Former U.S. Treasury Secretary Timothy Geithner is officially moving on. Geithner, who played a key role in the government’s response to the 2009 financial crisis, is joining private equity firm Warburg Pincus LLC as president and managing director. Geithner served as leader of the Federal Reserve Bank of New York for five years before becoming Treasury secretary in 2009. He stepped down in late January and was the last of President Obama’s original economic advisers to leave the administration.
"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."
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.