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Timothy Geithner and Why the Revolving Door Might Be a Good Thing

Geithner in Washington on April 23, 2012
Geithner in Washington on April 23, 2012Photograph by Andrew Harrer/Bloomberg

Early on Saturday morning, after most of the Internet had logged off for the weekend, the private equity firm Warburg Pincus let it be known that former Treasury Secretary Timothy Geithner would be joining the company as president. The timing of the announcement suggests the firm was hoping no one would really notice, but this was unrealistic. And sure enough, concerns about a “revolving door” between Washington and Wall Street, where ex-government officials often go to make fortunes by exploiting their Washington relationships and access, have started to surface surrounding Geithner’s news. Over at the New Republic, Noam Scheiber, for one, called the move “corrosive.”

But is movement from Washington policymaking to the financial sector always such a bad thing?