Thursday, August 21, 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

Potrero Hills Landfill legal appeals exhausted

By Barry Eberling | From Page: A1

 
Railroad crossing stalemate continues

By Barry Eberling | From Page: A1, 9 Comments

First day back to school brings laughter, jitters

By Susan Hiland | From Page: A1 | Gallery

 
Breakfast after the Bell wins support

By Mayrene Bates | From Page: A2, 5 Comments

 
Suisun city employees get pay raise

By Ian Thompson | From Page: A3, 1 Comment

 
Fairfield candidates hear about lean, nimble city staff

By Ryan McCarthy | From Page: A3, 1 Comment | Gallery

College finalizes police department takeover, OKs bond plan

By Amy Maginnis-Honey | From Page: A4

 
Free e-waste collection to benefit Scarlet Brigade

By Susan Hiland | From Page: A4

 
Fairfield mayor to appear at GOP dinner

By Susan Hiland | From Page: A4, 2 Comments

Girls on the Run seeks volunteer life coaches

By Ian Thompson | From Page: A4

 
Weather for Aug. 21, 2014

By Daily Republic | From Page: B10

Fairfield police log: Aug. 19, 2014

By Susan Hiland | From Page: A10

 
Suisun City police log: Aug. 19, 2014

By Susan Hiland | From Page: A10

.

US / World

US official: More airstrikes in Iraq

By The Associated Press | From Page: A1

 
Beheading spurs new attacks on Islamic militants

By The Associated Press | From Page: A1, 9 Comments

Militants use British killer as propaganda

By The Associated Press | From Page: A1

 
Governor criticizes new-hire pension enhancements

By The Associated Press | From Page: A1, 1 Comment

US mission to rescue hostages in Syria failed

By The Associated Press | From Page: A1, 1 Comment

 
Police seek mystery pair in selfies after burglary

By The Associated Press | From Page: A4

School sorry for making special ed kids sort trash

By The Associated Press | From Page: A4

 
Teens deny threatening boy in school shooting plot

By The Associated Press | From Page: A5

Panel OKs state librarian despite initial concerns

By The Associated Press | From Page: A5

 
8 homes destroyed, 1,500 threatened by wildfire

By The Associated Press | From Page: A10

Drought has state debating its unregulated pumping

By The Associated Press | From Page: A10

 
Holder says he understands mistrust of police

By The Associated Press | From Page: A10, 5 Comments

Liberian slums barricaded as Ebola sets new record

By The Associated Press | From Page: A10

 
North Korea insults John Kerry over his looks

By The Associated Press | From Page: A10

Ukrainian govt troops take over much of Luhansk

By The Associated Press | From Page: A10

 
Picture emerges of officer in Ferguson shooting

By The Associated Press | From Page: A10, 9 Comments

Navy kicks out 34 for nuke cheating

By The Associated Press | From Page: A10, 2 Comments

 
CHP says officer may face serious beating charges

By The Associated Press | From Page: A10, 1 Comment

.

Opinion

Tell the story, don’t be it

By Ruben Navarrette | From Page: A7

 
 
We’re spending way too much on raising our kids

By Megan Mcardle | From Page: A7

Editorial Cartoons: Aug. 21, 2014

By Daily Republic Syndicated Content | From Page: A7

 
California needs pedestrian-friendly neighborhoods

By Letter to the Editor | From Page: A7, 2 Comments

.

Living

Today in History: Aug. 21, 2014

By The Associated Press | From Page: A2

 
Community Calendar: Aug. 21, 2014

By Susan Hiland | From Page: A2

Horoscopes: Aug. 21, 2014

By Holiday Mathis | From Page: A9

 
Why do parents drink alcohol after their children’s games?

By Kathy Mitchell and Marcy Sugar | From Page: A9

.

Entertainment

TVGrid

By Daily Republic Syndicated Content | From Page: A5

 
And the Emmy winners are…? We’re happy to guess!

