National News

November 16, 2013

Geithner to join private equity firm

Former U.S. Treasury Secretary Timothy Geithner, who played a central role in the government’s response to the financial crisis of 2008-2009, is joining private equity firm Warburg Pincus LLC.

The firm announced Saturday that Geithner will serve as its president and managing director starting March 1.

Geithner led the Federal Reserve Bank of New York for more than five years before being becoming Treasury secretary in 2009. By that time, the economy had sunk into a deep recession.

Few Treasury secretaries received as much scrutiny. Supporters credited Geithner with helping prevent the recession from spiraling into a second Great Depression, but critics said he was too cozy with Wall Street.

Warburg Pincus said that Geithner would advise the firm on strategy, investing, investor relations and other topics. The New York-based firm has been involved in buyouts of such well-known companies as luxury department store chain Neiman Marcus and contact lens maker Bausch + Lomb.

The firm declined to comment on Geithner’s compensation

Geithner, 52, stepped down from Treasury in late January, days after President Barack Obama was sworn in for a second term. He was the last of Obama’s original economic advisers to leave the administration, and was succeeded as Treasury secretary by Jack Lew.

In an interview with The Associated Press on his last day in office, Geithner said that the economy was “stronger than people appreciate” and predicted a pickup in growth. He defended his role in bailouts for large banks — steps designed to stabilize the financial system — but acknowledged that he would never win over his critics because it was hard to convince people about the dangers posed by the financial crisis.

The official who oversaw taxpayer bailouts of the banks, for example, criticized Geithner for allowing insurer American International Group to pay huge bonuses to executives. AIG got the biggest bailout of the financial crisis.

Geithner’s appointment calendar from 2009 detailed his extensive contacts with CEOs of Goldman Sachs, JPMorgan Chase and Citigroup.

Since leaving office, Geithner has signed a deal with Random House’s Crown Publishers to write a behind-the-scenes book about the response to the economic crisis and has given speeches.

Geithner has spent most of his career in government, although he had an early stint at Kissinger Associates, the consulting firm formed by former Secretary of State Henry Kissinger.

Geithner joined the Treasury Department in 1988 and served as undersecretary for international affairs during the Clinton administration. He worked at the International Monetary Fund from 2001 until 2003 before being named president of the New York Fed.

Private equity firms pool money from clients such as pension funds and other institutional investors to buy companies or stakes in companies. They’ll try to improve the financial results of a company with the goal of reselling it at a profit.

 

1
Text Only
National News
  • 10

    Your daily look at late-breaking news, upcoming events and the stories that will be talked about Monday:
     

    July 27, 2014

  • In other news

    June 29, 2014

  • 10 things to know for Monday

    Your daily look at late-breaking news, upcoming events and the stories that will be talked about Monday:

    June 29, 2014

  • 10 things to know for Monday

    Your daily look at late-breaking news, upcoming events and the stories that will be talked about Wednesday:

    June 22, 2014

  • 10 Things to Know for Thursday

    Your daily look at late-breaking news, upcoming events and the stories that will be talked about Thursday.

    May 28, 2014

  • TV show seeks teen rebels for reality show

    A television producer is seeking teenagers as young as 13 who like to make their own rules and “party like a rock star” to participate in a reality television series about their lives.

    May 28, 2014

  • Sterling responds to NBA, June 3 hearing still on

    Donald Sterling and the NBA are headed toward a hearing that will determine if he remains owner of the Los Angeles Clippers.

    May 28, 2014

  • Lawmakers, mourners weigh in on California rampage

    Thousands mourned the deaths of their classmates at a California university, lawmakers proposed ways to prevent the next round of deaths, and the rampant presence of guns were at the forefront of both discussions as a rampage that left seven dead reverberated across the state.

    May 28, 2014

  • Nebraska woman wolfs down 2 4 1/2-pound steaks

    A Nebraska woman celebrated breaking a Texas steakhouse’s speed record for eating a 4 1/2-pound slab of beef by polishing off another one.

    May 28, 2014

  • 10 Things to Know for Wednesday

    Your daily look at late-breaking news, upcoming events and the stories that will be talked about Wednesday.

    May 28, 2014