US Treasury names Chicago firm as adviser on bailout plan

WASHINGTON: The US Treasury named Chicago firm EnnisKnupp Monday as its investment adviser on a 700 billion dollar bailout plan which will see the government buy toxic assets from the banks in an effort to get them lending again.

The rescue plan, known as the Troubled Asset Relief Program (TARP), was set up under the Emergency Economic Stabilization Act passed earlier this month.

The Treasury said it "hired the investment consultant for assistance as it evaluates potential asset managers and other vendors ... duties also will include developing and maintaining investment policies and guidelines and assisting with the oversight of the portfolio's multiple asset managers."

The company was hired after competitive bids were asked for from six firms, of which three made offers, the Treasury said in a statement.

EnnisKnupp's contract lasts for one year, it added.

The Treasury said EnnisKnupp "is one of the largest investment consulting firms in the world with aggregate assets of more than 835 billion dollars under advisement for over 155 retainer clients, as well as approximately one trillion dollars in project-related engagements."

Earlier Monday, the Treasury said it planned to buy stakes in a "broad array" of banks needing help and fresh capital to get through financial crisis which has driven several groups into bankruptcy and roiled markets.