Timothy Geithner, the former US Treasury secretary, may command higher speaking fees than most of his former colleagues – $200,000 on the last shot. But he is doing nothing out of the ordinary. Nor is he breaking any rules. Other former high officials, from Bill Clinton to Alan Greenspan, have charged more. Yet the fact that most people in Washington will shrug at Mr Geithner’s remuneration highlights how normal it is to profit from US public office – and within weeks of stepping down. Mr Geithner did not wait long after quitting to prognosticate with private equity groups about the future of US Federal Reserve monetary policy. If it merits their dime, it is worth having clearer guidelines about when – and from whom – former officials should accept fees to discuss policy.
President Barack Obama came to office in 2009 promising the most sweeping ethics reforms in US history. But his initial proclamations, which banned anyone who had lobbied the government in the previous two years from serving in his administration, have been honoured as much in the breach as the observance. They were simultaneously too narrow, because they targeted only registered lobbyists, and too strict, because they resulted in a flurry of waivers. Likewise, Mr Obama banned any former official from lobbying his administration until he left office. But the rule is only as good as his word. Bill Clinton issued a tougher five-year ban on lobbying only to annul it on the day he quit the White House. In any case, Mr Obama’s order was silent on non-lobbying remuneration, which is where the bulk of influence-peddling fees are earned. A registered lobbyist is someone who spends at least 20 per cent of their time lobbying.
None of which would affect Mr Geithner. Nor, given that he has spent his entire career in public service, should more robust rules necessarily curb his prospects. He has the right to earn whatever he can command in the free marketplace. The same applies to the legions of former Obama White House staffers who have moved seamlessly from fighting to change Washington to becoming an upholstered part of its furniture. Yet it still looks awful and further undermines US public trust in Washington’s integrity. Mr Obama should have another crack at the ethics revolution he promised. And rather than set rules by the letter, he should enunciate their spirit. It is time for him to spell out clear principles on what his past and future officials can do.