Herbert Monroe Allison, Jr. (August 2, 1943 – July 14, 2013) was an American businessman who oversaw the

Troubled Asset Relief Program The Troubled Asset Relief Program (TARP) is a program of the United States government to purchase toxic assets and equity from financial institutions to strengthen its financial sector that was passed by Congress and signed into law by President G ...

(TARP) as Assistant Secretary of the Treasury for Financial Stability from 2009 to 2010. His previous positions included president and CEO of

Fannie Mae The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a United States government-sponsored enterprise (GSE) and, since 1968, a publicly traded company. Founded in 1938 during the Great Depression as part of the N ...

, a post to which he was appointed in September 2008, after Fannie was placed into

conservatorship Under U.S. law, conservatorship is the appointment of a guardian or a protector by a judge to manage the financial affairs and/or daily life of another person due to old age or physical or mental limitations. A person under conservatorship is a " ...

. Prior to that, Allison was chairman, president and chief executive officer of

TIAA The Teachers Insurance and Annuity Association of America-College Retirement Equities Fund (TIAA, formerly TIAA-CREF), is a Fortune 100 financial services organization that is the leading provider of financial services in the academic, research, ...

from 2002 until his retirement in 2008.Press Room, U S Department of Treasur
"Herbert M. Allison, Jr. Confirmed as Assistant Secretary for Financial Stability"
, ''U.S. Department of Treasury'', June 19, 2009. "Wall Street Journal Topics: Herb Allison"
"Wall Street Journal", Accessed July 17, 2009.

Early life

Herbert Allison was born in

Pittsburgh, Pennsylvania Pittsburgh ( ) is a city in the Commonwealth (U.S. state), Commonwealth of Pennsylvania, United States, and the county seat of Allegheny County, Pennsylvania, Allegheny County. It is the most populous city in both Allegheny County and Wester ...

, to Herbert M. Allison, Sr., an FBI agent, and Mary Boardman Allison. He grew up in

Garden City, New York Garden City is a village located on Long Island in Nassau County New York. It is the Greater Garden City area's anchor community. The population was 23,272 at the 2020 census. The Incorporated Village of Garden City is primarily located within ...

, and earned a

B.A. Bachelor of arts (BA or AB; from the Latin ', ', or ') is a bachelor's degree awarded for an undergraduate program in the arts, or, in some cases, other disciplines. A Bachelor of Arts degree course is generally completed in three or four yea ...

philosophy Philosophy (from , ) is the systematized study of general and fundamental questions, such as those about existence, reason, knowledge, values, mind, and language. Such questions are often posed as problems to be studied or resolved. Some ...

from

Yale University Yale University is a private research university in New Haven, Connecticut. Established in 1701 as the Collegiate School, it is the third-oldest institution of higher education in the United States and among the most prestigious in the wo ...

in 1965. Following college, he volunteered for service as an officer in the

United States Navy The United States Navy (USN) is the maritime service branch of the United States Armed Forces and one of the eight uniformed services of the United States. It is the largest and most powerful navy in the world, with the estimated tonnage ...

. Following commission as an ensign, Allison served on two ships: the destroyer USS ''Arnold J. Isbell'' (DD-869) and amphibious command ship USS ''Taconic'' (LCC-17). After promotion to lieutenant, he then served a tour in-country in

South Vietnam South Vietnam, officially the Republic of Vietnam ( vi, Việt Nam Cộng hòa), was a state in Southeast Asia that existed from 1955 to 1975, the period when the southern portion of Vietnam was a member of the Western Bloc during part of th ...

at the Coastal Surveillance Center,

Nha Trang Nha Trang ( or ; ) is a coastal city and capital of Khánh Hòa Province, on the South Central Coast of Vietnam. It is bounded on the north by Ninh Hòa District, Ninh Hoà town, on the south by Cam Ranh city and on the west by Diên Khánh Distri ...

