Why He Matters
Massad stepped up to fill the shoes of Herb Allison, who left the Obama administration in September 2010 after managing the first phase of the controversial, but some say basically successful Troubled Asset Relief Program (TARP).
A former partner at Cravath, Swaine & Moore, Massad was the chief counsel and chief reporting officer of the Treasury’s Office of Financial Stability, which Allison headed. (1)
Now that the first phase of TARP is over and many struggling companies that received government funds during the 2008-2009 financial crisis are repaying the government, Massad is helping wind down TARP investments and working on the Capital Purchase Program with small banks. (2)
In His Own Words
It’s clear that while we are making progress in recovering from this terrible recession, there is still a lot of work to do. There are millions of people still unemployed and in danger of losing their homes. TARP succeeded in doing what it was suppose to do – stabilize the system and help lay the foundation for a recovery. But it was never something that could cure all our problems. We’re continuing to work on those, so that we can have a stable economy that brings prosperity for all.” (2)
Path to Power
After graduating from Harvard Law School in 1984, Massad joined Cravath, Swaine & Moore LLP and was elected a partner in 1991. Massad has had a diverse corporate practice, with emphasis on securities offerings and bank financings, counseling underwriters and securities issuers. (3)
Much of Massad’s practice has been heavily international. He worked in the firm’s Hong Kong branch from 1998 through 2002. He also worked in the firm’s London office, and focused on Latin America while in the firm’s New York office. In 2007, he was the head of the firm’s India practice. (4)
Massad has handled different types of securities transactions, from initial public offerings, high-yield transactions, investment-grade and sovereign offerings. He also handled private-equity transactions and general advice to the firm’s corporate clients. (5)
Also committed to pro-bono work, Massad has represented UNICEF and Covenant House, the child-shelter agency, among others. (6)
He was formerly the vice chairman of the Norwalk, Connecticut Redevelopment Agency, appointed by Mayor Alex Knopp. As well, he was the former president of the Norwalk Community College Foundation. (7)
Foray Into Politics
Massad’s first debut in governmental work started at the onset of the 2008 financial crisis when he discovered that his close friend, Damon Silvers, was appointed as part of the five-member Congressional Oversight Committee charged with providing legislative review for the bailout as well as recommending regulatory reforms. (2)
When Massad called to congratulate Silvers, Silvers expressed the need for more staff to help write the the numerous necessary reports. As a result, Massad became a special legal adviser for the TARP program, and wrote his first report on TARP investments. (2)
Massad started making more connections in the Obama Treasury Department, where he eventually worked full time as TARP chief counsel after leaving Cravath in May 2009. (8)
The Issues
One of Massad’s biggest priorities is winding down government investment in private companies as part of the TARP bailout as soon as practicable while protecting the interests of taxpayers. He’s also working with others at the Treasury to release reports detailing how TARP funds are spent and being recovered. (9)
Although the economy continued to struggle in 2010, Massad said it was clear that progress is being made. He added that a lot of work remains to be done, considering that millions of people are still unemployed and in danger of losing their homes.
The Network
As acting assistant secretary for Treasury’s Office of Financial Stability, Massad worked closely with Herb Allison, his predecessor who left in September 2010. Because of the high-profile nature of his job, he’ll be working closely with Treasury Secretary Tim Geithner and special advisers Gene Sperling and Jake Siewert.
Campaign Contributions
Massad is a consistent contributor to the Democratic Party, including contributions to 2004 presidential nominee John Kerry, former president Bill Clinton, and 2008 candidates Hillary Clinton and Barack Obama. (9)
Footnotes
1. Bater, Jeff. “TARP Overseer Steps Aside,” WSJ, Sept. 22, 2010.
2. Interview with Catherine Ngai, Medill News Service, Nov. 12, 2010.
3. “Executive Profile: Tim Massad,” Bloomberg Business Week.
4. “India Business Conference,” Columbia Business School, April 2007.
5. “India Business Conference,” Columbia Business School, April 2007.
6. “India Business Conference,” Columbia Business School, April 2007.
7. Fay, Francis X. Jr. “Obama taps city man to head TARP,” TheHour, May. 16, 2009.
8. “Tim Massad ’84 appointed chief counsel of TARP,” Harvard law school, May 27, 2009.
9. “Donor Look Up: Tim Massad,” OpenSecrets.