In a message dated 12/7/2002 11:07:00 AM Eastern Standard Time, [EMAIL PROTECTED] writes:
Eh? Why did Wall Street rally on the announcement of his departure,
after taking an early morning hit on the weak U.S. employment report?
They never liked him. It'll be very interesting to see if Bush
appoints a Wall Street guy to take his place, or another
industrialist or political bagman instead.
Bush is already on it. Who better to take the position than an ex-Goldmanite who the current CEO and staunch Republican, Hank Paulson, just happened to have put back on the Goldman Sachs board of directors this May. Actually, I always thought Paulson would get the job, but Friedman's close enough.
Nomi
Bush Eyes Former Goldman Exec for Economic Job
Sat December 7, 2002 09:36 AM ET
By Adam Entous and Caren BohanWASHINGTON (Reuters) - Former Goldman Sachs Chairman Stephen Friedman is likely to replace Lawrence Lindsey as President Bush's top economic adviser, administration officials said on Friday.
An announcement could come as early as Monday, though officials cautioned that no final decisions have been made on how to revamp the economic team.
The abrupt resignations on Friday of Lindsey and Treasury Secretary Paul O'Neill rekindled talk in Washington and on Wall Street that Bush needs to bolster his economic team with people who have an understanding of financial markets.
Friedman, who served as co-chairman of Goldman, Sachs with former U.S. Treasury Secretary Robert Rubin, would fit that bill well, according to those who know him.
"He has got a terrific understanding of the economy, both from a micro and macro point-of-view," said Daniel Yergin, who served with Friedman on the Brookings Institution Board of Trustees. "He also has a terrific understanding of financial markets and how they interact with the overall economy."
Wall Street is not the only place that Bush is looking as he seeks to find new leaders for his economic team.
Potential candidates to replace O'Neill include prominent academics, led by Stanford University economist Michael Boskin, trusted White House insiders such as Commerce Secretary Donald Evans, and former lawmakers like Texas Republican Bill Archer.
A TREASURY FRONT-RUNNER
Sources said Bush had a nominee in mind for Treasury secretary, but no offer has been made at this time.
Friedman is the internal favorite to replace Lindsey, whose departure came as little surprise. "Stephen Friedman has been approached," one Republican source said.
A spokesperson for Friedman would neither confirm nor deny any contact with the administration and the White House declined to comment.
A source said the White House "short-list" for economic team candidates was drawn up by Josh Bolten, Bush's deputy chief of staff.
Friedman, who is believed to have Bolten's backing, is a committed Republican but is not ideological in his approach, according to associates.
"His manner is low-key and down-to-earth, but he's a man capable of intense concentration and focus," said Yergin, who is president of Cambridge Energy Research Associates, a consulting firm.
Friedman enjoyed a strong rapport with Rubin, a Democrat, with whom he worked for 20 years at Goldman.
Rubin ascended to his top-management position at the Wall Street firm from a trading background, while Friedman brought expertise on the investment-banking side.
Friedman is currently a senior principal at Marsh McLennan Capital Inc. and a limited partner of Goldman. He was senior chairman of Goldman from 1994 to 1997 and co-chairman or sole chairman from 1990 to 1994.
He was a major contributor to the Republican coffers during the 2000 presidential campaign.
BETTER SALESMAN SOUGHT
As he makes his decisions about the economic posts, Bush may face a tough task finding replacements with the respect of both Wall Street and Main Street -- respect O'Neill and Lindsey failed to earn.
"They want somebody close to the markets and who can be a better salesman on Capitol Hill. I'm not sure you can do both of those things," a Republican aide said.
The new appointments will be expected to champion a tax-cutting agenda -- something the White House hopes will bolster Bush's chance of re-election in 2004. A stagnant economy could be his biggest political liability.
Republican sources close to the administration said Vice President Dick Cheney has been instrumental in the shake-up and has been scouting for possible replacements for some time.
"Next year will set the tone for the re-election campaign and Cheney is leading the charge on this," a Republican source close to the administration said.
Bush met privately last month with Hoover Institution economist John Cogan, who advised him on economic policy during the campaign. Cogan's expertise is in budget matters, and it isn't clear whether the meeting was to discuss a role for Cogan within the administration or about other potential candidates.
Cheney has also held recent meetings with conservative
