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People have been wondering when Tim Geithner would leave Treasury almost since he started the job in the middle of a horrible financial crisis. Now, with yesterday's news that Tim Geithner will not stay on for a second term if President Obama wins in November, we know when Geithner plans to leave. And with that, speculation of who will replace him is inevitable. ____________________________________ Sheryl Sandberg The "grown up" at Facebook is said to be on the short-list. She certainly represents the best of American business right now, and given her experience at Facebook almost certainly has the temperament for...

The Treasury on Tuesday started dipping into federal pension funds in order to give the Obama administration more credit to pay government bills. "I will be unable to invest fully" the federal employees retirement system fund beginning Tuesday, Treasury Secretary Timothy Geithner said in a letter to Democratic and Republican leaders in Congress. The House of Representatives is expected to vote on Wednesday on the Obama administration's request to raise the country's legal debt limit to $16.394 trillion.

The Treasury Department has been disclosing financial information about bailout programs in press releases only if the initiatives are expected to bring money in to the government, a new federal audit has found. The Government Accountability Office found that financial information for Troubled Asset Relief Program initiatives that are projected to cost the government money long-term – like the injection of capital into the American International Group – were not included in Treasury releases. “Although press releases for programs expected to result in a cost to Treasury provide useful transaction information, they exclude lifetime, program-specific cost estimates,” G.A.O., Congress’ investigative...

You didn't think US consumer confidence could be bought for free now did you? U.S. TREASURY SAYS DEBT LIMIT TO BE RAISED BY $1.2 TRILLIONU.S. DEBT TO BE $100 BLN WITHIN LIMIT ON DEC. 30, TREASURY SAYSSTEPS FOR INCREASING DEBT LIMIT UNDER 2011 BUDGET CONTROL ACT And the piece de resistance that 100% debt to GDP brings: OBAMA ON DEC. 30 LIKELY TO ASK CONGRESS TO RAISE DEBT LIMIT Just as we thought the circus was over if only for a few weeks. Also, this means that in a few days, the US debt ceiling will be raised from...

WASHINGTON (Reuters) - The White House plans to ask Congress for an increase in the debt limit before the end of the week, according to a senior Treasury Department official. The debt limit is projected to fall within $100 billion of the current cap by December 30. President Barack Obama is expected to ask for additional borrowing authority to increase the limit by $1.2 trillion. Under the new budget, Congress can only vote to block the debt-ceiling extension with a disapproval resolution. Lawmakers have 15 days within receiving the request to vote down the debt limit increase. The debt limit...

Operation Fast and Furious and other alleged gunwalking operations run out of the Department of Justice have provided thousands of weapons to Mexican drug cartels, which have been traced to the murders of hundreds of Mexican nationals and two U.S. federal agents. It is a contender for worst political scandal in American history, despite a concerted effort by media to minimize or even apologize for the damage done. The scope of the scandal may have gotten significantly worse. Reports have emerged that while the FBI and ATF were arming cartels, the DEA was laundering and smuggling millions of dollars in...

The Daily, the tablet newspaper, named one of the women who filed a sexual harassment claim against Republican front-runner Herman Cain while he was CEO of the National Restaurant Association. The woman, identified by the paper as Karen Kraushaar, now works as communications director at the Treasury Department's Office of the Inspector General.Cain has sought to downplay the charge — calling it frivolous — saying she overreacted to a gesture comparing her height to his wife's.But the paper spoke to friends and family members of Kraushaar who vouch for her honesty — saying she is not the type to bring false allegations.“She wouldn’t...

Last year, as a debate over the runaway national debt gathered steam in Washington, Social Security passed a treacherous milestone. It went “cash negative.” For most of its 75-year history, the program had paid its own way through a dedicated stream of payroll taxes, even generating huge surpluses for the past two decades. But in 2010, under the strain of a recession that caused tax revenue to plummet, the cost of benefits outstripped tax collections for the first time since the early 1980s. Now, Social Security is sucking money out of the Treasury. This year, it will add a projected...

