After working with the Council on Foreign Relations and writing a book, former Treasury Secretary Timothy Geithner finally got a new job. He's chasing the big bucks at a private-equity firm, following a long line of former government officials cashing out on Wall Street.
Friday evening, the Wall Street Journal reported Getihner will join private-equity firm Warburg Pincus in March. The former Obama administration official hasn't worked in the private sector in over 25 years, after spending time with International Monetary Fund and the New York Federal Reserve. In 2009, he was appointed Treasury Secretary, and was credited with slowing the effects of the economic downturn. Geithner left the Treasury in January and enjoyed a low-key life outside of the private and public sectors. Details of his new compensation weren't reported.
"He brings a history of strong leadership, a deep understanding of economies and markets, and a truly global perspective," co-chief executive Chip Kaye said a statement, per Bloomberg. "These attributes will be of tremendous value to our firm in this increasingly interconnected world." Post-government positions are in-name-only, which is where Geithner's new job will differ from the norm, according to the Journal:
At Warburg, he will serve as president and managing director, not the kind of figurehead or advisory positions that public-sector figures often land after government stints. Mr. Geithner, 52 years old, is expected to work on mapping the firm's strategy and management, investor relations and on matters related to the firm's investments.
But others aren't so sure Geithner will be anything more than a big name and pretty face on the private-equity firm's masthead. "While Mr. Geithner has been given the lofty title of president, several private equity executives questioned whether he would be much more than a prominent name who would help Warburg Pincus open doors on the fund-raising side, especially with foreign investors like sovereign wealth funds," reports The New York Times' Dealbook.
Geithner is not the first former Treasury Secretary to take lucrative jobs on Wall Street after their time in government came to a close. Robert Rubin, who served under Clinton, accepted a job with Citigroup. John Snow, a Bush administration graduate, took a position with Cerebrus, another private-equity firm.