(Author’s Update Below)
Well, well, well. When Davis, Polk & Wardwell are sitting on your site day in and day out; you just gotta wonder why? I am a patient monster; really, I am, and I think that maybe this proves the point about bloggers being followed because we actually do have our fingers on the pulse of America.
WASHINGTON (AP) — The person Treasury Secretary Timothy Geithner wanted as his chief deputy has withdrawn from consideration, dealing a setback to the understaffed agency as it struggles to address the worst financial crisis in decades.
Annette Nazareth, a former senior staffer and commissioner with the Securities and Exchange Commission, made “a personal decision” to withdraw from the process, according to a person familiar with her decision.
Nazareth, 53, a partner at the law firm Davis Polk & Wardwell, could not be reached for comment.
So as of this morning, Annette Nazareth and Dr. Gupta have declined the invitation to serve at the pleasure of the president and Timmie is flying solo at Treasury, and we all know that having the Treasury run by one Turbo Tax dodging corruptocrat is probably counter-productive.
Geithner has been criticized for staffing his department too slowly as it grapples with a banking crisis that has crippled the economy. Uncertainty about Treasury staff also has unnerved financial markets.
Five weeks into his tenure, he has yet to name a single top deputy or assistant secretary. This has left Treasury with too few people authorized to make decisions or represent the department in meetings with stakeholders.
After initially declining to comment, Treasury spokesman Isaac Baker emailed a statement saying 50 political appointees at the department already are hard at work.
“Any rumors of vetting problems or delays in the process are simply not true,” Baker’s statement read.
The department has been meeting with members of the financial services industry as it oversees the government’s $700 billion financial bailout and other parts of President Barack Obama’s financial stabilization plan.
But at a Senate hearing Thursday about failed insurance giant American International Group Inc. — which has received four separate bailouts totaling more than $170 billion — Sen. Chris Dodd said he had asked Treasury for someone to appear, but that no one was available.
“I am not pleased that we don’t have someone here from Treasury to explain what their role in this is,” Dodd said.
Geithner’s choice for undersecretary of international affairs, Caroline Atkinson, also withdrew from consideration, the Wall Street Journal reported Thursday.
Nazareth’s withdrawal may signal what we all knew from the beginning; that the center (Bambi) IS actually smoke and mirrors, and of course, cannot hold. It is like watching rats jumping off a burning ship. I personally love the idea that this “money person” is not going to be anywhere near our government financial system considering she is part of the problem.
Nazareth joined the SEC in 1998 as senior counsel to then-Chairman Arthur Levitt, later directing the Division of Market Regulation. She is credited with creating numerous key policy changes.
She created the voluntary program intended to supervise large investment banks including Goldman Sachs, Morgan Stanley and the now-defunct Bear Stearns and Merrill Lynch. The program was canceled in September as the financial crisis erupted and the remaining investment banks converted themselves into bank holding companies.
Some on Capitol Hill had expressed concern that Nazareth was too closely associated with the weak federal oversight that contributed to the banking collapse. Among her responsibilities at Treasury would have been overseeing the creation of a new regulatory system for large financial institutions.
Geithner told a Senate panel Wednesday that he hoped “to come up for the committee soon with a full slate of very strong people.”
“We’re doing this carefully, as you would expect, and … trying to make sure we have the best talent in the country,” he said.
Geithner’s lack of a senior staff has raised concerns on Wall Street.
“This doesn’t help confidence,” said David Wyss, chief economist at Standard & Poor’s in New York. “Geithner is stuck there all by himself trying to do everything. They don’t have anybody confirmed, and Treasury is a big shop to try to run with one person, especially right now.”
And it appears the rest of the country is catching up to us when we knew that these corruptocrats were not qualified to run the biggest economy in the world. I’m still for drafting Steve Wynn for president until the economy turns around. I am sure that a company that has the foresight to have $1.1 BILLION in cash on hand at a time like this, and is cutting spending and reducing salaries instead of laying people off might actually know how to turn this economy around; Timothy? Not So Much. (Back to Bambi’s Buddy)
David Jones, head of Denver-based economic consulting firm DMJ Advisors, said that Geithner’s missteps in putting together a financial rescue program and his inability to assemble a team at Treasury were raising concerns about whether the new administration’s economic team is up to the challenges confronting them.
“There is no question that Wall Street is losing patience,” said Jones, who for more than three decades served as a top economist at a major bond trading firm. “If there was ever a time when we need an effective and strong Treasury secretary, it is now.”
Jones said that investors had initially viewed the economic team that Obama was assembling favorably because it included experienced hands such as Summers and Volcker.
“There were high expectations for this team, but at this time of crisis, it doesn’t seem to be functioning effectively,” Jones said.
BBWWWWAAAAAHHHHHHHHHHHHHHH!!!!!!!!!!!!!!!!!! Ya Think?
I personally am calling for the President and Treasury Secretary to step down and let the grown-ups who have actually done the homework, read their history, and are not trying to turn this country socialist, work their magic on the economy.
A message for Rahm, Hillary and the rest of the Alinsky “never waste a good crisis” crew; we know what you are doing and we are not going to let it happen. Keep pushing, and we will push back.
Davis, Polk & Wardwell:
As much time as you are spending here, you might want to join in the conversation and enlighten the unwashed masses, yes?