenues" to change China’s currency practices.[21] The Obama administration would pressure China diplomatically to change this practice,[21] more strongly than the George W. Bush Administration did.[22] The United States maintains that China’s actions hurt American businesses and contributed to the financial crisis.[23] Geithner met with Chinese Foreign Minister Yang Jiechi shortly after he assumed his role as Secretary of the Treasury. Geithner told Yang that the U.S. attaches great importance to its relations with China and that U.S.China cooperation was essential in order for the world economy to fully recover.[24]

Treasury Secretary designee Geithner meets Finance Committee Chairman Max Baucus on November 25, 2008 In 2002 he left the Treasury to join the Council on Foreign Relations as a Senior Fellow in the International Economics department.[14] He was director of the Policy Development and Review Department (2001-2003) at the International Monetary Fund.[5] In October 2003 at age 42,[15] he was named president of the Federal Reserve Bank of New York.[16] His salary in 2007 was $398,200.[17] Once at the New York Fed, he became Vice Chairman of the Federal Open Market Committee component. In 2006, he also became a member of the Washingtonbased financial advisory body, the Group of Thirty.[18] In May 2007 he worked to reduce the capital required to run a bank.[15] In November he rejected Sanford Weill’s offer to take over as Citigroup’s chief executive.[15]

Secretary of the Treasury nomination
On November 24, 2008, then-President-elect Barack Obama announced his intention to nominate Geithner to be Treasury Secretary.[25][26] The Secretary of the Treasury earns $191,300 per year.

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Timothy Geithner
Senate report that showed he was not only informed of his status, but that he actively applied for the allowance.[35]

Tax problems
At the Senate confirmation hearings, it was revealed that Geithner had not paid $35,000 in self-employment taxes for several years,[27] even though he had acknowledged his obligation to do so, and had filed a request for, and received, a payment for half the taxes owed. The failure to pay self-employment taxes, in part due to the way his employer reported his wages which was not in accordance with tax law, was noted during a 2006 audit by the Internal Revenue Service (IRS), in which Geithner was assessed additional taxes of $14,847 for the 2003 and 2004 tax years. Geithner also failed to pay the selfemployment taxes for the 2001 and 2002 tax years (for which the statute of limitations had expired) until after Obama expressed his intent to nominate Geithner to be Secretary of Treasury.[28] He also deducted the cost of his children’s sleep-away camp as a dependent care expense, when only expenses for day care are eligible for the deduction.[29] Geithner subsequently paid the IRS the additional taxes owed,[30] and was charged $15,000 interest, but was not fined for late payment.[31] As President of the Federal Reserve Bank of New York, Geithner annually completed an ethics statement noting any taxes due or unpaid, along with any other obligations. Geithner’s completed statement did not surface during confirmation hearings. In a statement to the Senate panel considering his nomination, Geithner called the tax issues "careless," "avoidable" and "unintentional" errors, and he said he wanted to "apologize to the committee for putting you in the position of having to spend so much time on these issues."[30] Geithner testified that he used TurboTax to prepare his own return and that the tax errors are his own responsibility.[32] This statement is in conflict with statements by the Obama campaign that Geithner was advised by his accountant that he did not owe the taxes.[33] The Washington Post quoted a tax expert who said that TurboTax has not been programmed to handle self-employment taxes when the user identifies himself as being employed.[34] Geithner said at the hearing that he was always under the impression that he was an employee, not a self-employed contractor,[34] while he served as director of the Policy Development and Review Department of the IMF.[5] Geithner comments are contradicted by the

Confirmation

Geithner is sworn in as Treasury Secretary

Geithner speaking at the United States Department of Treasury. On January 26, 2009, the U.S. Senate confirmed Geithner’s appointment by a vote of 60–34.[36][37] Geithner was sworn in as

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Treasury Secretary by Vice President Joseph Biden and witnessed by President Barack Obama.[38]

Timothy Geithner
Joseph Crowley, a New York Democrat, asked him about the bonuses that AIG would be paying to financial-products employees "in the coming weeks." On March 11, Geithner called Mr. Edward Liddy, AIG chief, to protest the bonus payouts. Mr. Geithner and Federal Reserve Chairman Ben Bernanke attended a hearing by Congress on March 24, 2009.[45]

Bank bailout
Geithner has the authority to decide what to do with the second tranche of $350 billion from the $700 billion banking bailout bill passed by Congress in October 2008. He does not need Congressional approval, but went to Congress on February 10-11 to explain his plans. He proposes to create one or more "bad banks" to buy and hold toxic assets, using a mix of taxpayer and private money. He also proposes to expand a lending program that would spend as much as $1 trillion to cover the decline in the issuance of securities backed by consumer loans. He further proposes to give banks new infusions of capital with which to lend. In exchange, banks would have to cut the salaries and perks of their executives and sharply limit dividends and corporate acquisitions.[39][40] The plan has been criticized by Nobel-prize winning economist Paul Krugman[41] as well as fellow Nobel laureate and former World Bank Chief Economist Joseph Stiglitz[42]and legendary investor Marc Faber who said "Mr. Geithner said recently, ’we know how to fix the problems.’ Well if he knew so well how to fix the problems, why did he let the problems happen in the first place? He was the New York Fed Chairman when the conditions were created!"[43]

