Henry Paulson's words of wisdom...

On George Bush

"We confer very frequently. Daily. Sometimes more than once daily, sometimes just more than once in a week. President Bush is very current. He has been on top of every deal done. I know that this is not conventional wisdom but here is a man who understands markets. All he has ever said to me is that he wants to do the right thing."

On hedge funds

"Our view on hedge funds had been 'what does regulation entail'. But we need some form of regulator who can look across the whole system. A window into these hedge funds. The Fed should play that role. The Fed should have oversight of hedge funds, and the hook should be those hedge funds who are big enough to pose a systemic risk."

On the car industry

"President Bush is committed to putting the car companies on the path towards viability. But their success will be determined by the will of the next Administration. But if the right outcome is bankruptcy for them then isn't it better that we get there in an orderly process."

On Madoff and the Securities Exchange Commission

"It would be inappropriate for me to comment on an ongoing investigation but what I will say is that I commend the SEC [Securities and Exchange Commission] to subject themselves to self-examination. It is very necessary."

On free time

Asked what he will be doing the day after he leaves office on January 21, Henry Paulson said: "That'll be a great day. I have no idea what I'll be doing - packing things to leave town for a while. It is the first time in many years when I have no plans. I am an English major and I always said I would write a book but I always said it would not be about myself. I haven't decided yet.

I have a granddaughter I haven't met yet, she is just a few days old."

He added: "I love salt water fly fishing. I am so focused on catching the fish, it is all engaging. I forget other things."

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