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Wednesday, January 14, 2009

Questions raised on Treasury nominee Timothy Geithner

Obama's press aide says concerns about his taxes and an immigrant housekeeper are minor. Senators question Hillary Clinton on possible conflicts. Hearings for other Cabinet choices go smoothly.

The nomination of Timothy Geithner to be secretary of the Treasury ran into a speed bump today, amid reports that he failed to pay some personal taxes and questions about the immigration status of a housekeeper.

Geithner, whose confirmation hearing is scheduled for later this week, met with senators who will decide his nomination.

The transition team of President-elect Barack Obama strongly backed Geithner.

"The President-elect chose Tim Geithner to be his Treasury secretary because he's the right person to help lead our economic recovery during these challenging times," said incoming White House press secretary Robert Gibbs in an e-mail statement.

"He's dedicated his career to our country and served with honor, intelligence and distinction. That service should not be tarnished by honest mistakes, which, upon learning of them, he quickly addressed. He made a common mistake on his taxes, and was unaware that his part-time housekeeper's work authorization expired for the last three months of her employment. We hope that the Senate will confirm him with strong bipartisan support so that he can begin the important work of the country," Gibbs stated.

Although most of the attention today focused on Sen. Hillary Rodham Clinton's testimony to become secretary of State, Senate committees also held hearings on three other appointments as the process of building a government slowly moved forward.

Steven Chu, the nominee for Energy secretary, and Arne Duncan, President-elect Barack Obama's choice for secretary of Education, also testified today, as did Housing and Urban Development nominee Shaun DonovanThe Senate is hoping to better its 2001 effort when it approved seven Cabinet chiefs before George Bush was sworn in for his first term. Obama will be inaugurated next week.

So far, hearings have been held on at least five nominees with no controversy.

Last week, Tom Daschle, Health secretary nominee, and Hilda Solis, Labor nominee, testified as expected. Daschle, a former senator and majority leader, faced cordial questioning on health policy issues though he will be back to testify again. Solis, a Los Angeles congresswoman, was questioned about her support for organized labor, which raised some questions for Republicans but not enough to hurt her chances in the Democratic-controlled Senate.

Today, Clinton was questioned about former President Bill Clinton's foundation and the possible appearance of conflicts of interest in donations by foreign governments that might be seeking to curry favor with the new secretary of State. She insisted there would be no problem. Bill Clinton and Hillary Clinton have already agreed to more transparency on donations.

Chu, a Nobel prize-winning physicist, was confronted by questions about coal usage in his appearance today before the Senate Environment and Natural Resources Committee. Chu, who has strong environmental credentials and often calls global warming a key problem, once called coal "my worst nightmare" because of its emissions.

But coal is a major U.S, resource, and its use is not likely to end soon. Today, he came out strongly in favor of clean coal technology, which seemed to satisfy the committee.

Duncan, the former Chicago schools chief, called for education reform today but gave no specifics during his Senate appearance. If confirmed, he will face a host of issues, including revisions to the Bush administration's No Child Left Behind program, charter schools and merit pay for teachers, which is generally opposed by unions.

In another friendly hearing today, Donovan, formerly New York City's housing chief, was encouraged to be an aggressive secretary of Housing and Urban Development. The collapse of the housing and mortgage market was one of the causes of the current economic turmoil. HUD oversees the Federal Housing Agency, and senators told Donovan that he faced a big job.

Former Army Gen. Eric Shinseki is scheduled to testify on Wednesday on his appointment to head the Veterans Administration. Though he was forced out of the Bush administration because of a dispute over the number of American troops needed to keep the peace in Iraq, there is no ill will against him in the Senate. His platform of cleaning up the VA's health system and making the agency more responsive to veterans will likely go over well.

Also appearing at hearings on Wednesday will be Tom Vilsack, who has been named to take over Agriculture, and Ray LaHood, who has been nominated as Transportation secretary. Vilsack could face some questions about ethanol and crop subsidies while LaHood, a departing Republican congressman from Illinois, will probably have an easy time despite some questions about infrastructure needs.

Thursday will be a more contentious day, with Sen. Ken Salazar and Eric Holder testifying in their respective quests to become Interior secretary and attorney general.

Holder is expected to face questions about his role in investigating pardons issued by the Clinton administration, particularly the one granted to fugitive financier Marc Rich. Salazar, a Democratic senator from Colorado, is expected to face questioning about his view of land use and mining on federal lands. Some environmental groups have questioned his appointment.

Hearings on Thursday for two other key appointments could have some fireworks.

Geithner is expected to testify in support of his nomination to be secretary of the Treasury. He will probably be questioned about his role in helping to put together a $700-billion bailout package already approved by Congress and his plans for the next stimulus package now being debated in Congress. He could also face questions about his housekeeper.

Janet Napolitano, who's been chosen to take over Homeland Security, could face questions about immigration and border issues, always contentious topics, and security, another issue that often raises red flags because of concerns about government power and individual rights.

Defense Secretary Robert Gates, a holdover from the Bush administration, will not have to face another hearing. Still to be named is the next Commerce secretary after Gov. Bill Richardson withdrew because of questions about campaign contributions.




By Michael Muskal, Los Angeles Times, January 13, 2009
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