Family
He married Carole Sonnenfeld Geithner on June 8, 1985 at his parents’ summer home in East Orleans, Mass. The Rev., Thomas Keehn, a United Church of Christ minister, officiated. Ms. Sonnenfeld Geithner was working as a research associate for Common Cause at the time of her marriage to Mr Geithner. Her father, Albert Sonnenfeld, was a professor of French and comparative literature at Princeton University, and her mother, Portia Sonnenfeld, was the conductor of the Chamber Symphony of Princeton. [46] Timothy and Carole Sonnenfeld Geithner have two children, Elise who will be attending Stanford in the fall(b. 1991) and Benjamin (b. 1994).

Memberships
• Center for Global Development - (Board of Directors)[47] • Council on Foreign Relations[14] • Economic Club of New York (trustee)[47] • Group of Thirty[18] • Bank for International Settlements (chairman) - Committee on payment and settlement systems [5]

AIG bonuses
Although President Obama expressed strong support for Geithner, the outrage over the AIG bonuses has undermined public support. AIG paid bonuses to executives in its Financial Services division after receiving more than $170 billion in federal bailout aid.[44] Even prior to the election, senior aides to Timothy Geithner have closely dealt with American International Group Inc. on compensation issues including bonuses, both from his time as president of the Federal Reserve Bank of New York and as Treasury secretary. In early November, 2008, a committee concluded that the bonuses, which were in contracts signed before the government takeover, couldn’t be legally blocked. On March 3, 2009, appearing at a hearing of the House Ways and Means Committee Rep.

References

[1] "[1]". 60 Minutes. CBS. March 22, 2009. [2] America.gov [3] "Carole M. Sonnenfeld wed to T. F. Geithner". New York Times. 9 June 1985. http://query.nytimes.com/gst/ fullpage.html?res=9402E3DA1539F93AA35755C0A9 Retrieved on November 22, 2008. [4] ^ Farley, Kate (3 October 2008). "Family describes Geithner ‘83’s youth". Hanover, NH: The Dartmouth. http://thedartmouth.com/2008/10/03/ news/geithner/. Retrieved on November 22, 2008.

