Neel Kashkari

Neel Kashkari
Neel Kashkari
Born	July 30, 1973 (age 53); Akron, Ohio, U.S.
Occupation(s)	Economist, banker, politician
Years active	1995–present
Known for	President of the Federal Reserve Bank of Minneapolis; interim Assistant Secretary of the Treasury for Financial Stability; managing Troubled Asset Relief Program (TARP)
Political party	Republican

Neel Tushar Kashkari (born July 30, 1973) is an American economist, banker, and politician who currently holds the position of president at the Federal Reserve Bank of Minneapolis. Between October 2008 and May 2009, he served as the interim Assistant Secretary of the Treasury for Financial Stability, where he oversaw the management of the Troubled Asset Relief Program (TARP), a major component of the U.S. government's strategy to address the Financial crisis of 2007–2008. A member of the Republican Party, Kashkari ran for Governor of California in 2014 but was not elected.

Originating from Ohio and an alumnus of the University of Illinois at Urbana–Champaign, Kashkari began his professional life as an aerospace engineer. He later obtained an MBA from the Wharton School at the University of Pennsylvania and subsequently joined Goldman Sachs as an investment banker specializing in information technology security.

Henry Paulson, then-Secretary of the Treasury and former CEO of Goldman Sachs, brought Kashkari on board as an aide. Kashkari also held the role of Assistant Secretary for International Economics and Development, where he played a pivotal role in coordinating the government's financial crisis interventions, particularly managing TARP.

Following his departure from public service in 2009, Kashkari took a leadership role at Pimco, spearheading its venture into equity investments. He stepped down in January 2013 to launch a campaign for public office, declaring his candidacy for governor in 2014. He finished second in California’s nonpartisan blanket primary but was defeated by incumbent Jerry Brown in the general election.

On November 10, 2015, Kashkari was named president of the Minneapolis Federal Reserve, succeeding Narayana Kocherlakota.

Early life and education

Neel Tushar Kashkari was born on July 30, 1973, in Akron, Ohio, to parents who had immigrated from India. His mother, Sheila Kashkari, worked as a pathologist, while his father, Chaman Kashkari, was a professor of electrical engineering at the University of Akron. Both parents were Kashmiri Pandits originating from Srinagar in Jammu and Kashmir and settled in Stow, a suburb of Akron where Kashkari grew up. The family was well-known within the local Hindu American community. His elder sister, Meera Kashkari Kelley, is a medical doctor specializing in infectious diseases. Although raised in a family with liberal views, Kashkari aligned himself with the Republican Party due to his support for free-market principles.

He attended Stow–Munroe Falls High School before transferring to Western Reserve Academy, from which he graduated with honors in mathematics in 1991 and delivered the commencement address. He earned both his bachelor's degree (1995) and master's degree (1998) in mechanical engineering from the University of Illinois at Urbana–Champaign. During his time there, he led his team’s participation in the 1997 Sunrayce solar-powered vehicle competition.

Private sector

Following completion of his master’s degree, Kashkari worked as an engineer at TRW Inc. located in Redondo Beach, California, where he contributed to developing a stabilization mechanism for the James Webb Space Telescope. He then pursued an MBA at the Wharton School of the University of Pennsylvania, graduating in 2002. While at Wharton, he served as president of the Finance Club and played a key role in organizing its annual Finance Conference.

During his studies, Kashkari interned with investment bank Goldman Sachs and joined their San Francisco office after graduation as an associate focusing on software companies. He provided advisory services related to mergers, acquisitions, and financial strategies until 2006. Additionally, he was selected as a regional finalist for the prestigious White House Fellows program.

Treasury Department

In 2006, after President George W. Bush nominated Henry Paulson as Treasury Secretary, Kashkari reached out to join the department. Despite having limited prior interaction, Paulson brought him on board as a policy generalist. Kashkari started as a special assistant concentrating on energy policy, collaborating with Allan B. Hubbard to help develop Bush's "Twenty in Ten" energy conservation initiative. He also contributed to infrastructure projects connected to India.

In November 2007, President Bush nominated Kashkari for the role of Assistant Secretary of the Treasury for International Economics and Development. The Senate confirmed him in June 2008, and he was sworn in the following month.

2008 financial crisis

By mid-2007, growing concerns emerged regarding private-label securitizations, underwriting practices, and the solvency of financial institutions. The market value of mortgage-backed securities linked to U.S. subprime mortgages plummeted as borrower defaults surged, resulting in a surplus of housing and sparking the subprime mortgage crisis. Banks holding these loans accelerated foreclosure processes, which escalated into the broader 2008 financial crisis.

During this period, Kashkari played pivotal roles. He led Treasury’s participation in the Hope Now Alliance, a government-driven effort aimed at reducing foreclosures through loan modifications. In March 2008, he represented Treasury in facilitating negotiations that culminated in the federally supported acquisition of investment bank Bear Stearns by JPMorgan Chase. Kashkari also led Treasury’s ultimately unsuccessful attempt to create a U.S. market for covered bonds, which would have remained guaranteed by issuing banks after sale. Furthermore, he collaborated closely with Paulson on the federal takeover of Fannie Mae and Freddie Mac on September 6, 2008, as well as the bailout of American International Group on September 16.

