Another Ex-Goldman Sach’s Neel Kashkari to lead. Can he make difference?
Sounds like a smart guy…but he’s 35, and how much of this has he tried before? agree.. this has “nepotism” written all over it. The last thing we need is a “tainted” cleanup guy. This administration has really taken nepotism/favoritism to new levels. If Paulson and Kashkari came from Goldman, guess where they’ll go back to after the bailout? That’s right. So Goldman will probably do well in the bailout. Buffet probably made a good investment. y the way, this whole economic downturn started about two years ago when they (the Government) started saying housing is slowing and then construction a trickle down effect that led us to this point.
The administration has decided to pick a key Treasury Department official to be the interim head of its $700 billion rescue effort for financial institutions. Neel Kashkari, an Indian American, is expected to oversee the $700-billion bailout package of the US Treasury Department approved by Congress. The official said Monday that Neel Kashkari, Treasury’s assistant secretary for international affairs, will soon be announced as the interim head of Treasury’s new Office of Financial Stability. The official asked not to be identified by name because the selection has not been announced publicly.
The 35-year-old Kashkari is a former Goldman Sachs Inc. banker, the investment giant once headed by Treasury Secretary Henry Paulson. The new office was created by the emergency legislation enacted Friday to fund the largest government bailout in history. Indian origin Kashkari, a Treasury assistant secretary for international affairs, is the key adviser on whom Paulson has come to rely on during the financial crisis, The Wall Street Journal reported.
Paulson is now seeking Kashkari’s help to oversee Treasury’s $700-billion programme to buy distressed assets from financial institutions, the report said. The position is interim and pending for the Senate confirmation. It is unlikely the Senate would take a call on the matter before the November elections, the report added. Kashkari, who was one of the originator of the bailout plan, was part of the Treasury team that negotiated the asset -repurchase programme with Congress. Now, he would oversee some key decisions on how the rescue programme would operate. Congress has given Treasury the authority to start buying assets, but choices like which asset managers to hire, which securities to purchase and how, still remain, the report said.
Kashkari originally trained as an aerospace engineer and worked on developing technology for NASA before earning an MBA at the University of Pennsylvania. The former Goldman Sachs Group Inc banker spent much of his tenure at Treasury helping Paulson tackle the fallout of the housing meltdown.
Treasury is trying to get the bailout programme running as quickly as possible. It is expected to begin soliciting bids from asset managers this week, the report stated. The department also plans to hire several managers, with expertise in the types of securities the government would likely buy, mainly mortgage-backed securities and residential mortgages, it added.
The young shall bring change. Sounds like a good stetaegic fit. Aerospace engineering+ High Finance+Goldman Sachs+Blessings from Paulson?
Wish you good luck so that you can leverage all the above to get us out of this mess!!! It’s starting to look more and more like the bailout is actually a Goldman Sach’s bailout.
Somethings smells fishy about this appointment! Ex-Goldman Sach’s people are getting ready to clean out the American people’s 700 billion. They are drooling and getting their own pockets ready to get filled up with chunks of the 700 billion jackpot!
If the guy is a bright NASA engineer with a Wharton degree in business and a Goldman track record, why shouldn’t he be able to pull us through the securities mess?
On the credentials front I don’t see how anybody else would be better than Kashkari.
He is young though, but isnt young a synonym for change these days?
This guy has been examining the consequences of an economic housing fallout and probably has more ‘experience’ than any of the pundits out there when it comes to this bailout plan.
It seems like a wise appointment.
Neel Kashkari Profile:
Assistant Secretary for International Economics and Development
Neel Kashkari was sworn in as Assistant Secretary of the Treasury for International Economics and Development on July 9, 2008. He was nominated by President Bush on November 15, 2007 and confirmed by the Senate on June 27, 2008. In this role, Mr. Kashkari is responsible for developing and executing policies for the Department to foster a more conducive investment climate for the U.S., as well as to support global economic growth.
Mr. Kashkari joined the Treasury Department in July 2006 as Senior Advisor to U.S. Treasury Secretary Henry M. Paulson, Jr. In that role, he was responsible for developing the President’s Twenty in Ten energy security plan, enhancing Treasury’s engagement with India, particularly in the area of infrastructure development, and developing and executing the Department’s response to the housing crisis, including the formation of the HOPE NOW Alliance, the development of the subprime fast-track loan modification plan, and Treasury’s initiative to kick-start a covered bond market in the United States.
Prior to joining the Treasury Department, Mr. Kashkari was a Vice President at Goldman, Sachs & Co. in San Francisco, where he led Goldman’s IT Security Investment Banking practice, advising public and private companies on mergers and acquisitions and financial transactions. Prior to his career in finance, Mr. Kashkari was a R&D Principal Investigator at TRW in Redondo Beach, California where he developed technology for NASA space science missions such as the James Webb Space Telescope.
Originally from Stow, Ohio, Mr. Kashkari graduated from the University of Illinois at Urbana-Champaign with a Bachelor’s and Master’s degree in Engineering. He also received an M.B.A. in Finance from the Wharton School. Mr. Kashkari and his wife reside in Maryland.