In Transition

According to the Wall Street Journal, the committee's ranking Republican, Charles E. Grassley, R-Iowa, has raised questions about a housekeeper who worked for Geithner and whose green card lapsed briefly. Other questions have arisen from Geithner's failure to pay Social Security and Medicare taxes during his time working for the International Monetary Fund (IMF) from 2001 to 2004. Under U.S. tax laws, he was supposed to be paying self-employment taxes for himself but did not. He subsequently paid following audits and vetting.

While several members left the meeting without comment, some expressed their support for Geithner. Sen. Orrin Hatch, R-Utah said he still supported Geither's nomination. Sen. Debbie Stabenow, D-Mich., said she supports Geithner and that he was "forthrightly" answering questions from committee members.

Geithner is currently president of the Federal Reserve Bank of New York. Geithner was Treasury undersecretary for international affairs during the final two years of the Clinton administration, then worked at the IMF.

In addition to being a key player on fiscal and economic policy, the post of Treasury Secretary now wields enormous power in the banking, auto and insurance industries following enactment in October of the $700 billion financial industry bailout enacted in October (PL 110-343). Geithner would be taking the reins at Treasury during an economic crisis that has battered the U.S. economy and shaken investor confidence across the globe.

-- Joseph Schatz