The AP describes this as part of a “shake-up” to revive Bush’s “troubled presidency”:
WASHINGTON – Treasury Secretary John Snow resigned Tuesday and President Bush nominated Goldman Sachs Chairman Henry M. Paulson Jr. as his replacement — another chapter in the shake-up to revive Bush’s troubled presidency.
“He has a lifetime of business experience. He has intimate knowledge of financial markets and an ability to explain economic issues in clear terms,” Bush said of Paulson in a Rose Garden announcement.
He praised Snow for showing “strong leadership” at Treasury.
Paulson called the U.S. economy “truly a marvel, but we cannot take it for granted. We must take steps to maintain our competitive edge in the world.”
Snow, the former head of railroad giant CSX Corp. who has a Ph.D. in economics, has been Treasury secretary since February 2003. His departure has been rumored for more than a year.
Paulson has been chairman of Goldman Sachs for about eight years. It is considered one of the premier financial firms on Wall Street and has sent a number of its top executives to high positions in Washington.
He’s expected to be easily confirmed by the Senate.