Timothy Geithner and Wall Street

Up until his appointment and confirmation as U.S. Treasury Secretary, Timothy Geithner served as President of the New York Federal Reserve Bank.  What is the role of the New York Fed, you may ask?

from the NY Times: Becker and Morgenson, April 26, 2009:

"The Federal Reserve was created after a banking crisis nearly a century ago to manage the money supply through interest-rate policy, oversee the safety and soundness of the banking system and act as lender of last resort in times of trouble. The Fed relies on its regional banks, like the New York Fed, to carry out its policies and monitor certain banks in their areas.

The regional reserve banks are unusual entities. They are private and their shares are owned by financial institutions the bank oversees. Their net income is paid to the Treasury.

At the New York Fed, top executives of global financial giants fill many seats on the board. In recent years, board members have included the chief executives of Citigroup and JPMorgan Chase, as well as top officials of Lehman Brothers and industrial companies like General Electric.

In theory, having financiers on the New York Fed’s board should help the president be Washington’s eyes and ears on Wall Street. But critics, including some current and former Federal Reserve officials, say the New York Fed is often more of a Wall Street mouthpiece than a cop."

This begs the question:  Could Geithner's associations with former and current Wall Street CEOs and top-officials cloud his judgement in his official work on behalf of Main Street?  Or even worse?  Perhaps, Obama could have chosen a Treasury Secretary who could have avoided even the appearance of impropriety.  Realistically, this may have been difficult....but usually, if there is a political will, there is a way.