From 65438 to 0968, Paulson entered Harvard Business School and obtained an MBA from Harvard University. 1970 After graduating from Harvard Business School, Paulson stepped into the Pentagon and served as Assistant Secretary of Defense. During Nixon's presidency, he served as an assistant to the president's staff and a member of the White House House Committee. "Paulson is a bulldog, much like Cheney when he was young." Paulson's good friends talked about his early experiences in Washington with admiration. "He is a salesman among salesmen. He has both tenacity and enthusiasm, which makes him very efficient. "
1974 after the Watergate incident, he joined Goldman Sachs Chicago Branch and worked as a bank assistant in Chicago Branch.
1982 was promoted to partner.
1988 He was appointed as the managing partner of Goldman Sachs Chicago Branch.
1993 was promoted to the executive partner of the corporate investment bank in the Midwest of the United States.
1996 was appointed president and chief operating officer.
1May, 1999, officially became the chairman and CEO of Goldman Sachs Group. Under Paulson's leadership, Goldman Sachs became the most profitable investment bank on Wall Street. Although the number of employees of Goldman Sachs is only half that of Merrill Lynch and Morgan Stanley, the industry leader, its profit ranked first last year. In addition, since 2000, Goldman Sachs has maintained the first position in the global M&A business.
During his leadership of Goldman Sachs, Paulson not only won a large number of securities underwriting orders, but also led Goldman Sachs into the commodity market. Become one of the biggest speculators in commodity futures, and invest in banking.
Paulson is also the most profitable banker on Wall Street. His salary last year was $38.3 million, higher than O 'Neill of Merrill Lynch, Fuld of Lehman Brothers, Kane of Bear Stearns and Mike of Morgan Stanley. Not only that, Paulson is also the most generous boss on Wall Street. According to the documents submitted by Goldman Sachs to the US Securities and Exchange Commission, the salary of its 22,425 employees in 2005 was $65,438+$0.65438+$700 million, with an average of $5,265,438+$0.000, which was second to none on Wall Street. Under his leadership, Goldman Sachs became the most profitable securities company in the United States. In 2005, Goldman Sachs, with a history of more than 65,438+000 years, made a record profit of $5.6 billion.
Paulson belongs to the "hawk" of American securities industry. He has been dormant at Goldman Sachs for more than 30 years. He is strict in "running the army" and has a tough wrist. "At Goldman Sachs, 15% to 20% people create 80% of the company's value, so many people can be laid off without affecting the company's performance." Paulson's classic quote still scares most employees of Goldman Sachs. Although Paulson later apologized for this statement, Goldman Sachs' "painful layoffs" did not stop. According to Fortune. With the support of unique ideas, Goldman Sachs, Merrill Lynch and Morgan Stanley have been among the top three investment banks in the world for many years, and Paulson himself has become the most profitable boss on Wall Street. During his 32 years at Goldman Sachs, Paulson accumulated more than 500 million dollars in assets. In 2005 alone, Paulson's annual salary was as high as 38.3 million dollars. Just as Paulson was about to take up his new job and leave Goldman Sachs, the board of directors of Goldman Sachs specially prepared a "big red envelope" of $654.38+087,000 in cash for Paulson.
But as the head of Goldman Sachs, Paulson's influence goes far beyond Goldman Sachs itself. In addition to taking charge of Goldman Sachs, Paulson also assumed the responsibility of public affairs and launched the corporate governance movement on Wall Street. For example, in 2002, Paulson publicly and severely criticized the dereliction of duty of American listed companies; When the grasso case broke out, he took the lead in opposing grasso's salary structure as high as $65,438+$400 million, and advocated reorganizing the board of directors of NYSE. He also supported John Thain, former CEO of Goldman Sachs, as CEO of NYSE. As the top leader of Goldman Sachs, Paulson has also become one of the most influential financial experts in the United States. In 2004, in the "Wall Street Power Rankings" selected by American media, he once topped the list and was named "the king of Wall Street power". President Bush really made great efforts to recruit Paulson into the cabinet. In the face of Bush's invitation, Paulson's first reaction was to decline politely because he didn't want to be a "vase" and a "megaphone". The first two Treasury Secretaries, Paul O 'Neill and john snow, were not members of the presidential decision-making circle, but became "salesmen" to publicize the White House tax reduction policy. After leaving office, O 'Neill felt that he was excluded from the White House decision-making circle and was in an irrelevant position.
