From Wikipedia, the free encyclopedia
Henry M. Paulson | |
 | |
| Incumbent | |
| Assumed office July 3, 2006 | |
| President | George W. Bush |
| Preceded by | John W. Snow |
| Born | March 28, 1946 (1946-03-28) Palm Beach, Florida |
| Political party | Republican |
| Alma mater | Dartmouth College, Harvard University |
| Profession | Investment banker |
| Religion | Christian Science |
Henry Merritt "Hank" Paulson Jr. (born March 28, 1946) is the United States Treasury Secretary and member of the International Monetary Fund Board of Governors. He previously served as the Chairman and Chief Executive Officer of Goldman Sachs.
Contents |
Early life and family
Born in Palm Beach, Florida, to Marianna Gallaeur and Henry Merritt Paulson, a wholesale jeweler,[1] he was raised in Barrington Hills, Illinois. He was raised as a Christian Scientist.[2] Paulson attained the rank of Eagle Scout in the Boy Scouts of America.[3][4] Paulson received his Bachelor of Arts in English from Dartmouth College in 1968;[5] at Dartmouth he was a member of Phi Beta Kappa and was an All Ivy, All East, and honorable mention All American as an offensive lineman.
He met his wife Wendy during his senior year. The couple has two adult children, Henry Merritt III and Amanda Clark, and became grandparents in June 2007. They maintain homes in Washington, DC and Barrington Hills, Illinois.
In 1970 Paulson received a Master of Business Administration degree from Harvard Business School.[6]
Career highlights
Paulson was Staff Assistant to the Assistant Secretary of Defense at The Pentagon from 1970 to 1972.[7] He then worked for the administration of U.S. President Richard Nixon, serving as assistant to John Ehrlichman from 1972 to 1973.
He joined Goldman Sachs in 1974, working in the firm's Chicago office. He became a partner in 1982. From 1983 until 1988, Paulson led the Investment Banking group for the Midwest Region, and became managing partner of the Chicago office in 1988. From 1990 to November 1994, he was co-head of Investment Banking, then, Chief Operating Officer from December 1994 to June 1998;[8] eventually succeeding Jon Corzine (now Governor of New Jersey) as its chief executive. His compensation package, according to reports, was US$37 million in 2005, and US$16.4 million projected for 2006.[9] His net worth has been estimated at over US$700 million.[9] Paulson has personally built close relations with China during his career. In July 2008 it was reported by The Daily Telegraph that: "Treasury Secretary Hank Paulson has intimate relations with the Chinese elite, dating from his days at Goldman Sachs when he visited the country more than 70 times."[10]
Civic activities
Paulson has been described as an avid nature lover.[11] He has been a member of The Nature Conservancy for decades and was the organization's board chairman and co-chair of its Asia-Pacific Council.[7] In that capacity, Paulson worked with former President of the People's Republic of China Jiang Zemin to preserve the Tiger Leaping Gorge in Yunnan province.
Paulson is also on the Board of Directors of the Peregrine Fund; was the founding Chairman of the Advisory Board of the School of Economics and Management of Tsinghua University in Beijing; and, previously served as chairman of the influential trade group, the Financial Services Forum.
Notable among the members of Bush's cabinet, Paulson has said he is a strong believer in the effect of human activity on global warming and advocates immediate action to decrease this effect.[12]
As an environmental leader and philanthropist, Paulson while at Goldman Sachs, oversaw the corporate donation of 680,000 forested acres on the Chilean side of Tierra del Fuego, which led to criticisms from Goldman shareholder groups [13]. He further donated US$100 million of assets from his wealth to conservancy causes. He pledged his entire fortune for the same purpose at death. [14] He has also been considered someone who can influence world and business leaders to think beyond the bottom line. [15]
Treasury Secretary nomination
Paulson was nominated by U.S. President George W. Bush to succeed John Snow as the Treasury Secretary on May 30, 2006.[16] On June 28, 2006, he was confirmed by the United States Senate to serve in the position.[17] Paulson was officially sworn in at a ceremony held at the Treasury Department on the morning of July 10, 2006.
