Geithner and Summers consolidate power

| 16 February 2009 22:17

If you recall, a few months ago there was a lot of speculation in Washington about Paul Volcker being named a ‘car czar’ to deal with the problem with the Big Three automakers. That idea has fallen by the wayside. President Obama has named Larry Summers and Tim Geithner to head his auto team.

Obviously, these two gentlemen are consolidating power in the Obama administration.

President Barack Obama opted against naming a “car czar,” instead asking Treasury Secretary Timothy Geithner and White House economic advisor Lawrence Summers to head a task force on revamping the U.S. auto industry.

Ron Bloom, a United Steelworkers union advisor and former Lazard Ltd. vice president, will join administration members on the team, White House Press Secretary Robert Gibbs said Monday.

The president was under pressure to say who would handle the issue before Tuesday, when General Motors Corp. and Chrysler LLC must give progress reports on plans to restructure as a condition of US$17.4-billion in U.S. Treasury loans. The task force puts an end to reports Mr. Obama would recruit a well-known figure from outside to serve as the so-called car czar, an approach that had some support in the auto industry.

Source
Obama names Geithner, Summers to head auto team – National Post

avatar About Edward Harrison

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages, a skill he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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