President Barack Obama

It is reported that president-elect Barack Obama has chosen Timothy Geithner, currently head of the New York Federal Reserve, to be his Treasury secretary, at a time when U.S. financial markets are descending with alarming rapidity. The 47-year-old Geithner has been speculated on as one of Obama’s top picks for Treasury since the November 4 election.

The stock market, after suffering unprecedented losses earlier in the week, entered a rally with the news that Timothy Geithner would be heading the Treasury Department. Many in the financial community view Timothy Geithner as the ideal person to spearhead the incoming Obama administration’s response to the global economic crisis.

The news of Geithner’s appointment comes at a time when reports suggest that Citibank may be up for sale, after suffering staggering losses. Meanwhile, the domestic auto companies continue to stand on a cliff, being a knife’s edge from insolvency.