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Sunday, November 8, 
2:48 pm

Who will replace Paulson at Treasury?

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US-DeptOfTheTreasury-Seal.svg.png There are less than 40 days until the presidential election Nov. 4, and The Washington Post is getting a head start on handicapping who might succeed Treasury Secretary Henry Paulson.
Usually the sport of guessing cabinet members is left until after the election when it is clear who the winner is, not when an election remains relatively close. The list includes some well known dealmakers and bankers, including John Thain and Mitt Romney. See the list after the jump.

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Both candidates:

  • Timothy Geithner, governor of the Federal Reserve's New York bank, is being pushed by Paulson and Federal Reserve Chairman Ben Bernanke as the man for both candidates to pick. Before joining the Fed in 2003, Geithner served at Treasury under both Republican and Democratic administrations, making him an ideal pick for both McCain and Obama.
  • Michael Bloomberg, mayor of New York, who was once a Democrat, then a Republican and now an independent, has ample experience on Wall Street and government, and since he's a lame duck should have the spare time.
  • Henry Paulson, current treasury secretary, staying on under the next administration is a favorite of financier Warren Buffett, but odds are not likely to happen.

Obama's likely picks:

  • Steven Rattner, founder of private equity firm Quadrangle, has been bantered about since the end of the Democratic primaries as a likely pick.
  • Lawrence Summers, former treasury secretary for Bill Clinton, made the list, but the Post swatted him down on grounds he may not want to come back.
  • Laura D'Andrea Tyson, a University of California business school dean, receives mention, but she lacks Wall Street experience.

McCain's likely picks:

  • John Thain, CEO of Merrill Lynch & Co., evidently is a friend of the presidential candidate says the Post, and a favorite amongst Republicans since he agreed to sell Merrill to Bank of America Corp.
  • Mitt Romney, former Massachusetts governor and founder of Bain Capital LLC, makes sense given his experience in both finance and in government. The Post dismisses him, saying he'd never get past confirmation from a Democratically controlled Senate.
  • Phil Gramm, former senator from Texas, is a long time economic adviser of McCain's, but also a long shot. Unlike Romney, who might squeek by the confirmation process, Gramm likely would never be confirmed because he's widely blamed for some of the legislation that contributed to the current crisis.

- Matthew Wurtzel

See a slideshow of The Deal's own list





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