Obama Hopes To Revitalize U.S. Economy With Help Of Timothy Geithner As Treasury Chief

November 22, 2008 12:32 p.m. EST

New York, NY (AHN) - President-elect Barack Obama has picked Timothy Geithner, head of the Federal Reserve Bank of New York, to be his Treasury secretary, as Geithner is believed to be a strong advocate of government intervention in the troubled economy.

Some political experts believe that Geithner would play a crucial role in Obama administration as he would bring everyone to the table to come up with a definitive deal. He also commands wide respect among conservatives.

On Friday, the Dow Jones Industrial Average jumped and settled higher by 494 points or 6.5 percent to 8,046.42 points on news that Obama is considering adding Geithner to his transition team.

Lawrence H. Summers, who was considered as one of the nominees for the post, may receive a senior White House adviser position in Obama's administration. Some reports suggest that he is likely to succeed Ben S. Bernanke as Federal Reserve chairman in 2010.

Fifty-three year-old Summers is a highly regarded business economist and a former Harvard University president. He has also worked as a treasury secretary in the Clinton administration for the final 18 months.

Geithner held a position as a Treasury undersecretary for international affairs under Summers. He has been the head of the Federal Reserve Bank of New York since November 2003.

Forty-seven year-old Geithner has helped the government to make important decisions in the investment bank sector on Wall Street as head of the U.S. central bank's senior liaison.

The government and regulators have been carefully taken steps to rescue firms like American International Group Inc. and Bear Stearns Cos.

Geithner also worked with Henry M. Paulson, current Treasury secretary, and Bernanke to finalize the decision on allowing the Lehman Brothers Holdings Inc. to collapse in the month of September.

Moreover, Geithner is believed to be one of the youngest Treasury secretaries in U.S. history.