Message to diligent administrators concerned with the preservation of taxpayer dollars: Get in the way of the bailout juggernaut and you will make powerful enemies. Consider the plight of FDIC head Sheila Bair:
Geithner, president of the Federal Reserve Bank of New York, has argued Bair isn’t a team player and is too focused on protecting her agency rather than the financial system as a whole, according to two congressional officials and a person familiar with his thinking. Bair has battled with Geithner and fellow regulators over aid to Citigroup Inc. and other emergency actions, making her enemies in the Bush administration.
Of course, it’s rather difficult to out Bair and still look like the magnanimous administration you’ve claimed to be (we’re looking at you Obama), particularly when she’s supposed to hold the post until 2011. Our popcorn machine is warmed up.
Geithner May Seek to Push Bair Out After Clashes During Crisis [Bloomberg]