by Frank James
Treasury Secretary Henry Paulson Jr., whose bald pate has become a fixture on our TV screens in recent weeks, has tapped his similarly bald protege Neel Kashkari as bailout czar.
Kashkari, like Paulson, is a former Goldman Sachs investment banker, as well. And it's impressive that so much trust is being placed in the 35 year old assistant Treasury secretary for international affairs.
Here's an excerpt from the Wall Street Journal's story on Kashkari:
Mr. Kashkari, 35 years old, a Treasury assistant secretary for international affairs and a former Goldman Sachs Group Inc. banker, is expected to be named interim head of Treasury's new Office of Financial Stability as early as Monday. The position confers substantial power on Mr. Kashkari, who will oversee Treasury's effort to buy bad loans and other distressed securities clogging the books of financial institutions and making them reluctant to lend...
Mr. Kashkari originally trained as an aerospace engineer and worked on developing technology for NASA before earning an MBA at the University of Pennsylvania's Wharton School. He spent much of his tenure at Treasury helping Mr. Paulson stem the fallout from the housing correction. He helped implement an alliance of mortgage-industry players who joined last year to help homeowners in danger of foreclosure.
Mr. Kashkari was part of the Treasury team that negotiated the asset-repurchase program with Congress, putting in marathon sessions along with Robert Hoyt, Treasury's general counsel, and Kevin Fromer, the head of legislative affairs. He was also one of the originators of the plan. Last year, he and Phillip Swagel, assistant secretary for economic policy, crafted a proposal called "break the glass" -- referring to the emergency nature of using such a tool -- which envisioned Treasury buying bad loans and other assets.
Can hardly wait for Kashkari to appear before Congress so we can hear more details on the toxic-asset purchase plan.
Meanwhile, the Treasury Department issued guidelines for its selection of asset managers. as well as guidelines for an area that has many critics of the program concerned, the potential for conflicts of interest.
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Comments
Why do all these guys look like either Daddy Warbucks or Starvo Blofeld?
Posted by: C.Hussein.Morris | October 6, 2008 8:45 PM
Is this an official portrait, or a mug-shot?
Posted by: Allajoke | October 6, 2008 8:47 PM
Separated at birth.
Rasputin and Elmer Fudd?
Posted by: OldCreaky | October 6, 2008 9:09 PM
OMG! I hope is getting paid minimum wage!
Insiders should be made outsiders!
http://www.bop-o-rama.com
McCain, you should have voted against the bailout. Dems are taking us down!
Posted by: acarponzo | October 6, 2008 9:40 PM
What the H is this. He looks like he was sent by Putin!
http://www.boppoll.com
Thank god they will be fired after January 20th.
Posted by: What the H is this! | October 6, 2008 9:45 PM
This is a joke, right? A one-finger salute to the Congress, no?
Paulson is so conflicted out, any acolyte he brought along from Goldman Sachs should be automatically disqualified.
Today in the Oversight Committee finally someone brought up the obvious conflict of interest in letting Lehman Bros. go down, thus benefitting Paulson's former employer and buddies still working there, not to mention the value of his Goldman Sachs stock.
Paulson is arrogantly shameless. He will keep on acting under a conflict of interest until he is stopped.
Who in the Congress has the b--ls to stop him?
Posted by: ornery | October 6, 2008 11:42 PM
Another Goldman Sachs person one has to wonder if will now have all the foxes watching all the chickens.
VJ Machiavelli
http://www.vjmachiavelli.blogspot.com
Posted by: VJ Machiavelli | October 7, 2008 2:29 AM
ornery and VJ...my sentiments exactly. I'm sure their golden parachutes are well protected now. Also, is it true the Federal Reserve stands to earn 10% or 70 billion of the bailout?
Posted by: lochnessmonster | October 7, 2008 7:00 AM
Subtext;
'We want your Social Security too.'
Posted by: C.Morris | October 7, 2008 7:55 AM
I've seen him before on a movie.....it's Mini-me! I'm sure the markets will stabalize now for sure.....
Posted by: Xcellentform | October 7, 2008 9:41 AM
He looks like an al-Qaeda type person. I don't trust his shifty eyes!
Posted by: stan woodbridge | October 7, 2008 10:01 AM
Did the House and Senate approve this guy given that he is dealing with the biggest bailout due to Bush's strongarm of martial law threat (as per Rep. Brad Sherman, CA?) Do the House and Senate even care?
Why so many Goldman Sachs people concentrated for free reign over taxpayer money? It would behoove any citizen to read the short article, The "Goldman Sachs Effect" Transfers the Strategic Advantage to China, by William R. Hawkins, Sept. 28, 2006.
Posted by: Vivian | October 7, 2008 10:44 AM
Dump Kash&kari too! Get Goldman Sachs out of Treasury and get some reputable academic economists in now, before it is too late!
Posted by: Dump Paulson! | October 7, 2008 12:38 PM
Separated at birth,
Svengoolie and Paul Schafer
Posted by: C.Morris | October 7, 2008 3:21 PM