When Bush invited Paulson to be Treasury Secretary again, they had a long talk at the White House all afternoon. Bush promised Paulson that he would have greater decision-making power over domestic and international economic policies than Si Nuo and O 'Neill, and his substantive power would be equal to that of the Secretary of Defense and the Secretary of State, which finally moved Paulson. On May 30th, 2006, Bush formally nominated Paulson as Treasury Secretary to replace john snow who announced his resignation earlier that day.
Si Nuo's departure was not unexpected. Within a few months, White House officials privately rumored that he was about to "leave"; But Paulson's appointment was unexpected. It is said that the White House has been trying to "seduce" Paulson as Treasury Secretary, but he refused several times because the Bush administration seems to have downgraded the role of Treasury Secretary to "salesman".
Paulson once mentioned to a friend that he became the Treasury Secretary this time because he "should make a difference", so he did not hesitate to give up his $38.3 million Wall Street position and go to Washington to take office. The latter's income is only $200,000, a difference of nearly 200 times. Such a huge gap also shows that Paulson agreed to be Treasury Secretary for no reason. After all, his stake in Goldman Sachs alone is worth hundreds of millions of dollars. Soon, the autograph of "John W. Si Nuo" printed on the US dollar bill named "Green Back" was replaced by the words "Henry M. Paulson", which was the first privilege that Paulson was sworn in as the new US Treasury Secretary. Compared with previous finance ministers, Paulson's inauguration ceremony seems to have received special attention from Bush. The president even "rarely" (AP) walked from the White House to the Treasury building to attend the ceremony. In the past, Bush usually took a bus instead of walking. When announcing Paulson's appointment, Bush praised Paulson's "rich business experience and deep understanding of the securities market, as well as his ability to see the economic situation clearly". "Paulson will be my chief adviser on local and international economic policies, and we will maintain the same attitude, formulate appropriate policies for the people, and continue to maintain the prosperity of the American economy."
"The Ministry of Finance-Wall Street * * * is another example," said Dr. Mei Xinyu of the China Ministry of Commerce, referring to Paulson's appointment. "The power of this * * * is too strong, and Si Nuo with manufacturing and transportation backgrounds is simply uneven." "It should be said that Bush had to find this person." Regarding Si Nuo's departure, Bloomberg News commented, "Although he was highly praised, he never became a real' insider' of the Bush administration."
Paulson said at the inauguration ceremony: "The economic development of the United States is closely linked to the global economy. We must work hard to promote trade and investment, promote reform and modernize the international financial market. " He also said that he will do his utmost to make the American economy continue to be a "model of vitality, flexibility and openness."
On the day of his brief inauguration declaration, Paulson immediately called a meeting of all the staff of the US Treasury Department to explain his plan for the future work of the Treasury Department. During the rest of the day, Paulson also had telephone conversations with US congressmen, government colleagues and senior financial officials from other countries. Paulson's appointment as finance minister not only means a great reduction in wealth, but also faces very difficult problems-record-breaking government budget deficit and foreign trade deficit. Due to the surge in military spending and related government expenditures promoted by the Iraq war, coupled with the Bush administration's many large-scale tax cuts, the annual budget deficit of the US government has exceeded $400 billion. At the same time, the US foreign trade deficit also increased to US$ 742 billion last year, accounting for about 7% of US GDP. According to a Gallup poll in mid-May this year, only 29% of Americans are satisfied with the economy.
According to Wall Street sources, Paulson's appointment as Treasury Secretary is intended to emulate robert rubin, his predecessor at Goldman Sachs, and exert his strength in Washington to promote a strong dollar and inject lasting vitality into the US economy.
