April 18 (Bloomberg) -- President Barack Obama nominated Fannie Mae Chief Executive Officer Herb Allison to run the Treasury office overseeing the $700 billion bank rescue.Just in case you forgot already, Allison drove Fannie against the wall, with hundreds of billions of USD of losses and the Bush administration had to not only inject those hundreds of billions of dollars in the company, but also had to guarantee several trillions of USD of the securities they sold, on the back of the US-taxpayer and the USD-holder.
Allison, 65, a former Merrill Lynch & Co. president, would replace Neel Kashkari, a holdover from the Bush administration, as assistant secretary for financial stability. If confirmed by the Senate, the choice gives Treasury Secretary Timothy Geithner the counsel of a Wall Street veteran as he confronts the biggest financial crisis since the Great Depression.
Allison, who was tapped in September to head Fannie when it was seized by federal regulators, may face some tough questions in Congress on his defense of $112 million in retention bonuses awarded to Fannie employees last year.
Fannie and Freddie, which own or guarantee 56 percent of all residential home loans in the U.S., lost more than $108 billion last year and were placed into conservatorship in September.
Fannie Mae CEO to Run Treasury’s TARP
Should you need any more prove of the complete blindness, corruption and incompetence of Geithner and Obama, here's quite an amazing piece of news: