Former Treasury Secretary Henry Paulson, testifying before Congress for the first time since leaving office, defended his role Thursday in salvaging a controversial deal struck during the height of the banking panic last fall.
Did government officials overstep their authority and force Bank of America to take over troubled Merrill Lynch at great taxpayer expense?
Washington's most dramatic foray into the nation's financial sector since the Great Depression began on Oct. 13 with a misnamed acronym, an unwitting tribe of CEOs, and a confused staff of Treasury officials. It was a foreshadowing of the misadventure to come. "I don't even know who the 9 companies are. Do you?" Michele Davis, assistant secretary for public affairs, wrote in an e-mail sent at 7:15 a.m. on that history-making Monday. "No clue," Treasury chief of staff Jim Wilkinson responded. "Let me get the list."
It looks like Washington is finally giving up on the silly idea that all banks are in the same boat. It's about time.
So much for change you can believe in.
Treasury Secretary Tim Geithner defended his financial stabilization plan Tuesday, telling senators it is "fundamentally different" than the one pursued by his predecessor, Henry Paulson.
Henry Paulson left his post as secretary of the Treasury on Tuesday, but his signature will for some time be printed on tens of millions of dollar bills every day.
In the midst of all the inaugural hubbub, news of Hank Paulson's next act got little attention. The former Secretary of the Treasury, who finished his run last Friday, will be taking a position at Johns Hopkins University's School of Advanced International Studies (SAIS).
When the most powerful people in American capitalism convened at the New York Federal Reserve Bank's Italianate palazzo in lower Manhattan on Friday evening, September 12, to try to save Lehman Brothers from certain death, what confronted them was nothing less than the knowledge that whatever actions they took - or did not take - that weekend could push the financial system into the abyss.
Henry Paulson, the Treasury secretary, and Christopher Cox, the chairman of the SEC, flew up from Washington on Friday for a 6 p.m. meeting with Geithner to discuss what the plan for the weekend would be. Meanwhile, Ben Bernanke, the chairman of the Federal Reserve, stayed in Washington to coordinate a response with the leaders of other central banks around the globe. Going into the weekend, there were two potential suitors for Lehman Brothers - Bank of America and London-based Barclays.
Former Treasury Secretary Henry Paulson, testifying before Congress for the first time since leaving office, defended his role Thursday in salvaging a controversial deal struck during the height of the banking panic last fall.
Did government officials overstep their authority and force Bank of America to take over troubled Merrill Lynch at great taxpayer expense?
Washington's most dramatic foray into the nation's financial sector since the Great Depression began on Oct. 13 with a misnamed acronym, an unwitting tribe of CEOs, and a confused staff of Treasury officials. It was a foreshadowing of the misadventure to come. "I don't even know who the 9 companies are. Do you?" Michele Davis, assistant secretary for public affairs, wrote in an e-mail sent at 7:15 a.m. on that history-making Monday. "No clue," Treasury chief of staff Jim Wilkinson responded. "Let me get the list."
It looks like Washington is finally giving up on the silly idea that all banks are in the same boat. It's about time.
So much for change you can believe in.
Treasury Secretary Tim Geithner defended his financial stabilization plan Tuesday, telling senators it is "fundamentally different" than the one pursued by his predecessor, Henry Paulson.
Henry Paulson left his post as secretary of the Treasury on Tuesday, but his signature will for some time be printed on tens of millions of dollar bills every day.
In the midst of all the inaugural hubbub, news of Hank Paulson's next act got little attention. The former Secretary of the Treasury, who finished his run last Friday, will be taking a position at Johns Hopkins University's School of Advanced International Studies (SAIS).
When the most powerful people in American capitalism convened at the New York Federal Reserve Bank's Italianate palazzo in lower Manhattan on Friday evening, September 12, to try to save Lehman Brothers from certain death, what confronted them was nothing less than the knowledge that whatever actions they took - or did not take - that weekend could push the financial system into the abyss.
Henry Paulson, the Treasury secretary, and Christopher Cox, the chairman of the SEC, flew up from Washington on Friday for a 6 p.m. meeting with Geithner to discuss what the plan for the weekend would be. Meanwhile, Ben Bernanke, the chairman of the Federal Reserve, stayed in Washington to coordinate a response with the leaders of other central banks around the globe. Going into the weekend, there were two potential suitors for Lehman Brothers - Bank of America and London-based Barclays.
