People with the name Paulson or its variant spellings include:

• Allen E. Paulson (1922–2000), American businessman
• Andrew Paulson (born 1958), American businessman
• Bjørn Paulson (born 1923), Norwegian athlete
• Dennis Paulson (born 1962), American professional golfer
• Erik Paulson (born 1966), American mixed martial artist
• Hank Paulson American banker and Secretary of the Treasury
• Henry Paulson (born 1946), American banker and former Treasury Secretary
• James Paulson, also known as Jay, (born 198?), American actor
• John Paulson (born 1955), American hedge fund manager
• Jeanne Paulson (b.?), American actress
• Lawrence Paulson (born 1955), American computer scientist
• Michael Paulson, American journalist
• Otton Mikhailovich Paulson (1837–1886), Ukrainian zoologist
• Pat Paulson (1927–1997), American comedian who ran for election to the U.S. presidency six times between 1968 and 1996 inclusive
• Philip K. Paulson (1947–2006), American political activist
• Sarah Paulson (born 1974), American actress
• Wilhelm Paulson (born 1857), Canadian politician

References[link]

See also[link]

• Paulson (band)
• Paulsen
• Paulsson

This page or section lists people with the surname Paulson. If an internal link intending to refer to a specific person led you to this page, you may wish to change that link by adding the person's given name(s) to the link.

Henry Paulson
74th United States Secretary of the Treasury
In office July 10, 2006 – January 20, 2009
President	George W. Bush
Preceded by	John W. Snow
Succeeded by	Timothy Geithner
CEO of Goldman Sachs
In office 1999–2006
Preceded by	Jon Corzine
Succeeded by	Lloyd Blankfein
Personal details
Born	Henry Merritt Paulson, Jr. (1946-03-28) March 28, 1946 (age 66) Palm Beach, Florida, U.S.
Political party	Republican Party
Spouse(s)	Wendy Paulson
Children	Henry Merritt Paulson III Amanda Clark Paulson
Alma mater	Dartmouth College (A.B.) Harvard Business School (M.B.A.)
Profession	Investment Banker
Religion	Christian Science
Signature

Henry Merritt "Hank" Paulson, Jr. (born March 28, 1946) is an American banker who served as the 74th United States Secretary of the Treasury. He previously served as the Chairman and Chief Executive Officer of Goldman Sachs.

Personal life and family[link]

Paulson was born in Palm Beach, Florida, to Marianna (née Gallauer) and Henry Merritt Paulson, a wholesale jeweler.^[1] His recent ancestors immigrated from Norway, Germany, and Canada.^[1] He was raised in Barrington Hills, Illinois, as a Christian Scientist.^[2] Paulson attained the rank of Eagle Scout in the Boy Scouts of America and is a recipient of the Distinguished Eagle Scout Award.^[3][4][5]

A star athlete at Barrington High School, Paulson was a champion wrestler and stand-out football player, graduating in 1964. Paulson received his A.B. in English from Dartmouth College in 1968;^[6] at Dartmouth he was a member of Phi Beta Kappa and Sigma Alpha Epsilon and he was an All-Ivy, All-East, and honorable mention All American as an offensive lineman.^[7]

He met his wife Wendy Judge, a Wellesley College graduate, during his senior year. The couple have two adult children, sports-team owner Henry Merritt Paulson III, more commonly known as Merritt Paulson, and journalist Amanda Paulson. The Paulsons became grandparents in June 2007. They maintain homes in both Barrington Hills and Chicago.

Paulson received his Master of Business Administration degree from Harvard Business School in 1970.^[8]

Early career[link]

Paulson was Staff Assistant to the Assistant Secretary of Defense at The Pentagon from 1970 to 1972.^[9] He then worked for the administration of U.S. President Richard Nixon, serving as assistant to John Ehrlichman from 1972 to 1973.

