WASHINGTON — Herb Allison, the head of the Troubled Asset Relief Program, announced Wednesday he is stepping down after two years on the job now that the program is unwinding.

"The Tarp program has proven remarkably successful in achieving its goal of stabilizing the financial sector and laying the foundation for our nation's economic recovery — at a fraction of the cost that was originally anticipated," Allison wrote in an email to Treasury staff. "With the Tarp program entering a new phase and continuing to wind down, I have decided that now it is the right time for me to step down as assistant secretary for financial stability."

Allison previously served as president of Fannie Mae during its conservatorship and chairman, president and CEO of TIAA-CREF. He began his career at Merrill Lynch & Co., where he ultimately served as president, chief operating officer and a member of the Board.

Tim Massad, currently the chief counsel and chief reporting officer of the Office of Financial Stability, will succeed Allison. Massad previously was a partner at Cravath, Swaine & Moore LLP, an international law firm.

The Dodd-Frank law ended the Tarp program early to pay for provisions of the regulatory reform law. No new programs or funds may be extended under Tarp but existing programs, such as the Capital Purchase Program and the Home Affordable Modification Program, may continue to operate.

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