- DSNews - https://dsnews.com -

Treasury’s TARP Supervisor Herb Allison Resigns

Assistant Treasury Secretary ""Herbert M. Allison"":http://www.treasury.gov/organization/bios/allison-e.html said Wednesday that he will be stepping down from his post at the end of September.


Allison has been with the Department for two years. He served as head of the Treasury's Office of Financial Stability, responsible for overseeing the administration's $700 billion Troubled Asset Relief Program (TARP).

The Treasury's Office of Homeownership Preservation also fell under Allison's jurisdiction. He has played an integral role in the development and management of the Obama administration's housing and foreclosure prevention programs.

Tim Massad, chief counsel of the Office of Financial Stability, will take over as Allison's responsibilities, effective September 30, while Treasury searches for a permanent replacement.

TARP is set to sunset in about two weeks. According to an internal email obtained by _Reuters_, Allison told his staff,


""With the TARP program entering a new phase and continuing to wind down, I have decided that now it is the right time for me to step down.""

In remarks at and Office of Financial Stability town hall meeting Wednesday morning, Treasury Secretary Timothy Geithner expressed his ""deepest gratitude"" to Allison and praised the work that he and his office have done to stabilize the financial system.

""Why Herb took this job is beyond me,"" Geithner said. ""Here's one of America's great executives; someone who started his career at Merrill Lynch as an associate in investment banking,"" later became chairman and CEO of TIAA-CREF and in 2008, the Treasury recruited him to step in as the new CEO of Fannie Mae, just when it was about to go into government conservatorship.

""[Herb Allison] has made a real and lasting difference. The fact that TARP is now regarded by many experts as one of the most effective emergency programs in financial history is a direct result of Herb's leadership and all of your hard work,"" Geither said speaking to the staff of the Office of Financial Stability.

A number of high-ranking administration officials have submitted their resignations in recent months in what looks to be a structural shake-up in Washington.

In addition to Allison, Larry Summers, director of the White House's national Economic Council said this week that he will depart at the end of the year. Others planning an exit include Christina Romer, chair of the president's Council of Economic Advisers, and Peter Orszag, White House budget chief â€" both of whom announced their resignations this summer.