Planet Money has obtained a secret government report outlining what once looked like a potential crisis: The possibility that the U.S. government might pay off its entire debt.It sounds ridiculous today. But not so long ago, the prospect of a debt-free U.S. was seen as a real possibility with the potential to upset the global financial system.We recently obtained the report through a Freedom of Information Act Request. You can read the whole thing here. (It's a PDF.)The report is called "Life After Debt". It was written in the year 2000, when the U.S. was running a budget surplus, taking...

Sitting at the center of the Solyndra scandal is an off-balance-sheet bank at the Treasury Department that dates back to 1973. This little-known government bank, the Federal Financing Bank [FFB], had a zero balance in 2008 for green energy projects, but now, with little Congressional oversight, it is giving out billions of dollars in loans to White House pet projects often at dirt-cheap interest rates below 1%. In July alone, the government bank, which had $61 billion in assets, lent nearly three quarters of a billion dollars in taxpayer funds with no Congressional checks and balances. Plus the bank is...

WASHINGTON, DC – Energy and Commerce Committee Chairman Fred Upton (R-MI) and every member of the Subcommittee are seeking all documents... between DOE and the White House (including, the White House Office of Energy and Climate Change Policy, the Council on Environmental Quality, and the National Economic Council)... setting a deadline of September 28, 2011.

...Geithner is expected to attend the euro zone meeting on Friday and then return to Washington. The Treasury said on Monday only that he will discuss efforts to boost global recovery and cooperate on financial regulation, but U.S. attention is focused on risks posed by potential European debt contagion. The danger that a Greek debt default could roil bigger European economies was underlined on Monday as heavily exposed French banks' shares plunged and investor confidence in the euro zone's ability to surmount a sovereign debt crisis ebbed. Underscoring concerns by the United States about the global economic dangers from Europe's...

Aug 11 (Reuters) - The U.S. Treasury sold $16 billion worth of 30-year long bonds at a poorly received auction on Thursday, with investors showing the weakest overall demand in 2-1/2 years and foreigners largely steering clear. [Snip] Investors submitted bids worth 2.08 times the amount on offer, the lowest since February 2009. A measure of foreign demand -- the indirect bidder category -- accounted for just 12 percent of the sale, the lowest since February 2008.

Treasury reports $1.09T deficit through JulyBy Erik Wasson - 08/10/11 03:13 PM ET The Treasury Department on Wednesday reported the nation has run a $1.099 trillion budget deficit through July. The deficit is about $70 billion less than last year's budget deficit at this point in the fiscal year. The reason is higher government revenues, the Treasury statement said. Total spending has increased this year from $2.921 trillion to $2.992 trillion, but receipts to the government are up from $1.753 trillion to $1.893 trillion. The fiscal year ends on Sept. 30. The latest figures on the budget deficit come after...

The Treasury Department sold $32 billion in 3-year notes Tuesday at a yield of 0.5%, the lowest yield ever for the maturity. Bidders offered to buy 3.29 times the amount of debt sold...

Ok, someone please explain this one to us because we must be a little slow. Wasn't the whole thing with the debt ceiling hike such that no more Congressional melodramas would have to be inflicted upon the population until after Obama [won|lost] the 2012 elections? Because according to the one again exponentially increasing debt balance of the US Treasury (there is another $51 billion in debt/cash coming in next week), the total US treasury balance (subject to the ceiling) is $14.54 trillion (and $14.58 trillion for total), an increase of $20 billion overnight, the Treasury will hit its latest ceiling...

It’s laugh-out-loud funny to hear the Obama administration’s all out assault on S&P’s math skills. According to the administration, if the downgrade in America’s credit rating is not the fault of the Tea Party (apparently for demanding the very spending cuts the political class’s refusal to make prompted the downgrade), it must be due to what the administration calls S&P’s “colossal” $2 trillion error — indicative, Treasury’s Turbo Tim Geithner told NBC News, of the rating agency’s “stunning lack of knowledge about basic U.S. fiscal budget math.” It couldn’t possibly be President Obama’s outer-worldly spending spree, right? It couldn’t possibly...

