Billionaire hedge fund manager John Paulson has withdrawn his name as a candidate for Treasury secretary in the second Trump administration, citing “complex financial obligations,” according to a report.
“Although various media outlets have described me as a candidate for Treasury Secretary, my complex financial obligations preclude me from serving in an official position in President Trump's administration at this time,” Paulson said in a statement. . told the Wall Street Journal on tuesday.
“However, I will continue to be actively involved with the President's economic team and help implement President Trump's good policy proposals.”
Mr. Paulson, 69, is the founder and major donor of hedge fund Paulson & Co., which made a fortune betting on toxic mortgages during the 2008 financial crisis, and is a major donor to President-elect Donald Trump. He is an avid supporter of Trump.
Paulson's name is reportedly on the list of cabinet candidates. Cantor Fitzgerald boss Howard Lutnick, co-chair of President Trump's transition team, is also said to be running for Treasury secretary.
However, the magazine reports that Scott Bessent is the frontrunner for the role.
Mr. Bessent, founder of the macro investment firm Key Square Group and former investment chief at Soros Fund Management, is scrutinizing candidates to become deputy Treasury secretary. According to the Financial Times.
The report indicated that Bessent is seeking suggestions for deputy candidates, as the Trump transition team asked him to name candidates he helped vet.
A source close to Mr Bessent told the FT: “Some people may have mistaken these as face-to-face interviews, but they were not.”
Other names listed for the Treasury secretary post include former Securities and Exchange Commission Chairman Jay Clayton and former Trump economic adviser Robert Lighthizer.
Appointing Mr. Lutnick as Treasury Secretary means that he is a crypto currency, a digital stablecoin that is under federal surveillance for allegedly facilitating financial transactions with international criminal organizations and terrorist organizations such as Hamas and Islamic Jihad. Given his involvement in promoting Tether, this could pose a conflict of interest.
It has also been suggested that Mr. Lutnick may be nominated by Mr. Trump to be the next ambassador to Israel.
