While the market likes Geithner, local reviews of the pick are mixed

Chicago finance experts gave mixed reviews Friday to President-elect Barack Obama's apparent choice of Timothy Geithner, head of the New York Federal Reserve, for secretary of the Treasury.

Geithner, 47, who reportedly oversaw the Fed's approval in March of a $30 billion loan that enabled J.P. Morgan to take over Bear Stearns, is likely in line to replace current Treasury Secretary Henry Paulson.

Charles Evans, president of the Federal Reserve Bank of Chicago, on Friday called Geithner a "friend and colleague who has the background and experience to be a very successful treasury secretary and an outstanding economic adviser."

Evans and Geithner (pronounced GITE-ner) are members of the Federal Open Market Committee, which meets every eight weeks in Washington, D.C., to set national monetary policy.

But Jonathan Hoenig, managing member of hedge fund Capitalistpig and author of Greed is Good: The Capitalist Pig Guide to Investing, said he believes Geithner's appointment is bad news because Geithner has "made intervention into the markets part of the regular course of business."

"He will do more harm than good," Hoenig said.