Geithner urges bigger financial firewall in Europe
from MarketWatch.com - MarketPulse
DAVOS, Switzerland (MarketWatch) -- U.S. Treasury Secretary Timothy Geithner said on Friday that the "unfinished piece" of resolving the euro-zone sovereign debt crisis is "building a stronger, more credible firewall." If Europe commits to building a bigger firewall, the International Monetary Fund and nations contributing to it will be very supportive in those efforts, but not "as a substitute," Geithner said at the annual meeting of the World Economic Forum in Davos. The outlook for U.S. growth and unemployment depends on the resolution of the European crisis, developments in the Gulf because of oil supplies, and "whether Republicans decide to legislate things that are good for growth," according to Geithner. The Treasury secretary said there's "no merit" to the argument that regulations pursued by the Obama administration in various sectors have stifled business investment. "We recognize that these reforms are tough," but there isn't any evidence that they are hurting the economy, Geithner said.