Goldman Sachs[link]

He joined Goldman Sachs in 1974, working in the firm's Chicago office under James P. Gorter. 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,^[10] eventually succeeding Jon Corzine as chief executive. His compensation package, according to reports, was $37 million in 2005, and $16.4 million projected for 2006.^[11] His net worth has been estimated at over $700 million.^[11]

In January 2003, Paulson was criticized for stating, "I don't want to sound heartless, but in almost every one of our businesses, there are 15 to 20 percent of the people who really add 80 percent of the value. I think we can cut a fair amount and not get into muscle and still be very well-positioned for the upturn." He later issued an apology to all of the company's employees via voice-mail.^[12]

Paulson has personally built close relations with China during his career. In July 2008, The Daily Telegraph reported "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."^[13]

In 2004, at the request of the major Wall Street investment houses—including Goldman Sachs, then headed by Paulson—the U.S. Securities and Exchange Commission agreed unanimously to release the major investment houses from the net capital rule, the requirement that their brokerages hold reserve capital that limited their leverage and risk exposure. The complaint put forth by the investment banks was of increasingly onerous regulatory requirements—in this case, not U.S. regulator oversight, but European Union regulation of the foreign operations of U.S. investment groups. In the immediate lead-up to the decision, EU regulators also acceded to U.S. pressure, and agreed not to scrutinize foreign firms' reserve holdings if the SEC agreed to do so instead. The 1999 Gramm-Leach-Bliley Act, however, put the parent holding company of each of the big American brokerages beyond SEC oversight. In order for the agreement to go ahead, the investment banks lobbied for a decision that would allow "voluntary" inspection of their parent and subsidiary holdings by the SEC.

During this repeal of the net capital rule, SEC Chairman William H. Donaldson agreed to the establishment of a risk management office that would monitor signs of future problems. This office was eventually dismantled by Chairman Christopher Cox, after discussions with Paulson. According to The New York Times, "While other financial regulatory agencies criticized a blueprint by Treasury Secretary Mr. Paulson proposing to reduce their stature — and that of the S.E.C. — Mr. Cox did not challenge the plan, leaving it to three former Democratic and Republican commission chairmen to complain that the blueprint would neuter the agency."^[14]

In late September 2008, Chairman Cox and the other Commissioners agreed to end the 2004 program of voluntary regulation.

U.S. Secretary of the Treasury[link]

Paulson (right) with President George W. Bush as his nomination to become Treasury Secretary is announced

Paulson was nominated on May 30, 2006, by U.S. President George W. Bush to succeed John Snow as the Treasury Secretary.^[15] On June 28, 2006, he was confirmed by the United States Senate to serve in the position.^[16] Paulson was officially sworn in at a ceremony held at the Treasury Department on the morning of July 10, 2006.

Paulson identified 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.^[17]

Paulson 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.^[18]

He also helped to create the Hope Now Alliance to help struggling homeowners during the subprime mortgage crisis.^[19]

Paulson was known to have persuaded President George W. Bush to allow him to spearhead U.S.-China relations and initiated and led the U.S.-China Strategic Economic Dialogue, a forum and mechanism under which the two countries addressed global areas of immediate and long-term strategic and economic interest. In spring 2007, Paulson warned an audience at the Shanghai Futures Exchange that China needed to free up capital markets to avoid losing potential economic growth, saying: "An open, competitive, and liberalized financial market can effectively allocate scarce resources in a manner that promotes stability and prosperity far better than governmental intervention." In September 2008, in light of the economic crisis experienced by the U.S. in the interim, Chinese leaders evidenced hesitation to follow Paulson's advice.^[20]

Notable statements[link]

In April 2007 delivered an upbeat assessment of the economy, saying growth was healthy and the housing market was nearing a turnaround. "All the signs I look at" show "the housing market is at or near the bottom," Paulson said in a speech to a business group in New York. The U.S. economy is "very healthy" and "robust," Paulson said.^[21]

In August 2007, Secretary Paulson explained that U.S. subprime mortgage fallout remained largely contained due to the strongest global economy in decades.^[22]

In May 2008, The Wall Street Journal wrote that Paulson said U.S. financial markets are emerging from the credit crunch that many economists believe has pushed the country to the brink of recession. "I do believe that the worst is likely to be behind us," Paulson told the newspaper in an interview.^[23]

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.”^[24]

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.^[25] On September 7, 2008, both Fannie Mae and Freddie Mac went into conservatorship.^[26]

Credit Crisis of 2007–2009[link]

The neutrality of this article is disputed. Please see the discussion on the talk page. Please do not remove this message until the dispute is resolved. (May 2011)

Lehman's bankruptcy[link]

