Updated from 8:08 a.m. EDT
President Bush named Hank Paulson, the chief executive of
, to be his next Treasury secretary.
Paulson, if confirmed by Congress, will succeed John Snow, who is resigning.
"Hank shares my philosophy that the economy prospers when we trust the American people to save, spend and invest their money as they see fit," Bush said in a morning press conference. "Hank also understands that the government should spend the public's money wisely or not at all."
Paulson is the latest in a long line of Goldman executives to enter public service on both sides of the aisle. The investment bank employed former Treasury Secretary Robert Rubin; New Jersey Governor Jon Corzine; White House Chief of Staff Josh Bolten; and former National Economic Council President Stephen Friedman.
Goldman lost its president, John Thain, to the
two years ago, but retains a strong stable of candidates to succeed Paulson. They're led by Lloyd Blankfein, the current president and chief operating officer.
Shares of Goldman Sachs fell 95 cents, or 0.6%, to $151.99.