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Remember This?: US shares surge as Geithner named Treasury Secretary - 2008

US stock markets surged last night on the news that President-elect Barack Obama has picked a new Treasury Secretary to guide the country through the economic crisis.

By Rowena Mason

10:59PM GMT 21 Nov 2008

A Democratic aide said Timothy Geithner, president of the Federal Reserve Bank of New York would be nominated after Mr Obama takes office in January.

Mr Geithner has played a major role in overseeing the government decisions to take over American International Group (AIG), rescue Bear Stearns and leave Lehman Brothers to fail.

As a Treasury Department official during the Clinton administration, Mr Geithner dealt with international financial crises and played a major part in negotiating assistance packages for South Korea and Brazil.

Mr Obama reportedly plans to announce the appointment in Chicago on Monday, pending his background check.

If nominated and confirmed by the Senate, Mr Geithner, 47, would assume chief responsibility for tackling the economic slowdown.