Whether you love or hate the idea of Washington loaning the Big Three money, the government has learned its lessons from the mistakes of the bank rescue plan and has crafted a better bailout for the automakers.
The federal government is reviewing applications from hundreds of banks seeking rescue funding and is "actively" developing new programs to right the nation's unsettled financial system, Treasury Secretary Henry Paulson said Monday.
There's an elephant in the room every time Treasury Secretary Henry Paulson steps to a podium to recount the serial emergency actions he and other top officials have taken (and, as revealed Monday, will continue to take) to prop up, bail out, jerry-rig, bolster, stabilize, or otherwise rescue capitalists and property owners.
The federal government's $700 billion financial rescue plan will get its first official review Tuesday.
The Federal Reserve and Treasury Department on Tuesday unveiled a plan to pump $800 billion into the struggling U.S. economy in an attempt to jumpstart lending by banks to consumers and small businesses.
It was less than two months ago that Congress passed the $700 billion bailout package. Do you remember how it went down?
Treasury Secretary Henry Paulson said Wednesday that the government would broaden the reach of its $700 billion bailout plan to support non-bank financial institutions that provide consumer credit, such as credit cards and auto loans.
World markets continued their downward trend Wednesday, as recession fears remained to the fore.
A majority of Americans aren't happy with the way Treasury Secretary Henry Paulson is handling his job or with the financial rescue package he and Congress created, according to a poll released Wednesday.
European markets were mixed on Tuesday, following increases in some Asian markets and on Wall Street.
Banks of all sizes are interested in a piece of the federal government's $250 billion fund to recapitalize financial institutions, Treasury Secretary Henry Paulson said Monday.
Treasury Secretary Henry Paulson expressed regret for the errors made that led to the financial meltdown, but he insisted the administration is pursuing the correct course
Treasury Secretary Henry Paulson said he expects the economy to improve eventually because of the updated financial bailout package, but there will be a "bump in the road" along the way
U.S. Treasury Secretary Henry Paulson said golden parachute payments would be banned and the salary deals of bankers "clawed back" as part of the government's $250 billion bailout of the financial sector.
Treasury Secretary Henry Paulson said on Friday that the U.S. government was working on a plan to buy stock in financial institutions by using part of the $700 billion authorized by Congress to stabilize the financial system.
Treasury isn't quite going to nationalize America's banks but it may just become the biggest investor and stockholder in the troubled credit industry
The Treasury Department is "actively" looking at buying equity stakes in some of the nation's banks, according to White House officials.
It's time for Henry Paulson to show his cards.
Treasury Secretary Henry Paulson said Wednesday that financial markets continue to be "strained" but he urged "patience" and said the federal government will use all tools necessary to ensure stability in the financial system.
Analysis: Paulson and Bernanke unveil new moves to shore up confidence. But they must quickly tame the tottering shadow banking system. A look at what they are up against
In one frenzied month Treasury Secretary Henry Paulson and Federal Reserve chairman Ben Bernanke remade Wall Street. Along the way they may also have recast American politics. A month of historic government interventions shows signs of triggering a political version of climate change - unleashing a new era of class fury that could hurt U.S. companies, business leaders, and wealthy investors for years.
Congressional leaders said shortly after midnight that they had reached a tentative deal over the White House's proposed $700 billion bailout of the financial system.
Capitol Hill negotiators spent Friday working on details of a $700 billion financial rescue plan while President Bush and leading lawmakers offered assurances that Congress and the administration would get a deal done.
The proposed bailout of the world's financial system isn't really about money, folks. It's about psychology. In fact, you can think of it as the most expensive piece of psychotherapy in the history of the world.
The Treasury Secretary tells TIME that he's confident the bailout package is on its way to passage
Should Uncle Sam get stock in the companies it helps?
For all of Henry Paulson's talk about restoring confidence, fear remains the prevailing emotion in the bond market.
The debate over whether Washington should enact an extraordinary bailout of the nation's financial system reached a fever pitch at a Senate hearing on Tuesday.
Paulson and Bernanke's three-page plan to rescue the American financial system may wind up with many more pages, but it is likely to win approval
As Treasury Secretary Henry Paulson advocated his financial sector rescue plan before the Senate Banking committee Tuesday, a poll revealed that most Americans expect to be personally affected by the crisis.
Treasury Secretary Henry Paulson fired his bazooka again, but the target remains elusive.
