Why is this guy still employed at the Treasury department? And here I thought you had to be a Citibank employee to work at Treasury these days. To be fair to Paulson-lite, it’s good to see that you can also be a Goldman Sachs alum and still get a job in this team. Obviously Kashari isn’t very well-versed on the nuances of a democratic government, where elected officials that bail out gamblers get to call the shots. Maybe he can dig into how lucky Goldman is to get that AIG bailout money instead of lecturing Congress about how the system ought to work.
A top Treasury official told Congress Wednesday that the federal government should not micromanage banks that receive taxpayer assistance, a caution to lawmakers itching to see results from a $700 billion rescue program for the financial sector. Neel Kashkari, interim assistant secretary for financial stability at Treasury, told a congressional oversight panel that banks should not be forced to make loans that bankers might deem risky.
“However well-intended, government officials are not positioned to make better commercial decisions than lenders in our communities,” he told a subcommittee of the House Oversight and Government Reform Committee.
Kashkari, who was put in the job during the Bush administration, testified amid growing impatience among members of Congress who want evidence that the taxpayer money and the Treasury strategies are actually loosening credit markets.