Sense on Cents

Jack Lew was confirmed yesterday to be the next Secretary of Treasury.

I am not impressed.

I questioned Lew’s qualifications early on when inquiring as to Who Should/Will Be The Next Treasury Secretary? Nothing I have seen or heard since has given me any greater degree of confidence in this appointment. If anything, I am less impressed now than before. Why so? Well, what exactly are the duties and functions of the US Treasury? From the US Treasury site, we learn the Secretary is charged with the following:

Maintain a strong economy and create economic and job opportunities by promoting the conditions that enable economic growth and stability at home and abroad, strengthen national security by combating threats and protecting the integrity of the financial system, and manage the U.S. Government’s finances and resources effectively.

Not exactly a small job.

Let’s navigate and review the background of the man who will follow in the footsteps of our first Treasury Secretary, Alexander Hamilton, to assess whether he is qualified to fill this role.  The White House site provides a not so critical look at Lew’s background, but we will give him the benefit of the doubt as we learn the following:

Jack Lew is President Obama’s former Chief of Staff. Prior to this role, he was the Director of the Office of Management and Budget (OMB), a position he previously held from 1998 to 2001.  Before returning to OMB in 2010, Lew was the first Deputy Secretary of State for Management and Resources, in which capacity he served as Chief Operating Officer of the department.

Chief of Staff? Typically regarded as an administration’s chief hammer in knocking people around to get things done. What does that have to do with creating economic opportunities and promoting job growth?

Lew’s early years were spent as a Congressional aide and adviser prior to a five year stint as a private attorney. His move back into public policy occurred early in the Clinton administration where he worked on the launching of the public service initiative Americorps and health care reform. From there he moved into the Office of Management and Budget, an office he ultimately led for the last two plus years of the Clinton administration.

I guess to this point, one might think that Lew is building a resume that might potentially qualify him for a more senior administration position. But Treasury Secretary? Please, not even close. His work after leaving Washington in 2001 strikes me as particularly unimpressive.

Lew served as Chief Operating Officer of Citi Global Wealth Management and Citi Alternative Investments from 2006 until returning to Washington to work in the State Department for the Obama team. COOs of this sort are, to coin a phrase, “a dime a dozen.” To think that an individual in that role might be Treasury Secretary a few short years later defies credulity.

Prior to his time at Citi, which many believe was more of a pit stop to pick up a check than anything else, Lew served as COO at New York University. Again, big deal.

Lew strikes me as an individual who has had a patchwork career with more of an emphasis on being a numbers/operations guy with a reputation as a hack/hammer than somebody who truly understands markets, finance, employment, and our economy.

Lew’s confirmation can be passed off here domestically because our media has long since foregone being serious when it comes to upholding the public interest. That said, in my opinion, Lew’s appointment sends a signal to the markets and especially international investors that the Obama administration is more concerned with advancing its well defined agenda of increased government intervention than actually promoting true, free market capitalism.

Jack Lew, Treasury Secretary and strong private sector economic programs?

Jack Lew, Treasury Secretary and strong dollar policy?

Really?

I think Alexander Hamilton just rolled over.

Thoughts, opinions, constructive criticism encouraged and appreciated.

Larry Doyle

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I have no business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.

This entry was posted on Thursday, February 28th, 2013 at 9:13 AM and is filed under General, Jack Lew, Obama Administration. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.