Speculation is growing that US Treasury Secretary Tim Geithner is going to step down from his position some time soon. The tumultuous economy over the past few years has taken a toll on Geithner, who most recently had his hands full with the strenuous debt ceiling debate.
Due to the trying times in the economy, if Geithner chooses to resign President Obama would need to nominate a successor with seasoned experience who could inspire market confidence and easily attract enough Republican support to clear the Senate, where a number of Obama nominees have been blocked by the GOP.
The media is speculating that the nominee could be Jon Corzine. Corzine is the former CEO of Goldman Sachs, former New Jersey Senator, and the former Governor of New Jersey from 2006 – 2010. Presently, Corzine is the CEO of MF Global, a financial services firm.
Though Corzine is a loyal Democrat and a big supporter of President Obama, he also is someone that is viewed as a sympathizer to Wall Street. After years of fighting with financial sector, President Obama might need a cabinet member like Corzine to mend those relationships.
However, many people are already concerned that yet another ex-Goldman Sachs Employee could be running the Treasury. For the majority of time during the past fifteen years most of the Treasury Secretaries have had deep connections to Goldman Sachs:
Henry Paulson, the 74th Treasury Secretary from 2006 – 2009, appointed by President Bush, was an ex-Goldman Sachs CEO.
Larry Summers, the 71st Treasury Secretary from 1999 – 2001, appointed by President Clinton, acted as a consultant to Goldman Sachs before the 2008 elections.
Robert Rubin, the 70th Treasury Secretary from 1995 – 1999, appointed by President Clinton worked at Goldman Sachs for 26 years.
With such strong ties to Washington DC, many people are worried that Goldman Sachs gets preferential treatment and has an unfair advantage. These people point to Goldman’s success over the past few years compared to the demise of their competitors Bear Sterns and Lehman Brothers during the financial collapse in 2008.
What do you think? Would you have a problem with Corzine being the next Treasury Secretary because of his connections with Goldman Sachs?
Please leave your comments below!