September 22, 2010

TARP Chief Herb Allison to Step Down

As program winds down, Allison is returning to Connecticut

The man who supervised the controversial bank bailout is going home. Herb Allison, who as assistant secretary for financial stability oversaw the $700 billion Troubled Asset Relief Program (TARP), said Wednesday in an e-mail to his staff that he was stepping down to return to his wife in Connecticut, according to Reuters.

TARP is winding down, set to end on October 3, although recouping the money it lent during its two years of existence will go on for years. Allison will be succeeded at the program by its chief counsel and chief reporting officer, Tim Massad, who will become acting secretary on Sept. 30.

Treasury Secretary Tim Geithner credited Allison with careful oversight of taxpayer interests as he set up strong compliance programs for recipients of the bailout, which began under the Bush administration in 2008. Previous to his position at the helm of TARP, Allison, a former president of Merrill Lynch, had served as the head of Fannie Mae; before that he was chief executive at TIAA-CREF.

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