Bailout Czar Kashkari Joins World's Big Money Elite

After seeing some thawing in key credit markets, Treasury may expand program

(NEWSER) - Treasury is considering using some of the $700 billion at its disposal to buy stakes in a range of financial companies beyond banks, the Wall Street Journal reports. The idea comes after seeing measured success in thawing credit markets by taking equity stakes in several banks. Treasury may also abandon its plan to buy troubled assets from banks at auction, instead purchasing those directly. More»

(NEWSER) - Henry Paulson’s recent about-face on his plans for the $700 billion bailout do not bode well for his legacy, write Bloomberg's Rebecca Christie and Matthew Benjamin. Perhaps most damaging is not the change of mind, but what it says about his initial plans. “This is a flip-flop,” one observer said, “but on the other hand, when they first proposed the thing, they didn't really know what they were doing.” More»

$250B bailout needed to restore faith, keep capital at home

(NEWSER) - The $250 billion plan to guarantee new bank debt and unlimited bank deposits in certain accounts isn’t just an option, Treasury Secretary Paulson told the chiefs of nine banks yesterday; it’s for the good of the country. The plan, the country’s response to similar European banking actions, is engineered to quash feats that US banks will default and keep capital from flowing overseas to safer banks, the New York Times reports. More»

35-year-old to keep seat warm until Jan.

(NEWSER) - Treasury Secretary Henry Paulson will name former Goldman Sachs banker Neel Kashkari to oversee the $700 billion bailout fund approved last week, reports the Wall Street Journal. The appointment is an interim one for Kashkari, 35, currently an assistant Treasury secretary; a new administration would almost certainly appoint its own official to the post in January. More»

Demands and attitude have soured a once promising relationship between the administration and lawamakers

(NEWSER) - Treasury Secretary Henry Paulson may have gotten what he wanted from Congress on the Wall Street bailout, but his performance in selling the deal left lawmakers with a sour taste, the Wall Street Journal reports. Many think his original proposal, which would have granted him virtually unlimited powers, and his conduct in the hot seat, were presumptuous. But no matter: “For a few months, he will be more powerful than the president,” said Sen. Richard Shelby, a bailout critic. More»