In 2010, Warburg Pincus invested in National Penn Bancshares Inc., a Boyertown, Pennsylvania-based bank holding company, which received $150 million from TARP, all of which has been returned. Sterling Financial Corp., a Spokane, Washington- based bank holding company in which Warburg Pincus invested in the same year, last year returned the $303 million it received from the government. The company is in the process of being sold to Umpqua Holdings Corp., Oregon’s biggest bank, for about $2 billion in cash and stock.
Warburg Pincus also owns stakes in Aeolus, a Bermuda-based reinsurer; Santander Consumer USA, which lends to U.S. car buyers; JHP Pharmaceuticals, which sells injectable drugs to hospitals; RegionalCare Hospital Partners, a rural-hospital operator; and several oil exploration and production companies, according to its website.
Investment firms have recruited former high-ranking government officials for roles similar to Geithner’s. Cerberus Capital Management LP, the private-equity firm run by Steve Feinberg, has employed former U.S. Vice President Dan Quayle since 1999 and former Treasury Secretary Snow since 2006, according to its website. Washington-based Carlyle Group LP counts President George H.W. Bush and former U.K. Prime Minister John Major among its former advisers.
Rubin, co-chairman of Goldman Sachs before becoming Treasury secretary under President Bill Clinton, was a Citigroup board member and adviser for a decade after leaving government in 1999. He is now a counselor at investment bank Centerview Partners LLC in New York and co-chairman of the Council on Foreign Relations.
Private-equity firm KKR & Co. in May hired ex-CIA Director David Petraeus to run a division for public policy and economic research, and Blackstone Group LP the following month hired Wesley Clark, the former NATO supreme allied commander in Europe, to advise on its energy investments.
Geithner is working on a book to be published next year by Random House Inc.’s Crown Publishing Group about the U.S. response to the global financial crisis.