I changed to: 
  | <persistence:managed-hibernate-session name="genie_db" auto-create="true" 
session-factory-jndi-name="java:/genie_db"/>
and still got the same error. 

Where in jboss do I define the TransactionManager? is 
com.arjuna.ats.jbossatx.jta.TransactionManagerDelegate the correct transaction 
manager for hibernate and postgres?

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