, where he was awarded the

Navy Commendation Medal The Commendation Medal is a mid-level United States military decoration presented for sustained acts of heroism or meritorious service. Each branch of the United States Armed Forces issues its own version of the Commendation Medal, with a fifth ...

with Combat "V" for performance during

Operation Market Time Operation Market Time was the United States Navy, Republic of Vietnam Navy and Royal Australian Navy operation begun in 1965 to stop the flow of troops, war material, and supplies by sea, coast, and rivers, from North Vietnam into parts of Sout ...

. Upon completion of naval service in 1969, Allison received his

M.B.A. A Master of Business Administration (MBA; also Master's in Business Administration) is a postgraduate degree focused on business administration. The core courses in an MBA program cover various areas of business administration such as account ...

from the Stanford University Graduate School of Business in 1971.

Career

Allison began his career at

Merrill Lynch Merrill (officially Merrill Lynch, Pierce, Fenner & Smith Incorporated), previously branded Merrill Lynch, is an American investment management and wealth management division of Bank of America. Along with BofA Securities, the investment bank ...

as an associate in

investment banking Investment banking pertains to certain activities of a financial services company or a corporate division that consist in advisory-based financial transactions on behalf of individuals, corporations, and governments. Traditionally associated wit ...

and served variously as

treasurer A treasurer is the person responsible for running the treasury of an organization. The significant core functions of a corporate treasurer include cash and liquidity management, risk management, and corporate finance. Government The treasury o ...

, director of

human resources Human resources (HR) is the set of people who make up the workforce of an organization, business sector, industry, or economy. A narrower concept is human capital, the knowledge and skills which the individuals command. Similar terms include m ...

chief financial officer The chief financial officer (CFO) is an officer of a company or organization that is assigned the primary responsibility for managing the company's finances, including financial planning, management of financial risks, record-keeping, and financ ...

, executive vice president, president,

chief operating officer A chief operating officer or chief operations officer, also called a COO, is one of the highest-ranking executive positions in an organization, composing part of the "C-suite". The COO is usually the second-in-command at the firm, especially if t ...

and as a

member of the board A board of directors (commonly referred simply as the board) is an executive committee that jointly supervises the activities of an organization, which can be either a for-profit or a nonprofit organization such as a business, nonprofit organiz ...

during his 28 years there. While at Merrill Lynch, he worked in

New York New York most commonly refers to: * New York City, the most populous city in the United States, located in the state of New York * New York (state), a state in the northeastern United States New York may also refer to: Film and television * '' ...

London London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...

Paris Paris () is the capital and most populous city of France, with an estimated population of 2,165,423 residents in 2019 in an area of more than 105 km² (41 sq mi), making it the 30th most densely populated city in the world in 2020. S ...

, and

Tehran Tehran (; fa, تهران ) is the largest city in Tehran Province and the capital of Iran. With a population of around 9 million in the city and around 16 million in the larger metropolitan area of Greater Tehran, Tehran is the most popul ...

.Lucchetti, Aaron; Solomon, Deborah (July 15, 2013)
Herbert Allison, Former TARP Chief, Dies
''

The Wall Street Journal ''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...

''. Retrieved July 15, 2013. After the stock market crash of 1987, Allison revised the bonus structure at Merrill Lynch, adding compensation based on company performance to a plan that was previously based on individual performance alone. "Herbies," as the options became known, were controversial at first but ended up being extremely successful both for the company and the individuals involved. In 1998, Allison played an instrumental role in preventing the collapse of

Long Term Capital Management Long-Term Capital Management L.P. (LTCM) was a highly-leveraged hedge fund. In 1998, it received a $3.6 billion bailout from a group of 14 banks, in a deal brokered and put together by the Federal Reserve Bank of New York. LTCM was founded in 1 ...

, a hedge fund whose rapid downturn in September of that year threatened the stability of the financial system. Allison proposed the solution that ultimately was adopted by fourteen Wall Street institutions. The participating institutions were all paid back. After leaving Merrill Lynch in mid-1999, he served as National Finance Chair for

U.S. Senator The United States Senate is the upper chamber of the United States Congress, with the House of Representatives being the lower chamber. Together they compose the national bicameral legislature of the United States. The composition and powe ...

