Treasury Nominee Under Fire
By: Brooke Hart
Updated: January 14, 2009
On Wednesday president-elect Barack Obama finds himself on the defensive about his choice as Treasury Secretary. Lawmakers have questions about Tim Geithner, and about the bailout billions for financial markets Mr. Obama says he needs.
Democrats had hoped Tim Geithner would be confirmed this week.
But with the economy driving the Obama agenda, questions about Geithners personal finances threw the timing of his hearing into doubt.
Treasury nominee Geithner went to senators directly, head-on damage control.
That for democrats worked.
"These errors were not intentional. Theyre, theyre honest mistakes," said democratic Senator Max Baucus of Montana.
"He apologized very profoundly for them. My view is these mistakes are not at all disqualifying," said Senator Chuck Schumer of New York.
At issue: questions raised by Iowa’s GOP Senator Chuck Grassley.
The New York fed chief told lawmakers when he worked at the IMF eight years ago.
Social security and Medicare taxes were not deducted from his pay as hed thought.
In November Geithner paid back roughly $42,000 he owed, including interest.
Also, a housekeeper worked for Geithner briefly after her green card expired.
Mistakes the obama team called honest and addressed.
But finance troubles of any kind for the man whod run the Wall Street bailout could fuel doubts an obama administration could manage the money better.
House lawmakers are weighing new conditions for how the bailout billions get spent.
"Were being asked to vote about a bill we know nothing about, weve not been told why we need it, weve not been told what were going to do with it," said republican Congressman Spencer Bachus of Alabama.
And Tim Geithner’s own money lapses dont help.
Tuesday night two republicans blocked a request to hold Geithner’s hearing Friday.
GOP Senator Orrin Hatch though joined in Geithner’s defense, saying he still supports him, quote, “hes a very competent guy.”
