Paulson's choice by Claudia Sonea

The government's $700 billion bailout program is already stirring controversies beyond the one of being or not just to save the banks from the tax payers’ money. Treasury Secretary Henry Paulson has chosen an interim head of the project until the elections are over and the Senate can decide who will be the permanent one. Yet, his election seemed subjective and was harshly criticized by some people
Neel Kashkari, Steve Shafran, Dan Jester and Ken Wilson worked for Goldman Sachs, his former firm. They all worked together with Anthony Ryan, David Nason and Bob Hoyt to come up with solutions to the economic crisis considered to be the worst one in decades. The critics say that people handling the savings and loan crisis of the late 1980s and 1990s would have been a more suitable choice. Mainly, Kashkari, former vice president of Goldman's San Francisco office, is not considered to be a proper interim head, although he is the main responsible for the success of the HOPE Now program launched in October 2007 by the Treasury in order to obtain more-affordable mortgages from the private mortgage companies. Bush administration uses that program as an example of private sector forces confronting successful with the slump in housing.
Besides all the studies, Kashkari has the success obtained with TRW Inc. creating technology for NASA space science missions, while at Treasury helped with Hope Now and has the title of assistant Treasury secretary for international affairs. As an interim he will lead the Office of Financial Stability. His election shows the administration is taking seriously the matter and is trying to implement quickly the measures of the bailout program. Also, the Federal Reserve took measures to dress up some of the issues raised by the crisis. Stay connected for more!



related story: http://news.yahoo.com/s/ap/20081007/ap_on_bi_ge/meltdown_administration;_ylt=Auo2pTm6aTwd1zA_h00fexSs0NUE

by Claudia Sonea for PocketNews (http://pocketnews.tv)

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