xcel
10-05-2008, 06:33 PM
Even with $700 billion at his disposal, the Treasury Secretary must target banks and toxic assets selectively to have maximum, immediate impact. (http://www.businessweek.com/bwdaily/dnflash/content/oct2008/db2008103_896883.htm?chan=top+news_top+news+index+-+temp_top+story)
http://www.cleanmpg.com/photos/data/501/Treasury_Secretary_Henry_Paulson1.jpgJane Sasseen - Business Week - Oct. 4, 2008
Treasury Secretary Henry Paulson announcing the biggest overhaul of financial regulations since the Great Depression.
Although there is no other readily apparent solution, some of the individuals that will setup the working end of the bailout are the same ones who caused the problems in the first place :( -- Ed.
With the House of Representatives' Oct. 3 passage of the Treasury's $700 billion plan to stabilize the financial markets by buying up troubled mortgage-related assets, you could almost hear the sigh of relief spreading throughout Washington and Wall Street. After two weeks of nearly nonstop negotiations in which the bill repeatedly appeared to flounder, it was quickly passed on to President George W. Bush, who signed it into law within hours.
Now comes the hard part: getting the Mother of All Buyout Funds up and running.
Treasury officials have made clear they want to do that as soon as possible, and have told congressional leaders and Wall Street executives that they will conduct the first auction to buy assets within four weeks. The work needed to accomplish that is well under way, by a team of Treasury officials led by Ed Forst, a Goldman Sachs (GS) alumnus who left the firm this summer to become a senior administrator at Harvard University...
Hiring Conflicts
"The irony is, Paulson will not be able to find asset managers to run this that don't already have distressed assets on their own books; there's no one else to do it," says one source who is closely following the talks. This person warns that Paulson has to be careful in how he brings those people in, ensuring there are strong enough firewalls and other safeguards to avoid a further public backlash: "If Main Street was already concerned about writing a big check to Wall Street, imagine how they are going to feel when they hear the government is now hiring the guys who created the problem in the first place, and, by the way, their firms will benefit?" … http://www.businessweek.com/bwdaily/dnflash/content/oct2008/db2008103_896883.htm?chan=top+news_top+news+index+-+temp_top+story
http://www.cleanmpg.com/photos/data/501/Treasury_Secretary_Henry_Paulson1.jpgJane Sasseen - Business Week - Oct. 4, 2008
Treasury Secretary Henry Paulson announcing the biggest overhaul of financial regulations since the Great Depression.
Although there is no other readily apparent solution, some of the individuals that will setup the working end of the bailout are the same ones who caused the problems in the first place :( -- Ed.
With the House of Representatives' Oct. 3 passage of the Treasury's $700 billion plan to stabilize the financial markets by buying up troubled mortgage-related assets, you could almost hear the sigh of relief spreading throughout Washington and Wall Street. After two weeks of nearly nonstop negotiations in which the bill repeatedly appeared to flounder, it was quickly passed on to President George W. Bush, who signed it into law within hours.
Now comes the hard part: getting the Mother of All Buyout Funds up and running.
Treasury officials have made clear they want to do that as soon as possible, and have told congressional leaders and Wall Street executives that they will conduct the first auction to buy assets within four weeks. The work needed to accomplish that is well under way, by a team of Treasury officials led by Ed Forst, a Goldman Sachs (GS) alumnus who left the firm this summer to become a senior administrator at Harvard University...
Hiring Conflicts
"The irony is, Paulson will not be able to find asset managers to run this that don't already have distressed assets on their own books; there's no one else to do it," says one source who is closely following the talks. This person warns that Paulson has to be careful in how he brings those people in, ensuring there are strong enough firewalls and other safeguards to avoid a further public backlash: "If Main Street was already concerned about writing a big check to Wall Street, imagine how they are going to feel when they hear the government is now hiring the guys who created the problem in the first place, and, by the way, their firms will benefit?" … http://www.businessweek.com/bwdaily/dnflash/content/oct2008/db2008103_896883.htm?chan=top+news_top+news+index+-+temp_top+story