Members of the Senate Finance Committee say Timothy Geithner’s confirmation as Barack Obama's Treasury Secretary is in the bag – but is it a body bag?

After a closed-door meeting between Geithner and the Finance Committee about irregularities in his tax filings from 2001 to 2004, Chairman Max Baucus (D-MT) told reporters that Geithner's tax filing errors as "serious," but "honest mistakes" that "do not rise to the level of disqualification." Orrin Hatch (R-UT) said, “I still support him. He's a very competent guy." But Charles Grassley (R-IA) warned, “It's serious, and whether or not it's disqualifying is to be determined” and citing Finance Committee rules, Jon Kyl (R-AZ) and Jim Bunning (R-KY) successfully postponed Geithner’s confirmation hearing until next Wednesday – the day after Barack Obama takes office.

The Wall Street Journal details these “honest” mistakes by the man who would be overseeing the Internal Revenue Service, amongst other responsibilities:

The tax issue relates to Mr. Geithner's work for the International Monetary Fund between 2001 and 2004. As an American citizen working for the IMF, Mr. Geithner was technically considered self-employed and was required to pay Social Security and Medicare taxes for himself as both an employer and an employee. …

In 2006, the IRS audited Mr. Geithner's 2003 and 2004 taxes and concluded he owed taxes and interest totaling $17,230, according to documents released by the Senate Finance Committee. The IRS waived the related penalties.

During the vetting of Mr. Geithner late last year, the Obama transition team discovered the nominee had failed to pay the same taxes for 2001 and 2002. "Upon learning of this error on Nov. 21, 2008, Mr. Geithner immediately submitted payment for tax that would have been due in those years, plus interest," a transition aide said. The sum totaled $25,970. …

As to why Mr. Geithner didn't pay all his back taxes after the 2006 audit, an Obama aide said the nominee was advised by his accountant he had no further liability. Senate Finance aides said they were concerned either Mr. Geithner or his accountant used the IRS's statute of limitations to avoid further back-tax payments at the time of the audit.

Other tax issues also surfaced during the vetting, including the fact Mr. Geithner used his child's time at overnight camps in 2001, 2004 and 2005 to calculate dependent-care tax deductions. Sleepaway camps don't qualify.

Amended tax returns that Mr. Geithner filed recently include $4,334 in additional taxes, and $1,232 in interest for infractions, such as an early-withdrawal penalty from a retirement plan, an improper small-business deduction, a charitable-contribution deduction for ineligible items, and the expensing of utility costs that went for personal use.

The New York Times’ Maureen Dowd chides “hot nerd” Geithner for being so dumb:

The Stiletto will explain: Rich people don’t like paying taxes any more than middle class people. When Dem elites talk about taxing “the rich” they really mean taxing “the guy who’s richer than I am.”

Editorial Note: Whether the transition to an Obama administration is going “smoothly, calmly, and on time” (The New Yorker) or “is officially no longer 'flawless'” (The Guardian), appears to be in the eye of the beholder. But here’s a handy dandy list of some “distractions” that popped up after Obama’s cabinet picks were vetted by his transition team from The Washington Post’s Ben Pershing.   

Solis Plays Hide And Seek In Confirmation Hearings

Washington Post columnist Ruth Marcus takes Labor Secretary nominee Rep. Hilda Solis (D-CA) to task for evasiveness during her confirmation hearing:

Should President Obama lift the Bush-era executive order requiring that federally funded construction projects be open to both union and nonunion contractors?

"I think that that is something that I am not able to speak to you [about] at this time but will like to review and then come back to you personally on that matter."

What about giving private employers more leeway to implement comp and flextime arrangements?

"I would like to explore that more with this committee.  … But that's something that I think I'm not prepared to give you a complete answer on at this time."

Should states continue to be allowed to enact right-to-work laws prohibiting workers from being required to join unions or pay dues?

"I don't believe that I am qualified to address that at this time."

And what about the hottest-button labor issue, legislation that would let unions organize if a majority of workers sign cards? …

"My position as a nominee for President-elect Obama to serve as secretary of labor doesn't, in my opinion, afford me the ability to provide you with an opinion at this time."

