Entries in Tim Geithner (4)


Geithner ‘Encouraged’ by Europe’s Plan to Tackle Economic Crisis

Official White House Photo by Pete Souza(LOS CABOS, Mexico) -- Treasury Secretary Timothy Geithner said Tuesday he is encouraged that European leaders appear ready to make a more forceful response to the financial crisis threatening the global economic recovery.

Speaking at the close of the G20 summit, Geithner said European leaders are focused on steps intended to stabilize the eurozone and promote growth in the region.

“We’re encouraged by what we’ve heard from the European leaders today and by the broad focus around the world we’re seeing to the need to strengthen economic growth,” Geithner told reporters.

European leaders are expected to detail their plan at a “critical” summit in Brussels at the end of next week.

“They’ve laid out a framework with a series of very important key elements,” Geithner said, including proposals to build a “stronger framework to make their financial system work.” He said he was also encouraged by their plans to work with Greece to make sure it is “reforming within the European community.”

Copyright 2012 ABC News Radio


Treasury Secretary Tim Geithner: US Banks Reduce Risk over Europe Economies

Darren McCollester/Getty Images(WASHINGTON) -- Treasury Secretary Timothy Geithner told Congress Thursday that while a severe economic crisis in Europe could cause harm in the U.S., major banks here have reduced their risk over problems in the European economy.

“U.S. financial institutions, including our major banks, the money market funds as a group, have substantially reduced their exposure to the economies of Europe that have been under the most pressure,” Geithner told the Senate Banking Committee. “Our direct financial exposure to these governments and their institutions is quite small, but it’s important to recognize that Europe is so large and so closely integrated with the U.S. and the world economies that a severe crisis in Europe could cause significant damage to growth here and around the world.”

The Obama administration has urged European leaders to deal more forcefully with a debt crisis that could significantly damage the U.S. and global economy.

“Developments in Europe can have big effects on the United States economy, big effects on confidence, big effects on financial markets and we’re living with the pressures today,” he said. “And they have hurt growth here, and they have reduced expectations about future growth.”

Geithner told the committee the U.S. needed to take action to stimulate growth and called for the passage of the president’s American Jobs Act.

“Now, in the face of situation in Europe and the general slowdown in growth around the world, the most important thing we can do here in the United States is to act to strengthen our economy,” he said.

Geithner also told the senators he expected the housing crisis would not end anytime soon.

“Things are still terrible. And this is going to take years still,” he said. “And what you see now is two things: You see the broader weakness in the economy, unemployment above nine percent, income growth slower.”

The treasury secretary said that puts additional pressure on the housing market. “It’s all hurting housing demand, slowing the pace, making more people vulnerable to losing their homes,” he said. “But even apart from that, we still have a foreclosure process essentially broken, a servicing framework that is not doing a good enough job at helping people stay in their home or transition to other forms of housing.”

Copyright 2011 ABC News Radio


S&P Puts US on Creditwatch; Geithner Says 'We're Running Out of Time'

Pete Souza/The White House(WASHINGTON) -- Standard and Poor's says the U.S. government's AAA credit rating is being placed on Creditwatch and that there's a 50 percent chance it could be downgraded.

Treasury Secretary Timothy Geithner said Thursday that time is of the essence.

"We have no way to give Congress more time to solve this problem and we're running out of time," Geithner said. "And many Americans are growing frustrated with the stalemate over the debt problem."

Secretary Geithner called the looming debt issue "hugely embarrassing" and a "black eye" to the nation.  

"The good of the country is being held hostage for the interests of a very few," he added.

While debt talks will not resume Friday, there is possibility a meeting will take place over the weekend.  President Obama gave congressional leaders 24-36 hours to call him with a plan to move forward.

Copyright 2011 ABC News Radio


Federal Debt Limit Has Been Hit, Says Treasury Secretary

Darren McCollester/Getty Images(WASHINGTON) -- In a letter delivered to Congressional leaders Monday morning, Treasury Secretary Tim Geithner said that the federal government has hit its credit limit.

The letter said that Geithner has started to tap federal employee retirement funds to keep Uncle Sam able to meet his obligations for funding the government and paying interest on previous borrowing.  It stated that the Civil Service Retirement and Disability Fund and Government Securities Investment Fund will be tapped to keep the Treasury from breeching the Congressionally-authorized debt limit of $14.29 trillion.

This now gives Congressional leaders and the Obama administration until Aug. 2 to increase the limit.

"I have written to Congress on previous occasions regarding the importance of timely action to increase the debt limit in order to protect the full faith and credit of the United States and avoid catastrophic economic consequences for citizens," wrote Geithner.  "I again urge Congress to act to increase the statutory debt limit as soon as possible."

Geithner also sent a letter to Sen. Michael Bennet (D-CO) in response to a query about the "catastrophic" consequences the nation would face if the debt limit is not increased.

"A default would call into question, for the first time, the full faith and credit of the U.S. government," wrote Geithner.  "As a result, investors in the United States and around the world would be less likely to lend us money in the future.  And those investors who still choose to purchase Treasury securities would demand much higher interest rates, reflecting the increased risk that we might default on our obligations again."

Geithner said these increased interest rates would ripple through the economy, increasing  borrowing costs for families, businesses and local governments.  This would reduce, he said, "… investment and job creation throughout the economy."

Copyright 2011 ABC News Radio

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