WhoRunsGov

Neel Kashkari

Former Interim Assistant Secretary of the Treasury for Financial Stability (October 2008 to June 2009)

(Mark Wilson/
Getty Images)

Why He Matters

With a rocket science background, and an ability to "get things done," Kashkari headed the Office for Financial Stability from October 2008 to June 2009, putting the then-35 year-old in control of the enormous $700 billion bailout of the U.S. financial sector. A former engineer nicknamed "The Borg" by colleagues because he is bald and has a no-nonsense attitude, Kashkari was educated as an engineer and entered a contest in school to build a solar-powered car (he lost, but the experience stayed with him).

A controversial choice due to his age, Kashkari found his way to his former job after following Treasury Secretary Henry Paulson to the public sector from investment bank Goldman Sachs. Kashkari will remain in his job until President Obama names a successor.

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At a Glance

  • Career History: Vice President of Goldman Sachs (2002-2006); Worked on the James Webb Space Telescope for NASA contractor, TRW
  • Birthday: July 30, 1973
  • Hometown: Stow, Ohio
  • Alma Mater: University of Illinois; Wharton School of Business
  • Spouse: Minal
  • Web site
 

Path to Power

Kashkari's path to becoming the head of the bailout was an unlikely one. Born in Stow, Ohio, and son to Kashmiri immigrants, the young man showed an inclination for scientific endeavors.

He went to a private boarding school in Hudson, Ohio, for his high-school education. At the Western Reserve Academy, he excelled in math, wrestled, played football, and was named his class' graduation speaker. 'A good kid. Very ambitious. A catalyst,' says Patrick Smith, recalling his former science student. 'In a lab group, he was the glue that held everything together.'"

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The Issues

After his work on the Hope Now Alliance, Kashkari became Paulson's adviser and go-to-guy for all things subprime. Kashkari worked night and day with Paulson to devise a plan to battle the defective assets.

Still, the rash of foreclosures crippled the price of mortgage-backed securities and other troubled assets, leading to bank failures and and businesses like American International Group begging for cash. All the uncertainty kept banks from lending to each other, destroying the credit market. Paulson, Fed Chairman Ben Bernanke and New York Fed Chairman Timothy Geithner proposed the $700 billion bailout package.

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The Network

Kashkari met Henry Paulson while working at Goldman Sachs. He followed Paulson to the Treasury. He worked closely with Robert Hoyt, the Treasury's general counsel, and Kevin Fromer, the head of legislative affairs, while constructing the asset relief program with Congress.

 

Campaign Contributions

Neel Kashkari has only given $2,000 in political contributions, and that was to President George W. Bush's 2004 re-election campaign.

 

Additional Resources

  1. http://online.wsj.com/article/SB122325337693906423.html
  2. Smith, Robert L., "The man drafted to save Wall St. has roots here," Plain Dealer (Cleveland), October 12, 2008
  3. Wailin Wong; Ameet Sachdev contributed to this report, "The rapid rise of bailout czar," Chicago Tribune, October 13, 2008
  4. Charlie Savage and Ben White; Julie Creswell, and a researcher, Kitty Bennett, contributed to this article, "Bailout Role Elevates U.S. Official," The New York Times, October 9, 2008
  5. Charlie Savage and Ben White; Julie Creswell, and a researcher, Kitty Bennett, contributed to this article, "Bailout Role Elevates U.S. Official," New York Times, October 9, 2008
  6. Howard, Theresa, "Former adviser to Paulson takes on top post in bailout," USA Today, October 7, 2008
  7. Singletary, Michelle, "Treasury's Bailouts Are Getting Us Chumped," The Washington Post, November 20, 2008
  8. Center for Responsive Politics
  9. http://blogs.wsj.com/deals/2008/10/10/neel-kashkari-a-portrait-of-the-700-billion-man-as-a-young-banker/
  10. Crittenden, Michael R., "2nd UPDATE: US Lawmakers Criticize Tsy Over $700B Rescue Plan," Dow Jones International News, November 14, 2008
  11. Rosenwald, Michael S., "The $700 Billion Man With an Engineer's Mind," The Washington Post, October 9, 2008
  12. Rosenwald, Michael S., "The $700 Billion Man With an Engineer's Mind," The Washington Post, October 9, 2008