Treasury Moves Quickly to Recruit Private Bailout Managers

By Robert O'Harrow Jr.

Washington Post Staff Writer
Wednesday, October 8, 2008; Page A10

The Treasury Department this week plans to start outsourcing the management of up to $700 billion in troubled securities, using special contracting authorities that enable it to retain private portfolio managers, custodians and other financial services consultants without following standard acquisition procedures.

The department's quick turn to the private sector will help it prepare for the massive task of overseeing mortgages and other financial assets to be acquired by the government as part of the Emergency Economic Stabilization Act that was approved by Congress and signed by President Bush on Friday.