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

[thincaboutit]

FINANCIAL CRISIS: THE MUSICAL
The economy is no laughing matter. But this parody about the economy is.
Check it out at: http://www.youtube.com/watch?v=henMX35nkJg

[spinns17]

an arab running this thing lol.wow can you say sellout.

[zizyphus]

His parents are from India. He donated $2000 to Bush campaign in 2004.

[GhostofBillHicks]

SO! Their putting the same crooks that caused the "financial melt-down",incharge of the $700 billion!
This is so BLATANTLY corrupt,these criminals pull-off their crimes in "plane sight",with government approval.
And they'll be asking for more $billion$ here in afew days.This is EXTORTION and THEFT,plane and simple.
The taxpayer is RAPED to payback the money these crooks stole and embezzled,but no healthcare,nothing for the people,thats SOCIALISM! They/we don't have the funds for that!I think the government should pull the money for us[the taxpayer] out of their a$$,just like they did for these criminals,to give ALL OF US HEALTHCARE!

[geobushono]

promoting from within paulson's circle. great!

[Seamus45]

Another Goldman Sachs banker, what a shock.

[NicoleAnon]

I found out some more information.

The salary for Neem - $100 billion, most of which will be paid in Goldman Sachs stocks and put in a "blind trust" for him when he leaves his government job.

The "fees" that Goldman Sachs will charge us for "managing" our toxic assets for us - $400 billion.

[morganhill]

Sources please! Millions I could accept; billions seems too outrageous, even in these times.

[JBS]

Crony Capitalism ... what did you expect?

[SavvySkeptic]

I wonder if he gets to choose how much of the overestimated $700 billion he wants for personal salary and bonus. Can you say PORK?

[spinns17]

no i say its a perk

[mergina]

This whole bail out is NOTHING MORE THAT GRAND THEFT LARCENY.

[sadbutrue]

This guy looks like he cant wait to run off with the $700 billion.

[ForRichardorPoorer]

He's not qualified. Period....There is an appearance of a conflict of interest.

[bernusdellus]

Kashkari? You've got to be kidding!

Kashkari - Cash Carry?

They must have picked this guy for his name. A nice little humourous cherry on top of their $700B birthday cake.

[lowcountry]

wonder what his "base" salary will be. I pray that we cap this and no bonus or golden parachutes. Has any one seen this? Paulsen wants to appoint several Companies to help. makes me wonder. Will HP work for one of these in a few months?

[madzippy]

So we ARE just giving them the money, only to be charged additional taxes to pay for the interest on the borrowed debt, and then have banks loan it back to us at 7%.

Sounds like a $700 billion plan to me!

[NicoleAnon]

They made billions in profits over the past few years and they get to keep that money - they made money from fees on mortgages and when investment banks bought the loans from regular banks and chopped them up and sold them with good loans they made billions from fees and everyone know these loans were worthless - Paulson knew it because Goldman Sachs made billions betting that home prices would fall while they were telling investors to buy those stocks and everyone knew that many of these loans were fraudulent but they didn't care because they also knew that politicians and congress would help them find a way to make taxpayers responsible for the worthless toxic loans.

This has all been a scam and planned for a long time.

[ema]

United States of GoldmanSachs.

[BlueZoo]

Wow! You can't see the financial forest for the Bushies now! Talk of the fox guarding the hen house! I'm really p.o.'ed over this appointment but I'm not shocked. Same old, same old...

[KarlaElisa]

Has anybody heard a peep about how Bush threatened the House with martial law if they did not pass the bailout package????
See for yourself...a Rep Brad Sherman of CA discusses it on the house floor:

http://www.thoughtcrimes.org/s9/index.php?/archives/2618-BushCo-threatens-martial-law-to-get-bill-passed.html

[BlueZoo]

Well, that shoots them in the foot and we've never even heard about it! It's just beyond the pale that anyone would vote for the Republican ticket this year!

[sonoffestus]

typo in my note below, sorry, you should have SEEN the idiots................