TARP Leader Emerges

With financial institutions bending over backwards to repay monies received as part of the Troubled Asset Relief Program ("TARP"), the U.S. Government is close to filling the top job responsible for the program.  Here is what the Wall Street Journal reported yesterday.

President Barack Obama is expected to tap Fannie Mae Chief Executive Herb Allison to head the government's $700 billion financial-rescue program, people familiar with the matter say.  Mr. Allison would replace Neel Kashkari, a holdover from the Bush administration, who was asked by Treasury Secretary Timothy Geithner to stay on until a replacement was found.Mr. Geithner has been searching for months for someone to run TARP. Various candidates either have not made it through the vetting process or have pulled out of consideration. Last month, the leading candidate, hedge-fund manager Frank Brosens, withdrew for personal reasons.

It remains to be seen whether this candidate will survive the nomination process.  By the time he is confirmed, all the money may have been re-paid.