BUSINESS

Senate Likely To Grill Geithner On Bailout, Lehman Involvement

01/18/2009 05:12 am ET | Updated May 25, 2011

As president of the New York Federal Reserve Bank, Geithner has worked hand-in-glove with Fed Chairman Ben Bernanke and Treasury Secretary Henry Paulson in putting in place a stunning array of emergency measures to prop up the financial system.

He was also heavily involved in the widely condemned decision to let investment bank Lehman Brothers fail, which sent the already fragile financial system into a steep downward spiral.

"He'll get roughed up ... for letting Lehman fail, and for the Fed not doing more to minimize (home) foreclosures," a senior Senate Democratic aide said. Still, the aide predicted the nomination would get through the Senate, which must sign off on it, with relative ease.

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