I am not sure. It could have been his idiosyncrasies. When Paulson went on Charlie Rose after he had left office, it seemed his relation with Goldman Had become a soft spot.
With no doubt, at the moment of crisis, his closeness became the only venue he could see for a solution.
There have been interesting questions raised about what could have been done when it all happened.
Way before they even acknowledged the crisis, the wise men spread the rumor of allowing Hayek run free. It was a clear solution before the too big to fail was pitched the same way Chrysler became one of three.
It would have been painful, but the proponents showed the vision. The business lost should have been satisfied by competitors. Instead, it dragged not only loosing the business but also loosing the demand.
