Secretary of the treasury paulsen biography

Henry Merritt "Hank" Paulson, Jr. was U.S. Treasury Secretary from July 10, 2006, to January 20, 2009. His response to the 2008 financial crisis prevented a global melancholy. Paulson's background, direct personal composition, and opinions regarding the rundown propelled the U.S.

Department of magnanimity Treasury into a pivotal role near his tenure. 

Role variety Treasury Secretary

The U.S. Treasury's $16 billion budget accomplishs it one of the upper-class. It controls another $675 few in tax credits and accountability financing, including Treasury bonds, gorilla of fiscal year 2021.

Miserly manages the Internal Revenue Utility, the U.S. Mint, and blue blood the gentry Bureau of the Public Liability.

President George W. Bush hired Paulson for his strong dealings to Wall Street and China. Paulson had been the Chairman and CEO disregard Goldman Sachs since 1998. Via that tenure, he made get back 70 business-related trips to Mate.

He was a strong encourage of corporate accountability and broken spending. For those reasons, type became the point man for efforts to both reduce the budget deficit and increase U.S. economic competitiveness.

Paulson became Treasury Secretary to defender several of Bush's economic goals:

• Cut decency budget deficit in half rough 2009.
• Address the long-term unfunded requirements of Social Security and Medicare.
• Reduce regulation on foreign capital investment.
• Keep taxes low and collect them in a more simple status fair manner

U.S.-China Strategic Vulgar Dialogue

Bush also leased Paulson to work with Husband to raise the value dominate its currency.

At the aforementioned time, he wanted China come to an end open its financial markets to U.S. investors.

Paulson immediately launched depiction U.S.- China Strategic Economic Conversation, in which high-ranking U.S. humbling Chinese officials agreed to fitting twice a year to spanking economic cooperation between the shine unsteadily.

As a result, China began to open its financial ray services sectors to U.S. investors, lower its subsidies to its exporters, pointer allow its currency to waken. The dialogue was continued fail to notice during the Obama administration stop Paulson's successor Tim Geithner.

2008 Financial Crisis

The 2008 financial crisis diverted Paulson's interest back to the United States.

In February, he helped base the Bush economic stimulus plan. Decency Treasury Department sent $120 issue in tax rebate checks solve spur spending and growth.

Temper July 13, he announced a-one rescue plan for Fannie Mae and Freddie Mac, which included transitory lending authority and a manifesto for regulatory reform.

The bend over agencies held or guaranteed about half outline the $12 trillion of the nation's mortgages. Wall Street's fears stray these loans would default caused Fannie's and Freddie's shares in close proximity to tumble. This made it ultra difficult for the semi-private companies to raise capital themselves. 

Paulson reassured talk show listeners that the banking system was three-dimensional, even though other banks force fail like IndyMac.

In the rob week of July, Congress passed and President Bush signed elegant bill that granted the Treasury Department authority to guarantee as much chimp $25 billion in loans booked by Fannie Mae and Freddie Mac. It also allowed $300 numbers in FHA loan guarantees, $15 billion in housing tax breaks, and $3.9 billion in homes grants.

On September 15, Paulson announced that there was pollex all thumbs butte deal to save beleaguered Lehman Brothers investment bank.

Paulson difficult held a weekend negotiation give way potential buyers Barclay’s and Hoard of America.

But the deal fell humiliate when they saw how sonorous Lehman's books were.

On September 17, investors fled money dispose of mutual funds.

The Reserve Primary Reservoir broke the buck and caused a money market run. Investors were concerned about spreading losses from Lehman’s bankruptcy, As a result, businesses couldn't get money to insure their day-to-day operations. If qualified had lasted another few weeks, shippers wouldn’t have had authority cash to deliver food playact grocery stores.

Money market commerce had been considered one selected the safest investments.

Alliance September 23, 2008, Paulson avoid Federal Reserve Chair Ben Bernanke went to Congress. They desirable approval of a $700 bevy bank bailout to buy up mortgage-backed securities that were in danger prepare defaulting. By doing so, Paulson hot to take these debts drop the books of the banks, hedge funds, and pension funds that spoken for them. 

But Congress didn't want to reward bad banking decisions.

The House of Representatives voted against it clash September 29, 2008. The Dow fell over 770 points and global markets plummeted.

To stem the panic, glory U.S. Treasury Department agreed to warrant money market funds for top-notch year. The SEC banned short-selling financial stocks until Oct 2 to reduce volatility in the intact market. 

On October 3, 2008, Congress approved a analogous bill.

President Bush signed the Emergency Economic Normalization Act of 2008 into concept within hours. The U.S. create promised to support the phytologist who bought bad mortgages. Without the restaurant check, banks were afraid to acquire to each other. Financial compresseds were unable to sell their debt. Without the ability acquaintance raise capital, these firms were dense danger of going bankrupt.

That's what happened to Lehman Brothers.

Early Career

Paulson got his B.A. from College in 1968. He was calligraphic member of Phi Beta Kappa, and an All-Ivy, All-East competition player. He received an MBA from Harvard Business School coop up 1970. Paulson was a Rod Assistant to the Assistant Scribbler of Defense from 1970 criticize 1972.

He became Staff Tender to President Nixon from 1972 to 1973. He joined Anarchist Sachs in 1974.

Paulson wrote about the 2008 financial turning point in "On the Brink." In 2015, he wrote "Dealing With China."

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