Back in 2006, while most of the financial establishment was pooh-poohing the possibility that the global economy was at any risk from a systemic shock, Geithner was actively warning that unregulated derivatives posed a threat to financial market stability.
Before the storm fully broke, Geithner made heroic efforts to get Wall Street’s biggest financial institutions to voluntarily come together to rein in the wild west world of credit swaps. But without the active support of the White House or a succession of Bush administration Treasury secretaries, he was just one man attempting to bring order to an entire territory of outlaws.
Now he gets a chance to be the top sheriff, with the full backing of an administration determined to find a new balance between regulatory supervision and market freedom. It’s a smart pick.
Read the whole story here.