Monday, October 6: Kashkari's appointment announced. Tarp to the rescue?
Euromoney Limited, Registered in England & Wales, Company number 15236090
4 Bouverie Street, London, EC4Y 8AX
Copyright © Euromoney Limited 2024
Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement
BANKING

Monday, October 6: Kashkari's appointment announced. Tarp to the rescue?

Neel Kashkari, the Treasury's assistant secretary of international affairs is named the man in charge of Tarp. Kashkari's assessment of what was taking place was not pretty. "Investors are stuffing money under the mattress." It’s an almost quaint image – one that is associated with a bygone age when people did not trust banks. Those times are back.

The week Wall Street capitulated

"There’s a wildfire that the authorities are struggling to put out. We the market need a firebreak"

Monday, October 6: Who? The man in charge of the Tarp is announced: Neel Kashkari

Monday, October 6: Who? The man in charge of the Tarp is announced: Neel Kashkari

After collectively asking ‘Who?’, faith that the US Treasury is getting a grip on the financial crisis is not enhanced by the announcement that Neel Kashkari, an assistant secretary of international affairs in the department, will oversee the $700 billion rescue plan. Few are surprised that Kashkari is a former Goldman banker but they are bemused to find he was a relatively lowly VP before he left. The first meeting Euromoney had that fateful week was surprisingly upbeat. But that was because the banking official – an expert in financial institutions as it happened – believed that Paulson’s scheme to buy up illiquid assets was a big part of the solution.

"The Tarp will help the fixed-income markets. It will release capital and provide an additional avenue for the deleveraging of banks’ balance sheets. And it will help achieve the primary objective of boosting liquidity," he said.

Gift this article