Breaking News: Geithner to Treasury
NBC News reports New York Fed chief Timothy Geithner is almost sure to be rolled out on Monday as the new president's nominee for Treasury Secretary.
While a career government hack, he has been a reliable servant of the paper-shuffling class that elevated derivative-driven finance to its lofty perch in American society over the last two decades. As we noted last spring, Geithner was the key player in the engineered demise of Bear Stearns, and in subesequent events he's played a role just as pivotal in fouling things up as Paulson and Bernanke. So the handoff from Paulson should be nigh-seamless.
The story broke just before 3 PM EST. The major stock indices started a major-league bounce around the same time. Whatever.