Neel Kashkari, Former Goldman Sachs Executive, To Head $700 Billion Bailout

WASHINGTON — The administration has selected a former Goldman Sachs executive to be the interim head of its $700 billion rescue effort for financial institutions.

Neel Kashkari, the Treasury's assistant secretary for international affairs, was selected Monday to be the interim head of Treasury's new Office of Financial Stability.

The designation was made by Treasury Secretary Henry Paulson, who was the head of Goldman Sachs before he joined the Bush administration in 2006. Kashkari, 35, will head the office created by the emergency legislation enacted Friday to fund the largest government bailout in history.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

WASHINGTON (AP) _ An official says the administration has decided to pick a key Treasury Department official to be the interim head of its $700 billion rescue effort for financial institutions.

The official said Monday that Neel Kashkari, Treasury's assistant secretary for international affairs, will soon be announced as the interim head of Treasury's new Office of Financial Stability. The official asked not to be identified by name because the selection has not been announced publicly.

The 35-year-old Kashkari is a former Goldman Sachs Inc. banker, the investment giant once headed by Treasury Secretary Henry Paulson. The new office was created by the emergency legislation enacted Friday to fund the largest government bailout in history.

Comments

[So]

Kashkari? You mean like Cash Carry?

I've always said I'd know when I was really a grown-up when I stopped making fun of peoples' names.... Oh well.

[butonelife]

wow. I feel much better now. not.

[Tiggy]

The bottom line is that we need real jobs in this country! A service industry can't sustain the economy of a country as large as the US. We can print all the money we want, that does nothing to make life more affordable. Costs have skyrocketed over the last two years due to crude oil price, however, pay increases and bonuses have been cut due to economic probs. The mortgage crisis (greed) was a huge contributing factor, the practices on Wall Street even moreso and the inaction of our government yet another factor. Wall Street helped create this mess, yet, we trust them to get us out of this mess? We can stop the forclosures and could have months back, but that will do little to help the economy as a whole because of unemployment. Coupled with the fact that there are no jobs for people to seek, other than min. wage service jobs which will not support of family. So the circular jargon continues. The economy is much like ecology, there is a delicate balance. At this time, our economy is very unbalanced.

[KCFreedom]

This guy's stare scares me. Kinda like Muhammed Atta.

[wanj]

Ok, that was funny in a sick twisted way!

[revko]

Charles Manson

[wanj]

Let me get this straight... someone robs the bank and then once you catch them you tell them to watch the money? Got it!

[Rule Of Law]

Foxes. Hen-house. F****ed.

[NicoleAnon]

I'm not sure if Republicans are smart enough to take advantage of this but it might actually be a turning point for them. There are a group of Republicans who don't want to be associated with Bush and they didn't support the bailout even when Cheney tried to pressure them. I think more Americans are angry about this then the biased media is reporting - there probably isn't time to do anything now but if more people realize banks were involved in fraud and people planned this, they're going to be even more angry at Democrats in congress for letting them get away with it.

[DixieMelody]

Did anyone else catch on CBS Evening News tonight that George Walker (Dubya's cousin) was an executive at Lehman Brothers and was sending out memos that all was well when they knew they were tanking?

(One of the Bush brothers was neck deep in the Silverado Savings and Loan debacle.)

[PepperzMom]

Don't forget Jebbie - he's at Lehman too.

[Samalabear]

Very cushy relationship between Goldman Sachs and the Bush Administration. They're the only major investment bank that not only did not go down but their stock is far from being in that toilet. I'm told they just happened to manage things better. I think there's more to it than that.

[boophus]

You could say all the Bush brothers have tanked every economy they have been involved with. Whether it is a country or a business.

[TheIndependenceParty]

I am not yet an "Old Man". I no longer feel young, either.
I was a Republican a while back. I can not imagine I will cross over to become a member of the "Democratic Party", much as I have at moments agreed with their policies and platforms. They collude and collaborate, it seems to me, with all the worst players, and at all the worst times.
The land of my birth frightens me, 58 years into my life. I do not recognize an ethic we can all lay claim to.

I worry sometimes about the words I write, ... these words. Not because I believe I am wrong, but rather that my opinion, ... these words I write, could be construed as "published". Could my words be declared as "defamation"? In a fascist, black shirt, brown shirt, police state, anything, ANYTHING, is possible. Speech can become thought. And thought can itself be declared a crime, ... not in the America we love, ... but in the nation some on the right demand we create for their benefit.

That we have written a blank check to men I believe are felons, is a travesty against all Americans. I resent their crimes most of all against my grandchildren.

We shall see how this plays out. A man who vainly shaves his balding head is a pathetic and pitiful thing. To hand him Goldman Sachs credit bonds on our National account is a disgusting and sad surrender of our national solvency.

[KCFreedom]

I'm wicha on the Dems. Check out Ron Paul. The Revolution is only starting.

