Bailout Czar Kashkari Joins World's Big Money Elite

After brisk rise through Treasury, 35-year-old has purse to rival largest sovereign funds

By Clay Dillow, Newser Staff

Posted Oct 7, 2008 1:01 PM CDT

(Newser) – A behind-the-scenes player at the Treasury Department just weeks ago, 35-year-old Neel Kashkari’s financial heft as the agency’s bailout czar puts him on par with the heads of sovereign wealth funds, Politico reports. The self-described “free-market Republican” enjoyed a meteoric rise through the department, where he was part of a small team working on the $700 billion plan months before it was proposed.

Kashkari will decide where and how taxpayer money is spent, putting him in the company of the world’s wealthiest men—the head of Abu Dhabi’s Investment Authority holds $875 billion—not bad for an aerospace engineer who received his MBA just 6 years ago. Kashkari, for his part, seems eager. “We’re having a necessary correction, and we don’t want to do anything to slow it down,” he said.

[Images (2)]

[Quotes (1)]

As the Treasury Department official in charge of the $700 billion bailout fund, Assistant Secretary Neel Kashkari has a wallet to rival the largest sovereign wealth funds. (AP Photo)

In this Sept. 25, 2008, file photo, Kashkari heads to a Capitol Hill briefing with Secretary of the Treasury Henry Paulson. (AP Photo)

« Prev« Prev | Next »Next » Slideshow

They’ve got a guy who doesn’t accept failure as an option.
- Faith Schwartz, executive director of HOPE Now

« Prev« Prev | Next »Next » Slideshow

To report an error on this story, notify our editors.

More Newser Stories

Fannie Mae Needs Another $7.8B

Taxpayer bill for mortgage firm's rescue now $94B

(NEWSER) - In a sign that the US housing market is still in deep, deep trouble, Fannie Mae is tapping the Treasury for another $7.8 billion to stay afloat. The mortgage finance company posted a loss of $5.1 billion for the third quarter of this year, its 16th loss in 17 quarters. The company has now cost the Treasury close to $94 billion in bailout funds since the government seized it three years ago, the Wall Street Journal reports. More»

Treasury Headed for Underwhelming AIG Sale

Given current market, they'll make $9 billion in small sale

(NEWSER) - The Treasury has decided to go through with a plan to sell 300 million AIG shares, despite recent blows to the nationalized insurer’s market price, sources tell the Wall Street Journal . Given the sagging demand, the government expects to make around $9 billion in the small offering, which is on the low end of the $7 billion to $25 billion it had hoped for. More»

Treasury to Sell Off $142B in Toxic Assets, Make Billions

'Notably improved' market means $15B-$20B profit for taxpayers

(NEWSER) - The Treasury Department will start selling the $142 billion portfolio of mortgage-backed securities, the "toxic" assets it bought up during the financial crisis , the Wall Street Journal reports. The securities are mostly 30-year, fixed-rate mortgage-backed securities guaranteed by either Fannie Mae or Freddie Mac. And having bought the securities dirt-cheap, the Treasury expects to make between $15 billion and $20 billion for taxpayers in the next year. More»

Taxpayers Will Score $12B on Citigroup Bailout: Treasury

Government strikes deal to sell remaining 2.4B shares

(NEWSER) - Taxpayers will wind up making out like bandits on their $45 billion bailout of Citigroup. The Treasury Department has struck a deal to sell its remaining 2.4 billion shares of Citigroup for $4.35 a share, it announced yesterday, bringing the total money made off such sales to $57 billion. Citigroup will pay the underwriting fees on the sale. More»

AIG Reaches Deal to Repay Government

US will eventually no longer own the company

(AP) - AIG said today it's reached a deal to repay billions of dollars it received during the credit crisis. The plan could return a profit to taxpayers who footed the bill for AIG's near collapse in September 2008 and will eventually remove the government as majority owner. AIG became a lightning rod for criticism over bailouts when it received a package worth as much as $180 billion from the government, which received an 80% stake in the company in return. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

Bailout Czar Kashkari Joins World's Big Money Elite