Executive Session

Floor Speech

Mr. HATCH. Madam President, I rise today to express my support for the confirmation of Timothy Geithner as President Obama's choice as Secretary of the Treasury. I am aware this nominee is not free of controversy. My office has received many calls from Utahns who are concerned about Mr. Geithner's admitted errors in initially failing to report and pay his own self-employment tax. Many of them brought up the valid point that the Secretary of the Treasury, the person who is ultimately in charge of collecting taxes from all Americans and who oversees the Internal Revenue Service, should be beyond reproach in his own tax filings. Many of our colleagues on both sides of the aisle are also uneasy about this problem. I understand and I share this concern.

The Senate has a solemn responsibility in confirming key officials in the executive branch, and the Treasury Secretary is among the very most important roles in the administration, both historically and particularly at this critical time. My guiding principle for approving the President's nominees has always been that the President, as chief executive of the Nation, should be entitled to the person he or she chooses, and that the Senate has an obligation to confirm those choices except in cases where it is obvious the nominee is either incompetent, corrupt, or unethical. While not all my colleagues share this view, I believe it is the correct one, and that it helps us stay above the petty partisanship that sometimes enters into these nomination processes and harms the effectiveness of our Government.

Upon careful examination of this nominee, it is obvious that Timothy Geithner is neither incompetent nor corrupt, and certainly not unethical, and that he should be confirmed as Secretary of the Treasury. I have reached this decision after weighing the facts of his tax situation with his impressive education, experience, and intelligence, and keeping in mind the desperate financial crisis currently facing this country.

In announcing this conclusion, I believe I owe it to the people of Utah to explain that I view Timothy Geithner's tax issue as a very serious matter. He is the top tax officer in the United States of America and, I might add, next to the President himself, is the person who bears the ultimate responsibility for collecting the revenue this Nation needs in order to operate. As such, the Treasury Secretary must be an example to all Americans in tax and financial issues, and any shortcomings in this area can be an impediment to effective tax compliance. The fact Mr. Geithner has had this issue arise, and that he admitted committing serious oversights on several of his tax returns, is indeed regrettable. It has marred an otherwise singularly outstanding nominee's record and has given pause to some in the Senate about his fitness to serve.

At the same time, it is important to note that people make mistakes and commit oversights. Even the most intelligent and gifted--two adjectives that certainly apply to Mr. Geithner--make errors in their financial dealings. For his part, Mr. Geithner has corrected the problems by filing amended returns and paying the taxes due, with interest. I recognize he did not come forward and pay the taxes for the earlier 2 years which were not covered by the audit until shortly before his nomination was announced. This is true even though he was credited for those taxes by the International Monetary Fund, and I wish this were otherwise. But the nominee has stated that he wishes he had acted differently as well.

Mr. Geithner has admitted his errors and expressed regret for them. I believe he is sincere. I have had a number of meetings with him and I am convinced he is sincere, and that he was when he testified that these omissions were mistakes and were not intentional. I think anyone who would talk to him personally and go through this with him would come to the same conclusion. While these mistakes have, to some degree, cast a shadow on Mr. Geithner's selection, it is important that they not be allowed to overshadow his impressive credentials and the very real expertise he will bring to this job--an expertise that is sorely needed at the present time. And that is acknowledging that Mr. Paulson, our current Secretary of the Treasury, has tried to do a very good job, and has done a very good job under the very pressing conditions he has faced.

Let there be no mistake, Mr. Geithner is not merely acceptable for the job, he is highly qualified. Indeed, his portfolio, knowledge, and skills make him uniquely qualified to serve and are sorely needed by this Nation as we face the current economic crisis. He is intimately familiar with all arms of U.S. policymaking.

For instance, he is no stranger to the Treasury Department, where he served in significant positions for 8 years. That means he knows the agency, the personnel, and the tasks that will face him when he is confirmed. It means he can hit the ground running on day one and has the know-how to get the economy moving again, although that is going to be a monumental job even for Mr. Geithner.

Moreover, Mr. Geithner has already been a major player in addressing the Nation's response to the economic situation. As head of the New York Federal Reserve--actually president of the New York Federal Reserve--he has worked closely with Secretary Paulson and Federal Reserve Chairman Ben Bernanke in crafting the Government's response to the financial crisis. He knows firsthand what has worked and what has not, and is therefore best equipped to apply the remedies that will be most successful. He knows the issues and he knows the landscape and the tools available to address these problems.

