President Barack Obama has chosen Timothy Massad, a former corporate partner at Cravath, Swaine & Moore, to operate the federal government's Troubled Asset Relief Program.
Massad has been performing the job on an acting basis since September, when the Treasury Department's previous assistant secretary for financial stability, Herbert Allison Jr., resigned. Late on Friday, the White House sent Massad’s name to the Senate as the president’s nominee.
He worked at Cravath for about 17 years, specializing in corporate work. In 2007, he represented Indian outsourcing firm Genpact Ltd., a former subsidiary of General Electric Co., in the company’s $600 million initial public offering. He left the firm in May 2009 to join Treasury, starting as Allison’s chief counsel. In 2008, he was on the team that represented Time Warner Inc. in its plan to divest itself of its cable subsidiary, a $9.25 billion deal.
Congress created the $700 billion Troubled Asset Relief Program in 2008, at the height of the financial crisis, and the Bush and Obama administrations used the money for an array of activities, including loans to the financial and automotive industries.
In December, after critics accused the Treasury Department of not doing enough to limit home foreclosures, Massad was vocal in his defense of the program. He said the government was working closely with mortgage servicers to persuade them to modify mortgages.