Geithner: US, Europe “in broad agreement” on need for reform of financial system

Geithner: US, Europe broadly agree on reform

BERLIN — Treasury Secretary Timothy Geithner says the U.S. and Europe are in “broad agreement” on the need for regulatory reform of the financial system and is stressing his commitment to “a strong global framework of reforms.”

Geithner spoke Thursday after meeting with German Finance Minister Wolfgang Schaeuble.

European countries agreed this month on a €750 billion (nearly $1 trillion) loan backstop for governments in danger of defaulting on debt — coupled with efforts to cut budget deficits.

Geithner welcomed Germany’s “leadership role” in putting together that package.

He said all countries understand the need to cut deficits and are working closely together “to make sure that we are strengthening and reinforcing (the) global recovery.”

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

BERLIN (AP) — U.S. Treasury Secretary Timothy Geithner is expected in Berlin for talks with his German counterpart as Europe grapples with its debt crisis.

Geithner meets with Finance Minister Wolfgang Schaeuble in the German capital Thursday. The talks follow a private dinner Wednesday night with European Central Bank president Jean-Claude Trichet and a stop at Germany’s central bank, the Bundesbank.

European countries agreed earlier this month on a €750 billion (nearly $1 trillion) loan backstop for governments in danger of defaulting on debt.

Geithner said in London Wednesday that while the European Union has a good plan for tackling the debt crisis, it must act on it soon.

He said he believes European leaders “will do what’s necessary to make it work.”