Stocks inched higher at the open Tuesday, following the previous day's steep selloff, as a Senate hearing on the proposed $700 billion financial services bailout plan got underway.
Henry Paulson's latest lurch on the policymaking front is already hitting Americans in the wallet.
On the day of the first public discussion between lawmakers and the administration about the Treasury's $700 billion financial rescue proposal, the debate is being framed by a few key issues.
Treasury Secretary Henry Paulson fired his bazooka again, but the target remains elusive.
Helping Main Street or sticking it to Main Street?
In one week, old wisdom about markets and the federal government came crashing down. Here's what replaces it
Democratic leaders on Capitol Hill said on Sunday that the Bush administration's $700 billion proposal to bail out the financial system lacked necessary safeguards for taxpayers and homeowners.
Treasury Secretary Henry Paulson described the commercial banking sector as "sound," and said Monday he doesn't rule out additional government bailouts for the future.
Somber. Sobering. Warnings of an economic "meltdown."
The Federal Government is making plans to move well beyond bailouts -- at a cost that could reach $1 trillion
Congressional leaders said Friday that they were determined to quickly pass a massive plan to stabilize the financial market after they heard a "sobering" assessment from the administration's economic team.
Treasury Secretary Hank Paulson has careened from crisis to crisis lately, backing the Bear Stearns rescue, engineering the government takeover of Fannie Mae, refusing to commit taxpayer money to save Lehman Brothers, and Friday announcing a massive program to help banks offload mortgage-related assets.
Treasury Secretary Henry Paulson on Friday didn't mince words when it came to the cost of his latest proposal to stem the credit crisis.
As President Bush's third treasury secretary, Henry "Hank" Paulson was slow to get his footing and recognize the severity of the financial crisis that has frozen credit markets and threatens the American economy.
Far from stabilizing the financial system, the federal bailout barrage appears to have left investors shell-shocked.
On the first Saturday in September, tropical storm Hanna dumped torrential rains on Washington, D.C., keeping most of the city's residents indoors. One of them was a weary Henry "Hank" Paulson, Secretary of the Treasury, who arrived at his office at 7 a.m. Paulson had been working long hours without a day off for weeks, and the night before he'd been awakened by a phone call just after settling into bed. "I don't know how he got my number," Paulson says cheerfully, "but Barack Obama woke me up at 10:30, and I was on with him for about an hour." There had been plenty to talk about.
Treasury Secretary Henry Paulson has tamed the two-headed housing-market beast known as Fannie Mae and Freddie Mac - but not without adding to the uncertainty swirling through the financial sector.
Wall Street likes Henry Paulson's plan to break the logjam in the mortgage markets. But the Treasury secretary and other policymakers still have much work to do to get the economy on a more steady footing.
It took two months, but the bond market called Henry Paulson's bluff. Now the Treasury Secretary is expected Sunday to announce a plan to take Fannie Mae and Freddie Mac under government control.
The market is betting Henry Paulson is about to put on his black hat again. But the Treasury secretary may not be so easily typecast in the saga of the government-sponsored mortgage finance companies.
The Treasury Secretary made his reputation as a Wall St. dealmaker, but heading off a recession will be a tougher job
Treasury Secretary Henry Paulson urged Congress Tuesday to approve the Bush administration's plan to back up mortgage financiers Fannie Mae and Freddie Mac.
Treasury Secretary Henry Paulson said Congress needs to quickly approve a support package for Fannie Mae and Freddie Mac in order for the two to maintain their vital roles
U.S. stock futures tumbled Tuesday as investors digested disappointing reports from Apple, American Express and Wachovia, and listened to Treasury Secretary Henry Paulson urge Congressional action to boost Fannie Mae and Freddie Mac.
Bank examiners from the Federal Reserve and the Comptroller of the Currency are scrutinizing the books of U.S. mortgage finance giants Fannie Mae and Freddie Mac, according to a published report.
Treasury Secretary Henry Paulson was hammered by lawmakers on Tuesday over the Bush administration's plan to prop up mortgage finance giants Fannie Mae and Freddie Mac.
Treasury Secretary Henry Paulson said Tuesday the Bush Administration has no immediate plans to extend emergency loans to mortgage giants Freddie Mae and Freddie Mac
Here is the text of Treasury Secretary Henry Paulson's statement issued Sunday:
Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke urged lawmakers Thursday to help modernize how the nation's beleaguered financial system is regulated.
