What the heck is this????

[Trinity]

Please correct me if I'm wrong, but didn't Fannie Mae receive a bailout as well?

Maybe I'm confused but why would you put someone in charge of a bank rescue effort when the company they worked for had to be bailed out?


Fannie Mae CEO Named Treasury's Bank Bailout Chief


WASHINGTON (AP) - The White House has announced that Fannie Mae president and CEO Herbert Allison Jr. has been chosen to head of the federal government's $700 billion bank rescue effort. He would replace Neel Kashkari, a holdover from the Bush administration.

Allison must be confirmed by the Senate.

His title would be assistant treasury secretary for financial stability and counselor to Treasury Secretary Timothy Geithner. As such, he would be in charge of the Troubled Asset Relief Program, the fund that has injected billions of dollars into banks to provide them with capital in hopes of easing the credit crunch.

He would take over as some banks are bristling at the conditions imposed by the government in exchange for the funds. Some banks say they want to return the taxpayer money and be free of the restrictions.

http://www.wcpo.com/news/local/story/Fannie-Mae-CEO-Named-Treasurys-Bank-Bailout-Chief/z-8-G0EwL0eQRuo60zXOnA.cspx

[Kathianne]

Please correct me if I'm wrong, but didn't Fannie Mae receive a bailout as well?

Maybe I'm confused but why would you put someone in charge of a bank rescue effort when the company they worked for had to be bailed out?


Fannie Mae CEO Named Treasury's Bank Bailout Chief


WASHINGTON (AP) - The White House has announced that Fannie Mae president and CEO Herbert Allison Jr. has been chosen to head of the federal government's $700 billion bank rescue effort. He would replace Neel Kashkari, a holdover from the Bush administration.

Allison must be confirmed by the Senate.

His title would be assistant treasury secretary for financial stability and counselor to Treasury Secretary Timothy Geithner. As such, he would be in charge of the Troubled Asset Relief Program, the fund that has injected billions of dollars into banks to provide them with capital in hopes of easing the credit crunch.

He would take over as some banks are bristling at the conditions imposed by the government in exchange for the funds. Some banks say they want to return the taxpayer money and be free of the restrictions.

http://www.wcpo.com/news/local/story/Fannie-Mae-CEO-Named-Treasurys-Bank-Bailout-Chief/z-8-G0EwL0eQRuo60zXOnA.cspx

Probably the #1 reason for financial meltdowns, however, this guy came in 9/08, so not the cause. Well before that at Merrill Lynch, so had a hand?

http://topics.nytimes.com/top/reference/timestopics/people/a/herbert_m_allison_jr/index.html


Herbert M. Allison Jr. was named chief executive of Fannie Mae on Sept. 8, after nearly three decades on Wall Street and with deep ties to Washington. He succeeded Daniel H. Mudd.

Mr. Allison worked for Merrill Lynch for almost 30 years, rising to the positions of president and chief operating officer. Later, he ran the finance committee for Senator John McCain’s 2000 presidential campaign and became the chairman and chief executive of TIAA-Cref, the big money management company.

...

While at Merrill Lynch, he lived in London, Paris and Tehran, where he met his wife. He returned to the United States and a series of senior jobs at the brokerage. In 1997, he sought to succeed Daniel P. Tully as the head of the firm, but lost out when David H. Komansky was named chief executive.

Mr. Allison was named president, but the partnership did not last long. In 1998, after a tumultuous period in the markets, Mr. Allison oversaw large layoffs at Merrill. The next year, he resigned after being told he would not succeed Mr. Komansky, said a person involved in the discussions. He left long before Merrill became mired in the current mortgage crisis.

After joining TIAA-Cref, Mr. Allison fired 500 employees, or about 8 percent of the work force, in a round of cutbacks that employees nicknamed Herbicides.