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Timothy Geithner

[5] ^ "Timothy F. Geithner". Who’s Who November 2008. (Marquis Who’s Who): pp. K2017000959. http://www.financialexpress.com/news/ 22 November 2008. Obama-picks-Geithner-as-treasuryhttp://www.marquiswhoswho.com/. secretary/389429/. Retrieved on Retrieved on November 22, 2008. November 23, 2008. "Geithner is a [6] "Obama picks dynamic duo to rescue protege of Lawrence Summers and has US". BusinessDay (The Sydney Morning been involved in the bailouts of Brazil, Herald). 24 November 2008. Mexico, Indonesia, South Korea and http://www.businessday.com.au/ Thailand in the 1990s as the treasury business/world-business/obama-picksundersecretary" dynamic-duo-to-rescue[14] ^ "Timothy F. Geithner". About the Fed. us-20081124-6ezb.html?page=3. New York, NY: Federal Reserve Bank of Retrieved on November 25, 2008. New York. July 2007. [7] http://freepages.genealogy.rootsweb.ancestry.com/ http://www.ny.frb.org/aboutthefed/ ~battle/celeb/geithner.htm orgchart/geithner.html. Retrieved on [8] "Ford Foundation Links Parents of November 22, 2008. Obama and Treasury Secretary [15] ^ Becker, Jo and Morgenstern, Gretchen Nominee". Chronicle of Philanthropy. (April 26, 2009). "Geithner, as Member 2008-12-03. http://philanthropy.com/ and Overseer, Forged Ties to Finance news/government/index.php?id=6453. Club". The New York Times. Retrieved on 2008-12-20. http://www.nytimes.com/2009/04/27/ [9] Milton, Susan (25 November 2008). business/27geithner.html. Retrieved on "Treasury nominee has ties to Orleans". 2009-04-26. News (Cape Cod Times). [16] Fuerbringer, Jonathan (16 October http://www.capecodonline.com/apps/ 2003). "I.M.F. Official Is Named pbcs.dll/article?AID=/20081125/NEWS/ President of New York Fed". Business 811250313. Retrieved on November 26, (The New York Times). 2008. http://query.nytimes.com/gst/ [10] ^ Cho, David; Montgomery, Lori; fullpage.html?res=9407E6DE173EF935A25753C1A9 Murray, Shailagh (22 November 2008). Retrieved on November 24, 2008. "Obama Picks N.Y. Fed President [17] Lanman, Scott (24 November 2008). Geithner as Treasury Secretary". "Geithner Nomination Takes Top Fed Business (The Washington Post): p. A1. Wall Street Liaison". News. Bloomberg. http://www.washingtonpost.com/wp-dyn/ http://www.bloomberg.com/apps/ content/article/2008/11/21/ news?pid=20601070&sid=antGHYUBhUn4&refer=h AR2008112102811.html?hpid=topnews. Retrieved on November 24, 2008. Retrieved on November 23, 2008. [18] ^ "Timothy F. Geithner" (Bios). Current [11] ^ Canova, Timothy (25 November 2008). Members. Group of Thirty. 24 November "Obamanomics: Is this real change?". 2008. http://www.group30.org/bios/ The Real News. p. 1’00s. members15.htm. Retrieved on November http://therealnews.com/id/2852/ 24, 2008. November25,2008/ [19] ^ Tumulty, Karen; Calabresi, Massimo Obamanomics%3A+Is+this+real+change%3F. (25 September 2008). "Three Men And a Retrieved on December 13, 2008. "He Bailout". Time. http://www.time.com/ had been mentored by Lawrence time/magazine/article/ Summers." 0,9171,1844554,00.html. Retrieved on [12] ^ Irwin, Neil (22 November 2008). "A November 22, 2008. Treasury Contender Schooled in Crisis". [20] Sorkin, Andrew (24 November 2008). Business (The Washington Post=): p. A6. "Where Was Geithner in Turmoil?". New http://www.washingtonpost.com/wp-dyn/ York Times. http://www.nytimes.com/ content/article/2008/11/21/ 2008/11/25/business/ AR2008112103939.html. Retrieved on 25sorkin.html?_r=1&scp=4&sq=geithner%20lehman November 23, 2008. Retrieved on March 29, 2009. [13] ^ "Obama picks Geithner as treasury [21] ^ Montgomery, Lori; Faiola, Anthony secretary". The Financial Express. (January 23, 2009). "Geithner Says China Mumbai: Indian Express Newspapers. 23 Manipulates Its Currency". The

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Timothy Geithner

Washington Post: p. A08. marketsNews/ http://www.washingtonpost.com/wp-dyn/ idUSN2130757020090121. content/article/2009/01/22/ [31] Hallow, Ralph Z. (January 20, 2009). AR2009012203796.html. "Gingrich urges GOP to fight Geithner". [22] Drajem, Mark; Christie, Rebecca The Washington Times. (January 23, 2009). "Geithner Warning http://www.washingtontimes.com/news/ on Yuan May Renew U.S.-China 2009/jan/20/gingrich-urges-gop-toTension". Bloomberg LP. oppose-geithner/. http://www.bloomberg.com/apps/ [32] "Geithner Links Woes to Tax Software news?pid=20601087&sid=aRUmXlbmq7MU&refer=home. Million Americans". Fox Used by 18 [23] Moore, Malcolm (January 23, 2009). News. January 22, 2009. "Timothy Geithner currency http://www.foxnews.com/politics/ ’manipulation’ accusation angers China". first100days/2009/01/22/geithner-wantThe Daily Telegraph. double-check-taxes/. http://www.telegraph.co.uk/finance/ [33] http://online.wsj.com/article/ economics/4320979/Timothy-GeithnerSB123187503629378119.html currency-manipulation-accusation[34] ^ Aherns, Frank (January 21, 2009). angers-China.html. "Treasury Pick Misfiled Using Off-the[24] "Yang Jiechi Meets with U.S. Secretary Shelf Tax Software". Washington Post: of Treasury Geithner". Chinese Ministry p. D1. http://www.washingtonpost.com/ of Foreign Affairs. 2009-03-12. wp-dyn/content/article/2009/01/21/ http://www.mfa.gov.cn/ce/celt/eng/xwdt/ AR2009012103552.html?hpid=topnews. t542442.htm. Retrieved on 2009-03-24. [35] http://finance.senate.gov/press/Bpress/ [25] change.gov (24 November 2008). 2009press/prb011309d.pdf "Geithner, Summers among key [36] [http://www.senate.gov/legislative/LIS/ economic team members announced roll_call_lists/ today". Newsroom. Office of the roll_call_vote_cfm.cfm?congress=111&session=1&vo President-elect. http://change.gov/ [37] http://voices.washingtonpost.com/ newsroom/entry/ economy-watch/2009/01/ geithner_summers_among_key_economic_team_members_announced_today/. geithner_by_senate.html?hpid=topnews Retrieved on November 24, 2008. [38] Jackie Calmes (2009-01-26). "Senate [26] "Geithner to Be Nominated as Treasury Confirms Geithner for Treasury". New Secretary". CNBC. 21 November 2008. York Times. http://www.nytimes.com/ http://www.cnbc.com/id/27844707. 2009/01/27/us/politics/27geithner.html. Retrieved on November 21, 2008. Retrieved on 2009-01-27. [27] Hirschfield Davis, Julie (January 14, [39] Brian Knowlton, "Geithner Is Pressed for 2009). "Tax problems may plague Bailout Details," New York Times Obama’s treasury pick". Associated Press February 11, 2009 (My Way News). [40] E. J. Dionne, "Centrism. Meh." The New http://apnews.myway.com/article/ Republic February 12, 2009 20090114/D95MTVI05.html. [41] Daly, Corbett B. (2009-03-23). "Nobel [28] "Documents regarding Treasury nominee laureate Krugman slams Geithner bailout Geithner" (PDF). Senate Finance plan". Reuters. http://www.reuters.com/ Committee (United States Senate). article/GCA-CreditCrisis/ January 13, 2009. idUSTRE52M4SS20090323. Retrieved http://finance.senate.gov/press/Bpress/ on 2009-03-24. 2009press/prb011309d.pdf. [42] "Obama’s Ersatz Capitalism". The New [29] Gandel, Stephen (January 21, 2009). "Tax York Times. 2009-03-31. Tips for Geithner". Time. http://www.nytimes.com/2009/04/01/ http://www.time.com/time/politics/ opinion/01stiglitz.html. Retrieved on article/0,8599,1872925,00.html. 2009-04-02. [30] ^ Felsenthal, Mark; Lawder, David [43] [2] (January 21, 2009). "Geithner urges [44] http://www.washingtonpost.com/wp-dyn/ bailout reforms, apologizes on taxes". content/article/2009/03/22/ Reuters. http://www.reuters.com/article/ AR2009032201606.html

