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I have said before, I think it will be pretty difficult to replace Geithner, but now we have President Obama's "favorite banker" being named as a possible replacement. NyPo reports As support for Treasury Secretary Timothy Geithner wanes on Capitol Hill amid frustration with the Obama administration's handling of the economy, JPMorgan Chase CEO Jamie Dimon is emerging as a potential replacement. Sources tell The Post that a number of policy makers have begun mentioning Dimon as a successor to Geithner, whose standing in Washington has suffered because of the country's high unemployment rate, the weakness of the dollar, the...

What was expected to be a boring congressional hearing erupted into high drama yesterday as an unnerved Treasury Secretary Tim Geithner sparred with frustrated lawmakers calling for his head over his handling of the economy. Clearly rattled by a fusillade of attacks from Republican members of the Joint Economic Committee, the usually reserved Geithner lashed out, laying blame for the current economic mess at the feet of the GOP and rejecting suggestions that he resign. Republicans "gave this president an economy falling off the cliff," Geithner fired back at Rep. Kevin Brady (R-Texas), one of the Treasury secretary's harshest critics...

Special Inspector General for TARP (aka "SIG TARP") Neil Barofsky said something we've all known for a while: the government gave away the farm when AIG failed. If you recall, AIG's failure meant that the companies on the other side of all of its contracts (counterparties) were going to be left holding the bag. Under normal cases of bankruptcy, the court would impose haircuts to the amount of money due to counterparties, but because AIG didn't actually declare bankruptcy, the counterparties claimed that they were owed 100 cents of every dollar. The only bank that even considered taking a haircut...

Per: Peter Barnes of Fox News!

Barofsky, reviewing the first big bailouts to 9 firms, concludes that the government was too rosy to the public about the banks' health. WASHINGTON (CNNMoney.com) -- A government watchdog says federal officials weren't entirely honest with the public about the health of the first 9 financial firms that got federal bailouts, according to a report released Monday. Bailout special inspector general Neil Barofsky says in an audit that Treasury Department officials painted an overly rosy picture, creating "unrealistic expectations," when they called the first bailout banks "healthy" institutions that would be able to lend more with government help. "It is...

The financial system and economy are coming back to life. So who's going to pay TARP back and who isn't? As the first anniversary of the government's $700 billion Troubled Asset Relief Program approaches, Treasury Secretary Timothy Geithner has a lot to be happy about. Thursday, facing the congressional panel charged with overseeing the TARP funds, Geithner reminded them that when he took office, the Treasury had given $240 billion to banks. Since then, $70 billion has come back as the healthiest banks have begun to repay taxpayers. He estimates banks will repay another $50 billion over the next 12...

Treasury Secretary Timothy Geithner offered a spirited defense of the government's efforts to forestall another Great Depression but cautioned that the recovery would be slow and painful. "We understood how bad this was—how damaging this was—and we did things that people were incredibly critical of because we knew that this was getting away from us," Geithner told a special CNBC town hall meeting Thursday. In the wide-ranging session, which took place nearly a year to the day after the failure of Lehman Brothers and the implosion of the nation's financial system, Geithner said the country needs not only to fix...

The Obama administration's first progress report on its foreclosure prevention plan confirms it is off to a slow start. Just 9% of delinquent borrowers in trial modifications so far, the Treasury Department said Tuesday. That translates into 235,247 loans that were at least two months delinquent. Under fire for the program's rocky start, the Obama administration says it is on pace to help up to four million homeowners over the next three years. The initiative was announced in February and the first institutions to join began accepting applications in April.

To get the economy back on track, will President Barack Obama have to break his pledge not to raise taxes on 95 percent of Americans? In a “This Week” exclusive, Treasury Secretary Tim Geithner told me, "We’re going to have to do what’s necessary.” Geithner was clear that he believes a key component of economic recovery is deficit reduction. When I gave him several opportunities to rule out a middle class tax hike, he wouldn’t do it. “We have to bring these deficits down very dramatically,” Geithner told me. “And that’s going to require some very hard choices.”

To get the economy back on track, will President Barack Obama have to break his pledge not to raise taxes on 95 percent of Americans? In a "This Week" exclusive, Treasury Secretary Tim Geithner told me, "We're going to have to do what’s necessary." Geithner was clear that he believes a key component of economic recovery is deficit reduction. When I gave him several opportunities to rule out a middle class tax hike, he wouldn't do it. "We have to bring these deficits down very dramatically," Geithner told me. "And that's going to require some very hard choices."

