The next secretary
The next secretary
Published: October 26 2008 19:17 | Last updated: October 27 2008 09:40
High on the to-do list for the next president of the United States of America is choosing a Treasury secretary. Not since Nicholas Brady’s plan to help countries defaulting on international debt in the late 1980s has the role been as centre-stage during a crisis. Even if the banking system is saved, the likelihood of a nasty and prolonged recession means the Treasury secretary will be one of the most important jobs in government.
Who will it be? If a Republican is returned to office, Hank Paulson might legitimately want to finish what he started, in spite of admitting he wants to be “doing other things next year”. Mike Bloomberg is also in the fray, but would surely not be gunning so hard for another term as mayor of New York if he were considering a move. Another strong choice is Sheila Bair, chairwoman of the Federal Deposit Insurance Corporation, an institution that has actually gained in stature through its deft handling of failing banks since the crisis began.
Democrats arguably have more choice. Robert Rubin, who held the job under President Bill Clinton, is still kicking around but, along with Alan Greenspan, is now tainted with being too lax at the beginning of the credit boom. Larry Summers, another ex-Treasury secretary, has the brains but perhaps not the sensitivity for an era likely to be dominated by genuine suffering. Some are proposing Larry Fink, the head of Black Rock. He knows his stuff but Wall Street fat-cats are far from popular right now. The smart money is also following Tim Geithner, the respected governor of the Federal Reserve Bank of New York.
In reality, though, the eventual choice may well be one that transcends politics. America’s economy and financial system is in such a mess that the new president will want to appear consensual. And, irrespective of party leaning, each of the highly qualified candidates will want to do their duty.
http://www.ft.com/cms/s/1/14e79310-a392-11dd-942c-000077b07658.html