Tim Geithner will soon find himself on the hot seat again, as he’s summoned to Congress. Considering the mood in DC, could his job be on the line?
The latest storm of controversy stems from Geithner’s role involving AIG payments to banks when he headed the New York Federal Reserve. Specifically, lawmakers want to hear about his decision to pay banks in full to retire $62.1 billion in credit default swaps sold by AIG, and whether Geither disclosed information about those payments properly.
At a hearing on AIG in November, one lawmaker had called on Geithner to step down. If Geithner were to be replaced, "it would have to be someone outside Wall Street," explains Daniel Clifton of Strategas Research Partners. “The argument is that Geithner is too Wall Street.”
And although nobody is tossing their hat in the ring officially, Clifton tells the desk that insiders are whispering about a short list; and the names being floated are Senator Christopher Dodd (D-CT) and former NJ Governor Jon Corzine.
However, Geithner probably isn't going anywhere -- at least not yet. Absent a "smoking gun" most analysts agree that the results of the inquiry won’t trigger a resignation.
But that's not to say they won't do serious damage. Depending on the outcome, the hearing could undercut Geithner's ability to sell the reform on Capitol Hill.
"Is Tim Geithner harmed by the controversy swirling around him over his role in AIG? Absolutely yes," says Allen Sinai, chief economist at Decision Economics in Boston.
"It's hard enough for the secretary of Treasury to make the tough decisions that are expected of him every day, much less have to make them while under a cloud of suspicion," Sinai comments.
What do you think? We want to know!
______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .
Trader disclosure: On January 25th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour Owns (AAPL), (BAC), (FXI), (INTC), (PBR), (X), (TSO), (VIP); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Finerman's Firm And Finerman Own (FLS); Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (USO), (UNG); Finerman's Firm Owns S&P Puts; Finerman Owns (AAPL); Finerman's Firm Owns (BAC), (BAC) Leaps; Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm And Finerman Own (GOOG); Finerman's Firm Owns (MSFT); Finerman's Firm And Finerman Own (WFC) Preferred; Terranova Is Short (CMA), (ESS), (CAL); Terranova Owns (QCOM), (MSFT), (DELL), (AAPL), (EMC), (FCX), (MMM), (XOM), (BAC), (JPM); Terranova Owns March Copper Futures
For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (CLB)
Virtus Investment Partners Owns More Than 1% Of (DLR)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (UA)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (SKT)
For Jon Najarian
Jon Najarian Owns (VMW)
Jon Najarian Owns (AAPL), (AAPL) Collar
For Mike Khouw
Cantor Fitzgerald & Co. Is A Market Maker In (SNDK)
Cantor Fitzgerald & Co. Is A Market Maker In (JAVA)
Cantor Fitzgerald & Co. Is A Market Maker In (ORCL)
Cantor Fitzgerald & Co. Is A Market Maker In (MSFT)
Cantor Fitzgerald & Co. Is A Market Maker In (AAPL)
Cantor Fitzgerald & Co. Is A Market Maker In (EMC)
Cantor Fitzgerald & Co. Is A Market Maker In (TXN)
Cantor Fitzgerald & Co. Is A Market Maker In (INTC)
Cantor Fitzgerald & Co. Is A Market Maker In (CSCO)
Cantor Fitzgerald & Co. Is A Market Maker In (QCOM)
Cantor Fitzgerald & Co. Is A Market Maker In (KLAC)
Cantor Fitzgerald & Co. Is A Market Maker In (AMAT)
Other relevant disclosures:
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (YHOO)
Pete Najarian Owned (AAPL), (AAPL) Collar Today
CNBC.com with wires