Herbert M. Allison

Herbert M. Allison Jr.
Born	(1943-08-02) 2 August 1943 Pittsburgh, Pennsylvania, U.S.
Died	14 July 2013(2013-07-14) (aged 69) Westport, Connecticut, U.S.
Occupation(s)	Business executive, government official
Years active	1971–2010
Known for	President and CEO of Fannie Mae; Assistant Secretary of the Treasury for Financial Stability; Chairman, President, and CEO of TIAA

Herbert Monroe Allison Jr. (August 2, 1943 – July 14, 2013) was a prominent American executive who oversaw the Troubled Asset Relief Program (TARP) in his capacity as Assistant Secretary of the Treasury for Financial Stability between 2009 and 2010. He assumed the role of president and CEO at Fannie Mae in September 2008, shortly after the company entered conservatorship. Prior to this, Allison led TIAA as chairman, president, and CEO from 2002 until his retirement in 2008.

Early life and education

Born in Pittsburgh, Pennsylvania, Herbert Allison was the son of Herbert M. Allison, Sr., who worked as an FBI agent, and Mary Boardman Allison. He was raised in Garden City, New York and earned a B.A. degree in philosophy from Yale University in 1965.

Following his undergraduate studies, Allison served as an officer in the United States Navy, including deployment to South Vietnam, where he was awarded the Navy Commendation Medal with Combat "V". He concluded his naval career in 1969 and subsequently obtained an M.B.A. from the Stanford University Graduate School of Business in 1971.

Career

Allison launched his professional journey at Merrill Lynch as an associate within the investment banking division. Over a span of 28 years, he advanced through positions such as treasurer, director of human resources, chief financial officer, executive vice president, president, and chief operating officer. His assignments included stints in New York, London, Paris, and Tehran.

In response to the 1987 stock market crash, Allison implemented a revamped bonus program at Merrill Lynch that linked employee rewards to both individual achievements and overall corporate performance. These options, nicknamed "Herbies," delivered significant benefits for the company and its staff.

Allison played a key role in orchestrating the 1998 bailout of hedge fund Long Term Capital Management by proposing a plan embraced by fourteen Wall Street firms that helped stabilize financial markets.

After departing Merrill Lynch in 1999, he took on the role of National Finance Chair for Senator John McCain's 2000 presidential bid. Between 2000 and 2002, he led the Alliance for Lifelong Learning as CEO, which offered online higher education courses aimed at adult learners.

In 2002, Allison was appointed chairman, president, and CEO of TIAA, a Fortune 100 company focused on retirement services for educators and related professionals. During his tenure, assets under management increased from $264 billion to over $435 billion. The organization broadened its portfolio beyond pensions to include financial services such as life insurance, college savings plans, mutual funds, and IRAs while improving client support through on-campus offices. He retired from TIAA in 2008 with Roger W. Ferguson, Jr. succeeding him.

Allison stepped down from his post as assistant secretary for financial stability in September 2010 and was succeeded by Timothy Massad. His board memberships included Time Warner, Yale School of Management, Stanford Graduate School of Business, the International Advisory Committee of the Federal Reserve Bank of New York, and he served as a director at the New York Stock Exchange from 2003 until 2005.

Herbert Allison passed away on July 14, 2013, at his residence in Westport, Connecticut, at age 69.

See also

• Notable alumni of Stanford Graduate School of Business
• Compilation of U.S. executive branch "czars"
• List of Yale University people