New York — Eleven months after he wrote the first definitive portrait of Tim Geithner, contributing editor Gary Weiss returns to look at how things have changed for the man now running the bank-rescue plan (“The Reeducation of Tim Geithner,” p. 90). Weiss writes that, as president of the New York Federal Reserve Board, Geithner had a “straight-in-the-eye gaze that would have satisfied John Wayne.” In Weiss’ June article, at the peak of Geithner’s popularity, some of the top brass in finance applauded Geithner. But this time, Weiss reveals, the responses to his piece were far different: “When I profiled Geithner at the New York Fed a year ago, his powerful mentors were happy to praise him. Not now.” As one critic described Geithner during a February speech, “He has the eyes of a shoplifter.” After a shaky start, Geithner still has a lot of minds to change. Weiss brings his unique perspective to the question of whether Geithner can do what it takes to turn the economy around and reassert the authority that made him a star.

“The Optimist” (p. 68): Senior writer Jesse Eisinger profiles hedge fund manager Bill Ackman, who—after losing nearly $2 billion of his investors’ money—remains confident and is pitching a solution for his hedge fund’s woes as well as America’s. “Ackman says the government has put taxpayer money into financial institutions at the wrong time and in the wrong place,” Eisinger writes. Ackman and Harvard Business School professor Michael Porter met with Larry Summers last month to put forth their proposals for fixing the financial crisis and improving the market for mortgages. “I’m long America!” Ackman says, despite hedge fund returns at his company that are suffering. He explains to Eisinger that he’s undaunted by the long odds against him as he wages a proxy fight against giant retailer Target. “I’m long-term bullish on America but not on things turning around in the next few months, or even 12 months,” Ackman says. “We’ve had the equivalent of a heart attack, but now we are in recovery, hopefully. It takes time to heal.”

In the accompanying sidebar, “Cockeyed Optimists” (p. 72), five market leaders explain why they believe the recovery is coming sooner than we think.

“Confessions of a TARP Wife” (p. 74): In a revealing essay, the wife of a TARP CEO explains how her life has changed since her husband went on the government dole. The anonymous author writes, “In keeping with the unwritten code of this new sisterhood, I have taken a vow of financial abstinence.” Gone are Bergdorf Goodman shopping sprees, evenings at the opera, lavish dinners out, and using the company jet. “We fly commercial,” she writes. “We’ve heard there are reporters staking out the private airports.”  

Also in the May Issue:

“Bumpy Ride” (p. 78): Contributing editor Jeffrey Rothfeder reports that Boeing’s Dreamliner jet is making its maiden test flight this spring, two years late and straight into the turbulence of the financial crisis. Boeing is losing billions in canceled Dreamliner orders and has been repeatedly passed over for Pentagon contracts. In a rare interview, Boeing CEO James McNerney speaks at length for the first time about the company’s travails, admitting, “We may have gone a little too far, too fast.” On the heels of news that Boeing’s earnings continue to drop, Rothfeder, who writes that “the Dreamliner’s problems have exacerbated the broader decline of Boeing,” looks at whether the company can break its losing streak and stop the slide.

“The Best (and Worst) CEOs. Ever.” (p. 26): As the economy has spiraled down, business leaders have been put to the test. Condé Nast Portfolio assembled a panel of business-school professors to help compile a list of the 20 best and worst CEOs of all time. What makes a great CEO? The panel argues that it’s less about raking in money or running up the stock price than it is about a mix of results, creativity, and character. Among the best are Henry Ford, Steve Jobs, Michael Bloomberg, Walt Disney, and Oprah Winfrey. And what about the worst? Dick Fuld, Ken Lay, John Sculley, Carly Fiorina, and Vikram Pandit all made the list.

“We, the Jury” (p. 84): Want to see Dick Fuld in prison stripes? Angelo Mozilo in solitary? Reporter Matthew Malone speaks with prominent legal experts about which CEOs could be prosecuted. Also, emerging from exile after his own scandal, Eliot Spitzer tells Malone that he thinks AIG is the company most likely to face criminal charges and says he could have done more to prevent what’s happened at AIG (“Eliot Spitzer: The Redemption Tour,” p. 86).

“Toxic Pay” (p . 46): Senior writer Jesse Eisinger looks at Credit Suisse’s innovative solution to the Wall Street bonus problem, in which the bank pays out part of its employees’ bonuses in toxic assets. “On Wall Street, the old saying is that you ‘eat what you kill.’ In this case, Credit Suisse is making its employees eat their own garbage,” Eisinger writes. “It gives the employees a real-world incentive to bring these assets back,” says Robert Salwen, a compensation lawyer and consultant.

“How to Value It: Idol Riches” (p. 48): How much is American Idol really worth? Contributor Julia Dennis gives a “back-of-the-envelope” calculation of how much money the Fox show has generated in its eight seasons. Based on advertising revenue from deals with companies such as Coca-Cola, Ford, Apple, and AT&T, as well as money generated from artists’ post-Idol projects, charity funds raised on the contest’s give-back episodes, and money generated by spinoff talent TV shows, Dennis estimates Idol has an approximate worth of $8.2 billion.

 
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