At NY Fed, Geithner Got Cozy With Wall Street

Geithner's cozy history with the high finance club draws critics' ire

By Clay Dillow, Newser Staff

Posted Apr 27, 2009 9:10 AM CDT

(Newser) – While some feel Treasury Secretary Timothy Geithner has been an aggressive steward of the public trust, some critics point to his days as New York Fed president as proof he’s too cozy with the very banks that crippled the financial system. The New York Times investigates his tenure there, when he dined regularly with senior execs from Citigroup, Goldman Sachs, JPMorgan Chase, and Morgan Stanley.

Critics believe Geithner looked out for banks’ interests over taxpayers’ while at the Fed. Indeed, he argued against increasing taxpayer protection at the banks’ expense, and awarded three no-bid contracts to BlackRock, an asset manager with close ties to the New York Fed, to manage the bailout. But supporters say his character is above reproach. Says one bank executive: “My experience with Tim is that he makes those kinds of decisions 100% based on capability and zero about relationships.”

Treasury Secretary Timothy Geithner smiles as he meets with Western Hemisphere ministers during a roundtable discussion at the Treasury Department in Washington. (AP Photo/Alex Brandon)

Treasury Secretary Timothy Geithner, speaks during a news conference, after the conclusion of the G7 finance minister and central bank governor meeting, Friday, April 24, 2009, in Washington. (AP Photo/Manuel Balce Ceneta)

Treasury Secretary Timothy Geithner listens as President Barack Obama makes remarks in the Roosevelt Room of the White House in Washington. (AP Photo/Gerald Herbert)

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At NY Fed, Geithner Got Cozy With Wall Street

Geithner's cozy history with the high finance club draws critics' ire

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US Banks Hiring Again After Layoffs, Bailouts

But headhunting 'selective,' notes banker

Geithner Puts Brakes on Bank Repayments

Treasury sec reluctant to free Goldman, others from constraints

Banks Owe Execs Billions— in Previous Years' Pay

Under bailout rules, banks can honor past obligations to execs with federal cash

Moody's Slaps Wall Street's Big Banks With Review

Along with most of Europe's banks

Students Revolt Against Big Bank Recruiting

Protests spread across Ivy League campuses

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At NY Fed, Geithner Got Cozy With Wall Street

Geithner's cozy history with the high finance club draws critics' ire

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OTHER STORIES ON OUR RADAR

Citigroup • Goldman Sachs • Morgan Stanley • BlackRock • JPMorgan Chase • Treasury secretary • financial crisis • Timothy Geithner • New York Federal Reserve Bank

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

US Banks Hiring Again After Layoffs, Bailouts

But headhunting 'selective,' notes banker

Geithner Puts Brakes on Bank Repayments

Treasury sec reluctant to free Goldman, others from constraints

Banks Owe Execs Billions— in Previous Years' Pay

Under bailout rules, banks can honor past obligations to execs with federal cash

Moody's Slaps Wall Street's Big Banks With Review

Along with most of Europe's banks

Students Revolt Against Big Bank Recruiting

Protests spread across Ivy League campuses

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?