It was about time the president weighed in with a statement about the U.S. credit rating downgrade by Standard & Poor’s. And that’s not just because the reporters in the room were getting antsy after the president was 50 minutes late getting started. Rather, Obama’s press briefing Monday afternoon about the Standard & Poor’s downgrade came after a weekend in which the primary messaging strategy from the White House seemed to be excuses. Following a bizarre back and forth Friday evening in the news over whether the ratings agency got its math right—a “has it really come to this?” moment...

After months of speculation that Treasury Secretary Timothy Geithner would step down after the debt ceiling was raised, he told the President on Friday that he would stay. "Secretary Geithner has let the president know that he plans to stay on in his position at Treasury," according to a statement issued by Assistant Secretary for Public Affairs Jenni LeCompte. "He looks forward to the important work ahead on the challenges facing our great country." "The President asked Secretary Geithner to stay on a Treasury and welcomes his decision," said White House Press Secretary Jay Carney. Geithner was heavily involved in...

Markets react to ratings cuts in the U.S.STORY HIGHLIGHTS NEW: Investors are weighing both the downgrade and the Investors are waiting anxiously for major world markets to open for Monday trading, following the U.S. credit rating downgrade to AA+ from the top rank of AAA. Stock futures tumbled more than 2% at the start of electronic trading Sunday, signaling a nasty investor reaction According to data from the Chicago Mercantile Exchange, S&P 500 futures fell 30 points, or 2.7%. Nasdaq-100 futures contracts slipped 54 points, or 2.5%. Dow Jones industrial average futures were 292 points, or 2.6%, lower. The futures...

U.S. Treasury debt is as safe as it was before a Standard & Poor's rating downgrade of the United States and Congress' "damaging" debate over raising the country's debt limit, Treasury Secretary Timothy Geithner said on Sunday. Geithner, in an interview with NBC/CNBC television, also called on European leaders to ensure that there is an "unequivocal financial backstop" for euro zone governments facing fiscal and debt problems. He added that a double-dip recession was unlikely if governments and central banks made good decisions. Asked whether Treasuries were as safe now as they were last week, Geithner replied: "Absolutely. And the...

Treasury Secretary Timothy Geithner has told President Barack Obama that he intends to stay on the job, Treasury said in a statement on Sunday afternoon. "Secretary Geithner has let the president know that he plans to stay on in his position at Treasury," Assistant Treasury Secretary Jenni LeCompte said. "He looks forward to the important work ahead on the challenges facing our great country." Geithner had indicated he might leave after a debt-limit increase was approved, but administration officials indicated that both Obama and the White House chief of staff had urged Geithner not to leave now.

The first official demand for a change at the top as a result of the S&P downgrade has come in, courtesy of Indiana State Treasurer Richard Mourdock, who has just demanded the head of the most incompetent and tax evading Treasury Secretary in US history, on a silver platter. "President Obama should fire U.S. Secretary of the Treasury Tim Geithner over the debt downgrade. If Obama won't remove him, then the US Senate should withdraw its consent of Geithner's appointment to U.S. Treasury because someone in the White House needs to be held responsible for this disaster." Zero Hedge fully...

The decision by credit agency Standard and Poor’s to downgrade America’s AAA credit rating for the first time in 70 years is a massive blow to the credibility of the Obama administration, and a damning indictment of its handling of the economy. No doubt the White House will pathetically try to blame the Bush Administration, Republicans in Congress, and of course its favourite target, the Tea Party, for the move by S&P. But without a shadow of a doubt, responsibility for the country’s financial mess and staggering levels of debt lie with the current US president and his administration. They...

