Henry Paulson

AAA

DEFINITION of 'Henry Paulson'

The 74th Secretary of the U.S. Treasury under President George W. Bush from July 2006 through January 2009. Henry “Hank” Paulson, Jr. began his career on the White House Domestic Council as a staff assistant from 1970 to 1973. He then worked in finance for 32 years at Goldman Sachs before succeeding John Snow as Treasury Secretary.

INVESTOPEDIA EXPLAINS 'Henry Paulson'

Paulson became Goldman’s chairman and CEO in 1999 when the firm went public and held those roles until he became Treasury Secretary. As Treasury Secretary, he is best known for his efforts to resolve the financial crisis, including contributions to Dodd-Frank. He was instrumental in implementing the Troubled Asset Relief Program and the AIG bailout, as well as getting toxic mortgage-based assets off banks’ balance sheets. He also helped create the $168 billion economic stimulus package. In 2008, he was a runner-up for Time's Person Of The Year.

Paulson helped improve U.S. economic relations with China during his tenure. In addition, he worked to modernize the system for issuing U.S. Treasury bonds, helped  improve the national security review process in order to spur foreign investment in the United States, and spearheaded a program to fight the funding of terrorist groups. He also worked to improve the United States’ trading relationships with Panama, Colombia, South Korea and Peru.

After leaving the Treasury Department, he became chairman and founder in 2011 of The Paulson Institute at the University of Chicago, a think tank focused on sustainable economic growth and preserving the natural environment in the United States and China. He is a Christian Scientist and an environmentalist; he has played a major role in the Nature Conservancy, where he was chairman from 2004 to 2006 and contributed to environmental conservation efforts in Asia. He earned his undergraduate degree from Dartmouth and his MBA from Harvard Business School.

RELATED TERMS
  1. Federal Reserve Bank

    The central bank of the United States and the most powerful financial ...
  2. Tim Geithner

    The 75th United States Secretary of the Treasury. Geithner was ...
  3. Treasury Secretary

    The Secretary of the Treasury is a member of the Presidential ...
  4. Ben Bernanke

    The chairman of the board of governors of the U.S. Federal Reserve. ...
  5. Credit Crisis

    A crisis that occurs when several financial institutions issue ...
  6. Federal Reserve Board - FRB

    The governing body of the Federal Reserve System. The seven members ...
RELATED FAQS
  1. How do open market operations affect the U.S. money supply?

    Formulating a country's monetary policy is extremely important when it comes to promoting sustainable economic growth. More ... Read Full Answer >>
  2. What is the 12b-1 fee meant to cover?

    A 12b-1 fee in a mutual fund is meant to cover the fees of companies and individuals through which investors of a fund buy ... Read Full Answer >>
  3. Which federal regulatory agencies approved and are now responsible for enforcing ...

    Five federal regulatory agencies approved and are jointly responsible for enforcing the Volcker rule. These agencies include ... Read Full Answer >>
  4. What is the purpose of the Volcker Rule?

    The Volcker rule limits two main types of activities by large institutional banks. Banks are prohibited from engaging in ... Read Full Answer >>
  5. What types of positions might a Chartered Financial Analyst (CFA) hold?

    The types of positions that a Chartered Financial Analyst (CFA) is likely to hold include any position that deals with large ... Read Full Answer >>
  6. What does a high information ratio tell an investor about a mutual fund?

    A high information ratio tells an investor that the sustained performance of a mutual fund's active manager is high and that ... Read Full Answer >>
Related Articles
  1. Bonds & Fixed Income

    The Treasury And The Federal Reserve

    Find out how these two agencies create policies to stimulate the economy in tough economic times.
  2. Economics

    Ben Bernanke: Background And Philosophy

    Get some insight into the man at the forefront of key U.S economic decisions.
  3. Bonds & Fixed Income

    Breaking Down The Fed Model

    Learn what pundits mean when they say that stocks are undervalued according to the Fed model.
  4. Personal Finance

    How The Federal Reserve Manages Money Supply

    Find out how the Fed manages bank reserves and this contributes to a stable economy.
  5. Personal Finance

    How The Federal Reserve Was Formed

    Find out how this institution has stabilized the U.S. economy during economic downturn.
  6. Mutual Funds & ETFs

    How Private Equity and Hedge Funds are Taxed

    Private equity and hedge funds offer an appealing tax structure for those who can afford to invest in them. Here's why.
  7. Mutual Funds & ETFs

    Citadel And Bernanke, The Perfect Relationship?

    How does Bernanke's relationship with investment firms impact Wall Street and Main Street?
  8. Investing Basics

    What is the Shadow Banking System?

    The shadow banking system is composed of financial institutions that do not take deposits in the tradition sense.
  9. Mutual Funds & ETFs

    Hedge Fund Balance Sheet Example

    What once was a niche investment vehicle for the ultra-rich, the hedge fund industry has grown to more than $2.5 billion in assets under management.
  10. Credit & Loans

    What is a Syndicated Loan?

    A syndicated loan is one that involves a group of lenders (called the syndicate) who pool their lending resources to make a loan.

You May Also Like

Hot Definitions
  1. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  2. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
  3. Killer Bees

    An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an ...
  4. Sin Tax

    A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. ...
  5. Grandfathered Activities

    Nonbank activities, some of which would normally not be permissible for bank holding companies and foreign banks in the United ...
  6. Touchline

    The highest price that a buyer of a particular security is willing to pay and the lowest price at which a seller is willing ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!