Just when we were worried that the position of Fed Chairman would soon be held by someone that is not detested by precious metals investors, Bloomberg reports that Treasury Secretary Timothy Geithner is the leading candidate to replace Ben Bernanke as Federal Reserve Chairman when Bernanke steps down at the end of his current term.
According to Bloomberg, the short list of candidates includes such doozies as Lawrence Summers, Janet Yellen, and Geithner:
The usual list of highly qualified candidates to replace Bernanke — including Lawrence Summers, the former Treasury secretary and Harvard University president; Janet Yellen, a current vice chairman of the Fed; and Alan Krueger, the precocious chairman of the White House Council of Economic Advisers — misses the person who probably wants it the most and continues to have Obama’s ear on a regular basis: Geithner.
Bloomerg believes Geithner is the front runner:
While many people — understandably — assume that Geithner worked at Goldman Sachs Group Inc. before he became Treasury secretary in 2009, actually he was president of the Federal Reserve Bank of New York from 2003 to 2009, the critical years leading up to and including the financial crisis. He has never worked on Wall Street. By design, the New York Fed has traditionally been the most powerful of the Federal Reserve banks, because of its proximity to the powerful Wall Street banks that it regulates. And Geithner played a major role, along with Bernanke and then Treasury Secretary Henry Paulson, in the bailouts of Bear Stearns Cos., Merrill Lynch, American International Group Inc. (AIG) and in the decision to allow Lehman Brothers Holdings Inc. to go bankrupt.
Bloomberg expects Geithner to essentially take a summer internship when he steps down from Treasury Secretary while he waits for the Fed Chairman position:
Expect Geithner to seek a short-term sinecure at a liberal think-tank, such as the Brookings Institution, or to return to the Council on Foreign Relations, or to cash in as an adviser to a hedge fund (as Summers did at D.E. Shaw & Co. after he left Treasury) while he awaits the possibility of getting nominated as Fed chairman. If he is serious about the Fed job, he won’t risk taking an appointment — such as the president of Dartmouth job — that would be hard to leave after nine months.
Coming in 2014…Punt the Geithner??