Billionaire hedge fund manager John Paulson withdrew his name for consideration as treasury secretary in a second Trump administration — citing his “complex financial obligations,” according to a report.
“Although various media outlets have mentioned me as a candidate for Secretary of the Treasury, my complex financial obligations would prevent me from holding an official position in President Trump’s administration at this time,” Paulson told The Wall Street Journal on Tuesday.
“However, I intend to remain actively involved with the President’s economic team and helping in the implementation of President Trump’s outstanding policy proposals.”
The 69-year-old Paulson — founder of hedge fund Paulson & Co. who made a fortune during the 2008 financial crisis by betting against toxic mortgages — is a prolific donor and avid supporter of President-elect Donald Trump.
Paulson’s name has been reported to be on a list of potential candidates for the cabinet position. Howard Lutnick, the Cantor Fitzgerald boss who is a co-chair of the Trump transition team, is also said to be in the running for treasury secretary.
But the leading candidate for the role is reported to be Scott Bessent, according to the Journal.
Bessent, founder of macro investment firm Key Square Group and former investing chief for Soros Fund Management, is vetting candidates to serve as his deputy treasury secretary, according to Financial Times.
The report indicated that Bessent was seeking suggestions for a deputy because Trump’s transition team asked him for names of candidates whom he had helped to vet.
“Some people may have mistaken those as direct interviews, which they were not,” a person close to Bessent told FT.
Other names being mentioned for the treasury secretary position are former Securities and Exchange Commission chair Jay Clayton and former Trump economic adviser Robert Lighthizer.
Installing Lutnick as treasury secretary could pose a conflict of interest given his involvement in touting the cryptocurrency Tether, a digital stablecoin that is under federal scrutiny for allegedly facilitating financial transactions to international criminal organizations and terrorist groups such as Hamas and Islamic Jihad.
Lutnick has also been mentioned as a possible Trump pick to be the next ambassador to Israel.
