Posted on 12/06/2002 10:33:37 AM PST by kattracks
Capitol Hill (CNSNews.com) - Treasury Secretary Paul O'Neill and Senior White House Economic Advisor Lawrence Lindsey submitted their resignations Friday, at the request of the Bush administration, sources said. Speculation as to who will replace O'Neill was in overdrive even before his resignation letter was released to the public.
In a three-paragraph resignation letter to President Bush, O'Neill wrote, "It's been a privilege to serve the nation during these challenging times. I thank you for the opportunity." He also wished Bush "every success as you provide leadership and inspiration for America and for the world."
But shortly after his resignation was reported, a White House official, who also wanted to remain anonymous, said the departure comes "at the request of the White House."
Treasury Department spokeswoman Michele Davis issued a statement indicating that O'Neill's resignation "will be effective sometime in the next few weeks," but that no date had been fixed.
"As he told his senior staff [Friday] morning, there are lots of other important things to do in life. Back in December 2000, he was planning to retire and devote himself to improving healthcare and education in Pittsburgh," Davis continued. "I'm sure he will return to those important projects."
During that meeting, O'Neill told his team that he appreciated their "support, wisdom and energy," and encouraged them to "remain focused and true" to their mission.
O'Neill was vice president of International Paper Company from 1977 to 1985 and president from 1985 to 1987. He then worked as chairman and CEO of Alcoa from 1987 to 1999, and retired as chairman at the end of 2000 prior to his appointment by President Bush in Jan. 2001.
Guessing game begins
Sources on Capitol Hill, who spoke on condition of anonymity, told CNSNews.com that retiring Republican Texas Sen. Phil Gramm is being seriously considered for the post being vacated by outgoing Treasury Secretary Paul O'Neill. Gramm served as an economist and college professor of economics before coming to Washington. However, another source - this one close to Gramm - said late Friday morning that he is "not currently considering" the job.
Sen. John Cornyn (R-Texas) was elected to replace Gramm, who did not seek reelection. Cornyn replaced Gramm early when Gramm resigned last month, specifically to allow Cornyn more time to complete the transition to Washington.
The incoming Senator did not speculate on the possibility that Gramm might replace O'Neill, but he said whoever takes the post will have an easier job beginning in January.
"I'm confident that the Bush administration's new economic team will be able to work with the new Senate," Cornyn said, "to insure that roadblocks to economic growth are removed without the obstructionism they faced in the previous Congress."
Fox News Channel reported that some of the names mentioned as possible replacements for O'Neill include Charles Schwab, who runs a brokerage house; and Dick Grasso, chairman of the NYSE. UPI named Gramm, retiring House Majority Leader Dick Armey of Texas, and magazine publisher and former presidential contender Steve Forbes.
Sen. Richard Shelby (R-Ala.) will most likely be chairman of the Banking, Housing, and Urban Affairs Committee when Republicans assume leadership of the Senate in January. He said that he was not surprised that O'Neill is stepping down.
"Paul O'Neill is a good man, he was a very successful CEO of Alcoa, and highly respected. So, I would assume he wants to do other things," Shelby said, calling the task of replacing O'Neill a "big, beg decision for the president to make."
"I think we're going to move, and pay a lot of attention to the economy," Shelby added. "I think that's what the Bush administration is probably signaling."
Lindsey, too
Almost immediately following O'Neill's announcement, Economic Advisor Lawrence Lindsey said he also is leaving. The White House has said only that Lindsey is departing "to pursue endeavors outside the government."
The resignations bring to three the total of key economic posts the Bush Administration will have to fill in the next few weeks. Securities and Exchange Commission Chairman Harvey Pitt resigned in November, amid a controversy over his choices for a new oversight panel for the accounting industry. Pitt also took fire for allegedly being too close to those in the business world he was charged with regulating.
Incoming House Minority Whip, Rep. Steny Hoyer (D-Md.) thanked O'Neill and Lindsey for their service in a prepared statement, but then attacked the Bush administration for its economic policies.
"Both Secretary O'Neill and Mr. Lindsey presided over an economic program that turned unprecedented budget surpluses into deficits," Hoyer charged, making no mention of increased expenditures or economic conditions resulting from the Sept. 11, 2001, terrorist attacks.
"Their resignations are a belated admission by this administration that the Bush economic program is failing," Hoyer continued.
A report in Business Week says President Bush intends to make tax reform the centerpiece of his State of the Union Address. According to the report, Bush "is expected to kick off his campaign against the tax code, blasting its complexity and unfairness."
E-mail a news tip to Jeff Johnson.
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I'd be sick.
He is a Clintonista and hiring him would be akin to hiring Bill or Hillary Clinton in this administration. It would be anathema.
President Bush will NOT do that! So I will be a Republican for a long time to come, I am sure!
Now, he was just asked if he would be interested in the job. He didn't say "No!"
Great.... another political hack in a position where we need a tax reformer like Forbes or Bill Archer.
Either of those would be even better than my suggestions.
I've seen allegations that he supposedly has cocaine use in his skeleton closet.
I don't know if it's true or not, but it would be a bad move for the administration if there was any substance to it at all.
There are whacknut allegations along the same lines for Dubya's party days.
I don't place any credence in them myself, but it just fans the flames for the fringe demon-rats to rant about.
I don't care much for Dubya's policies, but that's an area that the 'Rats have boobytrapped all over the place.
Naturaly, my preference would be PJB for the position.
I know, I know... It's NOT going to happen...
That's OK.
I'd rather see Pat replace U.S. Trade Representative Robert Zoellick.
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