Paulson: ‘I’m Not A Great Investor’
Former Reserves Secretary Henry Paulson got down on bended knee in front of House Speaker Nancy Pelosi to ?break the tension and to get a smile or laughter? during the darkest days of the financial crisis but said ?it didn?t really have its desired effect.?
Paulson, in a wide-ranging interview conducted by billionaire investor Warren Buffett, recounted a key meeting last fall between balky Republican and Democratic lawmakers — including Pelosi and then-presidential candidates John McCain and Barack Obama. ?People didn?t come to physical blows but there were verbal blows,? Paulson said of the meeting, which was held to gain praise of TARP.
In a session before the Omaha Chamber of Commerce, Paulson said Wall Street pay is ?out of belt,? the economy is improving and he?s keeping his money in fixed-returns and money market accounts.
?One of the things I learned during my career is I?m not a fantastic investor,? said Paulson, the former head of Goldman Sachs Group Inc. ?A lot of what I have is in fixed-returns markets, money markets, cash ? progression equities.?
Paulson details his handling of the financial crisis in his new book ?On the Brink,? including how Obama stopped talking to him the day after the 2008 election. He made reference to that again after Buffett recounted how ?Obama sort of stopped talking to you? after the election.
?Take out the ?sort of?,? Paulson quipped.
As for what would have happened if Bank of America hadn?t bought Merrill Lynch, he says Merrill ?wouldn?t have lasted a week.?