[Audio] Paulson Suggests Allocating $35 Billion of Rescue Funds To Henry Paulson

NPNR’s David Overbearing reports on Treasury Secretary Henry Paulson’s testimony before the House Financial Services Committee, in which he suggested Congress approve the issuing of a Treasury check in the amount of $35 billion to Henry M. Paulson, Jr. A transcript follows the audio.

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

From Washington, this is NPNR News, I’m David Overbearing. On Capitol Hill today, Treasury Secretary Henry Paulson unveiled a new plan to help stabilize the U.S. financial markets. In testimony before the House Financial Services Committee, Paulson suggested that Congress authorize the Treasury to issue a check in the amount of $35 Billion to a Henry M. Paulson, Jr. Mr. Paulson said he thinks Mr. Paulson has the proper knowledge base and experience to be able to make smart decisions with the money.

Paulson: Mr. Chairman, what I’m saying is, why not make a check out for the amount discussed here, $35 billion, to Mr. Paulson himself? That way a man who knows what he’s doing and has been around the block with the U.S. and world financial markets can take possession of that money and decide how best to spend it. Or not spend it, as it were. Maybe deposit it somewhere. Not offshore in his private account, but something smart, some smart solution for what to do with that much money. Again, not in his private offshore account, where it wouldn’t be subject to U.S. tax law. Nothing like that.

Overbearing: Several members of the committee expressed surprise and dismay that Mr. Paulson seemed to be suggesting writing a check to himself. Congressman Kyle Mitchell of Maine tried to get Paulson to explain what his proposal amounted to.

Mitchell: Mr. Paulson, aren’t you… Aren’t you Mr. Paulson?

Paulson: I’m a Mr. Paulson, yes.

Mitchell: Are you the same Mr. Paulson you’re suggesting giving this money to?

Paulson: Uh, I’m similar to that Mr. Paulson. In that we share a name. And a body. A head, a face, all the body. We share those things.

Mitchell: So that’s a yes?

Paulson: It’s a yes that we have the same head. I’m not sure if that’s what you were asking, though. But it ‘s a yes to that.

Overbearing: The session adjourned without the committee receiving what it deemed to be an appropriate explanation of Paulson’s proposal. Mr. Paulson is scheduled to testify again tomorrow, and he has already said he would bring bagels for the entire committee if they would promise to the leave the option open to write the check to Mr. Paulson.

This is NPNR.

Podcast: Download