The Obama administration dismissed a news report that New York Federal Reserve Bank President Timothy Geithner, the administration's choice for Treasury secretary, wants to force Federal Deposit Insurance Corp. Chairman Sheila Bair out of her job.
An official with President-elect Barack Obama's transition team was responding to a report by Bloomberg News, which cited unnamed sources and said Mr. Geithner wanted to edge Ms. Bair out following clashes between the two over the government's response to the financial crisis.
After speaking at a Consumer Federation of America conference, House Financial Services Committee Chairman Barney Frank defended Ms. Bair to reporters, saying she should definitely have a role in an Obama administration.
"I think she should, at the very least, stay on, and I think she should be given a greater role in helping formulate policy on mortgage foreclosures," he said.
