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Summers and Geithner: Friends or Foes?

One of the things that the press corps in Washington is salivating over is to see some kind of fight break out between Larry Summers, the chair of the National Economic Council, and Tim Geithner, the Treasury Secretary. I find this is a frequent topic of conversation among journalists given Summers's brash, some would say pugnacious, reputation.

I don't claim to be privy to their conversations any more than I am to Barack and Michelle's or Hillary's and Bill's. But my sense from someone who knows them both quite well and has worked with them since the election is that they continue to get on extremely well and that those looking for conflict are looking in the wrong place.

The person points out that Summers and Geithner are longtime friends. It was Summers, as much as Bob Rubin his oft cited mentor, who helped lift Geithner out of the ranks of accomplished civil servants into the stratospheric financial world he's inhabited since. "Larry was there for Tim," says the person. So they have a longtime friendship going for them as well as the debt that comes when one man helps another's career.

The second thing that's binding them is ideology. This person did not see any significant daylight between them on where they stand in terms of reviving the economy. Chasms may develop over time but there's no reason at the moment to thing they're differing on TARP, stimulus, trade or, say, the executive compensation plan unveiled today.

Third, the person noted the profound mellowing of Summers who was genuinely chastened by his experiences at Harvard. They note that he learned to trim his brashness and is very conscious of the fact that the president wants a no-drama White House as much as he wanted a no-drama campaign. Add to that the idea that Summers is in a role that calls on him to be an honest broker between competing economic agencies as well as an advocate for various policies and he's even more likely not to wind up in some pitched battle. The source also notes that Summers, now remarried, has been tamed somewhat by that experience. As for me, I should add that I know Summers a bit socially.

That said, the person I spoke with, thought you might see intra-administration fights down the road between Geithner and Summers on one hand and, say, someone else on the other. The person raised the possibility, noting it had not happened and probably wouldn't, that over an issue like China trade policy, with its political and defense implications, Summers-Geithner might find themselves at odds with Hillary Clinton or Robert Gates. In other words, there was nothing thus far to suggest the riff between Tim and Larry that everyone is expecting. Anway, will continue to watch this space but thus far it seems harmonious--expectedly to those who know both men and surprisingly to those who don't.


16 Comments

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Interesting.

But could you translate this?

The person raised the possibility, noting it had not happened and probably wouldn't, that over an issue like China trade policy, with its political and defense implications, Summers-Geithner might find themselves at odds with Hillary Clinton or Robert Gates.

The possibility was raised, but it was noted that it hadn't happened yet and probably wouldn't? ?

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I gotta agree. Makes no sense to me!

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The problem with healthcare as a policy issue is that the healthcare lobby is the most powerful lobbying group in DC. This is not a Dem vs. GOP issue. This is a citizens vs. the DC lobbyist culture...both parties are in deep with the money. Which is why Daschles nomination was torpedoed.


Here are the top dollars, broken down by party contributions for the top 15 lobbyists.

www.health-insurance.org/health-insurance-lobbyists

This is the core issue that needs to be on the table. Obama said this on the campaign trail we have to take back the government from the lobbyists culture in DC.

Obama needs to mobilize his base.

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Thanks. Yes, the health care business lobbies are death warmed over.

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How utterly unfascinating. I read this to the end in the hopes of getting something in the way of information about the thinking behind the new TARP plans.

Matt, if you have all this vaunted access, could you drop the 'these are great guys' kind of posting and, you know, do some journalism?

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Matthew doesn't do journalism - he delivers messages to the great unwashed masses from "public relations" sources in DC.

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Please spend more time looking for any little possibility of drama. This is what happens when you hire people who have no deep understanding of policy issues. It's just highbrow People magazine bullshit.

As much as I like Josh Marshall he has hired a bunch of gossip mongers who do nothing but waste our time. All heat. not a bit of light.

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I agree with your sentiments.
Policy issues deserve serious discussion.
My thoughts are that Summer is to Geithner what Putin is to Mededev.

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Would that be blog churn?

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As much as I like Josh Marshall he has hired a bunch of gossip mongers who do nothing but waste our time. All heat. not a bit of light

I don't think I'd go quite that far.

I think Eric is doing a solid job covering the MN Senate race from long distance. One might argue that it would be nice if he were able to drop more quote from the "inside" of Team Al on their strategies, but I think we've all seen the problems of getting too insider when reporting. So the coverage works for me as being very solid.

I'm not a fan of Eric when it comes to polling, and probably am not alone on that going back to all the poll "fun" in the comments section during the election. ;)

I've been really pleased by Elana Schor's work on the Hill. She really does seem to be busting her rear to get stories, even going right to the members. I like it a lot.

With Coop... I haven't seen the positives of the addition. I'm willing to give it a chance. Perhaps there's more of value to TPM behind the scenes than what we see getting pushed out under Coop's own name. But I'm not seeing it at the moment.

John

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I like Elena's coverage as well, she does a very good job. Kleefield was hit or miss during the campaign season, too. Haven't seen much from Coop.

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Well I think the inside politics stuff is a substitute for having nothing to say about the substance of the policies. And we know the entire media is focused on the same sorts of things and would have you believe what matters most is who is saying what behind that other guy's back. I say it's all bull.

But if you are trying to sell papers then you sell gossip, distractions, manufactured controversy. It's tried and true. It's too bad, because I thought this site had intentions of being a bit more intelligent.

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Have to agree with Tosh et al. You're a bit harsh with Eric and Elena.

Cooper seems to be in charge of covering the financial/economic issues, and sadly doing so in a half-assed way. Maybe it will just take time for him to figure out that what is expected is not some personal diary, but conveying actual factual research.

In any case, it would be nice if Josh would make that promised finance journalism hire.

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What Obey said.

On other blogs we have analysis like this on what Summers is up to:

http://www.nakedcapitalism.com/2009/02/bad-bank-assets-proposal-worse-than-you.html

Here, we have Coop telling us what we already know - Summers and Geithner get along famously. Does anyone for a second think that Geithner would be nominated for Treasury if Summers wasn't backing him?

All of us are far more interesed in what they're up to (i.e. substance) rather than their personalities (style). The substance is troubling, but at least cover it.

John

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I went to comments to complain that this was just useless gossip but see that many got there before me. Doesn't Cooper come from Time or Newsweek?

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"the person...the person..."

Gossip mongering whore. Would it kill you to get even ONE attribution?

Coop is crap.

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