Nov 16 Former U.S. Treasury Secretary Timothy
Geithner, who played a major role in combating the global
financial crisis, is joining private-equity firm Warburg
Pincus as president and managing director, the firm said
Geithner, who stepped down as U.S. Treasury secretary in
January, will join the New York-based firm in March.
Geithner will work closely with Warburg Pincus' top
executives on overall firm strategy and management, investing
and portfolio management, organizational and funding structure,
and investor relations, the firm said in a statement.
As a part of President Barack Obama's economic team,
Geithner is credited with helping to calm the financial storm
that put banks at risk and cratered the housing market early in
Obama's first term.
Geithner was less successful in his push for tax reforms,
such as eliminating what the Obama administration has called the
"carried interest" loophole. That measure, if passed, would have
effectively increased taxes on the slice of investment profits
private equity firms such as Warburg Pincus pay on profits from
Before becoming Treasury secretary, Geithner was president
and chief executive of the Federal Reserve Bank of New York from
2003 to 2009, where he helped design the U.S. response to the
financial crisis of 2008-2009.
Since leaving Treasury, Geithner has been a distinguished
fellow at the Council on Foreign Relations and has
conducted a series of seminars on financial crises at
universities across the country.
Geithner said in statement Warburg appealed to him because
of its global strategy and ethical reputation.
His move follows a stream of high-level government officials
joining private equity firms. Among the latest was David
Petraeus, retired four-star general and former director of the
Central Intelligence Agency, who joined Kohlberg Kravis Roberts
& Co in May.