Treasury Secretary Candidates
by Bradley, Editor
November 8, 2008
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
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
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
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
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
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
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.
Regarding Summer’s controversial comment about IQ and women:
What he said was factually correct, but completely stupid to say. The standard deviation of men’s IQ’s is higher, meaning that those on the left and right tails will be to the further extreme (more Forest Gumps and Einsteins). Please note that were talking the pretty far extreme here—super-super-super genius.
Anyway, I think he got a lot of unfair heat for this. What he said was scientifically correct. Was it something you say in polite company? Of course not.
If Obama wants the smartest man in the room, he’ll pick Summers. However, if he doesn’t want any drama, he won’t pick Summers. There in lies your dilemma!
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