He’s survived so far but will the election results force the issue? Outside of the White House, it’s hard to find anyone who was impressed with the financial regulation, which still lags behind the FDR regulation.
There will be heavy pressure from within the Democratic party for the Obama administration to make changes that will both publicly mark a change of direction for the administration and privately send a message to party insiders that the White House is accepting its share of the blame for the loss of the House of Representatives.
Geithner is a clear candidate to play the fall-guy. In exit polls, six in 10 voters said the economy is the nation’s No.1 problem. Around four in 10 believe their family’s financial condition got worse since Obama took office. Geithner is the nation’s chief economic official. A large share of the blame for last night’s results will likely fall on him.
Geithner outlasted many other economic advisers to the president, including Peter Orzsag, Herb Allison, Steve Rattner, Larry Summers and Christina Romer. Insiders say the role he played in getting Congress to pass the financial reform bill has significantly strengthened his position in the administration.