Most attention focused Friday on Geithner, who's been among the key decision-makers in combating this year's financial crisis. Economists said that Obama picked a solid behind-the-scenes operator who may not be a household name but has been instrumental in preventing a collapse of the global financial system.

''At a critical time for the U.S. economy, Tim Geithner would bring to the job a unique and impressive combination of wisdom, experience and expertise,'' Mohamed El-Erian, co-chief executive of Pimco, the world's largest bond fund, said in an e-mail to McClatchy. ``It's a great choice.''

Geithner is a veteran of the Clinton administration's Treasury team. He served as a protege of both Robert Rubin and Larry Summers, two Clinton Treasury secretaries who also were rumored in the mix for Obama's pick.

Since November 2003, Geithner has headed the powerful New York Fed, the bank in the Federal Reserve system that works most closely with Wall Street and global finance. That position also made him the vice chairman of the Fed's interest rate-setting Federal Open Market Committee, which means that he's also been an important voice in making U.S. monetary policy for the past five years.

Geithner has worked closely with Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke during this year's unprecedented financial challenges, which include government seizures of banks, mortgage finance companies and the nation's largest insurer.

James Paulsen, the chief investment strategist for Wells Capital Management, an arm of Wells Fargo Bank, said that Geithner's Treasury Department would have a chance to show a steady hand after several missteps by the Bush administration.

'I hope they reflect the `no drama' Obama personality, which I think may help the most,'' Paulsen said.

Geithner also had one important credential that several other rumored candidates lacked -- he's untainted by personal employment and enrichment in private-sector finance, said Vincent Reinhart, who worked closely with the Treasury designee as the former director of the Fed's monetary affairs division.

''He's had a very decided advantage over other candidates in that he hasn't been associated with the private sector, and this is not an environment where you want to get the next secretary from a hedge fund or Goldman Sachs or Citigroup,'' Reinhart said. ``He is familiar with the risks that government has taken on, he was there, present at the creation.''

While not cut from Wall Street cloth, Geithner knows that world intimately as New York Fed chairman -- and by virtue of having worked the past year to prevent its destruction.

''He knows the Street, he knows the guys on the Street. He's been at the center of the financial mess from the beginning,'' said David Wyss, chief economist at the New York ratings agency Standard & Poor's. ``All of that sort of made him a likely candidate.''

Former colleagues remember Geithner with fondness.

''He's easy to work with. He's very focused and results-oriented, while being inclusive and easy to get along with. That's a great combination,'' said Gary Gensler, who was the assistant secretary for financial markets during the second Clinton term and worked closely with Geithner.

In the brief period after he left Treasury and before he became president of the New York Fed, Geithner was director of policy development at the International Monetary Fund. His ties to the IMF are sure to be useful, as that institution is being asked to play a larger role in helping developing nations survive the current turmoil in global financial markets.

Join the discussion

The Miami Herald is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere in the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. In order to post comments, you must be a registered user of MiamiHerald.com. Your username will show along with the comments you post. Thank you for taking the time to offer your thoughts.

     Showing: Oldest first Newest first Most-recommended first Least-recommended first

@Nyx.AuthorDisplayName@ wrote on @Nyx.PostedAtTime@:

@Nyx.repliedToText@

@Nyx.replyAnswerText@

Reply to this Comment @Nyx.Recommender@ @Nyx.AbuseReporter@