WASHINGTON (AP) - President Barack Obama sought to distance himself Saturday from the bad news of the nation's first-ever credit-rating downgrade, but lawmakers and presidential candidates showed no such reticence—trading salvos over who's at fault and why. The president, spending the weekend at Camp David, left it to press secretary Jay Carney to say it's clear Washington "must do better" in tackling soaring deficits and other economic woes. A statement from Carney said talks that produced Tuesday's $2 trillion compromise on raising the U.S. borrowing limit had been too drawn-out and "divisive." But the statement didn't directly address Friday's move...

U.S. AAA credit rating DOWNGRADED for first time in history after Obama's debt deal Unprecedented move will send shockwaves globally S&P cuts long-term credit rating from AAA to AA+ Borrowing costs for consumers and government to rise Comes after Obama signed bill to reduce fiscal deficit By Daily Mail Reporter Last updated at 1:08 PM on 6th August 2011 The U.S. has lost its top-notch AAA credit rating from Standard & Poor's in an unprecedented reversal of fortune for the world's largest economy. S&P cut the long-term U.S. credit rating by one notch to AA+ on concerns about the government's...

The Obama administration attacked the credibility of the analysis underlying Standard & Poor's decision to downgrade the United States' top credit rating on Friday, saying it had found a $2 trillion error. S&P was forced to remove the number from its analysis after Treasury officials discovered that the rating agency's estimates of the government's discretionary spending was $2 trillion too high, sources familiar with the discussions said.

The Obama administration angrily responded to Standard & Poor's decision Friday to downgrade the U.S. credit rating, with one senior official saying the agency's "analysis was way off." U.S. Treasury officials received S&P's analysis Friday afternoon and alerted the agency to an error that inflated U.S. deficits by $2 trillion, said the administration official, who was not authorized to speak for attribution. The agency acknowledged the mistake, but said it was sticking with its decision to lower the U.S. rating from a top score of AAA to AA+. "This is a facts-be-damned decision," the official said. "Their analysis was way...

• We have lowered our long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA' and affirmed the 'A-1+' short-term rating. • We have also removed both the short- and long-term ratings from CreditWatch negative. • The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics. • More broadly, the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time...

(CBS/AP) Following the news Friday of Standard and Poor's downgrade on the U.S. debt, several politicians from both sides of the aisle offered their reactions. Democratic Senate Majority Leader Harry Reid released a statement: "This makes the work of the joint committee all the more important, and shows why leaders should appoint members who will approach the committee's work with an open mind -- instead of hardliners who have already ruled out the balanced approach that the markets and rating agencies like S&P are demanding." Reid was referring to the special bipartisan congressional committee -- made up of six Democrats...

NEW YORK (Reuters) - The United States lost its top-notch AAA credit rating from Standard & Poor's on Friday, in a dramatic reversal of fortune for the world's largest economy. S&P cut the long-term U.S. credit rating by one notch to AA-plus on concerns about growing budget deficits. U.S. Treasuries, once undisputedly seen as the safest investment in the world, are now rated lower than bonds issued by countries such as the UK, Germany, France or Canada.

Standard & Poor’s took the unprecedented step of downgrading the U.S. government’s “AAA” sovereign credit rating Friday in a move that could send shock waves through global. The following is a press release from Standard & Poor’s: – We have lowered our long-term sovereign credit rating on the United States of America to ‘AA+’ from ‘AAA’ and affirmed the ‘A-1+’ short-term rating. – We have also removed both the short- and long-term ratings from CreditWatch negative. – The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in...

The United States lost its top-notch AAA credit rating from Standard & Poor's on Friday in an unprecedented reversal of fortune for the world's largest economy. S&P cut the long-term US credit rating by one notch to AA-plus on concerns about the government's budget deficits and rising debt burden. The move is likely to raise borrowing costs eventually for the US government, companies and consumers. "The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics,"...