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Political offices Preceded by Henry Paulson United States Secretary of the Treasury
Served Under: Barack Obama

Timothy Geithner

Succeeded by Incumbent

2009 – present Civic offices Preceded by William McDonough President of the Federal Reserve Succeeded by William Dudley Bank of New York 2003 – 2009 Succeeded by Robert Gates Secretary of Defense

Order of precedence in the United States of America Preceded by United States order of precedSandra Day O’Connor ence Retired Associate Justice of Secretary of the Treasury the Supreme Court Preceded by Hillary Rodham Clinton
Secretary of State

United States presidential line of Succeeded by Robert Gates succession 5th Secretary of Defense

[45] http://online.wsj.com/article/ SB123777083390610069.html [46] http://www.nytimes.com/1985/06/09/ style/carole-m-sonnenfeld-wed-to-t-fgeithner.html [47] ^ "Timothy F. Geithner". About CGD. Washington D.C.: Center for Global Development. 2008. http://www.cgdev.org/section/about/ board/geithner. Retrieved on November 24, 2008.

http://www.tnr.com/politics/ story.html?id=c85b418b-5237-4f54-891f-8385243162b • Judis, John B. (2009-03-23). "The Geithner Disaster: How The Treasury Secretary Is Undermining Obama’s Entire Economic Agenda". The New Republic. http://www.tnr.com/politics/ story.html?id=3adafc9c-0f8f-4db2-8fb1-26f13303426d

External links
• Tim Geithner’s biography at the NY Fed • Who’s who: The Federal Open Markets Committee (MSNBC) • Bernanke’s quiet skipper makes waves, MarketWatch.com • Toxic Assets Reduction Plan Release by The Justice Dept: 23Mar2009. • "Geithner’s Calendar at the New York Fed". The New York Times. April 26, 2009. http://documents.nytimes.com/geithnerschedule-new-york-fed. Retrieved on 2009-04-26. (2007–2009)

Further reading
• Anderson, Jenny (2007-02-09). "Calm Before and During a Storm". The New York Times. http://www.nytimes.com/ 2007/02/09/business/09credit.html. • Cho, David; Irwin, Neil (2008-9-19). "In Crucible of Crisis, Paulson, Bernanke, Geithner Forge a Committee of Three". The Washington Post. http://www.washingtonpost.com/wp-dyn/ content/article/2008/09/18/ AR2008091804211.html. • Schreiber, Noam (2008-11-05). "Obama’s Choice: The next Larry Summers… or Larry Summers". The New Republic.

Retrieved from "http://en.wikipedia.org/wiki/Timothy_Geithner" Categories: 1961 births, Council on Foreign Relations, Dartmouth College alumni, Federal Reserve Bank presidents, United States Secretaries of the Treasury, Obama Administration cabinet members, Group of Thirty, Johns Hopkins University alumni, Living people, American Christians, People from Brooklyn

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