Geithner: Finance gurus back aggressive action to restore growth
[cnn-photo-caption image=http://i2.cdn.turner.com/cnn/2009/images/03/14/art.geithnerengland.gi.jpg caption="Treasury Secretary Tim Geithner attended the G20 meeting Saturday in Horsham, England."]
HORSHAM, England (CNN) - "A strong consensus both for recovery and reform" emerged from the G20 meeting of financial leaders that ended Saturday near London, U.S. Treasury Secretary Timothy Geithner said.
"This is a global crisis, and it requires a coordinated, global response," he said at a news conference. "We have a broad base of consensus to act aggressively to restore growth."
"You are seeing the world move together at a speed and on a scale without precedent in modern times. All the major economies are putting in place substantial fiscal packages," he said. "The stronger the response, the quicker recovery will come."
Recommendations from the G20 financiers will be passed on to the G20 Summit next month in London. They include a substantial increase in support for the International Monetary Fund and an expansion of the IMF's membership, Geithner said.
The IMF monitors global financial developments, loans money to developing countries, provides technical assistance and does economic research. The institution also plays a key role in the fight against money-laundering and terrorism.
Geithner said the United States will soon release a framework for regulatory reforms that is guided by several principles, including stronger oversight of financial institutions and stricter standards for stability and disclosure.
Action must be taken, the financiers said, to ensure that all major "financial institutions, markets and instruments are subject to an appropriate degree of regulation and oversight, and that hedge funds or their managers are registered and disclose appropriate information to assess the risks they pose.
The recommendations also will be considered at next week's session of the European Council.
"Regulators in one country must cooperate more closely in another country to create a global network of supervision," British Prime Minister Gordon Brown said at a news conference.
"We have to address the fact that a bad bank in one country can undermine good banks in every country, and that multibillion-dollar markets still exist
outside the supervisory net," Brown said. "We call on all countries to adopt international standards and sign bilateral agreements to exchange tax information with other countries."
The G20 summit next month was initially going to focus on financial markets and regulation, but the deepening crisis around the world necessitated
the need for a broader economic package that includes everything from stimulus packages to uneven interest rates, said Mark Malloch-Brown, the British prime minister's envoy to the summit.
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I wouldn't trust a word this guy says.
CNN where is the article that Geitner asked France and another country to have a large bailout like us and France said we were crazy for spending all this money we don't have and they won't do that.
What this really means is that the rich aren't rich enough to kick start the "New World Order" and they are trying to fix that. Thats why the government doesn't give money to the "people" because we are destined to be poor and subservient. You had better wake up people.
Looks like Obama/Geithner are trying to run the world now, doesn't it?
So... WHEN their plan fails, as usual, they can scream... it's not our fault!! Typical democrats..... Geithner is an idiot...... just like his boss. What we really need is a special election to replace this entire disaster of an administration. 2010,2012 cannot get here soon enough......
Just because Geithner and Summers are not out there everyday, telling people what they are doing, it doesn 't mean that they are not doing things to fix this economy. I saw him on Charlie Rose and I really got what he and the Obama Administration are doing. And it sounded like the right things to me. The media is always looking for a scapegoat, or a quick fix or "answers." I think President Obama and his economic team are right to roll things out when they are ready and it is all thought out and planned out. Instead of trying to satisfy the pundits so greedy for fodder for their great conflict mill.
Boy, Geithner is becoming the poster-child for "In Over His Head".
Question to all you people that are so critical.
If you spent 8 years running up a credit card debt, could you get out of debt in 50 or 60 days?
Just asking.
I guess Geitner doesn't read the Wall Street Journal. There was full page of economist signatures who totally disagree with the government agressive tactics!
Geithner is a good intellectual man whose working really hard to get us out of this mess that mostly repubs help to make.
I am tired of all the moaning and groaning over everything and everyone of President Obama's decisions. Suck it up and live with it or find some other place that will accept your application for citizenship, ok?
Growth became a code word for Greed in the past and without new regulations and controls can recur at any time. We must first reregulate the markets, banks, finance houses, etc... before we can even consider attempting any growth because uncontrolled growth is AKA Cancer!!!
I guess Timothy Geithner has found his sea legs and for us I hope that his approach is right. We don't have much more money to waste.
Yes, aggressive action should be taken, and Obama approach is sound. Just put more strict regulations on Wall Street crooks – never again they should get so fat in our expense.
I don't know about that Geitner guy... he was at the Treasury when things got out of hand. I hope some enterprising journalist will blow the lid off of that situation.