Geithner Sees Latest Treasury Nominee Withdraw

Facing growing criticism that thin senior ranks at the U.S. Treasury are hurting the department’s ability to manage a growing financial crisis, the latest nominee for deputy Treasury secretary withdrew his name from consideration for the post according to a report Friday morning in the Washington Post. H. Rodgin Cohen is chairman of Sullivan & Cromwell, a New York-based law firm, and has strong experience advising top Wall Street firms; the Post cited sources familiar with the process as saying that the White House found “an issue during his vetting process.” No further specifics were provided by the news daily. Cohen is the fourth candidate to withdraw from consideration for a post in a Geithner-led Treasury: Annette Nazareth, another prominent attorney under consideration for the deputy post, took her name out of the running in recent weeks. Former Clinton-era Treasury official Lee Sachs, who was in the running to be under secretary for domestic finance, and Caroline Atkinson, an IMF official in line for under secretary of international affairs, also withdrew their names from consideration recently. The Treasury just unveiled a plan to “stress test” major U.S. banks for capitalization, in case the economy worsens, among other plans that will clearly require both people and brains to pull off well; critics have suggested that the “stress test” plans amount to nothing more than a smoke screen, allegations that are becoming tougher to fend off as the senior ranks at the Treasury remain surprisingly thin. The Post cites “British news reports” in quoting Cabinet Secretary for the British government Gus O’Donnell as saying that “there is nobody there,” in reference to his difficulties speaking to members of the U.S. Treasury. See coverage at the Times Online, a UK-based news daily. It’s not yet known who will be considered next for the deputy post. Write to Paul Jackson at [email protected].