Paulson's three immediate predecessors as CEO of Goldman Sachs — Jon Corzine, Stephen Friedman, and Robert Rubin — each left the company to serve in government: Corzine as a U.S. Senator (later Governor of New Jersey), Friedman as chairman of the National Economic Council (later chairman of the President's Foreign Intelligence Advisory Board), and Rubin as both chairman of the NEC and later Treasury Secretary under President Bill Clinton.[18]
Acts as Treasury Secretary
Paulson has quickly distinguished himself from his two predecessors in the Bush administration by formally identifying the wide gap between the richest and poorest Americans as an issue on his list of the country's four major long-term economic issues to be addressed, highlighting the issue in one of his first public appearances as Secretary of Treasury.[19]
Paulson has conceded that chances were slim for agreeing on a method to reform Social Security financing, but said he would keep trying to find bipartisan support for it. [20]
He also helped to create the Hope Now Alliance to help struggling homeowners during the subprime mortgage financial crisis.[21]
Views Expressed by Paulson as Secretary of the Treasury
In August 2007, Secretary Paulson explained that U.S. subprime mortgage fallout remained largely contained due to the strongest global economy in decades. [22]
On July 20, 2008, after the failure of Indymac Bank, Paulson reassured the public by saying, “it's a safe banking system, a sound banking system. Our regulators are on top of it. This is a very manageable situation.” [23]
On August 10, 2008, Secretary Paulson told NBC’s Meet the Press that he had no plans to inject any capital into Fannie Mae or Freddie Mac.[24] On September 7, 2008, both Fannie Mae and Freddie Mac went into conservatorship.[25]
Leader of U.S. government economic bailout efforts of 2008
Paulson was the designated leader of the Bush administration's efforts in 2008 to federalize the cost of bad loans made by unregulated financial institutions.
Through unprecedented intervention by the U.S. Treasury, Paulson led government efforts purported to avoid a severe economic slowdown. He pushed through the conservatorship of government agency mortgage giants Fannie Mae and Freddie Mac. Working with Federal Reserve Chairman Ben Bernanke, he influenced the decision to create a credit facility (bridge loan & warrants) of US$85 billion to American International Group so it would avoid filing bankruptcy.
In late September of 2008, Paulson, along with Bernanke and Christopher Cox, led the effort to help financial firms by agreeing to create out of nothing US$700 billion dollars to purchase bad debt they had incurred.[26] Discussing his decision to take action, Paulson said: “It just happened dramatically. There was only one way that we could reassure the markets and deal with a very significant and broad-based freezing of the credit market. There was no political calculus. It was overwhelmingly obvious.”[27]
On September 19, 2008, Paulson called for the U.S. government to spend hundreds of billions of dollars more to rescue financial firms from nonperforming mortgages that threaten the stability of those firms.[28] Due to his leadership and public appearances on this issue, the press labeled these measures the "Paulson financial rescue plan" or simply the Paulson Plan.[29]
There has been some criticism of Paulson, with suggestions that Paulson's plan may potentially have some conflicts of interest. This since Paulson is the former CEO of Goldman Sachs, a firm that may benefit from the plan. [30][31] Unlike the previous bailouts and managed liquidations of Goldman competitors Bear Stearns, Merrill Lynch and Lehman Bros. and those of AIG, Freddie Mac and Fannie Mae, in which shareholder value was largely wiped out, Goldman's stock would likely rise under the Paulson plan, benefiting his former partners, because it would take distressed assets off of their balance sheet. [32]
The proposed bill would give him unprecedented powers over the economic and financial life of the U.S. Section 8 of Paulson’s plan states: “Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.”[33]
References
- ^ 1
- ^ Patricia Sellers, Hank Paulson's secret life, The CEO of Goldman Sachs is passionate about banking. But he's also obsessed with snakes, tarantulas, and coral reefs., Public Broadcasting Service, "Wall Street Week with Fortune" feature, December 29, 2003.
- ^ Townley, Alvin [2006-12-26]. Legacy of Honor: The Values and Influence of America's Eagle Scouts. New York: St. Martin's Press, pp. 178-188, 196. ISBN 0-312-36653-1. Retrieved on 2006-12-29.
- ^ Ray, Mark (2007). "What It Means to Be an Eagle Scout". Scouting Magazine. Boy Scouts of America. Retrieved on 2007-01-05.
