Neel Kashkari, the U.S. Treasury official overseeing the $700 billion rescue of the financial system, said government equity injections will be aimed at “healthy” firms.
“We are designing a standardized program to purchase equity in a broad array of financial institutions,” Kashkari, who heads the department’s Troubled Asset Relief Program, said in a speech in Washington. “The equity purchase program will be voluntary and designed with attractive terms to encourage participation from healthy institutions.”
They will have lots left over for the Christmas Party this year.
Treasury to Invest in `Healthy’ Banks, Kashkari Says [Bloomberg]
CashCarry is in over his head. He is only five years removed from building solar cars or some crap like that. How did a VP in coverage banking get selected for this important position? If Paulson wanted to hire a crony, at least hire someone who knows what he’s doing, such as an MD from MBS!!
So does that mean he is not going to deal with the unhealthy banks?
Not only “healthy” banks but only ones that are so healthy they have to be offered “attractive terms” to participate.
I can just see Kashkari following in the footsteps of Sec. Paulson and kneeling to some “healthy” bank CEO begging him to please, please take the government’s money. No red tape, no oversight, we don’t want anything in return. Just please, please take our money and make our world rock.
How ironic is it that the guy’s name is Cash-Carry?
Isn’t that what got us here?
or i could just notice that EP tagged the article so.
Dear Dealbreaker
Please write an article about a tech banking associate who was based in San Fran during the slowest time for tech in history (summer ’02-Winter’06). This person probably spent most of his time doing pitches and none structuring or understanding fixed income products as tech firms don’t use leverage and the tech M&A market was basically closed. Then report how that junior banker went to the treasury and within 24 months was put in charge of the largest government intervention into the banking industry that was precepitated by the real estate fixed income markets… despite the fact that he had no experience in fixed income, real estate, or macro economics.
Thank you in advance.
And please follow it up with an article on a cheerleader who ran a town with a budget smaller than my co-op’s and for that effort is considered to be a plausible candidate for VP.
6 Come on, frankly is it that hard to understand the structuring of fixed income products? You give yourself too much credit. Plus, the job at Treasury requires leadership and organizational skills. Its doing things, not setting policy.
Followed by an article on a guy who is great at reading teleprompters and how he used that skill to become the president of the US.
8. Do you really think there aren’t 1,000′s of real “former executives” that are way more qualified? It’s insanity to me.
10 I frankly think neither of us are qualified to make that judgement, based on the info at hand. In my mind, the job is very administrative, not policy oriented. I’ll trust Paulson that the guy has the necessary skill set.
I think experience is important and Paulson did a lousy job a getting ahead of these problems and properly marketing them to the greater US. From what I’ve seen I believe he is decent but I don’t trust his judgement outright. And can’t give him a free pass on this decision. If he hired someone with 10+years experience different story. But it smells like GS crony-ism not picking the best guy for the job.