Although not expected to derail the nomination, questions have been raised by Senator Chuck Grassley (R-IA) about President-elect Obama’s nominee to lead the Treasury Department, Timothy Geithner.
The Wall Street Journal reports:
Sen. Charles E. Grassley, ranking Republican on the Senate Finance Committee, is raising questions about a housekeeper that worked briefly for Treasury Secretary-nominee Timothy Geithner without proper immigration papers, and multiple years when Mr. Geithner didn’t pay Social Security and Medicare taxes for himself.
Senate Finance Committee Chairman Max Baucus (D., Mont.) has summoned committee members to his office this afternoon to air the matter ahead of any public confirmation hearing.
According to people familiar with the matter, Mr. Geithner employed a housekeeper whose immigration papers expired during her tenure with Mr. Geithner, currently president of the Federal Reserve Bank of New York. The woman went on to get a green card to work legally in the country and federal immigration authorities didn’t press charges against her, these people said.
The second issue involved taxes due while Mr. Geithner worked for the International Monetary Fund between 2001 and 2004. As an employee, Mr. Geithner was technically considered self-employed and was required to pay Social Security and Medicare taxes for himself as both an employer and an employee.
He apparently failed to do so, resulting in Internal Revenue Service audits his last two years at the IMF. As soon as the IRS brought the issue to his attention, he paid the taxes with interest, these people said.
It’s unclear how much of an impediment these issues will be to Mr. Geithner’s nomination. On its merits, his ascension has been widely praised. Mr. Geithner spent most of his career managing government responses to financial crises, from the 1990s bailouts of Mexico, Indonesia and Korea, to the market meltdown that has brought Wall Street to its knees.
Update: The Washington Post reports that Senators Jon Kyl (R-AZ) and Jim Bunning (R-KY) have blocked an attempt by Senate Democrats to move forward with Mr. Geithner’s confirmation hearing on Friday.
I would ask the President to call me before he gives any money to Citibank, they are and practice unethical business. Their lawyers lied to the Department of Fair Employment and Housing, wrongfully terminated me while out on workers comp and all because I wanted to put my daughter first. Now Citibank ask for bail out money from our goverm=nment yet when I wrote to over 200 senators and government people I got no help. They broke California labor codes in the process of firing me, while I was ill. My attorney made over 200,000.00 and checks were sent out to about 2000 people. They want your help but no one would help me and all though they wrongfully terminated. There is greed at Citibank and they knowingly gave mortgages to people who didn’t qualify by pumping up their income and now they want my tax dollars. My attorney said firing me cost them about 3.5 million and I don’t feel they should get or deserve the bail out money. My story is on line, and President Bush’s office never did reply and the people that did just kept passing the buck. Fell free to call me for more details 831-236-0112, or look at the case filed in Monterey Superior court. I lost everything because of them, bad manager Jeff Ursino and they didn’t even follow their own firing Stratford, fired via UPS by CitibankMy husband voted for you and had I voted I would have voted for you. I didn’t vote because when I tried to get help from people I had voted for no one helped, they say to write your congressman for help and they don’t help you, but Citibank asks for bail out money and they get help. where is the justice, what about me, Jeff the plumbers wife? Citibank made the list of the best 100 companies for working mothers to work at, yet they fired me for putting my daughter’s needs first! Where is the justice? Why should we bail them out? I prayed for you all day and watched on my TV, stunning, we are truly blessed to have you. My favorite photo/moment is the thumbs up by your beautiful daughter, which I am sure you also put her needs first. Thanks for caring about our country, God Bless you and your family, may he keep you safe and happy