Bailout

The Czar Speaks: Kashkari's First Press Conference

By Admin

Young Bailout Czar Neel Kashkari held his first press conference this morning. He described Treasury strategy to develop the multiple tools necessary to accomplish it’s mission of restoring capital flows to the US economy, reviewed actions taken to date, and announced next steps.

Most significantly, Neel described the seven policy teams that are working on Tarp’s implementation:

1. Mortgage-backed Securities Purchase Program: determining who to purchase securities from, which purchase mechanisms to employ, and detailed auction protocols
2. Whole Loan Purchase Program: Directed at purchasing whole residential mortgage loans from Regional Banks in consultation with local regulators
3. Insurance Program: Establish program to insure troubled assets, mortgage backed loans, and whole mortgage loans
4. Equity Purchase Program: Annoucced that equity investments would be voluntary and designed with attractive terms to encourage participation by healthy institutions and to encourage participation of private capital
5. Home Ownership Preservation: Similar to Hope Now for mortgages purchased by Treasury
6. Executive Compensation: Establish different standards for those institutions that participate in a) auctions, b) equity program (direct investment), and c) intervention
7. Compliance: Establish oversight board, accommodate GAO and Inspector General

Full post as published by Bailout Report on October 13, 2008 (boomark / email).