Despite the challenges of pressing time and arduous tasks, Paulson became the first Treasury Secretary with Wall Street background during Bush's term, which still filled the outside world with expectations. "Bush is begging him," said Qu Hongbin, chief economist of HSBC in China. "Therefore, Paulson has bargaining capital." Qu Hongbin said that Paulson should play a more important role in economic decision-making, instead of just becoming a "propagandist" and "salesman" of White House policy like his predecessor. Specifically, Paulson should take concrete measures in fiscal policy and the "double high" deficit, and truly solve the current problems facing the US economy through internal structural adjustment, Qu Hongbin said. "Simply exporting the economic problems of the United States to other countries as in the past cannot fundamentally improve the global economic imbalance."
In any case, the nomination of Paulson marks an important shift in the White House. George W. Bush has always been skeptical of Wall Street people, preferring to appoint business people as financial dignitaries in new york. For example, his first two finance ministers, one from Alcoa (an aluminum giant) and the other from the railway company. Although Paulson is not a British Protestant aristocrat, he represents the spirit of the Wall Street elite.
The Bush administration has been looking for a more effective economic policy spokesman, and Paulson is one of the most suitable candidates. The Economist said that most of his policies are in line with "Bush Economics": he is loyal to free trade and a staunch supporter of tax cuts. He once said that a major issue in the 2 1 century is how to promote free trade without losing political support. He agrees with the progressive role of globalization and thinks that "no matter where we stop or hinder globalization, it will bring trouble to more people".
However, there is only one area where Paulson is out of step with his new boss. He is very concerned about the environment, and he is also the head of the Nature Conservancy of the United States, which supports the Kyoto Protocol as an effective way to stop global warming. In addition, he made Goldman Sachs the "greenest" company on Wall Street. His idea of "embracing trees" also made some conservatives nervous.
However, most people are very pleased that George W. Bush introduced such a Wall Street heavyweight into the cabinet. This at least means that in the context of blind confidence in the economic strength of the United States, White House officials have realized what may go wrong.
The US fiscal deficit is getting bigger and bigger, the dollar has been falling, and the financial market is becoming more and more "excited". Until recently, George W. Bush expected Greenspan to speak in a crisis situation, but now Greenspan has left his post and his successor Bernanke is still trying to repair his credibility in the market.
On the contrary, Paulson shines in the solemn Wall Street. He controlled Goldman Sachs for eight years, making it earn super-high profits; He also has a huge global interpersonal relationship library, especially close ties with China. He has visited China more than 70 times since 1990. Both the Republican Party and the Democratic Party believe that once the market is in trouble, Paulson will undoubtedly be the most suitable helm. This appointment, as an insider said, is actually "employing credit".
So, the question now is, will this credibility last? This depends largely on Paulson himself. His success at Goldman Sachs may also indicate his success in Washington, but no one can guarantee it. Paulson's predecessor at Goldman Sachs, Stephen Friedman, was in charge of economic policy in the Bush cabinet, but with little success. In addition, Paulson must be a "skilled worker" from the beginning. Before becoming Treasury Secretary, Rubin spent two and a half years in charge of the economy in the Clinton administration.
No matter how capable Paulson is, his success will ultimately be decided by the White House. This is because only when he is regarded as the center of economic policy making can he win the respect of the market. Paul O 'Neill, George W. Bush's first treasury secretary, wasted his credibility after making a series of stupid mistakes on the dollar issue. John snow didn't make these mistakes, but he was a thoughtful man and kept silent in many ways.
However, because everyone knows that he was excluded from the decision-making circle, he also lost the trust of Wall Street. He intended to promote tax reform, but the White House flatly "stopped". Under the background of the breakthrough in medical tax reform this year, there is basically no trace of Si Nuo. In the White House's view, Si Nuo's job is just to play the cheerleader or the salesman of Bush's tax cuts.
If Paulson wants to be a strong finance minister, he must avoid a similar fate. Of course, this is not easy. Rubin won the respect outside the government only because everyone knows that he has the final say in the government. For Paulson, the real trouble now is that there is not much time left in Bush's second term, and he will not have much political capital to make wise policies. Paulson may become Rubin's second, but the task before him will be even more arduous.