Ennis Knupp was hired as investment management consultant for the Treasury Departments $700 billion rescue of the nations financial institutions, Neel Kashkari, Treasurys interim assistant secretary for financial stability, said this morning.
Mr. Kashkari, who is heading Treasurys Troubled Asset Relief Program, said Ennis Knupp was selected from a field of six candidates and began work on Saturday.
Ennis Knupp will help evaluate potential asset managers and oversee those firms that are selected, according to a Treasury Department news release. This oversight will include helping Treasury to determine asset allocations for each manager, evaluating the performance and costs, identifying conflicts of interest and identifying strategic investment and market issues impact the overall portfolio, the news release said.
In addition, Ennis Knupp, under its one-year contract with Treasury, will identify qualified minority- and women-owned businesses to provide services for the portfolio, the news release said.
Harmony Watling, Ennis Knupp spokeswoman, said the firm doesn't comment on the work done for clients.
Mr. Kashkari also said the master custodian for the program will be announced in the next 24 hours. Three firms have been invited to make presentations. They were among 70 that responded to the RFP issued last week by the Treasury Department. Of the 70 applicants, 10 met the eligibility requirements. Mr. Kashkari did not name the firms.
He also said TARP received more than 100 responses to an RFP to manage mortgage-backed securities acquired in the program. In addition, more than 100 managers applied to manage whole loan assets acquired in the program, he said. Winners will be selected with the help of Ennis Knupp and announced within the next few days, he said.
Mr. Kashkari also said that Treasury had retained the law firm of Simpson Thacher & Bartlett to advise TARP on the equity program structuring. He said TARP would also select two accounting firms to provide auditing services and to help us design and implement our internal control systems, according to a text of a speech today to the Institute of International Bankers in Washington.