Mortgage News Daily reports: "Neel Kashkari, former vice-president at Goldman Sachs and current assistant secretary of international affairs at the U.S. Treasury, is expected to become the interim head of the $700 billion rescue package, according to anonymous sources who spoke to the Washington Post and the Wall Street Journal."
This isn't exactly an appraisal topic . . .but those of us that remember the last government bailout can surely recall some of the whacky things that were done . . .and it looks like "Here we go again!"
According to the Washington Post, hiring asset managers from some of the top management companies poses a potential conflict of interest, as the managers "would be overseeing the assets while also selling their own troubled securities to the government."
Potential Conflict? GOSH! . . . .Ya think!??
The WSJ said anyone with direct experience with the troubled assets in question is likely to work for a firm with a stake in the outcome.
"Congress told Treasury to establish guidelines to deal with these conflicts and Treasury is likely to establish 'firewalls' between asset managers who work for the department and their firms to avoid anyone sharing information," the newspaper said.
Source Article: Mortgage New Daily