What is Timothy Geithner's net worth?
Timothy Geithner is an American economist, central banker and civil servant who has a net worth of $12 million. Timothy Geithner is best known for his tenure as the 75th United States Secretary of the Treasury under President Barack Obama. Serving from 2009 to 2013, Geithner played a pivotal role in steering the American economy through the turbulent aftermath of the 2008 financial crisis. Tim joined Treasury in 1988 and worked his way up the ranks, spending a period as President of the Federal Reserve Bank of New York starting in 2004.
Before becoming Treasury Secretary Geithner's financial disclosure showed he estimated his own net worth to be between $740,000 and $1.7 million. According to his last financial disclosure, in 2013, at that time Tim Geithner's net worth was between $239,000 and $6 million.
Geithner was one of the least wealthy people to serve as Treasury Secretary. With a net worth of $500 million (at the time), his Treasury predecessor Hank Paulson was one of the richest people to hold the position. Before taking the position, Paulson was forced to liquidate hundreds of millions of dollars worth of Goldman Sachs stock. An attractive perk of becoming Secretary Treasury allowed Paulson to sell those shares without paying any capital gains tax. As a result, Paulson saved himself over $200 million by becoming Secretary of Treasury.
During the Great Recession, Geithner was directly involved in the allocation of $350 billion of funds from the Troubled Asset Relief Program that was enacted during the Bush administration. He dealt with multiple signifiant issues, such as efforts to restructure the regulation of the nation's financial system, numerous attempts to spur recovery of both the mortgage market and the automobile industry, President Obama's tax changes, negotiations with foreign governments on approaches to worldwide financial issues, and demands for protectionism.
After leaving his government post in 2013, Geithner became the President of Warburg Pincus, a private equity firm in New York. He also released a book and has been known to earn as much as $400,000 for a single private speech.
Tim Geithner Salary
Before becoming Secretary of Treasury, Geithner was the President of the New York Federal Reserve bank. His salary in this position was $411,200. Upon stepping down he received a one-time $434,666 severance payment and was allowed to transfer $63,111 in pension benefits.
His salary as Secretary of the Treasury was $190,000 per year. So he took a more than 50% pay cut when he took this job.
Real Estate
In 2009 Tim and his wife paid $950,000 for a home in Bethesda, Maryland. They sold this home in July 2013 for $995,000. In 2004 they paid $1.6 million for a home in Mamaroneck, NY. They sold this home in August 2020 for $1.5 million.
He and his wife also own a Cape Cod vacation property which was valued at $500,000 in his 2009 financial disclosure.
Early Life and Education
Born on August 18, 1961, in Brooklyn, New York, Timothy Geithner spent much of his childhood abroad due to his father's work in international development. His upbringing in East Africa, India, Thailand, China, and Japan instilled an early awareness of global economic structures.
He pursued higher education at Dartmouth College, where he graduated in 1983 with a Bachelor's degree in government and Asian studies. His interest in international economics continued at Johns Hopkins School of Advanced International Studies, where he earned a Master's degree in International Economics and East Asian Studies in 1985.
Beginning of Career
Geithner commenced his professional journey at Kissinger Associates in New York. He subsequently moved to the public sector, joining the International Affairs division of the U.S. Treasury in 1988. His expertise and commitment led to his appointment as the Under Secretary of the Treasury for International Affairs in 1999 under President Bill Clinton. During this period, Geithner gained invaluable experience addressing the Asian financial crisis.
Federal Reserve Bank of New York
In 2003, Geithner ascended to one of the most influential roles within the Federal Reserve System — President of the Federal Reserve Bank of New York. His responsibilities extended to the national stage as the Vice Chairman of the Federal Open Market Committee, the central decision-making body for U.S. monetary policy. Geithner's tenure was characterized by his dedicated oversight of financial institutions and his crucial contributions to the nation's monetary policy.
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Secretary of the Treasury
In January 2009, at the height of the global financial crisis, President Barack Obama appointed Geithner as Secretary of the Treasury. With the economy in turmoil, Geithner faced the daunting task of restoring stability and confidence.
He spearheaded the implementation of the Troubled Asset Relief Program (TARP), a critical component of the government's response to the financial crisis. The program aimed to strengthen the financial sector by allowing the government to buy or insure troubled assets. Despite intense scrutiny and public skepticism, Geithner's leadership helped stabilize the financial system, restore credit flows, and set the stage for economic recovery.
Warburg Pincus
Following his term as Treasury Secretary, Geithner transitioned into the private sector, serving as the President of Warburg Pincus, a prominent private equity firm, from 2014 onwards. His extensive experience and understanding of financial systems brought a unique perspective to the firm's investment strategies.
Simultaneously, Geithner maintained an active role in shaping discourse on financial crises through his memoir, "Stress Test: Reflections on Financial Crises," offering an insightful first-hand account of the financial crisis and recovery.
Geithner's Lasting Impact
Geithner's role in leading the U.S. economy through the 2008 financial crisis places him as a significant figure in economic history. His dedication to public service, his understanding of complex financial systems, and his steady leadership during a time of unprecedented economic turbulence underscore his enduring legacy.
Moreover, his contributions extended beyond crisis management. Geithner played a vital role in formulating the Dodd-Frank Wall Street Reform and Consumer Protection Act, reshaping American financial regulation. His actions during and after the crisis have significantly influenced the conduct of economic policy, leaving an indelible mark on global finance.