(San Francisco, CA) -- The United States Senate has confirmed Rosa "Rosie" Gumataotao Rios to be the next U.S. treasurer. Rios is a Harvard University graduate from California who has held economic development positions with Oakland and other cities in California's Bay Area. She was confirmed to the post on Monday. As treasurer, Rios will work with Treasury Secretary Timothy Geithner. She will also oversee the U.S. Mint, the Bureau of Engraving and Printing and the Savings Bond Marketing Office. Rios is expected to be officially sworn in next month.

RIYADH/LONDON (Reuters) - Treasury Secretary Timothy Geithner will seek to reassure Gulf Arab states this week that U.S. dollar assets they hold in large quantities remain a strong investment. A recent decline in Saudi foreign assets shows the purchase of U.S. treasuries by Washington's Gulf allies, five having currencies pegged to the dollar, at levels seen in the past decades should no longer be taken for granted. Geithner, offering assurances on the United States' ability to pull out of recession, is combining a visit to Saudi Arabia and the United Arab Emirates, the Arab world's largest and second-largest economies, with...

The Obama administration is developing an initiative to take money from the $700 billion program for the banking system and make it available to millions of small businesses, which officials say are essential to any economic recovery because they employ so many people, according to sources familiar with the plan. The new effort -- which would represent a striking shift from the rescue program's original mandate -- would direct billions of bailout dollars toward a program that aims more at saving jobs than righting the financial system. A proposal being floated by senior Treasury Department officials calls for using the...

WASHINGTON – The huge amount of money tied up in complex derivative transactions helped cripple the economy, Treasury Secretary Timothy Geithner told lawmakers Friday as he laid out a case for greater government control over a generally unregulated sector of the financial markets. "Establishing a comprehensive framework of oversight is crucial," Geithner said .. Despite apprehension among Republicans, the effort to add government restrictions to these more freewheeling financial instruments has gained support within the Democratic-controlled Congress. "Clearly, we're going to be significantly expanding regulation of derivatives," said Rep. Barney Frank, ..

June 9 President Obama called a press conference where he announced, "Several financial institutions are set to pay back $68 billion to taxpayers..." Treasury Secretary Timothy F. Geithner has announced the department will use returned funds to provide aid and loans to small banks...Congressional Democrats have run to defend the practice of TARP fund recycling, and even encourage it... This is not only an unethical use of taxpayer money; it is also a violation of the legislation that allowed the Treasury the ability to lend it in the first place. The TARP law states, "Revenues of, and proceeds from the...

WASHINGTON -- The Obama administration's proposed consumer-protection agency would have broad oversight for a range of products, beefing up the government's regulation of credit cards, mortgages and gift cards, as well as expanding its authority over financial firms. Draft legislation unveiled Tuesday by the Treasury Department would for the first time make a single entity, the Consumer Financial Protection Agency, responsible for writing and enforcing rules across a range of financial products used by consumers. "This agency will have only one mission -- to protect consumers," Treasury Secretary Timothy Geithner said.

The U.S. government will "very soon" launch its program to use federal funds and private capital to buy banks' toxic assets, the new overseer of the government's $700-billion bank bailout fund said on Tuesday.

Corruption is a strong word, but it appears warranted given the two stories of import this weekend. First, on the firing of inspectors general: WASHINGTON - -- He was appointed with fanfare as the public watchdog over the government's multi-billion dollar bailout of the nation's financial system. But now Neil Barofsky is embroiled in a dispute with the Obama administration that delayed one recent inquiry and sparked questions about his ability to freely investigate. Treasury, you see, is refusing to turn over documents - items that Barofsky believes he needs to do his job properly. Mr. Barofsky's job is, for...

WASHINGTON (AP) - Herbert Allison, the former head of troubled mortgage giant Fannie Mae, has been confirmed to oversee the government's $700 billion bank bailout program. The Senate voted Friday to confirm Allison as the Treasury Department's assistant secretary for financial stability. In that role, Allison will oversee the Troubled Asset Relief Program, which was established last fall to inject capital into banks hit hard from the mortgage crisis. "Herb Allison has extraordinary experience strengthening American financial institutions and has demonstrated great leadership in recent months at Fannie Mae," Treasury Secretary Timothy Geithner said in a statement Friday.

