Mr. Geithner Flexes Muscles
The Treasury Secretary Tells Investment Banks Government Is in Charge
When AFL-CIO General Counsel Damon Silvers called Mr. Geithner a "banker" on Capitol Hill, Mr. Geithner responded that he has always been in public service, saying firmly, "Never ... never an investment banker." Former Sen. John Sununu later said, "I'd never confuse you for an investment banker." Mr. Geithner's tart reply: "I don't think you meant that as a compliment, but I'll take it as a compliment."
As I've chronicled in my blog, it's unfortunately painfully obvious Geithner was never in the private sector and certainly never an "investment banker". Nor a "capital markets" expert, either. Henry Paulson was an I-banker, not that you could tell from his dismal performance in 2007-08. "Can't anyone here play this game?" I'm not sure flexing his muscle is going to work given what's happened when he flexes his brain.
Nor is there anything automatically 'unethical' or immoral about that profession, just as there isn't with used car salesmen. (I've known some very ethical new-car salesmen; I assume they also traded in used.) Even Warren Buffett has one he likes (investment banker; don't know about his car salesmen).
Full disclosure: I was once a "banker" but of the "corporate banking" variety at a commercial bank. Later I became a derivatives trader or "capital markets" type. Today, I'm a financial regulator. And, yes, I can play this game -- I just can't get on the field!
JRB
4/22/09
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