Lazard Restructuring Expert Joins Treasury

It seems like only a few weeks ago that U.S. Treasury Secretary Tim Geithner couldn't find any qualified people willing to help him try to put the economy back together.

He seems to have scored a major coup, then, in the hiring of Lazard (LAZ Quote) investment banker James Millstein, first reported Monday by Financial Times. Millstein will help the government in "working out" the government's investments in financial institutions, according to the report, which cited a memo Millstein sent to friends. The U.S. government has investments in all the nation's largest banks, including Citigroup (C Quote) Bank of America (BAC Quote) and Wells Fargo (WFC Quote), as well as other financial giants like AIG (AIG Quote).

A Lazard spokeswoman said Millstein left the company Friday and started at the U.S. Treasury Monday, declining further comment.

Millstein is a genuine star in the world of restructuring and bankruptcy. He has worked on some of the largest and most contentious bankruptcies in recent years, including WorldCom and Charter Communications.

In an unusual assignment for an investment banker, he also advised the United Auto Workers in negotiations with General Motors (GM Quote), Ford (F Quote) and Chrysler.

At least two of Millstein's former Lazard colleagues already have joined the Obama administration to help oversee the reconstruction of the automobile industry. Steve Rattner is heading a task force on the topic and Ron Bloom is a senior advisor on the task force.

William Cohan, a former colleague of Millstein's at Lazard and author of "The Secret History of Lazard Frères & Co.," says Millstein is "immensely well-qualified," for the Treasury position, both in experience and temperament.