By The Associated Press | From Page: A6 | Gallery

Aniston, Hamm, Hudson set to Stand Up to Cancer

By The Associated Press | From Page: A6

 
Emmys: Billy Crystal to pay tribute to Williams

By The Associated Press | From Page: A6 | Gallery

.

Sports

Fairfield boxer Avila set to put perfect 15-0 record on the line

By Brian Arnold | From Page: B1 | Gallery

 
Giants win protest, rain-shortened game to resume Thursday

By The Associated Press | From Page: B1

A’s stumble and must regroup with Angels coming

By The Associated Press | From Page: B1

 
Raiders FB Reece’s injury not as bad as feared

By The Associated Press | From Page: B1 | Gallery

Peavy pitches Giants to 8-3 win over Cubs

By The Associated Press | From Page: B1

 
WR Stevie Johnson adds depth to 49ers

By The Associated Press | From Page: B1

Las Vegas spoils Mo’ne’s night, beats Philly 8-1

By The Associated Press | From Page: B2 | Gallery

 
Sharks F Torres undergoes surgery on right knee

By The Associated Press | From Page: B2

US routs Dominicans in exhibition as Rose rests

By The Associated Press | From Page: B2

 
Schilling blames chewing tobacco for mouth cancer

By The Associated Press | From Page: B2

Reality check for Phelps at Pan Pacific Champs

By The Associated Press | From Page: B2

 
Kent State starting center dies at 21

By The Associated Press | From Page: B2

Serena Williams seeded No. 1 at US Open; Halep 2nd

By The Associated Press | From Page: B2

 
Tony Stewart skipping 3rd straight race after Ward’s death

By The Associated Press | From Page: B2 | Gallery

This date in sports history for Thursday, Aug. 21, 2014

By The Associated Press | From Page: B4

 
Sports on TV for Thursday, Aug. 21, 2014

By Paul Farmer | From Page: B4

.

Business

BofA reaches $17B settlement with US

By The Associated Press | From Page: B5

 
Brine firm sues over biblical fracking billboard

By The Associated Press | From Page: B5

Apple’s stock bounces back to hit a new high

By The Associated Press | From Page: B5

 
.

Obituaries

David G. Gibson

By Nancy Green | From Page: A4

 
Charles (Chuck) H. Doty

By Susan Hiland | From Page: A4

.

Comics

Garfield

By Daily Republic Syndicated Content | From Page: A8

 
Sally Forth

By Daily Republic Syndicated Content | From Page: A8

Wizard of Id

By Daily Republic Syndicated Content | From Page: A8

 
Rose is Rose

By Daily Republic Syndicated Content | From Page: A8

Zits

By Daily Republic Syndicated Content | From Page: A8

 
Peanuts

By Daily Republic Syndicated Content | From Page: A8

Blondie

By Daily Republic Syndicated Content | From Page: A8

 
Dilbert

By Daily Republic Syndicated Content | From Page: A8

Frank and Ernest

By Daily Republic Syndicated Content | From Page: A8

 
For Better or Worse

By Daily Republic Syndicated Content | From Page: A8

Beetle Bailey

By Daily Republic Syndicated Content | From Page: A8

 
Get Fuzzy

By Daily Republic Syndicated Content | From Page: A8

Baby Blues

By Daily Republic Syndicated Content | From Page: A8

 
B.C.

By Daily Republic Syndicated Content | From Page: A8

Baldo

By Daily Republic Syndicated Content | From Page: A8

 
Pickles

By Daily Republic Syndicated Content | From Page: A8

Crossword

By Daily Republic Syndicated Content | From Page: A9

 
Sudoku

By Daily Republic Syndicated Content | From Page: A9

Word Sleuth

By Daily Republic Syndicated Content | From Page: A9

 
Cryptoquote

By Daily Republic Syndicated Content | From Page: A9

Bridge

By Daily Republic Syndicated Content | From Page: A9