Treasury Names Former Executive To Oversee Rescue Plan Spending

Tuesday, October 7, 2008

WASHINGTON, Oct. 6 -- The Treasury Department on Monday named a former Goldman Sachs executive to oversee spending for the $700 billion financial rescue plan.

The administration announced it had tapped Neel Kashkari, 35 -- an assistant Treasury secretary for international affairs -- to head the Treasury's new Office of Financial Stability on an interim basis.

Kashkari helped draft the bailout legislation as one of Treasury Secretary Henry M. Paulson Jr.'s close advisers on the crisis. Kashkari joined the government after working at Goldman Sachs, the firm Paulson headed before joining the Bush administration in 2006.

The President's Working Group on Financial Markets, which includes Paulson and Federal Reserve Chairman Ben S. Bernanke, said it would move "with substantial force on a number of fronts" to implement the expanded authorities granted to the government when Congress passed the emergency rescue package Friday.

In one of the moves Monday, the Treasury Department released a set of guidelines for selecting the financial asset management firms that will run the program and for guarding against conflicts of interest.

-- Associated Press

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