Tuesday, 25 October 2016
Last updated 27 min ago
Sep 27 2013 | 10:27am ET
If hedge funds can't have Lawrence Summers heading the Federal Reserve, they'd like to see one of his successors as U.S. Treasury secretary take the helm at the central bank.
Timothy Geithner's name was on many lips at the SkyBridge Alternatives Conference in Singapore this week. Geithner, who served as Treasury secretary during President Barack Obama's first term, spoke a the event on Wednesday.
Geithner's discussion was closed to the press, but he offered "measured comments" and avoided discussion of his own interest in succeeding Ben Bernanke at the Fed. Geithner has previously said he has no interest in returning to Washington, D.C.
"There was a strong feeling that if [Geithner] decided to take the Fed job, everybody here in Singapore believed it would be the most bullish thing for markets, for continuity of Fed policy," Gary Kaminsky, vice chairman of Morgan Stanley Wealth Management, told CNBC. There was a "big, unanimous decision" among the hedge fund managers present that "they'd like to see" Geithner, who served as president of the New York Federal Reserve Bank during the financial crisis, "take that job if offered."
There is currently no indication that it will be: Fed Vice Chairwoman Janet Yellen is still seen as the favorite for the post, following Summers' withdrawal from consideration. Earlier this week, Highbridge Capital Management co-founder Glenn Dubin and Avenue Capital Group chief Marc Lasry told a Bloomberg summit that Summers would have made a "great" Fed chairman.