Bush taps Wall Street executive to lead Treasury Department

President Bush pivoted toward Wall Street Tuesday in selecting a new Treasury secretary, tapping Goldman Sachs chief Henry Paulson to assume a position that has waned in stature under this administration.

"He has a lifetime of business experience; he has an intimate knowledge of financial markets and an ability to explain economic issues in clear terms," Bush said. Paulson accepted Bush's offer to head Treasury on May 21, but an announcement was delayed while Paulson went through background checks. The president, who appeared along with Paulson and departing Treasury Secretary John Snow, said Paulson had "earned a reputation for candor and integrity."

The president seemed at pains to counter the widespread perception that, though ostensibly the premiere economic post in administration, the Treasury secretary under Bush plays a subordinate role to White House policymakers.

"The Treasury secretary is the leading force on my economic team and the chief spokesman for my economic policies," Bush said. "As Treasury secretary, Hank will be my principal adviser on the broad range of domestic and international economic issues that affect the well-being of all Americans."

There has been speculation that Bush was having trouble filling the post because it took a backseat role to the White House.

Early reaction from Capitol Hill and K Street appeared mostly positive and included a pat on the back from one of Bush's staunchest opponents, Sen. Charles Schumer, D-N.Y.

"I spoke with Hank Paulson this morning and pledged my full support for his nomination," Schumer said. "His experience, intelligence and deep understanding of national and global economic issues make him the best pick America could have hoped for to deal with the difficult economic problems the country faces." Senate Majority Leader Bill Frist, R-Tenn., called Paulson an "excellent choice," while Hank McKinnell, chairman of the Business Roundtable and CEO of Pfizer Inc., said Paulson's "first-hand experience in running a business and his understanding of financial markets give him the right credentials for helping to shape fiscal policy with finance ministers from around the world."

Snow's departure had been speculated for months. Bush had nothing but praise for the man who has held the position for more than three years, commending him for his "strong leadership" and "fine work." Despite being the subject of one of the longest goodbyes in recent Washington memory, Snow on Tuesday stuck to the script he had polished for the past three years, lauding the president and his economic policies. Snow said he had "looked forward for some time to returning to private life."

Paulson has been with Goldman Sachs for more than 30 years, serving as chairman and chief executive officer since May 1999. Paulson served as a Pentagon and a White House aide during the Nixon administration. An Illinois native, Paulson, 60, attended Dartmouth College and earned his M.B.A. at Harvard.

In brief remarks, Paulson mentioned his experience in capital markets and globalization. "I have witnessed and participated in the globalization of finance as major economies around the world have become increasingly interdependent," he said.