Interim Assistant Treasury Secretary Neel Kashkari Discusses Financial Market Crisis and Troubled Assets Relief Program
Kashkari (right) was welcomed to the McDonough School on January 13 by Dean George Daly.
Assistant Secretary of the Treasury for Financial Stability Neel Kashkari addressed the nation's financial market crisis and troubled assets relief program (TARP) on January 13 at Georgetown University's McDonough School of Business. The TARP is the federal program that allows the U. S. Department of the Treasury to purchase assets and equity from financial institutions.
Speaking to a full house of McDonough School faculty, students, staff, and members of the media, Kashkari gave a brief overview of the ongoing economic crisis and the planning sessions that led Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke to push for implementation of the TARP. The TARP has been extended from its original scope to aid the auto industry.
"The savings of millions of Americans and the ability of businesses and consumers to access affordable credit were put at serious risk," Kashkari said. He said he is pleased with the program's initial results and believes it has helped save the country's financial institutions. He noted that a number of banks have already signed up for the Capital Purchase Program and that billions of dollars have already been invested in a variety of key sectors.
After his speech, Kashkari answered audience questions. Students, faculty, and reporters asked for specific details on the federal program, as well as Kashkari's opinion on how to restart the non-banking sectors of the economy and restructure the banking industry. When asked about the economy's long-term prospects, Kashkari said the TARP was just one step in what could be a long recovery process. "The current crisis took years to build up and will take time to work through," he said. "We still face some real economic challenges."
Georgetown University's McDonough School of Business is a premier business school located in the nation's capital. Founded in 1957 to educate undergraduate business students through the integration of liberal arts and professional education, the McDonough School today welcomes approximately 1,300 undergraduates, 800 MBA students, and more than 500 participants in its executive education programs annually. Please visit http://msb.georgetown.edu.