Here comes the Hammer: banker behind bailout faces former allies

Hank Paulson dreamed of being a forest ranger before his brain ruled his heart. Studies at Dartmouth and Harvard Business School opened the door to the world of finance after an early career as a Pentagon aide.

It was a shrewd decision that led to lucrative rewards - he is said to be worth $700m after working at investment bank Goldman Sachs for just over 30 years. He rose to become chief executive before he took the call from George Bush two years ago that led his appointment as Treasury secretary. He followed a well-worn path from the bank into government - Goldman Sachs executives have links going back to the Eisenhower administration.

In effectively nationalising the housing market players Fannie Mae and Freddie Mac in the biggest bail-out in US history, Paulson has turned from an advocate of free markets to a proponent of intervention. When it became apparent that the two home loan giants were in need of help last month Republicans in Congress initially opposed the idea of government intervention.

A Christian Scientist, Paulson has compared himself to the biblical figure Job after being criticised for his reaction to the crisis that has gripped the financial markets he once lorded it over.

An imposing character, Paulson is still nicknamed "the Hammer" following his success as a college American football player. He also retains his love of the outdoors, telling an interviewer with Fortune magazine that his wife Wendy allowed him to let racoons run loose in their house. They also kept flying squirrels, mice, turtles and a tarantula before promotion at Goldman Sachs forced a move from Illinois to a high-rise in Manhattan. Moving to public office has now made him a central player in Washington life.

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