Oct. 6 (Bloomberg) -- John McCain and Barack Obama are bringing different criteria to the choice of Treasury secretary, arguably the next administration's most powerful post, with the Republican candidate looking for a big name and the Democrat seeking someone to reassure markets.

McCain in a Reuters interview last week mentioned Warren Buffett, the 78-year-old billionaire who supports Obama and his proposal to increase taxes on the rich, as well as former EBay Inc. Chief Executive Meg Whitman and Cisco Systems Inc. Chairman John Chambers, both of whom have limited experience with financial markets.

Obama has made it clear he would rely on former Treasury Secretary Robert Rubin for advice in his choice. Rubin, according to people who have spoken with him, would have a short list of recommendations that includes New York Federal Reserve Bank President Tim Geithner, former Treasury Secretary Larry Summers and Roger Altman, a Wall Street investment banker and former deputy Treasury secretary.

The task of choosing the next Treasury secretary has taken on added urgency as a result of the landmark legislation Congress passed last week that puts $700 billion at his disposal to soothe roiling credit markets and avert a severe recession.

``It is important to have someone at Treasury who commands respect and understands financial markets and the global market,'' said David Gergen, a professor of public service at Harvard University who has advised both Republican and Democratic presidents.

Paulson Legacy

Republicans and Democrats alike give current secretary Henry Paulson credit for crafting a workable solution to the financial crisis and helping push it through Congress in a difficult political environment. Gergen and others say the next president should consider retaining Paulson in the interests of continuity, though the 62-year-old former Goldman Sachs Group Inc. chairman has indicated he isn't interested in serving beyond January, when the next president takes office.

Observers find McCain's mention of Buffett curious, as he almost certainly wouldn't be interested and even the mention of the Berkshire Hathaway Inc. chairman's name infuriates tax- cutting fiscal conservatives, whose support McCain has worked hard to win.

`Awful on Policy'

``Warren Buffett is a goddamned Democrat and he doesn't understand that a 28 percent capital gains tax would be a bad thing,'' said Grover Norquist, president of Americans for Tax Reform, an anti-tax group in Washington. ``He might be a good bridge partner, but he's awful on policy.''

McCain's other choices are somewhat counterintuitive, observers say, given that a knowledge of financial markets is a major consideration for a Treasury secretary in the current economic environment.

``There are significant disadvantages to not having the market pulse,'' said Stuart Eizenstat, a former deputy Treasury secretary under Clinton. ``All things being equal, it's better to have somebody from Wall Street.''

Whitman, 52, stepped down as head of Internet auction company EBay in March, a decade after taking the job, and is now a McCain campaign co-chairwoman. McCain has held up EBay as a model of U.S. innovation and job creation. Chambers, 59, is another titan of the new economy, having run Cisco Systems Inc., the biggest maker of networking equipment, since 1995.

Wall Street Voices

Top McCain advisers say in the current financial crisis he has listened to John Taylor, 61, a Stanford University economist and Treasury undersecretary from 2001 to 2005 who might be a candidate. McCain could turn to someone on Wall Street like John Thain, 53, the CEO of investment bank Merrill Lynch & Co. who in September engineered the sale of Merrill to Bank of America Corp. to avoid a collapse similar to that of Lehman Brothers Holdings Inc. Thain is among McCain's top fundraisers, having brought in more than $500,000 to the Republican's campaign.

Another possible choice is Robert Zoellick, 55, who has served at the highest levels of U.S. government as President George W. Bush's deputy secretary of state and U.S. Trade Representative. Zoellick advised McCain before becoming president of the World Bank last year; it isn't clear he would be willing to leave that post.

Economist and former Texas Senator Phil Gramm, 66, was once considered the favorite to lead Treasury in a McCain administration. Yet Gramm's support for financial deregulation and his July remarks that America had become a ``nation of whiners'' about the economy have all but taken him out of the running.

Tapping Rubin

For Obama, some Democrats suggest tapping Rubin to return to Treasury, with New York Federal Reserve Bank President Geithner as his deputy.

Geithner's only drawback might be his relative youth, though at 47 he is the same age as Obama. As the Fed's eyes and ears on Wall Street, former Treasury undersecretary Geithner has been on the front lines of the government's battle against the credit crunch.

``As much as any one person, including Fed chief Ben Bernanke and Paulson, he's basically responsible for saving the U.S. from a complete financial meltdown,'' said Eizenstat. ``He would be on anybody's short list.''

Summers, 53, is another possible choice. Known as a brilliant economist, he served under Rubin at Treasury before succeeding him to become Clinton's last Treasury chief. He went on to become president of Harvard University, but was forced to resign in 2006 partly for comments he made suggesting women lack an aptitude for science and engineering.

Investment Banker

Altman, 62, an investment banker who served as deputy to Treasury Secretary Lloyd Bentsen in the Clinton administration, is now chief executive officer of Evercore Partners Inc. in New York. He supported New York Senator Hillary Clinton in her battle against Obama for the Democratic nomination.

Some Republicans might raise criticism about Altman's 1994 resignation from Treasury for playing a minor role while there in overseeing part of the Whitewater scandal investigations.

With the well-being of both the U.S. and global economies on the line, the new president's Treasury secretary will have a higher profile -- and also a strong team of experts to rely on.

``Civil servants at Treasury are among the very best in government,'' said Gergen. ``It's important the new secretary knows that, and has faith in their analysis.''

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To contact the reporter on this story: Matthew Benjamin in Washington at Mbenjamin2@bloomberg.net

Last Updated: October 6, 2008 00:01 EDT