Monday, January 26, 2009

Geithner Wins Treasury Job, Despite Tax Woes

Reuters recently posted an article today about Geithner being confirmed by the Senate despite his tax problems. A segment of the article can be read below, but the full article can be found here.

Senators were expected to set aside their misgivings about Timothy Geithner's past income tax errors and confirm the 47-year-old New York Federal Reserve Bank chief as Treasury secretary on Monday night.

With the economy in full-blown crisis, Geithner's experience in dealing with the past year's rapid-fire rescue efforts of key financial firms will trump the taint from his late payment of $34,000 in self-employment taxes to the Internal Revenue Service that he will command.

Geithner will be President Barack Obama's top economic official for a crisis-management team that is already deeply involved in pushing a big package of spending and tax-cuts through Congress to lift the recession-mired economy.

He also will immediately face the question of whether the new administration should go back to Congress to seek money beyond the Treasury-run $700 billion financial rescue package to sop up bad assets sitting on bank balance sheets, perhaps in a government-run "bad bank."

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