Earlier today, Standard & Poor’s rating agency lowered the long-term rating of the U.S. government and federal agencies from AAA to AA+. With regard to this action, the federal banking agencies are providing the following guidance to banks, savings associations, credit unions, and bank and savings and loan holding companies (collectively, banking organizations). For risk-based capital purposes, the risk weights for Treasury securities and other securities issued or guaranteed by the U.S. government, government agencies, and government-sponsored entities will not change. The treatment of Treasury securities and other securities issued or guaranteed by the U.S. government, government agencies, and government-sponsored...

The US Treasury has hit back against a Standard and Poor's downgrade of its AAA credit rating, saying there was a $2 trillion dollar error in the agency's calculations. "A judgment flawed by a 2 trillion dollar error speaks for itself," a Treasury spokesman said, just after the US lost its AAA rating for the first time ever and was downgraded to a AA+. *snip* Moody's and a third ratings agency, Fitch, say they continue to study the deficit plan to see if the US merits being kept in their ranks of AAA countries. Earlier, an official close to the...

NEW YORK (Reuters) - The United States lost its top-notch AAA credit rating from Standard & Poor's on Friday, in a dramatic reversal of fortune for the world's largest economy. S&P cut the long-term U.S. credit rating by one notch to AA-plus on concerns about growing budget deficits. U.S. Treasuries, once undisputedly seen as the safest investment in the world, are now rated lower than bonds issued by countries such as the UK, Germany, France or Canada

Two government officials tell ABC News that the federal government is expecting and preparing for bond rating agency Standard & Poor’s to downgrade the rating of US debt from its current AAA value. Official reasons given, one official says, will be the political confusion surrounding the process of raising the debt ceiling, and lack of confidence that the political system will be able to agree to more deficit reduction. A source says Republicans saying that they refuse to accept any tax increases as part of a larger deal will be part of the reason cited. The official was unsure if...

NEW YORK (AP) -- Prices for Treasury securities jumped Thursday, sending the yield on the two-year note to a record low, as investors rushed to U.S. government debt in search of safety. Stocks tumbled around the world on worries that the U.S. economy is weakening and that Europe's debt problems are getting worse. The Dow Jones industrial average fell 513 points, its biggest drop since December 2008. The yield on the two-year Treasury note fell to 0.26 percent, a record low. Late Wednesday it was 0.34 percent. Bond yields fall when demand for them increases. That means traders are willing...

WASHINGTON — Timothy F. Geithner, the Treasury secretary and dean of President Obama’s economic team, is expected to stay through the president’s term after intense White House pressure, according to officials familiar with the discussions. But Mr. Geithner has not yet notified the White House of his intentions, and family considerations could still win out, advisers say. Speculation from Washington to Wall Street has intensified because Mr. Geithner, the only holdover at the center of Mr. Obama’s original economic circle, said a month ago that he would decide on his future after the White House and Congress reached a deal...

After the resolution of the debt-ceiling impasse, rumors have been flying that the last senior member of Barack Obama’s original economic team will call it quits. Treasury Secretary Tim Geithner refused to answer questions about his plans yesterday on ABC’s Good Morning America, which doesn’t exactly sound like a man planning on staying in the job much longer: Speculation is rife in Washington that Geithner, who has outlasted all of President Obama’s other original economic advisors, will resign now that the nation’s borrowing capacity has been extended to 2013 and a 10-year, $2.1 trillion deficit-reduction agreement enacted.Geithner’s consideration of a...

For some members of Congress, the debate over the debt ceiling has more than political implications. For those with investments in U.S. Treasury notes, bonds and bills, there's a bit of a personal skin in the game too. In 2010, at least 14 veteran members of Congress personally owned a portion of the U.S. debt, according to a Center for Responsive Politics review of congressional personal financial disclosure reports.>Some members of Congress hold as little as $1,000 in these types of assets, while others hold upwards of many millions. Disclosure reports only require members of Congress to list assets in...

