D’Oh! The biggest threat to the U.S. economy is Europe, Treasury
Secretary Tim Geithner told CNN Wednesday.
"The economic recession in Europe is hurting economic
growth around the world, and the ongoing financial stress is causing a general
tightening of financial conditions, exacerbating the global slowdown,"
Geithner said in testimony before the House Financial Services Committee.
Geithner's testimony comes as part of his role as chief of a
regulatory group called the Financial Stability Oversight Council. Geithner
touted that four years after the financial crisis the system is "stronger
and more resilient." He said that banks now hold far more capital in
reserves than they used to.
And the size of the "shadow banking system," or
financial contracts called derivatives, that remains unregulated has shrunk since
the crisis, Geithner said. But the
European debt crisis remains a substantial threat to U.S. and worldwide growth,
according to the Treasury chief….
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