From USA Today:
He’s now the $700 billion man.
On Tuesday Neel Kashkari, 35, an assistant secretary of the Treasury, was named interim head of the Office of Financial Stability by Treasury Secretary Henry Paulson. The office will run the $700 billion financial bailout program signed into law Friday.
The former Goldman Sachs vice president came to Washington in 2006 to be a senior adviser to Paulson, the Goldman CEO who had been named Treasury secretary.
For some reason, kids, the appointment of Neel Kashkari makes me very uneasy. I can’t put my finger on quite why. Is it that his name looks like Cash & Carry? No, that’s not it. OMG!! I remember now!! It’s that company picture that they took together before Paulson left to be Treasury Secretary!!
WASHINGTON (MarketWatch) — The Bush Administration and the Federal Reserve said Monday they are moving “with substantial force on a number of fronts” to shore up confidence in, and protect, the financial system.
Announcements and statements from regulators came early and often throughout the day.
Most recently, Treasury Secretary Henry Paulson announced Neel Kashkari, a close advisor, has been tapped to lead the $700 billion mortgage rescue effort.
A former banker at Goldman Sachs Group Inc., Kashkari has been assistant secretary for international economics. He came to Treasury along with Paulson in July 2006.
Kashkari’s new title is interim assistant secretary for financial stability.
The frenzy of activity comes as global stock markets suffered fresh losses amid fear that the turmoil in financial markets and the squeeze on credit will spread to the broader economy.
President Bush joined the effort, saying that it would take time for the Paulson plan to buy toxic assets from banks and help recapitalize the industry.
Bush spoke after the President’s Working Group on Financial Markets, which includes the top officials of all regulatory agencies and the Fed, put out a statement saying that it was working with the industry and regulators around the world to address the current challenges.
In an early morning statement, the Fed said it would double the size of its emergency loan program to banks to a potential $900 billion by the end of the year.
Anthony Ryan, the acting under secretary for domestic finance, went on television to stress that top-level officials are working rapidly to implement the mortgage rescue plan hatched by Treasury Secretary Henry Paulson.
“We’re moving as quickly as we can,” Ryan said in an interview on CNBC.
But Marc Chandler, currency analyst with Brown Brothers Harriman, said he was worried that the markets were moving much more rapidly than regulators and that Washington’s efforts ultimately may be too small to stem the crisis.
Racing to get its plan in place, Treasury put out guidelines to hire the asset managers it will need to purchase and hold mortgages and mortgaged-backed securities.