November 17, 2013 in Nation/World

Timothy Geithner to join private equity firm Warburg Pincus

David Koenig Associated Press
 

Geithner
(Full-size photo)

Former U.S. Treasury Secretary Timothy Geithner, who played a central role in the government’s response to the financial crisis of 2008-2009, is joining private equity firm Warburg Pincus LLC.

The firm announced Saturday that Geithner will serve as its president and managing director starting March 1.

Geithner led the Federal Reserve Bank of New York for more than five years before becoming Treasury secretary in 2009, when the economy had sunk into a deep recession.

Few Treasury secretaries received as much scrutiny. Supporters credited Geithner with helping prevent the recession from spiraling into a second Great Depression by stabilizing the banking system and restoring investor confidence. Critics said he was too cozy with Wall Street.

Warburg Pincus said that Geithner would advise the firm on strategy, investing, investor relations and other topics. The New York-based firm has been involved in buyouts of such well-known companies as luxury department store chain Neiman Marcus and contact lens maker Bausch + Lomb.

The firm declined to comment on Geithner’s compensation.

Geithner, 52, stepped down from the Treasury in late January, days after President Barack Obama was sworn in for a second term. He was the last of Obama’s original economic advisers to leave the administration and was succeeded as Treasury secretary by Jack Lew.

Since leaving office, Geithner signed a deal with Random House to write a behind-the-scenes book about the response to the economic crisis and has given speeches.

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