Moody's Investors Service on Tuesday confirmed its triple-A rating of the United States, citing the decision to raise the debt limit, but kept the pressure on the government to move toward a long-term fiscal consolidation plan. The ratings agency affirmed the United States' triple-A rating after congressional lawmakers agreed to raise the country's debt ceiling , which will allow the Treasury to keep servicing U.S. debt obligations. It assigned a negative outlook on the rating, however, in a sign that a downgrade is still possible in the next 12 to 18 months. In a statement, Moody's said there would be...

Wiedemer: US Treasurys Now a ‘Toxic Asset,’ Debt Deal Won’t Fix It Saturday, 30 Jul 2011 04:13 PM By Forrest Jones and Ashley Martella The United States may lose its AAA rating by defaulting on its debt and it will be very hard to get that rating back, says Robert Wiedemer, financial commentator and best-selling author of "Aftershock." Lawmakers are at an impasse on agreeing on terms to lift the government's $14.3 trillion debt ceiling and avoid an Aug. 2 default. Republicans and Democrats want to lift the ceiling but disagree on how to reduce the deficit in exchange for...

...One other factor that could lift bond prices is that Treasury could be forced to stop selling new bonds, which would limit the supply available for investors. Limiting supply typically helps to lift prices. Thursday's auction of 7-year Treasuries came in with a yield of 2.25%, the lowest rate Treasury has had to pay for notes of that term since last November.

The U.S. Treasury Department said it will meet with primary-market dealers in New York on Friday as part of regularly scheduled meetings ahead of next week's quarterly refunding announcement. Treasury is due to announce next week its borrowing needs for the current quarter and its plans for selling debt to meet those needs. But the political debate over whether to raise the $14.3 trillion debt ceiling has thrown into question how Treasury can sell more debt. The meeting on Friday will include all 20 primary dealers. Normally Treasury meets half of the key Wall Street dealers in individual sessions ahead...

On August 2, the federal government will not have enough cash to pay for all of its programs and obligations. The U.S. will take in a total of $172.4 billion in revenue during the month, but its total payments exceed $306 billion, resulting in a $134 billion shortfall.

The U.S. Treasury will give priority to making interest payments to holders of government bonds when due if lawmakers fail to reach an agreement to raise the debt ceiling, according to an administration official. The official requested anonymity because no announcement has been made. The Treasury has said about $90 billion in debt matures on Aug. 4 and more than $30 billion in interest comes due Aug. 15. Overall, more than $500 billion matures in August. Six-month Treasury bills maturing Aug. 4 pared losses after the comments. Obama administration officials will brief the public no earlier than after financial markets...

The White House insists the U.S. government will not be able to stay current on all of its obligations as of Aug. 2 unless the debt ceiling is raised. But can the government of the United States ever really run out of money? The question is a bit more complex than it might seem. In some ways the government really is like every ordinary American family. It has a bank account. Every day the funds in that account grow by the amount of deposits that are made and shrink by the amount of withdrawals. At the start of the day...

WASHINGTON — The Treasury Department is preparing to answer a question that it has dodged and rebuffed for months: If there’s not enough money for everyone, who is left empty-handed? Officials said Wednesday that the department would address the issue later this week unless it became clear that Congress would vote by Aug. 2 to let the government borrow more money. The outlines of the answer, however, already are clear. Officials have said repeatedly that Treasury does not have the legal authority to pay bills based on political, moral or economic considerations. It cannot, for instance, set aside invoices from...

A congressional panel is examining whether the Obama administration tried to unduly influence Standard & Poor's before the credit rater revised its outlook on the debt rating to negative. Randy Neugebauer, the Republican chairman of a House oversight panel, said on Wednesday his staff is probing whether Treasury tried to make material changes to a draft of S&P's news release announcing the negative outlook revision in April. "Our concern was if the administration was trying to influence this rating decision some -- above what would be a normal practice," Neugebauer told reporters after a hearing examining oversight of the credit...