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Succession at Treasury Emerges as Key Question
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"I think we are going back to the old model of Treasury secretary, who is the chief economics spokesperson and the chief economic guru of the administration," Duberstein said. "You need to have someone of stature, somebody who has the confidence of Wall Street, somehow has the confidence of Main Street and also Pennsylvania Avenue -- both ends."
Several Republicans see John McCain tapping close friend John A. Thain, the former head of the New York Stock Exchange whose stock rose when he sold his firm, Merrill Lynch, at a premium price to Bank of America just before last week's turbulence hit the markets.
Other possibilities include former Massachusetts governor and presidential candidate Mitt Romney and former Sen. Phil Gramm of Texas, but lawmakers say both men could be lightning rods for the Democrat-controlled Senate and remain unlikely choices.
Washington insiders also named New York Mayor Michael Bloomberg as someone who has the financial experience to be Treasury secretary and could work with both parties. But they question whether Bloomberg would leave Gracie Mansion to take a Cabinet position.
Whoever takes up the mantle will have plenty of help from the Treasury, said Jim Wilkinson, Treasury's chief of staff. Wilkinson is leading a five-member transition team to compile an inside account of every decision that was made at the Treasury during the credit crisis as well as detailed instructions on who to call at foreign governments around the world. Paulson has said that he would also advise his successor.
Rep. Barney Frank (D-Mass.) said it is not unusual to have a leadership change at the Treasury during a crisis and that with Bernanke and Geithner continuing their roles in government, the transition should be smooth.
"If the new president designates someone early on, then I think this is a very manageable situation," Frank said. "Unless John McCain decides to appoint someone ideological like Phil Gramm, then all bets are off. But to this point there haven't been major ideological battles over how to respond to the credit crisis."
Warren E. Buffett, the Omaha-based investing guru and a director of The Washington Post Co., said he has a suggestion for who would make a good Treasury secretary in the next administration: Paulson.
"You couldn't have any better guy," Buffett said on CNBC. "The important thing is that if this program extends into the next administration is to have somebody in the next administration that has similar market savvy."
Buffett on Tuesday made a $5 billion investment in Goldman Sachs -- Paulson's old firm -- and said he is betting that the administration's bailout proposal will pass.
