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 The firm announced Saturday that Geithner will serve as its
president and managing director starting March 1.
Geithner led the Federal Reserve Bank of New York for more than five
years before becoming Treasury secretary in 2009, when the economy
had sunk into a deep recession.
Few Treasury secretaries received as much scrutiny. Supporters
credited Geithner with helping prevent the recession from spiraling
into a second Great Depression by stabilizing the banking system and
restoring investor confidence. Critics said he was too cozy with
Wall Street.
Warburg Pincus said that Geithner would advise the firm on strategy,
investing, investor relations and other topics. The New York-based
firm has been involved in buyouts of such well-known companies as
luxury department store chain Neiman Marcus and contact lens maker
Bausch + Lomb.
The firm declined to comment on Geithner's compensation. Through an
aide, Geithner declined an interview request.
Geithner, 52, stepped down from Treasury in late January, days after
President Barack Obama was sworn in for a second term. He was the
last of Obama's original economic advisers to leave the
administration, and was succeeded as Treasury secretary by Jack Lew.
In an interview with The Associated Press on his last day in office,
Geithner said that the economy was "stronger than people appreciate"
and predicted a pickup in growth. He defended his role in bailouts
for large banks — steps designed to stabilize the financial system —
but acknowledged that he would never win over his critics because it
was hard to convince people about the dangers posed by the financial
crisis.
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The official who oversaw taxpayer bailouts of the banks, for
example, criticized Geithner for allowing insurance giant American
International Group to pay huge bonuses to executives. AIG got the
biggest bailout of the financial crisis.
Geithner's appointment calendar from 2009 detailed his extensive
contacts with CEOs of Goldman Sachs, JPMorgan Chase and Citigroup.
Since leaving office, Geithner signed a deal with Random House's
Crown Publishers to write a behind-the-scenes book about the
response to the economic crisis and has given speeches.
Geithner has spent most of his career in government, although he had
an early stint at Kissinger Associates, the consulting firm formed
by former Secretary of State Henry Kissinger. Geithner joined the
Treasury Department in 1988 and served as undersecretary for
international affairs during the Clinton administration. He worked
at the International Monetary Fund from 2001 until 2003 before being
named president of the New York Fed.
Private equity firms pool money from clients such as pension funds
and other institutional investors to buy companies or stakes in
companies. They try to improve the financial results of a company
with the goal of reselling it at a profit.
[Associated
Press; DAVID KOENIG, AP Business Writer]
Copyright 2013 The Associated
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