[Rhodes22-list] You Can't Make This Stuff Up

[Brad Haslett]

The name is pronounced "CASH - CARRY"

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U.S. Treasury's Kashkari to Lead Bank Bailout Office (Update1)

By Rebecca Christie

Oct. 6 (Bloomberg) -- The U.S. Treasury will name Neel Kashkari,
assistant secretary at the department, to run the $700 billion Wall
Street rescue program on an interim basis, according to a Treasury
official.

Kashkari will be designated the interim head of the new office of
financial stability, created in the bailout legislation Congress
passed last week. The Treasury aims to buy troubled assets such as
home loans and mortgage-backed securities from banks and other
financial institutions in an effort to shore up global credit markets.

The Treasury said specifics on how the debt-buying office will operate
are still being worked out.

``We need to think through what's the best for securities, for loans,
to help strengthen the balance sheet of the institutions.'' Anthony
Ryan, the Treasury's acting undersecretary for domestic finance, said
in an interview today on CNBC. ``We are focusing on the broader
issues, the mortgage- related assets.''

Senate confirmation is required to fill the position for which
Kashkari will be nominated. The Treasury hasn't specified the length
of Kashkari's tenure, or whether the White House would nominate him
officially. The Bush administration remains in office until January.

For now, Kashkari will play a lead role in setting up the new office
and organizing its first operations. The Treasury has said it plans to
hire about two dozen staff to manage the program, along with five to
10 asset management firms. The first asset-buying operations are not
expected for at least four weeks.

Kashkari, a former vice president at Goldman Sachs Group Inc., is
currently assistant secretary for international economics and
development. He has been one of Treasury Secretary Henry Paulson's key
advisers on housing issues.

To contact the reporter on this story: Rebecca Christie in Washington
at Rchristie4 at bloomberg.net.
Last Updated: October 6, 2008 09:19 EDT