Stocks Soar on Reports of Geithner as Treasury Secretary

Candidate as New Treasury Secretary

Peterson ran the search committee that chose Geithner to lead the Federal Reserve Bank of New York. He said that during the vetting process, it became clear that beyond "unfailingly and unambiguously positive references," Geithner's colleagues and previous bosses felt he is "clear thinking and clear speaking in a crisis and not at all reticent to speak his views." Peterson added, "That is something important in a town like Washington."

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"Tim would be terrific, cool-headed, experienced, and with kind of flexible mind needed to take the big steps required to deal with the current economic catastrophe," said Harvard professor Ken Rogoff who worked with Geithner at the IMF. "I think it is important also that the new administration not strangle the private sector, Tim is a centrist who would be sensitive to this issue."

Obama's choice for treasury secretary will face at least three major challenges: develop a more coordinated plan to resuscitate the nation's flailing economy, create new regulations to oversee the financial industry working closely with Congress and establish new trade policies with foreign partners especially China.

Geithner has firsthand experience with the recent economic bailouts, has worked with Congress, has a working knowledge of Chinese and has negotiated trade deals.

While young and perhaps lacking the experience of other candidates who have been suggested as possible choices for treasury secretary, what Geithner, a registered independent, may embody for the president-elect is the "change" that was a centerpiece of his campaign.