The support given by Federal Reserve Board, under Ben Bernanke, and the US Treasury with Paulson at the helm, in the acquisition of Bear Stearns by J.P. Morgan and the $200bn facility made available to Fannie Mae and Freddie Mac attracted a great deal of criticism in congress by both Republicans and Democrats.^[27] When Barclays required support for acquiring Lehman Brothers, both Geithner and Paulson were reluctant. Instead, they pressured Lehman into chapter 11 bankruptcy, believing the effect wasn't systemic.^[28]

"Well, as you know, we're working through a difficult period in our financial markets right now as we work off some of the past excesses. But the American people can remain confident in the soundness and the resilience of our financial system." ^[29]
That one statement proved to be a slight miscalculation because an unintended side effect of Lehman's bankruptcy vote was to freeze the assets of clients who could not get their money out of the bankrupt company since there was no 'lights out' plan put into place. Lehman's bankruptcy needed to be approved by their Board before Asia opened. While Paulson was giving his speech, and unbeknownst to him, word spread causing counter parties to start runs (account holders calling their brokers and telling them they wanted their money now) on other banks such as Goldman Sachs, Bank of America/Merrill Lynch, JPMorganChase, freezing credit markets so that companies having nothing to do with banking but needed financing (e.g. General Electric) could not get daily funding requirements which had the effect of sending the US equity/bond markets into turmoil between September 15, 2008, and September 19, 2008.

U.S. government economic bailout of 2008[link]

Paulson, acting as US Treasury Secretary, caused outcries from both the Republican and Democratic Parties as well as the general populace as he tried to get the situation under control.

Through unprecedented intervention by the U.S. Treasury, Paulson led government efforts which he said were aimed at avoiding a severe economic slowdown. After dropping 30% on the Dow Jones and causing turmoil in the global markets, Paulson pushed through the conservatorship of these 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, after having been told that AIG held teacher pension plans, 401k plans, $1.5 trillion in life insurance plans for Americans, and the French Finance Minister called to let Paulson know that AIG held the interests of many Eurozone countries.

In late September 2008, Paulson, along with Bernanke, led the effort to help financial firms by agreeing to use $700 billion dollars to purchase bad debt they had incurred.^[30] He faced criticism from economists for initially refusing to consider injecting large amounts of cash into financial institutions directly by purchasing stock, an option which other countries in similar circumstances had pursued.^[31] This was the option favored by Bernanke, and the one that was eventually followed.^[32]

On September 19, 2008, Paulson called for the U.S. government to use hundreds of billions of Treasury dollars to help financial firms clean up nonperforming mortgages threatening the liquidity of those firms.^[33] Because of his leadership and public appearances on this issue, the press labeled these measures the "Paulson financial rescue plan" or simply the Paulson Plan.^[34]

With the passage of H.R. 1424, Paulson became the manager of the United States Emergency Economic Stabilization fund.

As Treasury Secretary, he also sat on the newly established Financial Stability Oversight Board that oversees the Troubled Assets Relief Program.

Paulson agreed with Bernanke that the only way to 'unlock' the frozen capital markets were direct injections into financial institutions (nationalization to republicans and bailouts to democrats) so the banks would have more capital to lend as they "waited" for the bad loans on their asset sheets to rebound. The government would take a non-voting share position, with 5% dividends for the first year on the money 'lent' to the banks and then 9% thereafter until the banks stabilized and could payoff the government loans. According to the book "Too Big To Fail", Paulson, NY Bank Chairman Timothy Geithner, Ben Bernake and Sheila Bair (FDIC Chairman) were at the meeting below on Oct. 13, 2008.

Documents obtained by government watchdog group Judicial Watch reveal that in an October 13, 2008, meeting with executives from 9 major American banks, Paulson told bankers that they would be forced to accept government bailout money, whether they wanted it or not.^[35] One of the documents, a talking points memo, gave bankers the ultimatum: "If a capital infusion is not appealing, you should be aware that your (FDIC) regulator will require it in any circumstance." The logic was that if everybody were forced to accept the money, then stakeholders in the market would not be able to identify which banks really needed the money, as opposed to those that did not, thereby making it harder for depositors, investors, or analysts to identify which banks were most vulnerable.

