Thursday, January 22, 2009

Geithner's Record Raised Questions BEFORE Meltdown

It's not just unpaid taxes, statues of limitations, and Lehman Brothers. In a Bloomberg article about his appointment to the NY Fed from 2004, his regulatory (in)abilities were already raising hackles:
Other Fed watchers were disappointed that someone with an established reputation as a regulator didn't get the job.

``Geithner's appointment raises questions about the willingness of the New York Fed to aggressively supervise financial holding companies in its territory because there is very little in Geithner's resume that shows experience in regulatory issues,'' says Tom Schlesinger, 55, executive director of the Financial Markets Center, a Philomont, Virginia-based nonprofit group that monitors the Fed.

`Tough Cop'

``The New York Fed could have sent a message by appointing a well-known tough cop with regulatory experience and a professed willingness to crack down on financial crimes,'' says Schlesinger. ``Geithner may prove to be that kind of individual, but it is improbable at this time.''
Not the right guy to restore confidence, IMHO.