You get the point.

Solis didn't seem stumped by these questions. Perhaps she simply decided - or was instructed by her handlers - to say nothing controversial, nothing that would bind the new administration, nothing that would either enrage its labor allies or alienate Republicans and moderate Democrats.

The new transparency, it seems, has its limits.

The Stiletto doesn’t understand why Marcus so easily assumes Solis was “not stumped,” considering that then Repub veep candidate AK Gov. Sarah Palin was ridiculed for a similar exchange with “CBS Evening News” anchor Katie Couric:

Couric: Other than supporting stricter regulations of Fannie Mae and Freddie Mac two years ago, can you give us any more example of [John McCain] leading the charge for more oversight?

Palin: I think that the example that you just cited, with his warnings two years ago about Fannie and Freddie - that, that's paramount. That's more than a heck of a lot of other senators and representatives did for us. …

Couric: But can you give me any other concrete examples? …

Palin: I can give you examples of things that John McCain has done, that has shown his foresight, his pragmatism, and his leadership abilities. And that is what America needs today.

Couric: I'm just going to ask you one more time - not to belabor the point. Specific examples in his 26 years of pushing for more regulation.

Palin: I'll try to find you some and I'll bring them to you.

Why Some People Make Money Hand Over Fist

Researchers at England’s University of Cambridge in England report that men whose ring fingers are longer than their index fingers tended to be more successful in the frantic high-frequency trading in the London financial district, reports The Associated Press:
 

Indeed, the impact of biology on success was about equal to years of experience at the job, the team led by physiologist John M. Coates reports in Monday's edition of Proceedings of the National Academy of Sciences.

The same ring-to-index finger ratio has previously been associated with success in competitive sports such as soccer and basketball, the researchers noted.

The length ratio between those two fingers is determined during the development of the fetus and the relatively longer ring finger indicates greater exposure to the male hormone androgen [i.e., testosterone], the researchers noted.

Previous studies have found that such exposure can lead to increased confidence, risk preferences, search persistence, heightened vigilance and quickened reaction times.

In a separate study last year, Coates and colleagues reported that the hormone that drives male aggression and sexual interest also seemed able to boost short term success at finance.

In a seemingly unrelated development on this side of The Big Pond, The Wall Street Journal reports that the spectre of unemployment is haunting CEOs of underperforming companies:

CEO turnover "doubles in bad times," said Dirk Jenter, an assistant finance professor at Stanford University's business school, who recently analyzed 1,627 CEO changes between 1993 and 2001. Mr. Jenter found that CEOs are most vulnerable in a downturn when their employers' shareholder returns lag rivals.

Last year, 61 companies in the Standard & Poor's 500-stock index changed CEOs, up from 56 a year earlier, according to executive search firm Spencer Stuart. The number of such switches may increase this year, Mr. Jenter predicted. Boards typically oust CEOs a year or two after relative shareholder returns start to slip, he said. 

In Praise Of Real Boobs

Being rather well-endowed herself, The Stiletto prefers the natural curvy aesthetic of Scarlett Johansson, to the flat-chestedness of Keira Knightly or the artificialness of Pamela Anderson. Turns out, so does Oprah, who recently lavished praise on Kate Winslet’s lavish - and not silicone-enhanced, thank you very much - bosom during a recent interview. 
 

The Fab One

The Scottish Sun reports that former Marvel Comics head Stan Lee, 86, is developing a TV movie based on a teen-aged homosexual superhero character:   
 

High school basketball star Thom Creed hides his developing superpowers along with his sexuality. …

Lee developed the idea of a gay character from the award-winning novel Hero by Perry Moore.

The article did not divulge what superhuman power Thom has, but Moore’s Web site did: the power to heal people. This Wikipedia article also mentions that in May 2008 “Hero” received a Lambda Literary Award as the best LGBT Children's/Young Adult book, and that it includes “wittily-written descriptions of Thom masturbating to Internet porn.” Holy homo erectus, Batman!

In Memoriam

Patrick McGoohan, March 19, 1928 – January 13, 2009