Executive Session

Floor Speech

EXECUTIVE SESSION -- (Senate - January 26, 2009)

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Mr. THUNE. Thank you. That is the subject on which I wish to speak. I would start by saying our country is going through some very hard economic times. When you are going through hard economic times, you need several things to get through. You need the resolve and the resilience of the American people. You need the skill, the talents, and the creativity of America's best and brightest thinkers when it comes to solutions. You need wisdom from your political leaders. You also need one other thing from your political leaders: you need the presence of character. You need leaders who will lead by example.

Unfortunately, the hard times in which we find ourselves were borne of excess. We spent too much, we borrowed too much, and we saved too little.

Corporate CEOs saw fit to pay themselves huge bonuses while running their companies into the ground. Some very clever people found ways to create new financial instruments, such as credit default swaps, making enormous amounts of money for themselves on every transaction while exposing their companies and their shareholders to trillions of dollars in liabilities.

At the same time, Fannie Mae and Freddie Mac were running amok, making risky home loans that helped cause this economic crisis in which we now find ourselves. It is because of the excesses of the few that all of the American people are left holding the bag and are being called upon to clean up the mess.

Today we vote on whether to confirm a very smart, able, and skilled business leader to help lead America out of the mess we are in. No one questions Tim Geithner's intellect, his knowledge of financial markets, or his skill in managing complex business problems. He has, as many have said, the type of experience that is necessary to navigate the turbulent waters that lie ahead. I believe he is smart. I believe he is talented. I believe he is experienced. But, as I said earlier, that is not enough.

There are lots of smart, talented, and experienced people who got us into this economic mess. It will take more than smarts, talent, and experience to get us out. It will take leaders who have the trust of the American people because they are willing to lead by example.

I don't know Mr. Geithner's state of mind when he made the mistake of not paying his payroll taxes between 2001 and 2004. He said it was ``careless mistakes, avoidable mistakes.'' Perhaps so. But the one thing I do know is he should have known better, not just because he is a highly educated businessman who had prior service as a top-ranking official at the Treasury Department but because he was notified several times of his tax liability by his employer at the time and even signed documents acknowledging that he owed the taxes. Again, he should have known better. I don't judge Mr. Geithner as a person. None of us is perfect; we all make mistakes. We all need redemption. But as a Senator, I have a responsibility to vote. I have to vote on whether I believe Tim Geithner should serve as our next Treasury Secretary. As a Senator, I am concerned about the message Mr. Geithner's confirmation will send to the people. As Treasury Secretary, he will oversee the IRS and, therefore, be tasked with enforcing our Nation's tax laws. Yet for 4 years he failed to pay his lawful taxes after being informed of his obligation to do so. If I were to support this nomination, I don't know how I would explain such a vote to my fellow South Dakotans who work hard and pay their taxes every year, on time and in full.

As many of my colleagues have pointed out, these are extraordinary times, and they call for extraordinary leadership. I couldn't agree more. But leadership is about more than smarts; it is about more than skill. By all accounts, Mr. Geithner is a good man. I respect his willingness to serve. I expect he will be confirmed. And when he is, he faces a daunting challenge in stabilizing our financial markets and strengthening our economy. Once he is confirmed, I look forward to working with him to meet this challenge. I hope he is successful and we as a country are successful. But for the reasons I have stated, I cannot add my support to his nomination.

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