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Fannie Mae CEO to head bailouts
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This is worthy of a SNL skit if you ask me. Herbert Allison Jr., Fannie Mae's president and CEO, has been named to run the TARP program. Yes, Allison was an advisor for McCain during his presidential run and is supposedly bipartisan in his politics. None of that matters. Having the CEO of one of the biggest causes to the economic meltdown run the program that is supposed to help get us out of that meltdown is just rediculous.
Scott Talbott, chief lobbyist for the Financial Services Roundtable, an industry group said:
"He has a wealth of experience with buying, selling, protecting, and managing assets to protect the taxpayer investment and strengthen the economy."
And where did that experience get us? Yep, tons of bad mortgages being made and the creation of a market for the now termed "toxic assets". So he now goes from running a quasi-government company into the ground to spending even more money at more bad banks.
According to the AP,
Some industry officials said that by pulling Allison away from Fannie Mae, the White House was signaling that TARP would remain a viable component of the government's stabilization efforts for the financial industry, even in the face of hostile lawmakers and wary bankers.
Bert Ely, a banking industry consultant in Alexandria, Va., said Allison has the advantages of being a known quantity to the Obama administration who is "much more of a financial heavyweight" than Kashkari.
Plus, he said, the new job would likely be more of a challenge than running Fannie and Freddie, which have been operating under tight government oversight since last September. "In this new situation, he's going to be much more of a policymaker," Ely said. "I can understand why he would want to take it."
And where did that experience get us? Yep, tons of bad mortgages being made and the creation of a market for the now termed "toxic assets". So he now goes from running a quasi-government company into the ground to spending even more money at more bad banks.
Nice pick there Obama.
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