Geithner urges better global cooperation
Treasury Secretary says economies around the world must work together to ensure future growth.
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| Treasury Secretary Tim Geithner urges global cooperation to restore economic prosperity. |
NEW YORK (CNNMoney.com) -- Treasury Secretary Tim Geithner, speaking Wednesday ahead of a meeting of international finance officials, said economies around the world need to work together to lay the ground work for a sound future.
While America bears "a substantial share of the responsibility" for the current crisis, countries need to come together to "lay the groundwork for a new, more stable and more sustainable pattern of growth in the future," Geithner said.
"We may not all be in the same boat, but we're surely in the same storm," Geithner told members of the Economic Club of Washington, D.C.
He also said the rate of decline in global economic growth and trade has shown "some signs of easing." But he cautioned that a recovery "is going to take time."
The comments came as Geithner prepares to host a meeting of finance ministers and central bankers from the Group of 7 industrialized economies on Friday. That meeting, to be held in Washington, will be followed by a larger meeting of Group of 20 ministers.
G-20 members agreed earlier this month to impose tighter regulation of the global financial system at the conclusion of a summit in London. The group also pledged to expand the International Monetary Fund's resources to more than $1 trillion.
Geithner said stricter oversight of the global financial system will limit excessive risk-taking and help prevent future crises.
Supporting the IMF, which provides financial assistance to nations in need, will help stabilize emerging economies that have been hit hard by the global downturn, he said, adding that the aid will ultimately help developed economies recover by boosting trade and resource development.
"These programs act as a form of insurance policy for the world economy and, thus, for the U.S. economy," Geithner said.
On Tuesday, the IMF said it expects banks and other financial institutions around the world to suffer $4 trillion in writedowns as the global economy deteriorates. It also called for "further decisive and effective policy actions and international coordination."
Geithner defended the U.S. government's efforts to aid troubled banks, including the controversial $700 billion Troubled Asset Relief Program, or TARP, in congressional testimony Tuesday.
In his speech Wednesday, Geithner said "we welcome strong banks repaying TARP resources, there's a lot of value in that." He added that he expects "a substantial amount of [TARP] resources will come back." 
