Timothy Geithner is finally cashing in for all his years of government service, including his position as the President of the New York Federal Reserve and as Secretary of the Treasury during the latest financial crisis. The Washington Post reports that Geithner has been appointed president and managing director of the private equity firm Warburg Pincus. The firm manages $35 billion in assets in over 100 companies. Geithner is expected to receive millions in compensation. He was largely in charge of TARP (Troubled Asset Relief Program) which distributed government money to financial firms during the economic crisis.
This post is not so much about Austrian economics as it is a reminder that the revolving door between Wall Street and the Federal Reserve and Treasury remains open and very lucrative. Current and future Federal officials will no doubt take note of it.
