Geithner's Debut Gets Panned

There were no rave reviews for Treasury Secretary Timothy Geithner's presentation on Tuesday, Feb. 10, of the Obama Administration's "Financial Stability Plan."In fact, his comments were so poorly received that the stock market tanked later in the afternoon. The bulk of the criticism focused on Geithner's failure to provide details about what this phase of the government's efforts to revive the financial services industry actually would entail, his less-than-dynamic (and confidence-inducing) presentation style, as well as concerns that he is not taking a tough enough approach with the industry, especially regarding the future of failing banks.

Geithner provided a bit more insight, but still not much in the way of specifics, in an interview with NBC's Brian Williams. He stressed that, "Parts of our system are very strong ... it's important that we not tar [all banks] with the same brush." Easy for him to say! Watch the video:

Of course, Geithner is absolutely right that there are many well-managed, well-performing, customer-focused institutions, and those institutions no doubt are getting their respective houses in order so they can pounce on market opportunities as more banks fall by the wayside. But his statements come across more as empty platitudes and even avoidance of reality than as strategy. Honesty, objectivity, and meaningful action are what the public wants -- and the industry needs -- today.

Katherine Burger is Editorial Director of Bank Systems & Technology and Insurance & Technology, members of UBM TechWeb's InformationWeek Financial Services. She assumed leadership of Bank Systems & Technology in 2003 and of Insurance & Technology in 1991. In addition to ... View Full Bio