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| President-elect Obama’s top cabinet priority is U.S. Treasury secretary. The new administration faces tumultuous financial markets but has a massive fund with which to deal with them.U.S. Sen. Barack Obama has been elected U.S. president, with 62.7 million Americans representing 52 percent of the popular vote casting their ballots for the Illinois Democrat versus 55.5 million for 46 percent who voted for opponent U.S. Sen. John McCain, according to data reported early Wednesday. The more important Electoral College vote came in a 349 to 147 in favor of Obama.
Among his most urgent appointments will be U.S. Treasury secretary — which has been a key figure in the final days of the Bush administration. The cabinet post requires Senate confirmation. One possibility would be asking current Secretary Henry M. Paulson Jr. to stay on, though Paulson has already indicated he has no plans to stay in the post beyond the current administration. Paulson, who cashed out $500 million in Goldman Sachs’ shares in 2006 when he left his job as chairman and chief executive officer of the Wall Street firm to join the Bush administration, guided emergency legislation rapidly through Congress during a period where global financial systems were extremely stressed. But whomever Obama chooses will need to have street knowledge of mortgage securities and derivatives. Once the government is done purchasing equity positions in financial firms with funds from the $700 billion Troubled Asset Relief Program, some of the remaining capital will be used to purchase mortgage assets — a move that could be a boon for real estate finance. Among Treasury secretary possibilities mentioned by USNews.com was JPMorgan Chase & Co. chief Jamie Dimon — who has largely steered his iconic Wall Street firm clear of the major losses hitting its peers. JPMorgan and Bank of America Corp. have both been among the most healthy financial institutions during the current turmoil and have grown through acquisitions at depressed prices. Obama has been spending much time with former Federal Reserve Chairman Paul Volker. A possible nominee, Volker served during both the Carter and the Reagan administrations. The New York Times suggested New York Federal Reserve President Timothy Geithner could become Treasury Secretary in an Obama administration. Obama has also indicated billionaire Warren Buffet would be an excellent choice, though Buffet himself has not indicated a desire to take on such a responsibility. Buffet, who has recently been ranked as the richest man in the world, has the respect of U.S. leaders and gives away much of his wealth through the Bill and Melinda Gates Foundation. Another cabinet position important to the mortgage industry is the secretary of the Department of Housing and Urban Development — which will be covered in a subsequent article. |
