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The Geithner/Warren Question


In response to reports that Tim Geithner is trying to scotch Elizabeth Warren’s appointment to the Consumer Financial Protection Bureau (and presumably prefers someone who is sort of willing to overlook the whole “consumer protection” part of the mission), Yglesias and Fernholz point out that the sourcing for the claim is far from airtight.

The real key here, I think, is Tim’s point #1 — it’s Obama’s decision. As Krugman has been fond of pointing out recently (and as we recently discussed without the metaphor with respect to foreign policy), when it comes to appointments the Cossacks work for the czar. Even if the story is right, Obama is free to ignore Geithner’s advice and would have plenty of political support if he chose to pick Warren. So we’ll see if Obama picks Warren, somebody just as good, or somebody not as good, but no matter what the outcome the credit or blame should be directed at the top of the organizational chain. What Geithner thinks about Warren is largely beside the point.

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