Treasury's Top Candidate to Run TARP Drops Out By DEBORAH SOLOMON
WASHINGTON -- The leading candidate to run the Treasury Department's $700 billion bailout program has withdrawn his name from consideration, according to people familiar with the matter.
Frank Brosens, a hedge-fund manager and big Democratic donor, was considered the top contender to run the Treasury's Troubled Asset Relief Program. Treasury Secretary Timothy Geithner is now considering several other candidates, including Herb Allison, who currently heads mortgage titan Fannie Mae.
The withdrawal comes as Mr. Geithner moves to fill out other parts of his team at the Treasury. On Monday, President Barack Obama said he would nominate a deputy Treasury secretary and two undersecretaries to serve under Mr. Geithner.
Mr. Geithner has been operating with a small crew of advisers since taking office in January, as several candidates for top confirmable positions either withdrew or were blocked by the Obama administration's tough rules on hiring. The lack of manpower at the Treasury comes at a precarious time, given the department's focus on fixing the financial crisis.
Mr. Obama has nominated several top lieutenants but some key positions remain unfilled, including an assistant secretary to oversee TARP. Neel Kashkari, who was given that job under former Treasury Secretary Henry Paulson, has stayed on at Mr. Geithner's request, but it is unclear how long he will remain.
Mr. Brosens, who campaigned for Mr. Obama, said he withdrew his name for personal reasons, including wanting to remain at his hedge fund, Taconic Capital Advisors. He was previously a partner at Goldman Sachs Group Inc., where he worked for 15 years.
"I very much wanted to find a way to serve," Mr. Brosens said. Among the reasons he cited for withdrawing was the need to commute between Washington and New York, where his son is in school.
Mr. Obama tapped one of his own economic advisers to serve as Mr. Geithner's top deputy. Neal Wolin, who briefly served as a deputy counsel to the president for economic policy, will be nominated for the post of deputy secretary. Mr. Wolin served as general counsel at the Treasury during the Clinton administration.
Those who know Mr. Wolin say he is a smart, aggressive manager who is likely to help shoulder some of the department's daily operations, allowing Mr. Geithner to focus more heavily on policy. Mr. Wolin has some financial-sector experience, having run the property-and-casualty division of the Hartford Financial Services Group, an insurance firm. He has also given thousands of dollars in campaign contributions, primarily to Democrats, including Mr. Obama.
Mr. Obama also nominated former Clinton economic adviser and Brookings Institution scholar Lael Brainard for undersecretary for international affairs at the Treasury. And the president said he intends to keep Stuart A. Levey on as undersecretary for terrorism and financial intelligence at the department.