The Super Majority

Geithner Says US Will Never Lose AAA Debt Rating, Despite $1.6 Trillion 2010 Deficit

Treasury Secretary Timothy F. Geithner said the U.S. is in no danger of losing its Aaa debt rating even though the Obama administration has predicted a $1.6 trillion budget deficit in 2010.

“Absolutely not,” Geithner said, when asked in an ABC News interview broadcast yesterday whether a downgrade is a concern. “That will never happen to this country.”

Geithner said investors around the world turn to U.S. Treasury securities and dollar-denominated assets whenever they are worried about global stability. That reflects “basic confidence” in the U.S. and its ability to bounce back from the global recession, he said.

Moody’s Investors Service Inc. last week said the U.S. government’s bond rating will come under pressure in the future unless additional measures are taken to reduce budget deficits projected for the next decade.

Read the full article at Bloomberg

Obama Stuffs Geithner in Back Seat in Favor of Volcker

For much of last year, Paul Volcker wandered the country arguing for tougher restraints on big banks while the Obama administration pursued a more moderate regulatory agenda driven by Treasury Secretary Timothy F. Geithner.

Thursday morning at the White House, it seemed as if the two men had swapped places. A beaming Volcker stood at Obama’s right as the president endorsed his proposal and branded it the “Volcker Rule.” Geithner stood farther away, compelled to accommodate a stance he once considered less effective than his own.

The moment was the product of Volcker’s persistence and a desire by the White House to impose sharper checks on the financial industry than Geithner had been advocating, according to some government sources and political analysts. It was Obama’s most visible break yet from the reform philosophy that Geithner and his allies had been promoting earlier.

Read the full article at the Washington Post

Geithner confirmed by 60-34 vote

WASHINGTON — The Senate confirmed Timothy Geithner as President Barack Obama’s Treasury secretary by a 60-34 vote, paving the way for the new administration to usher in its financial-rescue plan.

With Mr. Geithner now officially on board, the Obama administration is expected to detail shortly efforts to shore up the financial sector. In his first move, the Treasury Secretary is expected Tuesday to announce new rules intended to curb the influence of lobbyists and special interests in determining who gets aid from the government. The new efforts, part of Mr. Obama’s plan to revamp the financial bailout, are aimed at ensuring that investment decisions are based on what is best for the stability of the financial system, rather than on any type of political influence.

Read the full article at WSJ