Timothy Geithner Implemented Regulation That Went Easy on the Private Equity Industry; Now He’s Going to Work for It
Private equity giants fought hard while debating Wall Street reform to make sure new rules that applied to investment banks left them exempt — and the resulting Dodd-Frank legislation met their demands in a variety of ways.
Now former Treasury Secretary Timothy Geithner, who oversaw the passage and implementation of the law that gave private equity a competitive advantage, is joining the private equity industry.
“The problem with Dodd-Frank is that it picked winners and losers. Geithner went with a winner,” Sam Geduldig, a lobbyist who represents the financial services industry as a partner with Clark Lytle Geduldig & Cranford, told HuffPost.
“Former Treasury Secretary Tim Geithner’s spin through the revolving door to cash in on his ‘public service’ will enrich himself, further erode public confidence in government and give the finance industry more access and influence at the highest levels of government worldwide,” said Dennis Kelleher, head of Better Markets, an organization often critical of Wall Street excess. “Proving his critics right, Geithner will now be richly rewarded by the very industry he worked so hard as a public official to bail out with taxpayer money and which he was supposed to regulate but did not.”