Treasury Secretary Timothy F. Geithner plans to leave the administration at the end of January, even if President Barack Obama and congressional Republicans haven’t reached an agreement to raise the debt ceiling, according to two people familiar with the matter.
After giving in to Obama’s previous entreaties to stay as long as needed, Geithner has indicated to White House officials and Wall Street executives that he is unlikely to change his departure plans this time, increasing pressure on the president to name his successor at Treasury, said the people, who requested anonymity to discuss the private discussions.
Geithner, 51, is the only remaining member of Obama’s original economic team and was a key figure in the taxpayer- funded bailouts during the 2008 financial crisis. He’s also had a principal role in negotiations with Congress on the budget deal and in past deliberations over the debt ceiling.
White House Chief of Staff Jack Lew remains the leading contender for the Treasury job, the people said. Because Lew’s experience in financial markets is thin, Obama may seek to name a Wall Street executive as the deputy treasury secretary, they said.
While Lew, 57, worked as a managing director for Citigroup from July of 2006 until the end of 2008, he’s spent most of his career in government. He served as director of Office of Management and Budget for both Obama and President Bill Clinton and was an aide to the late Tip O’Neill, former speaker of the U.S. House.
Administration Approach
Administration officials had approached American Express Co. Chief Executive Officer Kenneth Chenault about joining Obama’s second-term cabinet, possibly as Treasury secretary. Chenault isn’t interested in leaving his private sector job, according to a spokesman.
“Ken has no plans to leave American Express,” said Michael O’Neill, a spokesman for the New York-based company, declining further comment.
A White House spokeswoman, Amy Brundage, declined to comment on personnel matters. Jenni LeCompte, a Treasury spokeswoman, also declined to comment.
After reaching an eleventh-hour budget deal that averted more than $600 billion in tax increases and spending cuts earlier this week, Republicans in Congress have said they will use the debate over raising the government’s $16.4 trillion debt ceiling next month to force concessions from Obama on spending and entitlements.