WASHINGTON--As part of the Obama Administration's aggressive efforts to enforce U.S. tax laws and reduce offshore tax evasion, the U.S. Department of the Treasury today announced the conclusion of negotiations with Switzerland to amend the U.S.-Switzerland income tax treaty to provide for increased tax information exchange. Official signing of the protocol is expected in the next few months. "This Administration is committed to reducing off shore tax evasion to help ensure that all U.S. taxpayers are playing by the same rules," said Treasury Secretary Tim Geithner. "This treaty will increase our ability to enforce our tax laws and will help...

Treasury to Auction $104 Billion In Debt Next Week, a Record The Treasury announced Thursday a record $104 billion worth of bond auctions for next week, part of its herculean efforts to finance a rescue of the world's largest economy. The sales will exceed the previous record of $101 billion set in auctions that took place in the last week of April and consist of two-year, five-year and seven-year securities. That record was matched by another $101 billion week in May. Though next week's total was broadly in line with expectations, worries about supply have weighed on the U.S. government...

WASHINGTON (AP) -- Treasury Secretary Timothy Geithner says the Obama administration doesn't want to place caps on executives' pay -- even though it believes excessive compensation led to risk-taking that contributed to the financial crisis. Geithner said the administration will seek legislation that will permit shareholders to vote on executive pay packages, but the results would not be binding on boards of directors. The administration will still restrict compensation at companies that are receiving taxpayer assistance through its $700 billion financial bailout program.

Here's the highlight on financial regulation: "In the next few weeks, we will outline a comprehensive plan of reform that will include systemic risk regulations to ensure that no large and interconnected firm or market can take on so much risk that its failure could destabilize the entire financial system. The plan calls for bolstering consumer and investor protections. And it will streamline our out-of-date regulatory structure so that our regulatory system matches the size, shape and speed of our modern financial system. Together, these changes will help prevent another crisis of the magnitude that we have just lived through."...

Washington Happy Talk vs. Reality on the Ground in China Before, during, and after Geithner’s China trip, the Washington spin machine was shifting into overdrive. I’ve already seen a few reports calling Geithner’s trip a success. Geithner himself has been making statements like the following: “I’ve actually found a lot of confidence here in China, justifiable confidence, in the strength and resilience and dynamism of the American economy and I think a very sophisticated understanding … of the steps we’re taking and why they’re so important not just to the United States but to China and the rest of the...

The Federal Deposit Insurance Corp. is reportedly pressing for a management shake-up at embattled bank Citigroup Inc., putting CEO Vikram Pandit in the hot seat. The Wall Street Journal cited people familiar with the matter for its report on Friday. "We are confident in our management and confident that we will continue to position Citi ( C - news - people ) for a return to sustained profitability," Chairman Richard Parsons said in a statement e-mailed to The Associated Press. A spokesman for the FDIC declined to comment. Citigroup shares slipped a penny to $3.56 in morning trading Friday. Citigroup...

CNBC's Rick Santelli says Geithner was lying when he told the Chinese there is no risk of monetizing debt in the United States.

...Geithner ... most of his childhood living outside the United States, including present-day Zimbabwe, Zambia, India and Thailand where he completed high school at International School Bangkok. He attended Camp Becket-in-the-Berkshires-for-boys, a summer camp located in western Massachusetts. He then attended Dartmouth College, graduating with a B.A. in government and Asian studies in 1983. He earned an M.A. in international economics and East Asian studies from Johns Hopkins University's School of Advanced International Studies in 1985. He has studied Chinese and Japanese. ...grandfather, Paul Herman Geithner (1902–1972), emigrated with his parents from Zeulenroda, Germany to Philadelphia, Pennsylvania in 1908. His...

WASHINGTON – The global economic crisis threatens to reverse gains in fighting poverty, so banks that provide aid to poor nations must embrace changes in their operations, Treasury Secretary Timothy Geithner said Sunday. Those development banks are at the forefront of efforts to eradicate poverty and promote sustainable growth, he said the World Bank's policy-setting board. "We cannot afford to lose time or lose ground," Geithner said. At the same time, he said it was important for the banks to conduct their aid business in the open. They must face reviews to ensure they have enough money and are promoting...

WASHINGTON -- The government has completed the transaction providing nearly $30 billion more in support to American International Group Inc., minus $165 million in controversial bonus payments. The Treasury Department also says it added Bank of America Corp. and Countrywide Home Loans Servicing to its mortgage relief program. That means a total of nine companies are participating in the $75 billion effort. The department also approved the applications for six more banks to participate in the $700 billion financial rescue program, bringing the total number of banks being helped to 553.

