Bush Turns to Wall St. for Treasury Secretary
WASHINGTON — President Bush on Tuesday nominated a high-powered Wall Street figure, Goldman Sachs Chairman and CEO Henry M. Paulson Jr., to replace Treasury Secretary John W. Snow, whose long-expected resignation Bush accepted.
Snow became the highest-ranking official to leave the administration in a midterm shuffle that began when White House Budget Director Joshua B. Bolten became chief of staff two months ago. Snow joined CIA Director Porter J. Goss and White House Press Secretary Scott McClellan on the list of former administration officials.
Bush, at a brief White House ceremony, praised Paulson for his experience with financial markets and said he would be his "principal advisor" on economic policy.
"Hank shares my philosophy that the economy prospers when we trust the American people to save, spend and invest their money as they see fit," the president said.
But it was unclear how much Paulson would shape administration policy. Bush's first Treasury secretary, Paul H. O'Neill, was frustrated that he did not have much influence. Snow found himself cast as a cheerleader for economic policies that were largely forged in the White House rather than at the Treasury Department.
Paulson, 60, seemed on track to win Senate confirmation, as even Democrats rallied to his side. Sen. Charles E. Schumer (D-N.Y.) praised his "deep understanding" of economic issues and called him "the best pick America could have hoped for."
Paulson made brief remarks but took no questions from reporters.
"The whole world is dependent upon the U.S. economy as a major engine of its growth," Paulson said. "And our economy's strength is rooted in the entrepreneurial spirit and the competitive zeal of the American people, and in our free and open market. It is truly a marvel, but we cannot take it for granted."
Paulson's nomination also attracted some critics. One group said Paulson, like Snow before him, would find himself relegated to the role of promoter of ill-advised White House economic policies.
The administration hopes "to tap into Wall Street's legendary ability to put lipstick on a financial pig," said Peter Schiff, president of the Connecticut brokerage firm Euro Pacific Capital.
Paulson, a multimillionaire, received $38 million in overall compensation from Goldman Sachs, the New York investment house, in 2005. He raised at least $100,000 for Bush's 2004 reelection campaign, making him a "pioneer" in the Bush campaign. He also personally gave $100 million in Goldman Sachs stock this year to a family foundation dedicated to conservation and environmental education.
