Friday, December 19, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

Geithner: Suggested Clinton as possible successor

By
From page C6 | June 15, 2014 |

WASHINGTON — Timothy Geithner says in a new memoir that he considered stepping down as Treasury secretary in 2010 after the financial crisis and suggested Hillary Rodham Clinton as a possible successor.

President Barack Obama rebuffed Geithner’s suggestion, and he remained at Treasury until 2013.

Geithner’s memoir will be published next week. On Thursday, The Associated Press bought an early copy.

Geithner writes of the incident in “Stress Test,” which explores his turbulent four years at Treasury. During his tenure, the Obama administration faced the worst recession and most severe financial crisis since the Great Depression.

In several sections of his memoir, Geithner recounts internal conversations about who might replace him in a post he was initially reluctant to accept.

When his nomination ran into challenges over his tax filing problems, Geithner offered to pull his name from consideration.

In proposing that the White House consider Clinton as his successor in 2010, Geithner cited her star power as secretary of state. Among the other names Geithner suggested was Jack Lew, who succeeded him last year.

By his own acknowledgement, Geithner seemed an awkward fit as Treasury secretary, neither an economist nor a banker nor a natural public speaker.

No Treasury secretary since the Depression confronted so many financial threats at once. When Geithner became Treasury secretary in January 2009, the economy had sunk into a deep recession. Unemployment was surging, and the financial system was teetering.

Having previously led the Federal Reserve Bank of New York, Geithner had worked to craft the government’s early response to the financial crisis. The crisis erupted in the fall of 2008 with the fall of investment bank Lehman Brothers and the government takeover of mortgage giants Fannie Mae and Freddie Mac

Geithner’s supporters said he deserved credit for helping steady the banking system, restore investor confidence and avert a complete meltdown.

His critics countered that his policies consistently favored big banks and neglected ordinary Americans, including many struggling to save their homes after a wave of foreclosures followed the housing bust.

In his memoir, Geithner pushes back against such criticism. He writes that it would have been impossible to fix the economy without first shoring up the banking system and restoring confidence. This, he writes, was the most urgent task. A banking panic would have defeated the administration’s efforts to help the economy recover.

He acknowledges that the government’s efforts to help troubled homeowners keep their homes were inadequate. But he argues that no “game-changing housing plan” that would have offered Americans substantial relief existed for Geithner’s team to embrace.

Geithner rejected the idea of fixing banks by nationalizing them or letting the weakest firms fail. Instead, he writes, while vacationing on a beach in Mexico, he fleshed out a plan for using “stress tests” to see how much additional capital banks would need to survive a financial catastrophe.

If banks struggled to pass these tests, they would have to raise capital privately or be forced to accept support from the government. Geithner writes that this strategic choice was key to salvaging the financial system.

In the book, Geithner addresses his biggest public relations disaster — his first speech as Treasury secretary on Feb. 10, 2009.

Obama had told reporters at his first news conference that Geithner would lay out how the administration would fix the financial system.

“He’s going to be terrific,” Obama said of Geithner.

The speech unnerved investors. The Dow Jones industrial average plunged nearly 400 points, an ominous start for an administration official whose main task was to restore confidence in financial markets.

“It’s fair to say the speech did not go well,” Geithner writes.

Yet Geithner said the plan, which involved determining how much capital the biggest banks needed, ended up working.

The Associated Press

The Associated Press

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

Solano News

 
Sondheim’s ‘Woods’ holiday showcase for Missouri Street Theatre

By Amy Maginnis-Honey | From Page: B1 | Gallery

 
Groundbreakings, ribbon-cuttings play role in civic life

By Barry Eberling | From Page: A1, 1 Comment | Gallery

Frankye Kelly ready to spread holiday cheer

By Amy Maginnis-Honey | From Page: B1

 
Celebrate the magic of Christmas

By Tony Wade | From Page: A2, 2 Comments

 
Santas have busy week at schools

By Susan Hiland | From Page: A3, 1 Comment

 
Safe streets task force work nets 3

By Ryan McCarthy | From Page: A3, 2 Comments

 
 
Solano College approves officers, meeting schedule

By Susan Winlow | From Page: A4

Longtime Suisun harbor master to retire

By Ian Thompson | From Page: A4

 
 
Fairfield police log: Dec. 17, 2014

By Susan Hiland | From Page: A12

 
Suisun City police log: Dec. 17, 2014

By Susan Hiland | From Page: A12, 1 Comment

Police arrest 2nd suspect in Fairfield credit union robbery

By Ryan McCarthy | From Page: A12 | Gallery

 
.

US / World

Spy’s parents search for son after Cuba-US deal

By The Associated Press | From Page: A1

 
Hope and some fear in Cuba amid thaw with US

By The Associated Press | From Page: A1

Next steps on Cuba: Normalizing could take awhile

By The Associated Press | From Page: A1

 
Sony hacking fallout puts all companies on alert

By The Associated Press | From Page: A1

Sony film took aim at North Korea’s biggest taboo

By The Associated Press | From Page: A1, 3 Comments

 
Timeline of the Sony Pictures Entertainment hack

By The Associated Press | From Page: A1

Digital dilemma: How will US respond to Sony hack?

