UTEP, meet Henry Paulson

by Diego Rico
February 3, 2009

Room 321 was filled, tightly packed with students, faculty, and staff waiting for the College of Business’ latest guest—Former Secretary of the Treasury Henry Paulson.

Before the formal forum started, UTEP students and faculty were able to sit and listen to Mr. Paulson, the man who weeks prior was at the head of a $700 billion bailout for the financial system of America.

The opportunity to listen to Mr. Paulson came in the wake of our 43rd President of eight years leaving office. Bush’s successor, President Barack Obama, having all cabinet positions emptied and filled, allotted the former Treasury Secretary a little “off-time.”

It would be an understatement to say that Mr. Paulson was less anxious than he was months ago, kept under political scrutiny and pressure to fix the ailing economy. He humorously noted that he was forced to postpone his last scheduled visit in November for “other matters,” a detour that led the Treasury Secretary to handle affairs dealing with billions of dollars and company giants such as AIG, Lehman Brothers and Bear Stearns.

Fortunately, the UTEP College of Business was allowed the privilege of listening to a few words in an exclusive forum featuring the Former Treasurer.

The forum began with a brief introduction by the College of Business Dean, Dr. Nachtmann, and was followed by Mr. Paulson speaking specifically to the students in the room about his personal ideas and encouragements to young businessmen.

His message to students was simple, one that showed Mr. Paulson’s humility as a person and businessman, “If you don’t care about the people around you, you won’t get far.” It surprised me to hear such a meek thought and philosophy coming from a daunting-looking investment banker; whose resume also includes the CEO position at Goldman Sachs. It was a message that many in the American public may miss when continually exposed to the negative and “corrupt” forces behind large companies; it was a fresh idea that kept the assembly of students intrigued and curious.

Mr. Paulson studied English at Dartmouth College and afterwards went to Harvard to study his MBA, and through much use of his rhetoric and philosophy climbed onto the position of CEO at Goldman Sachs, one company that has shown incredible resilience to an otherwise disastrous climate of an economy.

The issues began to turn into the economic challenges America faces. Questions from the gathering arose, reaching topics from the local credit crunch, to the questionable Constitutionality of the federal bailouts, and even the China currency and its influences on America’s economy. It may come as a surprise to some that Paulson was hesitant, if not against, the auto industry bailout.

Economics Dean Dr. Timothy Roth introduced a Constitutional argument against the auto industry bailouts. Roth’s theory holds that the Constitution of the United States only provides monetary assistance (bailouts) to financial institutions, and believes that the auto industry receiving any money is both morally and constitutionally wrong. After Roth introduced his argument, Mr. Paulson admired the issue and admitted the conflict was a central part in coming to a decision in Washington.

At one point Mr. Paulson’s words to the crowd sounded to take form of a motif we have all heard and lived—“Embrace change.” This piece of wisdom came into light as the group’s questions veered more into how America would get itself out of the economic slump we currently find ourselves in. The Treasurer also took the phrase as a way of encouraging the youth in the room not to fear the uncertain things we face, and to continually accept change as we take it in stride and use it to motivate us and our dreams, either as individual entrepreneurs or corporate leaders.

Listening to Mr. Paulson’s words of advice for students, local entrepreneurs, and teachers brought kinder feelings of optimism and motivation; words that are a welcomed variation to the current feelings of uncertainty and struggle towards the ever growing phenomenon of economics.

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Diego Rico

Rico is a junior Finance and Accounting major at the University of Texas at El Paso. He is the Vice President of the Regional Economic Development Association and the President of the Collegiate Entrepreneurs' Organization. He plans to work in investment banking with an international focus. He is a sky diving enthusiast.