Obama’s New Economic Team

The leaders of President-elect Obama’s all-important economic team are now in place. He’s actually found a place for two of the Treasury Secretary candidates that we mentioned earlier this month.  In addition, there was one surprise name. Here’s a look at four of the main players:

Treasury Secretary–Tim Geithner, 48

Geithner was the safe pick here. Geithner is currently the head of the New York Fed and was an instrumental player in the recent financial bailout.  Geithner lived abroad for much of his childhood and later attained degrees in international economics and East Asian studies. Prior to joining the New York Fed, Geithner had 14 years of experience working in the Treasury Department, including a stint as Under Secretary of the Treasury for International Affairs.  Geithner is also a long-time mentee of Larry Summers.

Chair of National Economic Council–Larry Summers, 53

In this role,  Summers, the former Treasury Secretary under President Clinton, will serve as the chief economic policy adviser to the President.  Summers brings a wide depth of experience to this crucial position and is considered by many people to be the smartest man in rooms filled with geniuses. Summers, unfortunately brings some baggage to the room as well, which likely explains why he wasn’t named Treasury Secretary.  Obama seemed to play his cards right on this one. By his team first leaking that Geithner had been named Secretary of the Treasury, Summers’s appointment didn’t get much press.  The fact that Summers and Geithner will be both working together again in the Obama administration is a brilliant play.

Secretary of Commerce–Bill Richardson, 61

Reported runner up for Secretary of State and current governor of New Mexico, Bill Richardson becomes President-elect Obama’s first high profile Latino cabinet selection. Granted, this probably isn’t what Richardson had in mind at first, having already served in mid level cabinet positions in the Clinton administration. However, it is believed that in light of the current economic crisis, President-elect Obama will elevate the roles and responsibilities of the commerce secretary. Richardson brings a wealth of government experience and should have a real grasp on how Washington works.

Office of Management and Budget (OMB) Director–Peter Orszag, 39

Anyone who works on any government grants is probably all too familiar with the OMB approval process (ugh). However, the OMB does much more than this. The OMB is the largest office within the Executive Office of the President and serves a role in overseeing all federal agencies. Does that seem like a lot? It is. The OMB has over 500 employees. Orszag is well prepared for this position, previously having served as the director of the legislative branch’s equivalent of the OMB, the Congressional Budget Office (CBO). With the federal deficit and likely expansion of government programs over the next four years, Orszag will have his work cut out for him.

Treasury Secretary Candidates

As President-Elect Obama begins to piece together his administration, the most prominent post will likely be his choice for Treasury Secretary. Given the importance of the Secretary in shaping the course of the Economic Stabilization Act funds ($450 billion left if you are counting), we wanted to run down the most likely candidates:

Larry Summers

A leading Harvard economist, Summer won the John Bates Clark Medal for his research and served as Bill Clinton’s Secretary as well as heading up Harvard during a five year tenure. As a close Obama advisor well respected in academia and the financial sector, Summers is a strong candidate. Drawbacks include the “gender science” controversy that led him to resign from his administrative post at Harvard, as well as his close ties to hedge fund DE Shaw.

Timothy Geithner

Header of the New York Fed as well as Vice Chair of the Federal Open Market Committee which sets interest rates, Geitner has a background in international affairs, earning a graduate degree from SAIS and serving in a variety of positions from Under Secretary at the State Department to the Council of Foreign Relations and the IMF, as well as playing a crucial role in helping to orchestrate recent financial market interventions.

Paul Volker

Part of the “old guard”, Volker is seen as a stable pick who served as Federal Reserve Chairman in the 1980s under Presidents Carter and Reagan, where he helped “tame” inflation and earned respect on both sides of the aisle.

Robert Rubin

Currently a Director at Citigroup, Rubin served as Treasury Secretary in the Clinton Administration and is credited with helping shape “Rubinomics” policies that fostered economic growth and balanced deregulation.

Laura Tyson

A Berkeley economist, Tyson served as Chair of Bill Clinton’s Council of Academic Advisers as well as Dean of the London Business School and a member of the Council on Foreign Relations.

Jon Corzine

Currently serving as Governor of New Jersey, Corzine has a deep background in financial markets stemming from his work as a partner at Goldman Sachs.

Obama Meets the Press

Flanked by a cadre of men (and two women), Senator President-elect Obama held his first press conference since Tuesday’s election. The press conference was held in downtown Chicago, only a few blocks from where I work. However, as expected, I wasn’t allowed in the building. We assume most North American readers were probably at work when this presser occurred, so we’ll share the video for everyone to see:

There is nothing too unexpected here. President-elect Obama was calm and collected as always. He’ll have to be considering the mess he is inheriting. His Treasury Secretary selection remains the topic du jour. Former Secretary and king of controversy Larry Summers and New York Fed President Timothy Geithner are both apparently in the running. Former Fed Chair Paul Volcker’s name has been mentioned as well, but he’s about 95 years old.