Geithner Will Not Be Obama’s Treasury Secretary in Second Term

‘Confident he's going to have another secretary of the Treasury,’ Geithner says

Treasury Secretary Tim Geithner. (Photo: AP) Treasury Secretary Tim Geithner. (Photo: AP)

Treasury Secretary Tim Geithner spoke to Bloomberg Television's Trish Regan today and said that President Obama is "not going to ask me to stay on, I'm pretty confident. I'm confident he'll be president.  But I'm also confident he's going to have the privilege of having another secretary of the Treasury."

Geithner on whether he'll serve as Treasury Secretary for another four years if President Obama is re-elected:

"He's not going to ask me to stay on, I'm pretty confident. I'm confident he'll be president. But I'm also confident he's going to have the privilege of having another secretary of the Treasury."

On Wall Street's frustrations with Dodd-Frank:

"I would not worry too much about them. I would worry more about the basic confidence of Americans that they're going to face more opportunities, more likely to find a job, keep a job, save for college, save for a dignified retirement…They're under more pressure. No industry likes reforms that change the way we do business. But we're doing that because we have to protect the economy from ever facing again the type of crisis we saw. And I am very confident that these reforms will ake our financial system a stronger financial system, a more stable one, a more safe one, where consumers feel they have more protection, investors feel better protection, people are less likely to be victimized by the behavior of a few bad actors. That's what these reforms are going to do."

On whether money that's being made off private equity investments should be taxed at a higher rate:

"Absolutely. And the president's long supported that. And you see a lot of support for trying to do that. And it serves a basic principle of fairness in this context. So we're going to work to doing that. But we're going to try to go beyond that, too, because just doing that is not enough."

On Europe's crisis:

"I think it's important to recognize that they're making progress. They really are now. They're doing a lot of things to put in place reforms that help fix their financial problems, hopefully help them grow more rapidly…They got a lot of work to do. But that comprehensive a strategy, reforms combined with making the financial system stronger, combined with a stronger firewall to support those countries that are reforming, those are the things they have to do to make this work."

On whether the U.S. doesn’t have influence on the important discussions that European leaders are having right now:

"No, I don't feel that way. We have a very close relationship in this. And we work very closely together. They ask us for advice. They want to learn from the mistakes we made and the things we got right. And they need the support of the world for this to work. And so my own experience is they're very open to working with us, and we have to do it together."

On whether Europe is too big to fail:

"Europe is a huge part of the world economy, and that's why it's so important to us and for countries around the world that Europe be more effective, more successful in getting this under control. It's very important that they get this right. And as I said, they're making some progress, but they've got a lot of work to do."

On what else the Treasury can offer to make it more enticing for companies to manufacture in the U.S.:

"One thing we can do is change our tax system so we're creating more powerful incentives for companies to invest here, because, again, we want the stuff that the world needs, stuff Americans are uniquely good at, to be produced in the United States by American

companies and by foreign companies, like you see Siemens today. What the president proposed is that we reform our tax system and create stronger incentives for investment in manufacturing here."

On what President Obama meant when he said that "every multinational company should have to pay a basic minimum tax" during Tuesday night's address:

"Around the world, over the last several years, you've had countries compete in a bit of a race to the bottom, by lowering their tax rates to try to attract investment by other countries. So for us to compete in this world, we have to really do two things. One is we have to change our tax system so that we're trying to catch up to them a bit, so we're not sitting up there really high against the rest of the world, and create more incentives for investment here, but we also have to change parts of the tax system that now encourage people to build that next plant outside the United States. It makes no sense for the tax system to be encouraging people, incenting companies to be building jobs outside the United States. Now, American companies are global companies. They're going to be producing around the world so they can serve those markets. But we think we have a very good shot at a lot of the things the world needs being built here in this country."

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