By The Associated Press | From Page: A1

 
 
Local emergencies in Northern California counties after rain

By The Associated Press | From Page: A5

California’s top utility regulator defends record

By The Associated Press | From Page: A5

 
‘Pretty horrible’ scene; car slams into crowd

By The Associated Press | From Page: A5

 
Police: Drunk man shot while entering wrong house

By The Associated Press | From Page: A5, 4 Comments

Tsarnaev appears in court for 1st time since 2013

By The Associated Press | From Page: A6

 
President signs legislation ending Nazi benefit checks

By The Associated Press | From Page: A7

2 states challenge Colorado marijuana legalization

By The Associated Press | From Page: A8, 3 Comments

 
‘Prison Houdini’ set to make his 1st legal escape

By The Associated Press | From Page: A8

Top Islamic militants killed; more US troops going to Iraq

By The Associated Press | From Page: A8

 
Feds sue NYC over Rikers Island jail violence

By The Associated Press | From Page: A8

Russian sailors leaving France without warship

By The Associated Press | From Page: A9, 1 Comment

 
Putin: West wants to defang, declaw Russian bear

By The Associated Press | From Page: A10

European court rules obesity can be a disability

By The Associated Press | From Page: A13

 
Suspected Islamic extremists kidnap 185 in Nigeria

By The Associated Press | From Page: A13, 2 Comments

.

Opinion

Another look at school bonds

By George Guynn Jr. | From Page: A11, 2 Comments

 
Editorial Cartoon: Dec. 19, 2014

By Daily Republic Syndicated Content | From Page: A11

News of the day strikes a chord

By Bud Stevenson | From Page: A11, 10 Comments

 
 
.

Living

Today in History: Dec. 19, 2014

By The Associated Press | From Page: A2, 1 Comment

 
Community Calendar: Dec. 19, 2014

By Susan Hiland | From Page: A2

Horoscopes: Dec. 19, 2014

By Holiday Mathis | From Page: D8

 
Should I use Child Protective Services threat to get back rent?

By Kathy Mitchell and Marcy Sugar | From Page: D8

.

Entertainment

Week in preview Dec. 19-25, 2014

By Amy Maginnis-Honey | From Page: B1

 
Sweet ‘Night at the Museum’ bids farewell to Robin Williams

By The Associated Press | From Page: B2

 
Craig Ferguson to end 10 years as host of ‘Late Late Show’

By The Associated Press | From Page: B3

Eric Idle brings ‘Not the Messiah’ to Carnegie Hall

By The Associated Press | From Page: B3

 
Entertainment calendar Dec. 19, 2014

By Susan Hiland | From Page: B4

.

Sports

A’s trade All-Star catcher Derek Norris to Padres

By The Associated Press | From Page: B7

 
Warriors beat Thunder 114-109 after Durant injury

By The Associated Press | From Page: B7

 
A’s acquire lefty De La Rosa from Arizona for cash

By The Associated Press | From Page: B7

Raiders defense depleted by injuries

By The Associated Press | From Page: B7

 
49ers’ Harbaugh mum on reported offer from Michigan

By The Associated Press | From Page: B7

49ers’ Aldon Smith hopes to build off tough year

By The Associated Press | From Page: B7

 
Column: Thaw in US-Cuba relations warms up MLB

By Jim Litke | From Page: B8

Rivera: Newton ‘probably’ will start vs. Browns

By The Associated Press | From Page: B8

 
Bears bench QB Jay Cutler for Clausen

By The Associated Press | From Page: B8

‘Hands Up’ players to attend Ferguson Christmas party

By The Associated Press | From Page: B8

 
Celtics trade Rondo to Mavericks

By The Associated Press | From Page: B8

Rodriguez boys open Les Curry Tournament with victory

By Daily Republic staff | From Page: B8

 
39 bowl games and a reason to watch every one

By The Associated Press | From Page: B8

Signups for Friday, Dec. 19, 2014

By Paul Farmer | From Page: B9

 
This date in sports history for Friday, Dec. 19, 2014

By The Associated Press | From Page: B11

Sports on TV/Local sports for Friday, Dec. 19, 2014

By Paul Farmer | From Page: B11

 
.

Business

Roomiest Subaru Legacy debuts for 2015

By Ann M. Job | From Page: C1

 
Dow industrials have their best day in three years

By The Associated Press | From Page: B6

Ford expands drivers air bag recall nationwide

By The Associated Press | From Page: B6

 
Constantly changing online prices stump shoppers

By The Associated Press | From Page: B6

.

Obituaries

Lisa Dee McHughes

By Nancy Green | From Page: A4

 
Dominic C. Scolaro

By Nancy Green | From Page: A4

Ernest “Ernie” Moretti

By Nancy Green | From Page: A4

 
Travis Curt Price

By Susan Hiland | From Page: A4, 1 Comment

Jennie Ponce Reyes

By Nancy Green | From Page: A4

 
Patricia “Pat” Anne Stringfield-Pierre

By Nancy Green | From Page: A4

.

Comics