Business NEWS

Fannie Mae CEO Herbert M. Allison to head Troubled Asset Relief Program (TARP): Neel Kashkari replacement.

By Amarendra Bhushan for CEOWORLD Magazine Updated:April 14, 2009

Obama pick’s a guy with Fannie Mae AND Merrill Lynch on his resume to run the Troubled Asset Relief Program. Sounds like the Wolf guarding the Hen house.

What’s wrong with Neel Kashkari?

Shouldn’t they try and find some independent NEW talent.

The Obama administration is like a guy who jumps out of the window of the 50 story building and when he passes the 25th floor he is saying: Everything is OK so far…

Yes. We’re almost there… just wait and watch.

It looks The Obama administration is expected to name Fannie Mae CEO Herbert M. Allison to head the US government’s $700bn TARP financial rescue program.

Michael Williams, Fannie Mae’s chief operating officer, is expected to be named Allison’s successor. Herb Allison, is the former chairman of investment company TIAA-CREF and was a Merrill Lynch & Co. executive.

He took the reins at Fannie Mae in September, after the government seized it and its sister firm Freddie Mac.

Allison would replace Neel Kashkari, who was appointed to head TARP under the Bush administration and was asked to stay on until a replacement was found. Allison’s selection would leave Fannie Mae and Freddie Mac without chief executives. David Moffett, Freddie Mac’s CEO, resigned in March.

Herbert M. Allison, Jr.
President and Chief Executive Officer
Fannie Mae

Herbert M. Allison, Jr. was appointed as President and Chief Executive Officer of Fannie Mae in September 2008 by Director James Lockhart of Federal Housing Finance Agency, as conservator of Fannie Mae.

Prior to being appointed to Fannie Mae, he was Chairman, President and Chief Executive Officer of TIAA-CREF from 2002 until his retirement in 2008.

He began his professional career in 1971 as an associate in the investment banking division of Merrill Lynch in New York. After postings in Paris, Tehran and London, Mr. Allison served at various times as Treasurer, Director of Human Resources, Chief Financial Officer and Executive Vice President for the Investment Banking, Equity and Debt Divisions before being elected President, Chief Operating Officer and a member of the Board of Merrill Lynch & Co., Inc., in 1997.

After leaving Merrill Lynch in mid-1999, he served as National Finance Chairman for U.S. Senator John McCain’s first Presidential Campaign.

From 2000 to 2002, Mr. Allison was President and Chief Executive Officer of the Alliance for Lifelong Learning, Inc., a joint venture of Oxford, Stanford and Yale Universities, offering online, college-level courses to adults.

Mr. Allison is a director of Time Warner Inc., and a member of the Advisory Board of the Yale School of Management, the Advisory Council of the Stanford Graduate School of Business, and the Federal Reserve Bank of New York’s International Advisory Committee.

He was a director of the New York Stock Exchange from 2003-2005. In recent years Mr. Allison also chaired the Business-Higher Education Forum and the Vietnam Education Foundation and served on the Business Roundtable, the Financial Services Roundtable, recently served on the Board of Directors of The Conference Board, the Board of Trustees of The Economic Club of New York, the New York State Commission to Modernize the Regulation of Financial Services, the New York State Commission on Education Reform and the Council of Graduate Schools Advisory Committee.

Mr. Allison earned a B.A. in Philosophy from Yale University. Following four years as an officer in the U.S. Navy, including a year in Vietnam, he received an M.B.A. from Stanford University.

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