Obama names Geithner as treasury secretary

US president-elect Barack Obama named the president of the New York Federal Reserve as his treasury secretary today.

US president-elect Barack Obama named the president of the New York Federal Reserve as his treasury secretary today.

Timothy Geithner (47), whose nomination will need to be confirmed by the US Senate, will take over from Hank Paulson and assume chief responsibility for tackling the most serious economic crisis since the Great Depression.

In a statement, Mr Obama said he and vice president-elect Joe Biden had "assembled an economic team with the vision and expertise to stabilise our economy, create jobs, and get America back on track".

"Even as we face great economic challenges, we know that great opportunity is at hand - if we act swiftly and boldly," Mr Obama said. "That's the mission our economic team will take on."

Lawrence Summers (53), the former treasury secretary under Bill Clinton, was also named as director of the National Economic Council. University of California at Berkeley economist Christina Romer was appointed head of the White House Council of Economic Advisers.

At a press conference in Chicago, Mr Obama said the US was "facing an economic crisis of historic proportions".
"If we do not act swiftly and boldly, most experts now believe that we could lose millions of jobs next year," he said.

"While we can't underestimate the challenges we face, we also can't underestimate our capacity to overcome them - to summon that spirit of determination and optimism that has always defined us, and move forward in a new direction to create new jobs, reform our financial system, and fuel long-term economic growth.

"We know this won't be easy, and it won't happen overnight. We'll need to bring together the best minds in America to guide us - and that is what I've sought to do in assembling my economic team.

"I've sought leaders who could offer both sound judgment and fresh thinking, both a depth of experience and a wealth of bold new ideas - and most of all, who share my fundamental belief that we cannot have a thriving Wall Street while Main Street suffers; that in this country, we rise and fall as one nation, as one people."

Asked about a rescue package for the troubled US car industry, Mr Obama said: "We can't allow the auto industry simply to vanish. We've got to make sure it is there and that the workers, and suppliers, and businesses that rely on the auto industry stay in business.

"What I also have said is that we can't just write a blank cheque to the auto industry. Taxpayers can't be expected to pony up more money for an auto industry that has been resistant to change."

He said he was "surprised" the Big Three carmakers - General Motors, Ford and Chrysler - did not have a better plan when they went before the US Congress and that the Congress did the right thing by asking them to go away and come up with a new proposal.