Treasury Secretary Henry Paulson is tapping former
colleague Ken Wilson to act as an advisor on the current banking crisis.
The Wall Street Journal
reported that Wilson, chairman of Goldman's Financial Institution Group, will work through January at no pay and comes to the Treasury at the request of President Bush. Paulson served as chief executive of Goldman Sachs from 1999 to 2006.
Paulson had until recently relied on advice from former Undersecretary Robert Steel, another former Goldman executive who left Treasury earlier this month to take the CEO post at beleaguered
. Steel was widely credited with crafting a plan, which was never implemented, to create a giant investment pool designed to bail out special investment vehicles pummeled by the credit crisis.
Goldman Sachs has provided a steady stream of talent into federal and state government. New Jersey Gov. Jon Corzine was CEO of the firm prior to Paulson. Joshua Bolton, the current White House chief of staff, spent some time at Goldman Sachs in London and Robert Rubin, who was Treasury Secretary under Bill Clinton, also is a Goldman alumni.
The firm also has been a breeding ground for many top executives. John Thain left Goldman to run the
New York Stock Exchange
and now heads up rival
Treasury faces a host of complicated tasks as it strives to stabilize the financial markets in the face of a slowing economy. Paulson has recently appeared before several Congressional hearings on the economy and proposed bailouts.
This article was written by a staff member of TheStreet.com.