Paulson Replaces Snow At Treasury

Paulson Replaces Snow at Treasury

http://www.tribune-democrat.com/feed...es_apstoryview

By TERENCE HUNT
5/30/2006

WASHINGTON — Treasury Secretary John Snow has resigned and will be replaced by Goldman Sachs Chairman Henry M. Paulson Jr., a senior administration official said Tuesday, in another chapter of a White House shake-up to revive President Bush's troubled presidency.

Bush was to announce the changes in a White House ceremony later Tuesday.

Snow, the former head of railroad giant CSX Corp. who has a Ph.D. in economics, has been Treasury secretary since February 2003. His departure has been rumored for more than a year.

Paulson has been chairman of Goldman Sachs for about eight years. It is considered one of the premier financial firms on Wall Street and has sent a number of its top executives to high positions in Washington.

Robert Rubin, one of Paulson's predecessors, served as Treasury secretary in the Clinton administration, and Jon Corzine, another Goldman Sachs chairman, served as a U.S. senator from New Jersey and is now governor of that state.

Speculation that Paulson would take over from Snow increased after Bush shook up his White House staff earlier this year, replacing Andrew Card as his chief of staff with Joshua Bolten, a former Goldman Sachs executive who had worked with Paulson.

Card's departure was followed by a string of other personnel moves as Bush sought to reinvigorate his presidency, mired in the lowest approval ratings since he took office in 2001. Among other changes, Bush forced out CIA chief Porter Goss, trimmed the portfolio of political adviser Karl Rove and replaced press secretary Scott McClellan.

Snow has called Paulson "a very able executive, a friend of mine."

Paulson is also a millionaire many times over. Last year, the Goldman Sachs group said it paid Paulson $30 million in total compensation in 2004 _ almost a 40 percent gain from the year before.

In tapping Paulson for the Treasury job, the administration is seeking a more effective spokesman to tout Bush's economic accomplishments of low unemployment and solid economic growth.

White House officials believed that a Wall Street executive with Paulson's talents could better make the case for the administration's economic program.

Paulson is leaving Goldman Sachs at a time when its stock is trading at historic highs and with his chosen successor, Lloyd C. Blankfein, ready to take over.

Paulson was known on Wall Street for his dedicated support of environmental causes. Earlier this year, he made a gift of $100 million in Goldman stock to a family foundation dedicated to conservation and environmental education. Even after that gift, Paulson has a net worth estimated at more than $500 million.

Paulson, who was known to favor bird-watching in New York's Central Park to playing golf, is chairman of the Nature Conservancy and the chairman emeritus of the Peregrine Fund.

Last year Goldman Sachs donated 680,000 acres in Chile to the Wildlife Conservation Society.

Snow has been Treasury secretary since February 2003. He took over for Paul O'Neill, who was forced to resign because of policy disagreements with the White House.

Snow has been a loyal proponent of the administration's economic policies, traveling the country as a salesman for Social Security reform and an overhaul of the tax code. But his standing suffered as both proposals stalled.

Financial disclosure forms have put Snow's estimated worth at between $43 million and $128 million. Two years ago he acknowledged an error of more than $10 million in his investment portfolio that caused him to lose nearly half a million dollars.