Timothy F. Geithner
Last quote by Timothy F. Geithner
Timothy F. Geithner quotes
We are concerned, as are many of China's trading partners, that the pace of appreciation has been too slow and the extent of the appreciation too limited. We will take China's actions into account, as we are preparing our next foreign exchange report, and we are examining the important question of what mix of tools – tools available to the US – and what multilateral approaches might help encourage the Chinese authorities to move more quickly.
My own sense is we have a strong consensus on the basic framework of objectives but we worked very hard in the last weeks and months to get countries to agree to a set of objectives and timetable to put these reforms in place.
We have an enormously complicated system in the US, with regulation on Federal and State level, multiple bank supervisors, multiple authorities, and it just didn't work. It did not deliver what it has to deliver. And I think we have to start by making sure we have in place effective consultative supervision over those entities that could pose potential risk to the system.
Now this issue of executive compensation extends beyond AIG and requires substantial reform of the incentives and compensation throughout the financial sector. As we move forward, we need to ensure that taxpayer resources do not reward failure, but are used to get our financial system back to the business of providing credit – on reasonable terms – to American businesses and families.
We're not going to get through this unless the market is willing to take more risk. The risk now for us is that after a long period of people…taking too much risk that they didn't understand, they're taking to little now.
All countries need to commit to sustain open trade and investment policies, this is absolutely critical in confidence. The countries around the world today recognise this common imperative.