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Mark Spradley is managing director and vice president of Chevy Chase private equity firm Mazao Capital, which has been involved in hundreds of millions of dollars in transactions around the world since it was established in 2005.

Spradley's responsibilities include new business development, risk management, capital commitments and the development of the firm's microloan securitization project. He also advises on structured financing for foreign regional bank executives and senior government officials.

Before joining Mazao in 2005, he was with global financial services company UBS, Legg Mason and Paine Webber.

A native of Harrisburg, Pa., Spradley, 54, grew up on Long Island in New York. A graduate of Howard University, he earned a master's in business administration from TRIUM, an international MBA executive program, with the degree jointly issued by the New York University Stern School of Business, the London School of Economics and Political Science and the HEC School of Management in Paris.

Spradley was asked to comment on the economic crisis and the proposed $700 billion federal bailout plan.

What's your comment on a federal bailout plan?

I believe the news of the bailout plan has already been factored into the global financial markets. Yet, there still seems to be some missing piece for the economic recovery puzzle. I favor a plan that starts with people on Main Street.

For example: Buy mortgages to stop foreclosures, make investments in the U.S. infrastructure to increase productivity, fund investments in K-12 and higher education to help Americans recover from the economic downturn, release 10 to 12 percent of the Strategic Petroleum Reserves to give Americans immediate relief and to stare down some of the same speculators that shorted the stock of Bear Sterns, Lehman and AIG, which started the stampede on Wall Street.

And it could have been prevented. Everyone knew what was happening, what was causing the problems. If the [Securities and Exchange Commission] had acted to suspend short selling before [Sept. 19], we could have saved $500 billion right there.

My point is you could have stopped the default of a lot of these mortgages a long time ago and helped hard-working Americans continue to go to the cleaners, buy gas, buy groceries. I'd like to see how many people lost their homes while Congress debated what to do. Then they bail out Fannie, Freddie, AIG and it was too little, too late. I say let's do something in real time to stop foreclosures to keep small businesses open and to help retirees.

Why couldn't they spend $100 million and cure that problem [foreclosures]?

It would have been better to make decisions that boosted the infrastructure, support infrastructure development and education … they could have cut tuition to help education. All of that would help increase our productivity. Bailing out Wall Street did not increase American productivity and did nothing to cure the infrastructure problem this country is facing.

What do you think the economic crisis means for the state?

I think there are some ramifications for the state. I think the state government is going to have to be honest with the taxpayers about the budget deficit, the structural deficit … because the solution is not going to be slot machines, because this [crisis] is immediate. This is real time ... basically we don't have time for people to drive to a racetrack and start gambling.

We're going to have to look for real-time cash acceleration opportunities, ways to bring money into state coffers quick.

And the federal bailout plan is not going to help?

The federal bailout plan, as it stands, makes Maryland worse off, because the federal government has basically over-projected and underfunded its obligation. It's like the war — you don't know how much it's [eventually] going to cost us. So if you think you will get more money from the government to build bridges, hire policemen, build schools, I don't think so.

Why it hurts Maryland especially is because of [the Pentagon's base realignment and closure program, which is to bring thousands of jobs to the state], because they have to build roads and bridges, have to build schools.

What does Mazao do?

Mazao's private equity operations began in 2005 investing capital in small middle-market companies and early-stage opportunities on behalf of the founders' families. Since 2005, Mazao has identified more than $850 million in capital commitments.

Has Mazao done business with Lehman, Bear Stearns, Goldman, Morgan Stanley?

Mazao Capital has not done any business with Lehman, Morgan Stanley or Bear Sterns. I have previously held the common stock of Goldman Sachs, as well as invested in Goldman Sachs Asset Management's products.

I pitched Goldman a couple of deals in the past and they took a pass on the deals. I still have the highest regard for the firm and I am not surprised that Goldman received more than expected for the sale of new shares while also negotiating a capital infusion from Warren Buffett.

Has the current Wall Street crisis affected Mazao Capital business?

Mazao is engaged in cross-border transactions, and there has been a ripple effect through the international financial market. Everybody has been affected — investors, homeowners, everyone.

As a company we were not heavily involved in Fannie, or Freddie or Lehman Brothers. We're still assessing the changes going on and trying to see where we are. Our mission for our investors, of course, is to protect and preserve capital. So our business model hasn't changed, but the landscape has changed.

How so?

The financial community has been transformed. Wall Street as we know it will no longer exist. I think we're moving into an entrepreneurial environment, an environment where people who have a good idea and have access to capital can get a chance to build brands. Out of the ashes we will see new investment banks, mergers of regional banks, a rollup of community banks, and you will see boutique banks.

For instance, EagleBank and Sandy Spring might be OK, because they are the right size, but Chevy Chase Bank might be a little too big to go it alone [and will need to seek a partner or buyer].

Will a new financial market landscape cause Mazao and other private equity firms to use all their financing from commercial banks more than in the past, especially if Goldman and Morgan Stanley are actually commercial bank companies now?

I anticipate private equity firms will become more interested in pooling resources and capital with each other, since commercial banks will be acting like a deer stuck in the headlights for the fourth quarter. I look forward to pitching Goldman Sachs again in 2009.

How will this crisis affect Mazao, will you do fewer deals?

In this challenging environment, there will naturally be more due diligence and pause before committing capital to new deals. I believe this is an entrepreneurial environment, where risk managers will ultimately be rewarded for their ability to make great deals good investment experiences.

You mentioned other places in the world have gone through the kind of crisis we are going through?

Someone would have had to live in Argentina, Thailand, Russia and Mexico over the last 20 years to have experienced what the U.S. is going through now. I anticipate that the global economic climate will continue to be more challenging during the fourth quarter of 2008 through the third quarter of 2009. I believe we are well-positioned to ultimately benefit, if we successfully reposition assets during this downward volatility period.