Have our actions to date in responding to this economic calamity been perfect? Almost certainly not. Have mistakes been made? Yes, they undoubtedly have. Unfortunately, it is too early to assess with complete accuracy the effectiveness of our response to this complex and unprecedented situation. However, the fact that Mr. Geithner recognizes mistakes have occurred makes him more valuable, in my view, in the continuing effort to right our economic ship. I would rather have at the helm a battle-hardened veteran who knows the shoals and whirlpools than a neophyte who has to wade into these churning waters for the first time. It is imperative to the Nation to have a Treasury Secretary who won't sink or merely tread water but will swim. In my estimation, Mr. Geithner is that man.

Because of his experience at the Treasury and the Federal Reserve, and the fact that he has been working arm in arm with Secretary Paulson and Chairman Bernanke, Timothy Geithner is more aware of the complexities of the issues facing us than probably anyone else the President might have chosen. Moreover, he knows the financial markets and the counterpart officials to the Treasury Secretary around the world. That is evident from his experience in the Clinton administration as Under Secretary for International Affairs and the critical role he played in devising the successful United States response to the Asian financial crisis--not an easy thing to handle, and he did it amazingly well.

I am comfortable that despite the blemishes of his tax problem, Mr. Geithner should be confirmed to this vital position. The fact that this is an unprecedented and dangerous time makes it all the more imperative that we vote quickly on this nomination. I do not believe we have the luxury of leaving this position unfilled even another day. Rejecting this nominee would lead to a delay of weeks in getting our new executive branch economic team focused on the problems at hand. Such a delay could be hazardous to a timely turnaround to the financial and economic crisis. Moreover, rejection of Mr. Geithner brings about the very real risk that the next person the President might nominate could be less effective for the job, even if he or she had a spotless tax compliance record.

I might add for my fellow conservatives out there, who are very upset about this--some up in arms about it--you are not going to get a better person for this job than Mr. Geithner, and you better be darned happy that the President has been willing to go to somebody who is a lot less ideological than any of us ever expected in this very important position. It is one thing to raise the issues. It is one thing to decide to vote against him. It is another thing to not acknowledge that this is a man who could really help this country at this time.

Moreover, Mr. Geithner will not approach the job of Treasury Secretary from an ideological or partisan perspective. At least that is what he has told me, and I believe he is a man of honor. A less experienced and perhaps more partisan and ideological nominee could prove divisive here in the Senate, thus leading to even more delay, and, if confirmed, that person could find himself or herself engulfed in a maelstrom without the experience from which to navigate. Timothy Geithner, I am convinced, will steer clear of partisanship. I believe he will chart a course for bipartisan cooperation rather than embark on leftwing solutions that would divide the Congress and endanger our beautiful and wonderful country.

As I conclude my remarks, I feel constrained to point out what I see is a double standard, illustrated in this nomination. Having lived through the last 8 years with President Bush, I do not think there is any question that if this had been a Republican nominee with these same problems, many in the media and some on the left of this body would have reacted with such an outcry to the tax compliance issue that the President would have had no choice other than to withdraw the nomination. A Republican nominee in Mr. Geithner's position would not have even gotten a committee vote. We all have seen that. Time after time, some of the most qualified people were rejected, were not even given a chance. I do not believe that was the right thing done then, and I do not think it is the right thing now. I do think people in a principled fashion can vote one way or the other on Mr. Geithner, but I hope for the sake of our country they will vote to support him.

I believe that if Timothy Geithner is confirmed, it will largely be due to the fact that many on my side were willing to put partisanship to the side for the sake of what is best for the country at this time.

Looking forward, I see a real need for continued cooperation on a bipartisan basis. The current financial downturn affects all of us--everybody in America. I hope all Americans and their elected representatives can continue to put politics aside in our pursuit to find the best policies to help us out of this quagmire.

I expect we will be working closely with Timothy Geithner if he is confirmed today, as I expect he will be. Our expectations of him are very high. A less qualified or talented person might not have expected to survive this confirmation process. Even an equally gifted veteran might not have made it through a less turbulent and risky time.

Mr. Geithner, I just have to tell you, as you resume work on solving our thorniest financial problems, we send with you our best wishes even as we recall your pledge to give it your all because we are going to need everything you have.

Madam President, I reserve the remainder of my time.

I ask unanimous consent that a quorum call be entered and that all quorum calls during this debate on Mr. Geithner be equally charged to both sides.

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