Time magazine on Henry Paulson[link]

Time named Paulson as a runner-up for its 2008 Person of the Year, saying, with reference to the global financial crisis, "if there is a face to this financial debacle, it is now his..." before concluding he "is really bad at explaining why he made the choices he did" and that "given the ... realities he faced, there is no obviously better path [he] could have followed".^[36]

Conflict of interest claims[link]

It has been pointed out that Paulson's plan could potentially have some conflicts of interest, since Paulson was a former CEO of Goldman Sachs, a firm that may benefit largely from the plan. Economic columnists called for more scrutiny of his actions.^[37] Questions remain about Paulson's interest, despite having no direct financial interest in Goldman, since he had sold his entire stake in the firm prior to becoming Treasury Secretary, pursuant to ethics law.^[38] The Goldman Sachs benefit from AIG bailout was recently estimated as USD 12.9 billion and GS was the largest recipient of the public funds from AIG.^[39] Creating the collateralized debt obligations (CDO's) forming the basis of the current crisis was an active part of Goldman Sach's business during Paulson's tenure as CEO. Opponents^[who?] argued that Paulson remained a Wall Street insider who maintained close friendships with higher-ups of the bailout beneficiaries.^{[citation needed]} If passed into law as originally written, the proposed bill would have given the United States Treasury Secretary unprecedented powers over the economic and financial life of the U.S. Section 8 of Paulson’s original plan stated: "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."^[40] Some time after the passage of a rewritten bill, the press reported that the Treasury was now proposing to use these funds ($700 billion) in ways other than what was originally intended in the bill.^[41]

Career after public service[link]

After leaving his role as Treasury Secretary, Paulson spent a year at the Paul H. Nitze School of Advanced International Studies at Johns Hopkins University as a distinguished visiting fellow, and a fellow at the university's Bernard Schwartz Forum on Constructive Capitalism.^[42] His memoir, On the Brink: Inside the Race to Stop the Collapse of the Global Financial System, was published by Hachette Book Group on February 1, 2010.^[43]

On June 27, 2011, it was announced that Paulson would serve as a senior fellow at the University of Chicago's Harris School of Public Policy. His five-year appointment took effect July 1, 2011.^[44]

Civic activities[link]

Paulson has been described as an avid nature lover.^[45] 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.^[9] 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.^[46]

During his tenure as CEO of Goldman Sachs, Paulson oversaw the corporate donation of 680,000 acres (2,800 km²) on the forested Chilean side of Tierra del Fuego, bringing criticism from Goldman shareholder groups.^[47] He further donated to conservancy causes US$100 million of assets from his wealth, and has pledged his entire fortune for the same purpose upon his death.^[48]

In media[link]

Paulson was portrayed by William Hurt in the 2011 HBO film Too Big to Fail and by James Cromwell in the 2009 BBC film The Last Days of Lehman Brothers.

In the documentary film Inside Job Paulson is cited as one of the persons responsible for the Economic Meltdown of 2008 and named in Time Magazine as one of the "25 People to Blame for the Financial Crisis".

Further reading[link]

• Paulson, Hank and Hu, Fred: "Banking Reform in China: Mission Critical", in: Pamela Mar and Frank-Jürgen Richter: China – Enabling a New Era of Changes, New York: John Wiley, 2003, ISBN 0-470-82086-1
• Paulson, Hank, On the Brink: Inside the Race to Stop the Collapse of the Global Financial System, New York: Business Plus, 2010, ISBN 978-0-7553-6054-3
• Purdum, Todd S., "Henry Paulson’s Longest Night", Vanity Fair, October 2009
• Sellers, Patricia, "Hank Paulson's secret life", Fortune, December 29, 2003
• Sorkin, Andrew Ross, Too Big to Fail: The Inside Story of How Wall Street and Washington Fought to Save the Financial System—and Themselves, New York: Viking Press, 2009, ISBN 978-0-670-02125-3
• Stewart, James B., "Eight Days: the battle to save the American financial system", The New Yorker, September 21, 2009.