TARP

Early in 2008, Paulson assigned Kashkari and aide Phillip Swagel to develop a strategy for recapitalizing banks should conditions worsen. Their proposal called for Congress to authorize Treasury to allocate $500 billion to purchase mortgage-backed securities from distressed banks, replacing them with liquid Treasury bills to prevent runs and promote lending. This plan served as an alternative to proposals from the House Financial Services Committee under Representative Barney Frank.

Following the collapse of Lehman Brothers on September 15, 2008, Congress passed the Emergency Economic Stabilization Act of 2008 (EESA) on October 3 with bipartisan backing. Kashkari was deeply involved in drafting this legislation. Drawing heavily from his and Swagel’s plan, EESA established the Troubled Asset Relief Program (TARP), a $700 billion bailout fund targeting at-risk financial institutions. Although Kashkari initially suggested $1 trillion, Paulson scaled it down to $700 billion, representing approximately 5% of outstanding U.S. mortgages.

To oversee TARP’s implementation, EESA created the Office of Financial Stability within Treasury, led by an Assistant Secretary nominated by the President and confirmed by the Senate; however, the Treasury Secretary could appoint an interim leader. On October 6, 2008, Paulson designated Kashkari as interim Assistant Secretary for Financial Stability. While maintaining his position as Assistant Secretary for International Economics and Development, Kashkari delegated those international responsibilities to another official.

Acknowledging Treasury’s limited investment management experience, Kashkari assembled a team of around 100 personnel from both government and private sectors by January 2009. He chaired Treasury’s five-member investment committee responsible for determining which banks received TARP funds.

Initially perceived as a temporary appointee until President Bush’s term ended in January 2009, Kashkari was asked by President Obama’s transition team to remain briefly after inauguration. He left Treasury on May 1, 2009, succeeded by Herbert M. Allison.

Throughout his tenure managing TARP, Kashkari frequently appeared before Congressional oversight committees amid political tensions. While some members like Representative Gregory Meeks criticized his work, others such as Representative Dennis Kucinich privately commended his efforts. He received praise from Paulson and successor Treasury Secretary Timothy Geithner but faced scrutiny from special inspector general Neil Barofsky and TARP Congressional Oversight Panel chair Elizabeth Warren over certain program decisions. Kashkari later reflected that Bush’s departure enabled the government to undertake "deeply unpopular" yet essential measures during the crisis.

Return to California

A week after stepping down, he and his wife relocated to a remote cabin near Lake Tahoe in Northern California, seeking a personal "detox" from the Washington environment. During this period, he dedicated time to home renovation projects and collaborated with Paulson on a memoir.

In December 2009, Kashkari took on the role of managing director at investment firm Pimco, where he spearheaded new investment ventures. Known primarily for its bond investments, Pimco brought him on board to develop its presence in equities, eventually appointing him as global head of equities. Kashkari had initially connected with Pimco co-founder Bill Gross in 2007 while serving at the Treasury. His appointment garnered attention because Pimco profited from the federal takeover of Fannie Mae and Freddie Mac, although it did not receive TARP assistance. The six equity mutual funds launched under his leadership underperformed their benchmarks in 2012, a result he attributed to hedging tactics that limit gains when stock prices rise.

Kashkari left Pimco in January 2013 to re-enter public service, with expectations that he would seek elected office. By 2015, the Wall Street Journal noted inconsistent results among the Pimco equity funds he had initiated, prompting the firm to shut down some of them.

2014 California gubernatorial campaign

Following Republican nominee Mitt Romney’s defeat in the 2012 presidential election, Kashkari contemplated a run for Governor of California. After departing Pimco, he began preparing for the 2014 gubernatorial contest by traveling across California, assembling a team, and engaging with potential donors. He officially announced his candidacy on January 21, 2014, focusing on job creation and education as key priorities. This marked his first experience running for office. He finished second behind incumbent Jerry Brown in the primary and was defeated by Brown again in the November general election. Afterward, Kashkari authored "Lessons from the Trail," offering guidance for future political candidates.

Primary election

Although Brown was widely expected to dominate the primary, Kashkari’s principal rival was Republican state assemblyman Tim Donnelly, known for his Tea Party affiliation. Kashkari presented himself as a fiscal conservative with socially moderate views. He raised $4.1 million overall—including $2 million from personal funds—and benefited from substantial independent expenditures by contributors such as Charles Munger Jr. and Robert Addison Day. Donnelly’s fundraising totaled only $447,000.

Despite Kashkari’s financial advantage, early polls showed Donnelly leading due to Kashkari’s moderate social positions, association with TARP, and previous vote for Obama—factors that alienated some Republican voters. Concerned that Donnelly’s far-right stance and rhetoric would damage Republicans’ broader appeal, national and California GOP figures—including Romney, Jeb Bush, Condoleezza Rice, and Karl Rove—endorsed Kashkari. This backing helped him maintain his moderate platform.

