It has long been clear that Treasury Secretary Timothy Geither was set to leave his position by the end of the month.
Now several sources are saying that the current Chief of Staff at the White House, Jack Lew, is taking over the helm.
This is an interesting choice, considering Lew's tenure at Citigroup. At the bank he was head of Citigroup's Alternative Investments unit, which is a proprietary trading group. That means he bet Citigroup's own money on financial bets.
One of these bets were famously against the US housing market.
From Mother Jones:
Multi-Adviser Hedge Fund Portfolios LLC was a unit of Alternative Investments' Hedge Fund Management Group, the 36th-largest such "fund of hedge funds" in the world when Lew came aboard, according to a ranking by Alpha magazine, a publication that covers the hedge fund industry.
That Multi-Adviser fund in particular had $407 million by the end of 2007, a week before Lew was named as Alternative Investments' chief operating officer…At that time, it had $18 million invested in Paulson Advantage Plus LP, worth $26.4 million, comprising about 6.5 percent of the Multi-Adviser fund's total capital.
The Paulson fund was run by hedge fund king John Paulson, the man who made billions off the deterioration of the housing industry by making bearish bets on securities tied to home mortgages—particularly subprime home mortgages.
Under Lew, the Multi-Adviser fund doubled its investment in Paulson's fund to nearly $42 million by March 2008; by the next quarter, it'd cranked that investment up to just over $60 million, making it the biggest piece of the Multi-Adviser fund, Nasiripour reported.
Eventually the unit lost a lot of money. In the first quarter of 2008 it lost well over 0.5 billion dollar. Then the bank stopped reporting for that group.
It's an interesting hire...