
(The Hill) — A new book by Pulitzer-Prize winning author Ron Suskind reveals that Treasury Secretary Tim Geithner ignored a direct order from President Obama for the reconstruction of major banks during the financial crisis.
The reports call calling into question the president’s leadership and financial savvy at a time where the president is most vulnerable on those topics, with poll numbers on his handling of the economy hitting record lows.
According to reports Friday, Geithner ignored a March 2009 order that asked the Treasury Department to consider dissolving Citigroup, one of the nation’s largest financial services companies. Citigroup was among the worst hit by the financial crisis in 2008, and needed billions in bailout money to stay afloat.
Many have criticized the Obama administration — and Geithner, the former president of the New York Federal Reserve, specifically — of being too focused on helping the banking industry after the recession. Critics on both the left and right argued that the government should not have bailed out banks that submarined the economy after issuing bad mortgages.
According to the Associated Press, Obama acknowledged the Citigroup incident in an interview with Suskind. Obama tried to downplay his reaction upon discovering that Geithner had ignored his request, saying, “Agitated may be too strong a word.”