Kashkari’s funding edge allowed for intensified advertising late in the campaign. The first poll indicating him ahead of Donnelly emerged just days before the primary. On June 3, Kashkari secured second place with 19% of votes; Donnelly came third with 15%; Brown led with 55%.

General election

As the primary concluded, Brown, a Democrat, emerged as the dominant contender, boasting strong approval ratings and a campaign fund totaling $21 million. Kashkari, on the other hand, dedicated nearly all his financial resources to overcoming Donnelly in the primary, receiving minimal support from both national and state Republican organizations. He drew motivation from George W. Bush's unexpected victory in the 1994 Texas gubernatorial race when deciding to challenge a well-liked incumbent.

During the general election held on November 4, 2014, Brown defeated Kashkari by roughly 1.4 million votes, capturing 60% of the total. Despite running a subdued campaign, Brown achieved the most decisive gubernatorial win since 1986.

Record of voting

In January 2014, the San Francisco Chronicle revealed that since 1998, Kashkari had participated in only 13 out of 23 elections he was eligible to vote in across California and Pennsylvania, reflecting a 57% voting rate. His campaign contested some of these claims, pointing to his tenure at the Treasury Department as indicative of his civic engagement. Kashkari later conceded that his voting record was not flawless.

Political positions

Kashkari has consistently identified as a Republican. In a 2008 address at the American Enterprise Institute, he characterized himself as a "free-market Republican," and by 2013, he referred to himself as a "pro-growth Republican." He opposes much of former President Obama's economic policies and advocates for deregulating businesses. His platform includes proposals to reduce benefits under Social Security and Medicare, as well as to repeal the Patient Protection and Affordable Care Act. In 2012, he opposed California's Proposition 30 tax increase while supporting Proposition 32, which sought to limit labor unions' political power. He commended Wisconsin Governor Scott Walker for restricting collective bargaining rights.

On social matters, Kashkari describes himself as libertarian and "a different kind of Republican," endorsing abortion rights, same-sex marriage, and pathways to legal status for undocumented immigrants. He opposed California's Proposition 8 that banned same-sex marriage and was among 131 Republicans who signed an amicus brief supporting marriage equality in the Hollingsworth v. Perry case before the U.S. Supreme Court. As a gun owner, he advocates for reasonable waiting periods and background checks.

Regarding environmental issues, Kashkari voted against California's Proposition 23, which aimed to halt greenhouse gas regulations. He acknowledges climate change as both real and caused by human activity. While supporting fracking and offshore drilling initiatives, he criticizes California's cap-and-trade system.

He cites figures such as Paulson, Mitch Daniels, and Jeb Bush as political influences. Notably, Kashkari voted for Obama in 2008 but supported Romney in 2012.

In March 2014, he introduced proposals including waiving state income taxes for companies generating at least 100 jobs in California, expanding fracking operations, easing environmental regulations, and increasing water storage capacity to combat drought conditions. However, experts expressed doubts about these measures passing within the Democratic-majority legislature.

In January 2020, Kashkari partnered with Alan Page to advocate for amending Minnesota’s Constitution to guarantee every child an essential right to quality public education.

At a Federal Reserve event in Minneapolis in January 2021 focused on racism and economic issues, Kashkari underscored the stark contrast in law enforcement responses between the U.S. Capitol riot and incidents involving Black Americans, describing it as "the most stark example of racism and disparities in our society.”

Federal Reserve Bank of Minneapolis

In November 2015, Kashkari was appointed president and CEO of the Minneapolis Federal Reserve, receiving unanimous confirmation from the Federal Reserve Board. He officially assumed the position on January 1, 2016. Alongside regional Fed leaders from New York (William C. Dudley), Dallas (Robert Steven Kaplan), and Philadelphia (Patrick T. Harker), Kashkari became the fourth active regional Fed head with a background at Goldman Sachs. Kaplan and Harker also began their tenures in 2015.

During a February 16, 2016 address at the Brookings Institution, Kashkari called for the dismantling of large banking institutions to mitigate future financial crises. He emphasized that the biggest banks continue to be "too big to fail," thereby posing persistent threats to economic stability.

Personal life

Kashkari practices Hinduism and started praying while working on TARP after witnessing a coworker suffer a heart attack.

He met his former spouse Minal Jeshanker (now Kotterman) at the University of Illinois. Their marriage took place in Chicago through a traditional Hindu ceremony. Jeshanker supported Kashkari during his time at Wharton while employed as an engineer at Northrop Grumman. The couple amicably divorced in November 2011 and did not have children.

In August 2015, Kashkari wed Christine Ong in a ceremony held at California’s Sugar Pine Point State Park. The couple’s first child, a daughter named Ulysses Sabine Kashkari, was born in February 2019.

Works cited

Andrew Ross Sorkin. Too Big to Fail. Penguin Books, 2009, 2010.

External links

Sunrayce 97 results