Tim Geithner May Be Looking for a New Job Soon

With the announcement last week of President Obama's 'Volker Rule' to reign in risk on Wall Street, it appeared to many watchers that Treasury Secretary Tim Geithner's role with the administration has been diminished. As head of the Treasury, it would be expected that Geithner would take the lead on the proposal but indications are that he played only a minor role with Paul Volcker and Bill Donaldson taking the lead.

Now Geithner is under fire for his role in the 2008 bailout of AIG (NYSE: AIG), when he was head of the New York Fed. Geithner will testify Wednesday on Capitol Hill following the release of more e-mails on the AIG bailout. Former Treasury Secretary Hank Paulson will also testify at the hearing.

Congress is examining whether the New York Fed acted improperly when they paid out $27 billion, or 100 cents on the dollar, to AIG CDO counterparties including Société Générale and Goldman Sachs (NYSE: GS).

Today, Representative Darrell Issa (R-CA) had some harsh words for Geithner. Speaking with FOX Business Network's Stuart Varney, Issa said Geithner, "cost us $62 billion that we're not going to get back." He believes that if Secretary Geithner's job depended on a vote in Congress, like Federal Reserve Chairman Ben Bernanke, he wouldn't keep his job.

With Geithner playing only a minor role in the new proposals to regulate banks, Obama appears to be signaling that he doesn't want to be too closely attached to Geithner any longer. Now as AIG goes into the spotlight again, Geithner could become politically tainted.

Speculation that Geithner is on his way out is at a all time high. It will likely only continue to grow.

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