Herbert Allison, who oversaw the $700 billion Troubled Asset Relief Program as the U.S. Treasury Department’s assistant secretary for financial stability, on Wednesday announced plans to leave the Obama administration and return to Connecticut.
“The TARP program has proven remarkably successful in achieving its goal of stabilizing the financial sector and laying the foundation for our nation’s economic recovery,” Mr. Allison said in a letter to employees. “With the TARP program entering a new phase and continuing to wind down, now is the right time for me to step down.”
Tim Massad, the financial stability office’s chief counsel, was appointed as acting TARP administrator, Treasury Secretary Timothy Geithner told Treasury employees Wednesday. Mr. Geithner credited Mr. Allison with helping the government stabilize financial markets.
The Congressional Budget Office predicts the $700 billion rescue program will cost $66 billion, Mr. Geithner told employees, compared with the $105 billion in the Treasury’s most recent official estimate. Taxpayer returns, including repayments and dividends from banks, already have reached $225 billion, he said.
“We are going to largely get the taxpayers’ money back,” Mr. Geithner said. “As TARP comes to its end, the skeptics are coming around.”
Mr. Allison was CEO of TIAA-CREF from 2002 to 2008 and was CEO of Fannie Mae before his appointment to the TARP post in mid-2009.