Business

Congress must support financial regulation
by Magdalena Rosova

If the United States do not change regulation of its own banking system, there is no chance to strengthen the global financial system and prevent another deep crisis, said Timothy Geithner, Treasury Secretary, on Tuesday. Geithner also mentioned that even though the global economy is recovering, countries can not rely on American consumers, because they won't be the engine of economic growth anymore. Geithner thinks that both, U.S. and China, should take an important role in bringing economy to a balanced state. Furthermore, he emphasized the importance of cooperation of the 20 major economies in the world, which helped to restart economic growth. Rebalancing global ! demand Geithner sees as a only way to establish global foundation for growth and to prevent another crisis in future. Therefore he suggests that countries with huge trade surpluses, for example China or Germany, should support domestic growth. On the other hand, countries with big trade and budget deficits, such as U.S., must boost savings. Geithner testified that leaders of 20 major rich and developing countries who met at the Pittsburgh summit in September promised to work together on new financial regulations to prevent future meltdowns. That is why Geithner asks Congress to support the Obama's proposal to change financial regulation in U.S., otherwise it would negatively impact the global efforts. The Obama's administration proposes to give the Federal Reserve more power to control financial institutions and set up a consumer financial protection. Before the G-20 summit there was meeting of Group of Eight. G-8 consists of the world's major older industrial demo! cracies; the U.S., Japan, Britain, Germany, France, Canada, It! aly and Russia was added in 1998, although the title world's oldest democracy is probably not suitable for this country.

related story (sgx15949): http://moneynews.newsmax.com/streettalk/geithner_regulation/...

by Magdalena Rosova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

posted by Blog TechSource @ 1:33 PM