Less than a day after being grilled mercilessly over his role in the federal bailouts of Wall Street, Treasury Secretary Timothy Geithner used a Honeywell factory in Golden Valley as a backdrop to promote green jobs and unveil $5 billion in new tax credits for companies that make energy-saving products.
Geithner's jump from the hot seat on Capitol Hill to the subzero windchills of Minnesota appeared to be part of the Obama administration's efforts to shift attention toward job creation and away from possible mistakes the federal government made in 2008 when it rescued insurance giant American International Group and others from possible collapse, costing U.S. taxpayers billions of dollars.
After the factory tour, Geithner hailed a group of business leaders and politicians gathered at a roundtable for "reaching across party lines" to create incentives for developing energy-saving technology. He also touted a long list of the administration's proposals, from government support for exports to shifting $30 billion in repaid bank bailout money to small businesses, designed to bolster the economy.
The day after President Obama's State of the Union speech, six members of his Cabinet were outside Washington touting job-related initiatives. Obama himself was at a town hall meeting in Florida on Thursday, where he announced plans to award $8 billion in federal stimulus money to develop high-speed-rail corridors, which the administration expects to create thousands of engineering and manufacturing jobs.
Double-digit unemployment, controversy over the cost of bank bailouts and stalled health care reform have cut into Obama's popularity ratings. Now, the White House appears ready to use every weapon in its arsenal to get its message out and appeal to working Americans.
Geithner's carefully scripted visit to the Honeywell plant contrasted sharply from the rough treatment he received a day earlier before a congressional committee.
As president of the Federal Reserve Bank of New York, Geithner helped oversee the September 2008 bailout of AIG and authorized the payment of billions of dollars to the insurance giant's trading partners. Now, lawmakers are investigating the New York Fed's attempts to limit disclosure about those payments, which Geithner told a House panel he knew nothing about because of his November 2008 nomination to the U.S. Treasury.
Despite flying coach on a flight that left Washington at 6:35 a.m., Geithner looked noticeably relaxed Thursday as he toured the Golden Valley factory that employs 1,700 people.
Dressed in a dark suit, pastel-blue tie and worn penny loafers, Geithner listened intently and asked questions as Honeywell executives extolled their latest energy-saving devices. His voice was barely audible over the din of the factory and the chatter of his entourage.
During the tour, he grilled Honeywell executives on their latest programmable thermostats, joking that he had replaced "at least eight" older thermostats in his house. The roundtable meeting, which counted among its attendees Minneapolis Mayor R.T. Rybak, St. Paul Mayor Chris Coleman and Rep. Keith Ellison as well as executives from Piper Jaffray Cos., Mortenson Construction and local green energy groups, lasted about an hour and was closed to the media.
"I have been spending a lot of time with financial engineers," he said after the roundtable. "Today, I got to spend time with real engineers."
The $5 billion tax credit announced by Geithner would provide a 30 percent tax credit for investments in factories that make energy-saving products. That's in addition to $2.3 billion in clean energy credits previously announced by the administration. A Treasury Department spokeswoman said it was still too early to determine how much of that money would flow to Minnesota.
After the Honeywell tour and a visit to a Standard Heating & Air Conditioning plant in Minneapolis, Geithner had lunch with a dozen local business executives at the Mission American Kitchen and Bar in downtown Minneapolis.
Geithner, who ordered salmon, mixed greens and iced tea, dined with executives from Cargill Inc., General Mills Inc., Hormel Foods Corp. and Land O'Lakes Inc., among others.
Chris Serres • 612-673-4308