Just when you think the political class may have learned something in months of trying to fix the banking system, the ghost of Hank Paulson returns to haunt the Treasury. The latest Beltway blunder -- and it would be a big one -- is the Obama Administration's weekend news leak that it may insist on converting its preferred shares in some of the nation's largest banks into common equity. The stock market promptly tumbled by more than 3.5% yesterday, with J.P. Morgan falling 10% and financial stocks as a group off 9%, as measured by the NYSE Financials index. Note...

U.S. Treasury Secretary Timothy Geithner refrained from labeling China as a currency manipulator, backtracking from an assertion he made during his confirmation hearings in January. In its first semiannual report on foreign-exchange policies since Geithner became secretary, the Treasury said that while the yuan remains “undervalued,” no country “met the standards” for illegal currency manipulation during the period of the report, from July 2008 through December 2008. The conclusion clashes with Geithner’s January 22 statement to a Senate panel that “President Obama -- backed by the conclusions of a broad range of economists -- believes that China is manipulating its...

Live now on Fox -- White House is blocking TEA Party set for the Treasury in DC,. despite the demonstration already having been granted a permit. Second TEA Party at Lafayette Park to proceed, but White House blocked the unloading of 1M tea bags. This comes upon the DHS report warning that such demonstrations are "hate groups" that must be monitored closely as such demonstrators are "prone to owning guns and being violent."

On March 24, 2009, the government controlled Chinese People's Daily reported China planed to continue to purchase US debt. China will continue investing in U.S. government bonds while paying close attention to possible fluctuations in the value of those assets, said a deputy governor of China's central bank here Monday. This statement was made a week before the recent G20 conference in London. Apparently it was meant to take questions of Chinese continued support of US deficit spending off the table. It also undoubtedly helped strengthen the dollar. This past weekend China's central bank made a stunning reversal. According to...

Per Drudge: TREASURY TELLS GM TO PREP FOR POSSIBLE BANKRUPTCY... DEVELOPING...

Not long ago the press and politicians alike were singing the praises of the eminently qualified, uniquely equipped Treasury Secretary. His genius and experience would navigate America's economy through financial turmoil and guide us to prosperity again. Of course, that Treasury head was Henry Paulson. These days we may think of him as the squanderer of the first $350 billion in bailout funds, but Paulson was to be America's economic savior. On September 20, 2008 Newsweek declared: In many ways, Paulson was the ideal person to deal with this mess. A 32-year veteran of Goldman, he helped take the venerable...

Gallup finds that Treasury Secretary Tim Geithner's approval rating is 42 percent, disapproval is 40 percent, with 18 percent undecided. Interestingly, Obama's budget is only at 39 percent approval, 27 percent disapproval, and 33 percent saying they don't know enough to say.

Per Drudge... http://www.bloomberg.com/apps/news?pid=20601087&sid=akWSzaWK6SGI&refer=worldwide

Treasury Secretary Timothy Geithner defended his approach to fixing the country's economic mess Sunday, saying "the market will not solve this" while disclosing a bailout fund for battered banks has $135 billion left and might need more. Geithner used his first Sunday talk show appearances to promote President Barack Obama's massive government spending plan to ease credit, help borrowers and inject billions of dollars into the financial sector. Long kept behind the scenes, the treasury secretary has emerged as the administration's champion of a plan that fueled an uptick in Wall Street markets. "We came through a period where people...

WASHINGTON (AP) -- The banking crisis. The credit crisis. The recession. The auto bailout. The bonus furor. Treasury Secretary Timothy Geithner has had to deal with so many hot button issues in little more than two months since joining President Barack Obama's Cabinet. So what's the most important thing he has learned in trying to fix the economy?

Tim Geithner's father, Peter, oversaw the Ford Foundation's micro finance program which was implemented in Indonesia during the 1980's. Barack Obama's mother, Ann Dunham, was involved in that same micro finance program from the Indonesian side. This is significant because Dunham, allegedly dealt with Geithner's father through the The United States Agency for International Development ("USAID"). I was also able to find information that stated that she met Peter in person at least one time during their efforts. After this, years later while with the IMF, one of Tim Geithner's biggest accomplishments was to rescue Indonesia from economic collapse. I...

