Goldman Sachs' Wilson leaves GS to aid Paulson resolve banking crisis

Discussion in 'Wall St. News' started by makloda, Jul 21, 2008.

  1. Kinda interesting Paulson needs handholding in this.

    Banker Leaves
    Goldman Sachs
    To Aid Paulson
    July 21, 2008; Page A3

    Goldman Sachs Group Inc.'s most senior financial-institutions banker, Ken Wilson, is temporarily leaving the firm to advise Treasury Secretary Henry Paulson on how to resolve the country's banking crisis, according to people familiar with the matter.

    As chairman of Goldman's Financial Institutions Group, Mr. Wilson has proved to be a big player in capital raisings and reorganizations across the banking sector. In joining Mr. Paulson, a close friend and longtime colleague, Mr. Wilson will try to address issues from a more macro perspective. The Treasury and Federal Reserve are grappling with how to respond to the threat of bank failures, flagging capital levels and crises of confidence in important institutions such as Fannie Mae and Freddie Mac.

    While a number of details still must be worked out, Mr. Wilson, 61 years old, is expected to serve without pay, in a period through January, the people familiar with the matter said. President George W. Bush made a personal call to Mr. Wilson in recent days, asking him to assist Mr. Paulson.

    Mr. Wilson's appointment is the latest in the ranks of Goldman employees who have moved into public service. And it reflects the seriousness of the issues before the Treasury, which is trying to instill public confidence in the financial system without pushing the federal government into a posture of expensive public bailouts.

    Mr. Wilson has seen firsthand the value of bankers as public-service advisers. He spent many years at Lazard Ltd. alongside banker Felix Rohatyn, who is best known for helping salvage New York City from its fiscal crisis during the 1970s. Mr. Wilson eventually moved to Goldman in 1998. He served as a special-forces officer in the Vietnam War.
  2. birds of a feather ...
  3. Ah yes. How to get the borrow and spend money that we dont have and can never pay back economy going again.

    I suspect we are going to reminded of herb steins quote "what cannot continue wont" prety soon.
  4. really interesting, thanks.
  5. sprstpd


    Gee, I wonder if the resolution will be beneficial to Goldman Sachs or not.
  6. If Wilson can't do it over the phone it's bad.
  7. just21


    Wilson may have a lot of GS stock he wants to sell tax free.