Timothy Geithner
Timothy Geithner (b. 1961) became the Secretary of the Treasury in the Obama Administration in January, 2009. Previously president of the federal Reserve Bank of New York, he is a technical expert who was deeply involved in the complex moves by the Federal Reserve and the Treasury to bailout banks in the Financial Crisis of 2008. That included $700 billion in money sought by president George W. Bush and passed in October, 2008, and trillions in loan guarantees made by the Federal Reserve on its own authority. Geithner now is the person most responsible for bringing recovery to the economy.
Geithner was publicly humiliated by the Senate (controlled by Democrats) when it appeared he deliberately evaded over $40,000 of federal taxes. He paid the taxes and penalties and was confirmed.
Geithner and the Obama Administration moved moved to handle the crisis on two fronts. Working with Democrats in Congress (and three moderate Republican Senators), they passed the Economic Stimulus Bill of 2009, calling for $500 billion of new spending and nearly $300 billion in new tax cuts. The stimulus began operations in mid-February, 2009, and supporters hoped it would slow the nosediving economy. Conservative critics feared it would be ineffective in the short run and add to the national debt and tax burdens in the long run.
With banks on the verge of failure, Geithner unveiled yet another massive bailout program in mid-February. Trillions would be spent to move toxic assets out of the banks, but few details were provided. The financial community immediately reacted with new fears that the plan was too vague to promise much relief.