U.S. Treasury Secretary Timmothy Geithner is an odds-on favorite to replace Ben Bernanke as Fed Chairman, according to Washington insiders.
Bernanke’s second term as Chairman of the Federal Reserve ends on January 31, 2014. It is unlikely that President Obama will nominate the Bush appointee to a third run; instead, a new candidate who will be able to the president’s economic views beyond 2016 is a more probable scenario.
According to William Cohan at Bloomberg News, Timothy Geithner fits that description more than other possibilities being quietly bandied about.
Geithner also has experience in the Fed. He was president of the Federal Reserve Bank of New York for six years until being tapped by President Obama for Treasury Secretary in 2009.
Geithner’s close relationship with Wall Street enabled him to more easily work to secure the “too big to fail” bailouts of Bear Stearns Cos., Merrill Lynch, American International Group Inc. (AIG).
It is also understood that Geithner knew of insider fixing of the London Inter-Bank Offered Rate, Libor, as early as 2007 and suggested possibilities to fix the problem, including the implementation of a new system altogether.
Geithner has already told President Obama that he does not to be Treasury Secretary anymore. He actually wanted to leave last spring, but President Obama was able to persuade him to stay until after the election.
CNBC host Larry Kudlow claimed in October 2010 that New York City Mayor Michael Bloomberg was on tap to be the next Treasury Secretary, replacing Geithner in President Obama’s second term.
Other possibilities include Erskine Bowles, one of the architects of a smart budget-deficit-reduction plan; Lawrence Summers, the former Treasury Secretary and Harvard University president; Janet Yellen, a current vice chairman of the Fed; and Alan Krueger, the precocious chairman of the White House Council of Economic Advisers.