It may be award season in Hollywood, but in Washington one duo is reprising their starring roles with just as much fanfare. In this plot, however, it's not a small statue but the economy that is at stake. Treasury Secretary Timothy Geithner and National Economic Council head Larry Summers, who first worked together during the Clinton administration, are now trying to fight a formidable recession and rescue a quickly collapsing financial sector. But their vastly differing styles may lend a twist to how the story unfolds.
Back in the 1990's Summers headed Treasury and he inherited Geithner from the previous Bush administration. By then Summers had earned a reputation for being whip smart and letting everyone know about it. His ideas about policy mirror his personality -- the bigger the better. Geithner, meanwhile, is a lot more restrained in both respects. He's known for being a listener and an implementer, perhaps balancing Summers' penchant for using overwhelming force to solve economic problems.
This time around it's Geithner who heads Treasury, but Summers is not taking a supporting role. The pair is now figuring out how to repair bank balance sheets with the remaining bailout money, while stimulating the economy to combat rising joblessness. Summers, who stepped down as head of Harvard not long after making disparaging comments about women, has managed to elevate his standing in the Obama administration without the need for Senate approval. He's giving the president newly created daily economic briefings. He also stood in for Geithner as the public face on the economy while the former head of the New York Federal Reserve laid low during his drawn-out Senate confirmation hearings. By the end of last week Geithner began taking over the reins from his mentor and the two are settling into their routine in an effort to shape economy recovery programs.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The pairing also reflects Obama's habit of surrounding himself with a variety of personalities and solicit a broad range of opinions. So far it's working with difference of opinions being settled quietly and out of view. The emerging dynamic meshes Summers, the big picture idea guy, with Geithner, the implementer. Summers has been working up support for the administration's $800 billion-plus stimulus package while Geithner has been figuring out how to overhaul the second half of the $700 billion rescue fund he helped fashion last fall and looking at ways to more closely regulate the financial industry.
The administration's aim of a two-part solution to help banks -- buying up toxic debt through a "bad bank" and offering guarantees against future losses -- provides a clue that the two are working in tandem. There had been some internal debate among administration officials about picking one plan over the other. Choosing both shows that both Summers and Geithner will have an equally heavy hand in shaping rescue plans.
-
10 New Year's Resolutions for Retiring in 2026These New Year's resolutions will help you retire in 2026 with confidence in your financial strategy.
-
How Much Would a $50,000 HELOC Cost Per Month?Thinking about tapping your home’s equity? Here’s what a $50,000 HELOC might cost you each month based on current rates.
-
My First $1 Million: Self-Employed Trader, 50, San FranciscoEver wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
Kiplinger's 2020 Election ForecastPolitics For nearly a century, The Kiplinger Letter has forecasted the outcome of presidential elections to keep readers informed of what's coming and what it means for them. Here's our call for 2020.
-
How the GOP Tax Bill May Affect BusinessesBusiness Costs & Regulation Corporations would enjoy a lower flat tax rate while individual owners of pass-throughs would also see a lower rate, but with more complex terms.
-
The Long Slog in Congress After Comey
Politics Trump's firing of the FBI director ruffled congressional feathers, but not enough to spur an independent investigation into Russian meddling in the 2016 U.S. election.
-
Trump’s Tax Reform Plan Faces Tough ChallengesPolitics A one-page outline isn't enough to satisfy a Congress interested in the details — and protecting constituents.
-
Trump's Agenda and ChallengesPolitics What lies ahead for the President-Elect.
-
Clinton on Track to Win 2016 Presidential Election
Politics Trump can win the White House, but faces an uphill climb.
-
New Overtime Rules Will Hit Businesses This YearBusiness Costs & Regulation A change in salary threshold will make more workers eligible for extra pay.
-
Bumpy Road Ahead in 2016 Presidential Race
Politics Trump will get a bounce after the Republican convention, but Clinton is poised to regain ground.