References[link]

External links[link]

Wikimedia Commons has media related to: Henry Paulson

• Biography at the United States Department of the Treasury
• Henry Paulson at WhoRunsGov at The Washington Post
• Appearances on C-SPAN
• Henry Paulson on Charlie Rose
• Henry Paulson at the Internet Movie Database
• Henry Paulson collected news and commentary at The New York Times
• Works by or about Henry Paulson in libraries (WorldCat catalog)
• Henry Paulson's federal campaign contributions at NewsMeat
• Paulson on China: October 2007, November 2007

v t e United States Secretaries of the Treasury Hamilton Wolcott Dexter Gallatin Campbell Dallas Crawford Rush Ingham McLane Duane Taney Woodbury Ewing Forward Spencer Bibb Walker Meredith Corwin Guthrie Cobb Thomas Dix Chase Fessenden McCulloch Boutwell Richardson Bristow Morrill Sherman Windom Folger Gresham McCulloch Manning Fairchild Windom Foster Carlisle Gage Shaw Cortelyou MacVeagh McAdoo Glass Houston Mellon Mills Woodin Morgenthau Vinson Snyder Humphrey Anderson Dillon Fowler Barr Kennedy Connally Shultz Simon Blumenthal Miller Regan Baker Brady Bentsen Rubin Summers O'Neill Snow Paulson Geithner

v t e Cabinet of President George W. Bush (2001–2009)   Cabinet Secretary of State Colin Powell (2001–2005) Condoleezza Rice (2005–2009) Secretary of the Treasury Paul O'Neill (2001–2002) John W. Snow (2003–2006) Henry Paulson (2006–2009) Secretary of Defense Donald Rumsfeld (2001–2006) Robert Gates (2006–2009) Attorney General John Ashcroft (2001–2005) Alberto Gonzales (2005–2007) Michael Mukasey (2007–2009) Secretary of the Interior Gale Norton (2001–2006) Dirk Kempthorne (2006–2009) Secretary of Agriculture Ann Veneman (2001–2005) Mike Johanns (2005–2007) Ed Schafer (2008–2009) Secretary of Commerce Donald Evans (2001–2005) Carlos Gutierrez (2005–2009) Secretary of Labor Elaine Chao (2001–2009) Secretary of Health and Human Services Tommy Thompson (2001–2005) Mike Leavitt (2005–2009) Secretary of Education Rod Paige (2001–2005) Margaret Spellings (2005–2009) Secretary of Housing and Urban Development Mel Martinez (2001–2003) Alphonso Jackson (2003–2008) Steve Preston (2008–2009) Secretary of Transportation Norman Mineta (2001–2006) Mary Peters (2006–2009) Secretary of Energy Spencer Abraham (2001–2005) Samuel Bodman (2005–2009) Secretary of Veterans Affairs Anthony Principi (2001–2005) Jim Nicholson (2005–2007) James Peake (2007–2009) Secretary of Homeland Security Tom Ridge (2003–2005) Michael Chertoff (2005–2009)   Cabinet-level Vice President Dick Cheney (2001–2009) White House Chief of Staff Andrew Card (2001–2006) Joshua Bolten (2006–2009) Administrator of the Environmental Protection Agency Christine Todd Whitman (2001–2003) Mike Leavitt (2003–2005) Stephen L. Johnson (2005–2009) Director of the Office of Management and Budget Mitch Daniels (2001–2003) Joshua Bolten (2003–2006) Rob Portman (2006–2007) Jim Nussle (2007–2009) Director of National Drug Control Policy John P. Walters (2001–2009) Trade Representative Robert Zoellick (2001–2005) Rob Portman (2005–2006) Susan Schwab (2006–2009)

Henry Merritt Paulson III is the majority owner of Peregrine Sports, LLC which owns the Portland Timbers, a Major League Soccer team based in Portland, Oregon.^[1]

Personal[link]

He graduated from Hamilton College with a B.A. in 1995. Paulson earned his Masters of Business Administration from Harvard Business School.^[2] Prior to owning the sports franchises he worked for the National Basketball Association as a senior director of marketing and business development,^[2] and has worked for the cable television channel Home Box Office.^[2] He is the son of Henry Merritt "Hank" Paulson Jr., the former United States Secretary of the Treasury.^[3][4] He serves on the board of trustees of the Wildlife Conservation Society.^[5] Paulson is married to Heather Mahar Paulson, who appeared on The Amazing Race, season 3, and they reside in Portland.