Geithner to urge 'global approach' to reform on European visit

26 May 2010

US Treasury secretary Timothy Geithner is to urge European leaders to help with the adoption of a "global approach" to financial sector reform on his visit to the continent.

He is due to first meet British chancellor George Osborne, before going on to see German finance minister Wolfgang Schauble and European Central Bank president Jean-Claude Trichet.

Mr Geithner said: "I'm going to meet the new UK government to prepare for the next stage of global financial reform … [and] to emphasise the importance of a carefully designed global approach."

The comments seem to be chiefly aimed at Germany, reports Reuters, after the country surprised the rest of Europe last week by banning certain forms of short-selling.

Debt securities in eurozone countries held by German banks are affected by the legislation, with the ban set to remain in place until April 1st 2011.

Germany's financial regulator BaFin said the move had been prompted by the "extraordinary volatility" in the pricing of such debt securities.

By Claire Archer

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