Hank Paulson has had an interesting time as Treasury Secretary, stepping into the role as the US was about to enter not only a possible recession but one of the most complex and worrying financial crises of recent decades.

He was on his feet again today,  proposing reforms for mortgage brokers and credit rating agencies, defending the dollar and talking about how Wall Street firms and regulators all made mistakes that contributed to the turmoil.

Although events are hardly within his control, there is something comforting about having a former chief executive of Goldman Sachs in the hot seat in Washington at the moment. Whether or not he is correct about everything, he knows what he is talking about and is willing to take some risks.

In fact, I don’t think he has been right about everything. The Treasury’s earlier plan for a “super-Siv” to support one corner of financial markets struck me as not only out of place but likely to cause more harm than good.

But, in general, his presence is reassuring. At a time when policymakers are in danger or either doing too little and doing too much, Mr Paulson seems to be both thoughtful and determined. I would give him a decent review so far. 

March 13th, 2008 in Finance | Permalink