Geithner and Summers consolidate power
If you recall, a few months ago there was a lot of speculation in Washington about Paul Volcker being named a ‘car czar’ to deal with the problem with the Big Three automakers. That idea has fallen by the wayside. President Obama has named Larry Summers and Tim Geithner to head his auto team.
Obviously, these two gentlemen are consolidating power in the Obama administration.
President Barack Obama opted against naming a “car czar,” instead asking Treasury Secretary Timothy Geithner and White House economic advisor Lawrence Summers to head a task force on revamping the U.S. auto industry.
Ron Bloom, a United Steelworkers union advisor and former Lazard Ltd. vice president, will join administration members on the team, White House Press Secretary Robert Gibbs said Monday.
The president was under pressure to say who would handle the issue before Tuesday, when General Motors Corp. and Chrysler LLC must give progress reports on plans to restructure as a condition of US$17.4-billion in U.S. Treasury loans. The task force puts an end to reports Mr. Obama would recruit a well-known figure from outside to serve as the so-called car czar, an approach that had some support in the auto industry.
Obama names Geithner, Summers to head auto team – National Post