There are reports Obama will name Fannie Mae Chief Executive Herb Allison to head the U.S. government's $700 billion (471 billion pounds) financial rescue program.
"The announcement is expected "in coming days," the source said, adding that Michael Williams, Fannie Mae's chief operating officer, is expected to be named as Allison's successor.
The Wall Street Journal first reported on its website that U.S. President Barack Obama could announce his intention to nominate Allison as assistant secretary for the office of financial stability as early as this week.
Allison's name has been on the short list from the beginning as the government looked for someone to run the Troubled Asset Relief Program, the Journal said, citing people familiar with the matter.
Several factors complicated his selection, including the need to replace him at Fannie, the paper reported, citing sources.
Allison, a veteran banker and former president of Merrill Lynch, led the TIAA-Cref pension fund before being appointed Fannie Mae CEO in September."
Has Fannie Mae been helped by this guy since he stepped in? Although he wasn't CEO of Fannie Mae when all the problems started, for Obama to pick him for the TARP money seems counterintuitive. He was appointed CEO by the Federal Housing Finance Agency. Personally, I would rather see someone handling this money that doesn't have favors to pay back at the end of a 30 year career in the banking/finance industry. Many in this country already have strong negative feelings about the way TARP has been handled thus far. To associate another negative name, Fannie Mae, with it just seems illogical for the president to do. Maybe it is just me.