The finance executive expected to head the federal bailout program has close ties to the banking industry and has made significant political contributions to a political organization representing life insurance companies, according to an analysis by BailoutSleuth.
The Wall Street Journal and other media outlets reported Tuesday that President Obama is likely to appoint Herbert M. Allison Jr., currently the chief executive of Fannie Mae, to head the Office of Financial Stability.
That office oversees the Troubled Asset Relief Program, and is currently run by Neel R. Kashkari, who was originally appointed by President Bush.
Allison has worked in the banking sector for thirty years, most of it at Merrill Lynch & Co.
Allison became president of the Teachers Insurance and Annuity Association - College Retirement Equity Fund (TIAA-CREF) in 2002. He held that position until 2008, when he was tapped to run Fannie Mae.
Allison also served as a director of the New York Stock Exchange from 2002 to 2005. He was a member of the board's compensation committee, which was responsible for approving former NYSE Chairman Richard Grasso's controversial $139.5 million retirement package.
Allison is a major contributor to political causes, having given at least $102,000 to federal candidates and political action committees since 1998, according to filings with the Federal Election Commission.
In addition to giving sustained support for Sen. John McCain's presidential ambitions, Allison has made large contributions to the American Council of Life Insurers. He made $5000 donations to the organization's political action committee each year from 2004 and 2006, for a total of $15,000.
How to involve life insurance companies in the bailout program promises to be one of the most important issues Allison will confront in his new role. At least 12 life insurers have applied for bailout money, an effort that in most cases has required them also to buy a savings and loan or bank.
The Treasury Department said last week that it was considering the insurers' requests on a rolling basis and could not say if and when approval would occur. Since then, at least two insurance companies have dropped out of the process.
The Wall Street Journal and other media outlets reported Tuesday that President Obama is likely to appoint Herbert M. Allison Jr., currently the chief executive of Fannie Mae, to head the Office of Financial Stability.
That office oversees the Troubled Asset Relief Program, and is currently run by Neel R. Kashkari, who was originally appointed by President Bush.
Allison has worked in the banking sector for thirty years, most of it at Merrill Lynch & Co.
Allison became president of the Teachers Insurance and Annuity Association - College Retirement Equity Fund (TIAA-CREF) in 2002. He held that position until 2008, when he was tapped to run Fannie Mae.
Allison also served as a director of the New York Stock Exchange from 2002 to 2005. He was a member of the board's compensation committee, which was responsible for approving former NYSE Chairman Richard Grasso's controversial $139.5 million retirement package.
Allison is a major contributor to political causes, having given at least $102,000 to federal candidates and political action committees since 1998, according to filings with the Federal Election Commission.
In addition to giving sustained support for Sen. John McCain's presidential ambitions, Allison has made large contributions to the American Council of Life Insurers. He made $5000 donations to the organization's political action committee each year from 2004 and 2006, for a total of $15,000.
How to involve life insurance companies in the bailout program promises to be one of the most important issues Allison will confront in his new role. At least 12 life insurers have applied for bailout money, an effort that in most cases has required them also to buy a savings and loan or bank.
The Treasury Department said last week that it was considering the insurers' requests on a rolling basis and could not say if and when approval would occur. Since then, at least two insurance companies have dropped out of the process.
published April 14, 2009, 0 Comments
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