ORANGE COUNTY IN BANKRUPTCY : The ‘Numbers Cruncher’ : People: Former state Treasurer Thomas W. Hayes is known for conservative investment strategies and expertise in government finance.

Former state Treasurer Thomas W. Hayes, the man picked Thursday to help lead Orange County out of its financial bind, is regarded as an accomplished money manager with a deep knowledge of government financial matters.

As state treasurer for two years, Hayes, 48, was responsible for the management of California’s $20-billion investment portfolio and earned $3.2 billion in profits on the investments during his tenure as treasurer.

Appointed state treasurer by former Republican Gov. George Deukmejian to replace the late Jesse M. Unruh in 1989, Hayes then ran for the office and lost to Kathleen Brown the following year.

He was known for his conservative investment practices, and during his unsuccessful campaign for treasurer in 1990 Hayes was criticized by Brown for earning less on the state’s investment fund than Orange County was earning on its money.

A mild, soft-spoken man, Hayes was not registered with any political party until he was appointed by Deukmejian and registered as a Republican.

After Brown defeated him in the 1990 election, Hayes was appointed state finance director by Gov. Pete Wilson. As finance director, he served as California’s chief fiscal adviser and was responsible for preparing California’s $60-billion state budget.

“He knows the ins and outs of state government,” Wilson said of Hayes when he appointed him. “He is well respected by legislators and administrators from both sides of the political aisle. I cannot think of anyone better equipped to steer us through the budgetary shoals ahead.”

Hayes served as chairman or a member of 60 authorities, boards and commissions dealing with virtually every aspect of state government, including the Public Employees Retirement Board and the State Teachers Retirement System.

He resigned as state finance director in July, 1993, to become managing director of Metropolitan West Securities Inc., a Los Angeles-based brokerage firm, a post he currently holds.

Metropolitan specializes in advising and trading for major pension funds, investment funds, private corporations and foreign governments.

“He was not a politician,” said Donna Lucas, who served as Hayes’ campaign manager and director of public affairs. “He is a financial manager, and one of the most highly regarded financial experts in the nation.”

Lucas added that both as state treasurer and while he was running for the office, Hayes “continually said counties and cities should require individuals who serve in the role of treasurers to have solid financial backgrounds and investment expertise.”

During the state treasurer’s campaign, Brown described Hayes as a “numbers cruncher” inexperienced as a public policy leader. She also accused Hayes of not moving quickly enough to sell the bonds the voters had approved.

Hayes defended his record by saying he sold bonds as soon as the law allowed. He said bonds are sold as state and public agencies use the money.

Hayes was Deukmejian’s second choice to be state treasurer after his first nominee, now Atty. Gen. Dan Lungren, was rejected by the state Senate.

Some Democrats feared that Lungren, a former GOP congressman, would pose a potent political threat for governor or another statewide office somewhere down the line, a threat not seen in Hayes.

Hayes was the state’s auditor general for 10 years before his confirmation as state treasurer. During this time, he signed more than 600 reports sent to the Legislature that recommended $400 million in savings to the state.

Hayes has received two national awards for his achievements in financial management. He has an MBA from San Jose State University.

He and his wife, Mary, have two daughters, Christy, 23, and Shannon, 21.