<p>A top bank regulator has been placed on leave pending a Treasury Department investigation into regulators' approval of backdated cash infusions for troubled thrifts.</p> <p>The Office of Thrift Supervision said Thursday its acting director, Scott Polakoff, was placed on leave. He is being replaced by OTS Chief Counsel John Bowman.</p>

An unguarded comment by Treasury Secretary Timothy F. Geithner on Wednesday set off a sudden drop in the dollar and contributed to a chain of market-rocking events that included a setback in the stock market and a sharp uptick in interest rates. Mr. Geithner appeared to lend his support to a proposal by China's central bank governor to replace the dollar as the world's reserve currency with a basket of currencies that would be managed by the International Monetary Fund. In an appearance before the Council on Foreign Relations in New York on Wednesday morning, Mr. Geithner raised eyebrows by...

The Obama administration will ask Congress to give the Treasury secretary unprecedented powers to initiate the seizure of non-bank financial companies, such as large insurers, investment firms and hedge funds, whose collapse would damage the broader economy, White House spokesman Robert Gibbs said this morning. Treasury Secretary Timothy F. Geithner is set to argue for the new powers at a hearing today on Capitol Hill about the furor over bonuses paid to executives at American International Group, which the government has propped up with about $180 billion in federal aid. Administration officials have said that the proposed authority would have...

This is a rush transcript from "On the Record ," March 23, 2009. This copy may not be in its final form and may be updated. GRETA VAN SUSTEREN, FOX NEWS HOST: Joining us live is Republican senator Lindsey Graham. Senator Graham, the question was put to President Obama whether or not Secretary Geithner should go. He says no. Should he go or not stay? SEN. LINDSEY GRAHAM (R), SOUTH CAROLINA: Well, I -- it'd be up to the president. Right now, no one's going to go as long as someone doesn't have to pay a price. But if there...

Wall Street got the news it wanted on the economy’s biggest problems — banks and housing — and celebrated by hurtling the Dow Jones industrials up nearly 500 points. Investors added rocket fuel Monday to a two-week-old advance, cheering the government’s plan to help banks remove bad assets from their books and also welcoming a report showing a surprising increase in home sales. Major stock indicators surged more than 6 percent, including the Dow, which had its biggest percentage gain since October. Although analysts were still hesitant to say Wall Street is squarely on its way to recovery after the...

Political Class Gives Geithner Good Reviews, Most Americans Disagree Sunday, March 22, 2009. America’s Political Class gives Treasury Secretary Timothy Geithner rave reviews: 76% have a favorable opinion of him. Two-thirds (66%) of the Political Class say Geithner’s doing a good or excellent job handling the credit crisis and federal bailouts. However, the latest Rasmussen Reports national telephone survey found that America’s Populists see things from an entirely different perspective. Just 12% of Populists have a favorable opinion of Geithner, and only 11% say he’s doing a good or an excellent job. Most Populists (53%) rate Geithner's performance as poor,...

To view or print the PDF content on this page, download the free Adobe® Acrobat® Reader®. March 23, 2009tg-65Treasury Department Releases Details on Public Private Partnership Investment ProgramFact SheetPublic-Private Investment ProgramView White Paper and FAQs at http://financialstability.govThe Financial Stability Plan – Progress So Far: Over the past six weeks, the Treasury Department has implemented a series of initiatives as part of its Financial Stability Plan that – alongside the American Recovery and Reinvestment Act – lay the foundations for economic recovery: Efforts to Improve Affordability for Responsible Homeowners: Treasury has implemented programs to allow families to save on their mortgage...

An explosive new Rasmussen report screams, “America wants Tim Geithner dumped!” Washington insiders both Democrats and Republicans (including McCain of course) love him, but we want him gone. The disconnect between Washington and real America on Geithner is startlingly large. The gang on Capital Hill might be fooled or afraid to say otherwise, but average Americans aren’t. The latest telephone survey tells a very different story. Only 12% of taxpaying Americans have a favorable opinion of Geithner and only 11% said his job performance so far is good or excellent. Tax cheat Treasury Secretary Timothy Geithner was appointed without any...

From The Business Insider, March 23, 2009: Tim Geithner has finally revealed his plan to fix the banking system and economy. Paul Krugman, James Galbraith, and others have already trashed it. Why? In short, because the plan is yet another massive, ineffective gift to banks and Wall Street. Taxpayers, of course, will take the hit. Why does Tim Geithner keep repackaging the same trash-asset-removal plan that he has been trying to get approved since last fall? In our opinion, because Tim Geithner formed his view of this crisis last fall, while sitting across the table from his constituents at the...