Britain and the U.S. must overhaul their outdated banking regulatory systems to give better advance warning of economic problems, Treasury Secretary Henry Paulson said
Treasury Secretary Henry Paulson pressed for swift changes to how the nation's financial system is regulated Thursday, most notably giving broader powers to the Federal Reserve following the dramatic near collapse of Bear Stearns in March.
Treasury Secretary Henry Paulson said Monday the increasing price of oil is "a real burden on American consumers," blaming increasing demand - and not market speculation - for the price jump.
Facetime with U.S. Treasury Secretary Henry Paulson
Treasury Secretary Henry Paulson said Friday he expects "to see a faster pace of economic growth before the end of the year."
Treasury Secretary Henry Paulson said Friday that financial markets are "considerably calmer" now than they were two months ago
The worst of the nation's credit crisis may have passed, Treasury Secretary Henry Paulson said in an interview, Wednesday
Top Democrats Monday dismissed the Bush administration's plan to overhaul the nation's financial regulatory system as inadequate, with one leading senator calling the proposals a "wild pitch."
Treasury Secretary Henry Paulson proposed a set of sweeping changes on Monday aimed at modernizing the nation's financial system in what could herald the biggest regulatory overhaul of Wall Street since the Great Depression.
Is Treasury Secretary Henry Paulson's plan to overhaul the financial services industry going too far? Not far enough? Does the plan put too much power in the hands of the Federal Reserve?
The Federal Reserve would have the power to regulate virtually the entire financial industry under a Treasury Department proposal to be announced Monday.
The Federal Reserve would have the power to regulate virtually the entire banking and securities industry under proposals to be unveiled Monday by Treasury Secretary Henry Paulson, according to a summary of the proposals provided to CNN late Friday.
Secretary of the Treasury Henry Paulson said Friday the government needs to make a "big effort" to help Americans who can avoid foreclosure.
The U.S. economy is going through a "tough patch," Treasury Secretary Henry Paulson said Sunday, insisting that the proper steps were being made to turn things around.
With a vicious storm pelting the markets, Treasury Secretary Henry Paulson is urging bankers to batten down the hatches - possibly foreshadowing an expanded government role as a financial-sector investor.
Treasury Secretary Henry Paulson outlined a series of broad-based proposals Thursday aimed at restoring faith in the mortgage business and shoring up the battered financial services sector.
Hope Now, the foreclosure prevention coalition put together with the Bush administration's support, claims dramatic success in helping at-risk mortgage borrowers stay in their homes.
U.S. stocks were flat at the start of trading Thursday as investors awaited Congressional testimony on the economy from the Federal Reserve chairman and Treasury secretary.
Treasury Secretary Hank Paulson will tell the Senate Banking Committee Thursday that he still believes the U.S. economy will avoid falling into a recession this year, according to a published report.
U.S. stock futures pointed toward a flat open Thursday as investors waited to hear what Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson would say during their testimony before the Senate Banking Committee, slated to start at 10:00 a.m. ET.
Tax rebate checks will begin going out in May, Treasury Secretary Henry Paulson said after the House's passage of a Senate-approved $167 billion economic stimulus package Thursday.
Treasury Secretary Henry Paulson ended his third meeting of the day with House leaders Wednesday night with no indication of a deal on an economic stimulus package, although a GOP leader told reporters more public comments could be expected Thursday morning.
Treasury Secretary Henry Paulson ended his third meeting of the day with House leaders Wednesday night with no indication of a deal on a $150 billion economic stimulus package.
Treasury Secretary Henry Paulson said Tuesday he is confident the administration and Congress can work out a plan to stimulate the economy and expressed support for the Federal Reserve's decision to cut interest rates.
Treasury Secretary Henry Paulson used a speech Monday to defend a plan brokered by the Bush administration to "freeze" mortgage rates for some subprime borrowers and also to call on Congress to pass legislation to head off a housing crisis.
Among those free-marketers inside the administration and out, who unapologetically label themselves ideologues, Henry Paulson has a nickname: "Mr. Fixit."
The Bush Administration's mortgage rate freeze sounds like a life raft for strapped homeowners, but it may do more harm than good
A sweeping solution to the subprime lending crisis could get snagged by a big sticking point at the end of the mortgage chain.
Already behind on your mortgage payments? No help there.
The U.S. government is working hard to give relief to struggling mortgage holders, Treasury Secretary Henry Paulson said Monday.
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