- ^ Belser, Alex (31 May 2006). "Paulson '68 to lead Treasury", The Dartmouth.
- ^ www.02138mag.com/people/385.htmlM
- ^ a b The Nature Conservancy (2006). Henry M. Paulson, Jr..
- ^ Goldman Sachs (2006). Goldman Sachs Group, Inc - Management.
- ^ a b Forbes (2006). Henry M. Paulson, Jr..
- ^ US faces global funding crisis, warns Merrill Lynch - Telegraph
- ^ Somerville, Glenn (30 May 2006). "Paulson brings Wall Street luster to Treasury", Yahoo! News.
- ^ Heilprin, John (2 June 2006). "A global warming believer in Bush Cabinet", Associated Press.
- ^ Treasury Nominee Hank Paulson Needs to Answer Some Questions, Human Events, 2006-06-13
- ^ Paulson plans to donate £410m fortune to environmental causes, The Independent, 2004-01-16
- ^ Mark Brandon. Environmental Cred for Bush Treasury Nominee, Sustainable Log (Blogspot)
- ^ White House (2006). President Bush Nominates Henry Paulson as Treasury Secretary. Retrieved June 29, 2006.
- ^ Associated Press (2006). Senate Approves Paulson as Treasury Secretary.
- ^ White House (2006).President Commends Senate for Confirming Henry Paulson as Treasury Secretary. Retrieved June 29, 2006.
- ^ The Christian Science Monitor August 3, 2006 New Treasury head eyes rising inequality. Retrieved August 3, 2006.
- ^ "Paulson: Social Security Reform Hopes Slim". Reuters, February 3, 2007.
- ^ Hope Now Alliance (2007-10-10). "HOPE NOW Alliance Created to Help Distressed Homeowners". Press release. Retrieved on 2008-09-24.
- ^ Lawder, David (August 1, 2007), "Paulson sees subprime woes contained", The Boston Globe, <http://www.boston.com/business/articles/2007/08/01/paulson_sees_subprime_woes_contained/>
- ^ "Treasury Secretary Insists Banks Are Safe", CBS News (2008-07-20). Retrieved on 2008-09-23.
- ^ Brinsley, John (August 10, 2008). "Paulson Says No Plans to Add Cash to Fannie, Freddie", Bloomsberg Worldwide. Retrieved on 2008-09-23.
- ^ Lockhart, James B., III (2008-09-07). "Statement of FHFA Director James B. Lockhart", Federal Housing Finance Agency. Retrieved on 2008-09-23.
- ^ Joelle Tessler, Paulson oversees historic government intervention, Associated Press, 2008-09-19
- ^ Baker, Peter (2008-09-20). "A Professor and a Banker Bury Old Dogma on Markets", New York Times.
- ^ Sahadi, Jeanne (2008-09-19). "Rescue cost: Hundreds of billions", CNNMoney.com.
- ^ ""Paulson plan"", Google News search.
- ^ Is it safe to trust a Wall Street veteran with a Wall Street bailout?
- ^ A Second Opinion?
- ^ Shameless Cronyism
- ^ Beck, Rachel (2008-09-23). "Transparency key to bailout success", Associated Press. Retrieved on 2008-09-23.
Further reading
External links
- Paulson's biography from the Treasury Department
- Paulson on China: October 2007, November 2007
- Project Vote Smart - Secretary Henry M. Paulson Jr.
- Henry Paulson's federal campaign contributions
| Business positions | ||
|---|---|---|
| Preceded by Jon Corzine | Chairman and CEO, Goldman Sachs June 1998 – July 3, 2006 | Succeeded by Lloyd Blankfein |
| Political offices | ||
| Preceded by John W. Snow | United States Secretary of the Treasury Served Under: George W. Bush July 10, 2006 – present | Succeeded by Incumbent |
| Order of precedence | ||
| Preceded by Condoleezza Rice Secretary of State | United States Presidential Line of Succession 5th in line | Succeeded by Robert Gates Secretary of Defense |
| Order of precedence in the United States of America | ||
| Preceded by Sandra Day O'Connor Retired Associate Justice of the Supreme Court of the United States | United States order of precedence United States Secretary of the Treasury | Succeeded by Robert Gates United States Secretary of Defense |
| |||||||
| |||||||
| |||||