[leftLibertarian]

Yup, the D and R play the good cop bad cop routine year after year.

Vote 3rd Party.

[Dynamohum]

What is it about all these bald guys and accounting/banking/money? Invasion of the pod people. I should think that unless he is some sort of certified genius, that 35 is too young. He may be very smart, but there is an experience factor that comes with a bit more time in. 10-15 years would be great.

[Weathermaker]

OMG!!!

35 year old???!!!! Really???? This guy never ran a railroad station or something - anything - and now we give him 700 billion dollars to save the financial sector???? What happened.... was Michael Brown overqualified for this job?

This better be the season opener of Punk'd.

[IndependenceDame]

Well, if his new job doesn't pan out, why he could run for Vice President. You betcha', wink, wink (Blech)

[Sadducee]

A family affair.

[redyellowgreen]

My guess is Kashkari was given a nice signing bonus. Open your peepers, folks... Paulson chose this guy. This is some serious back scratching.

Greed is a deadly sin.

[NicoleAnon]

Although I think ...Ivan Boesky...sorry I mean Paulson and his "team" are immoral and should all resign...some of you are getting a little to...what is the word I'm looking for...

You're assuming he isn't honest because of his race or they way he looks and that is just lame. What does an "honest" person look like anyway?

And also I can't believe the NYT hasn't mentioned this online yet - this is clearly a conflict-of-interest and there isn't anything about it there.

[richsmith]

You are not paying taxes for the bailout. The Federal government is borrowing the money for it (or printing it, or whatever), and who is the government. The Republicans are the unwavering "borrow-and-spenders" ( the Federal tax-and-spenders have been outside since Reagen). How much has the deficit grown over the last two and one half decades? The Federal deficit has grown steadily since the beginning of Ronald's admininistration (except duning the Clinton administration when for a short time, it flattened some, but not much), from 800 billion dollars to about 10 trillion over 28 years, 20 of which were Republican. GNP has almost invariably lagged behind as has payment into vs payment out of the system. Just read it in Hale Stewart's piece here at Huffpro some time back.

http://www.huffingtonpost.com/hale-stewart/ronald-reagan-fiscal-dis_b_82370.html

I have really become disgusted with hearing of the "tax-and-spend" Democrats". The Republicans have clearly lead the people into this fine mess, people who have happily gone along with this, and it's all our own doing. And do you think Ms "betcha think am folksey" and her moosesheeeit is gunna lead us out of it when the crazy old sailor passes on to the great shore leave in the sky?

[NicoleAnon]

You're wrong - sorry but both Republicans and Democrats are responsible for this. I really wouldn't try to use this as a way to get someone to vote for your candidate because most people know that it was Pelosi and the Democrats who were bullies last week trying to get people to approve the bailout.

And the top donor to your candidate is Goldman Sachs so he won't be changing much. He also received more money than almost any member of congress from FM and he chose someone associated with the company to choose his VP for him. Also Barney Frank was responsible for what happened at FM and he is a Democrat and JM actually tried to reform those companies a few years ago.

If there had been more Republicans in congress the bailout wouldn't have been approved and they would not have been laughing and making jokes with Paulson about it but Pelosi thinks that stealing from taxpayers is funny.

[mikep007]

There are about 198 GOP house members and 49 Senate members... It still didn't have to pass. Sorry, but your reasoning is out of whack.

[boophus]

If the houses were all republicans they still would have passed it. The republicans were only trying to hide behind the democrats in the face of immense popular pressure to not approve the bailout. Not one dime has been spent yet and who knows if any will be. It was a gesture to restore confidence in the US and countries all over the world have tried with thier own versions of the bailout. It's doesn't appear to be working. Even though most people were against the bailout, they wanted something done. IF the Democrats had done nothing then the republicans could have blamed them as the majority party if the Sm dove 3000 points. Reps tried to dump blame on dems.
AS for the problem being equally democrats there you are wrong and it is important that you realize it. The republicans had control of all 3 branches of the government. They not only deregulated but they stopped enforcing existing regulations ..Mortgages to be broken into risk packages and sold as credit swaps which was merely a fiction because they were really insurance scams. They were betting that people wouldn't be able to make thier mortgage for a premium that after 10 to 100 transactions jumped the debt load up equivalently. They called these things credit swaps --- because if identified as insurance then they would have to meet regulations that would have stopped this crisis.

[themodernleader]

Incest is taboo in the most primitive societies. In our Country incest is not only accepted, it is applauded by our elected leaders. The prediction that the 700 billion is a go-away present for the originators of the most stupendous swindle in the history of organized conduct is coming true. Before the new President takes Office that 700 billion will evaporate as by magic. The only residual evidence will be another trillion added to our unpayable Federal debt. We have a government of gross incompetence and irresponsibility. It is a dangerous government for it endangerous our system of self administration.