John McCain John Sidney McCain III (August 29, 1936 – August 25, 2018) was an American politician and United States Navy officer who served as a United States senator from Arizona from 1987 until his death in 2018. He previously served two terms ...

's first Presidential Campaign.Kuhnhenn, Jim
"Fannie Mae CEO Herbert Allison Named Treasury's Bank Bailout Chief"
"Huffington Post", April 17, 2009. From 2000 to 2002, Allison was president and chief executive officer of the Alliance for Lifelong Learning, Inc., which offered online, college-level courses to adults. In 2002, Allison was named chairman, president, and chief executive officer of

, a

Fortune 100 The ''Fortune'' 500 is an annual list compiled and published by ''Fortune'' magazine that ranks 500 of the largest United States corporations by total revenue for their respective fiscal years. The list includes publicly held companies, along w ...

financial services organization that is the leading retirement provider for people who work in the academic, research, medical, and cultural fields. During his tenure, assets under management at the firm increased from $264 billion to over $435 billion. The company underwent significant change under his leadership, broadening its product lines beyond pensions to include financial services, life insurance, college savings plans, mutual funds, IRAs, and other offerings. The company also re-focused on customer service, adding offices closer to campuses, for example. Allison retired from TIAA in 2008, and was succeeded by

Roger W. Ferguson, Jr. Roger W. Ferguson Jr. (born October 28, 1951 in Washington, D.C.) is an American economist, attorney and corporate executive who served as the 17th vice chairmam of the Federal Reserve from 1999 to 2006. Prior to his term as Vice Chairman, Ferg ...

"TIAA-CREF Names New President and Board Chairman to Replace Herbert Allison". The Chronicle of Higher Education. 2008-04-03. Retrieved 2013-07-16. http://chronicle.com/article/TIAA-CREF-Names-New-President/40744 Allison resigned as assistant secretary for financial stability in September 2010.

Timothy Massad Timothy George Massad (born July 30, 1956) is an American lawyer and government official who served as the chairman of the Commodity Futures Trading Commission (CFTC) under President Barack Obama. He had previously been Assistant Secretary for Fi ...

, who had been chief counsel to the Office of Financial Stability, succeeded him. Allison was a member of several boards and advisory councils, including

Time Warner Warner Media, LLC ( traded as WarnerMedia) was an American multinational mass media and entertainment conglomerate. It was headquartered at the 30 Hudson Yards complex in New York City, United States. It was originally established in 1972 by ...

Yale School of Management The Yale School of Management (also known as Yale SOM) is the graduate business school of Yale University, a private research university in New Haven, Connecticut. The school awards the Master of Business Administration (MBA), MBA for Executives ...

Stanford Graduate School of Business The Stanford Graduate School of Business (also known as Stanford GSB) is the graduate business school of Stanford University, a private research university in Stanford, California. For several years it has been the most selective business schoo ...

, and the International Advisory Committee of the

Federal Reserve Bank of New York The Federal Reserve Bank of New York is one of the 12 Federal Reserve Banks of the United States. It is responsible for the Second District of the Federal Reserve System, which encompasses the State of New York, the 12 northern counties of New ...

. From 2003 to 2005 he was a director of the

New York Stock Exchange The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed c ...

. Allison died on July 14, 2013, at his home in Westport,

Connecticut Connecticut () is the southernmost state in the New England region of the Northeastern United States. It is bordered by Rhode Island to the east, Massachusetts to the north, New York to the west, and Long Island Sound to the south. Its cap ...

of a possible heart attack. He was 69.

References

External links

* {{DEFAULTSORT:Allison, Herbert M., Jr. 1943 births 2013 deaths 20th-century American naval officers United States Navy personnel of the Vietnam War Merrill (company) people New York Stock Exchange people Warner Bros. Discovery people People from Garden City, New York Businesspeople from Pittsburgh People from Westport, Connecticut Stanford Graduate School of Business alumni United States Assistant Secretaries of the Treasury United States Navy officers Yale College alumni American chief financial officers American chief operating officers Fannie Mae chief executive officers 20th-century American businesspeople

Early life

Career

See also

References

External links