|
 |
 |
|
Geithner summons financial crisis vets
Treasury Secretary Timothy Geithner is meeting Friday with current and former officials who dealt with the financial crisis of 2008, as the Aug. 2 deadline for raising the debt ceiling draws closer.
Geithner discussed the need to raise the debt ceiling with his predecessor, Hank Paulson Jr., at a meeting Friday.
Geithner and Paulson had a private breakfast in the morning during which they discussed the economy, the need to raise the debt limit and the “ongoing efforts to find a balanced approach to deficit reduction,” the Treasury Department announced Friday.
“Now is the time for action on both raising the debt ceiling and tackling the U.S. debt and deficits through significant and lasting spending reduction, entitlement reform and tax reform,” he said. “The sense of urgency is clear — failing to raise the debt ceiling would do irreparable harm to our credit standing, would undermine our ability to lead on global economic issues and would damage our economy.”
Lawmakers are struggling to craft a package that would raise the $14.3 trillion debt limit while reining in the deficit. The Treasury says it must be hiked by Aug. 2 to avert disaster.
Both Paulson and Geithner have been consistent in calling for the debt limit to be raised to avoid economic catastrophe. And both men are familiar with the effect of a dramatic economic downturn, as both oversaw the financial crisis and the efforts to stave off an economic collapse in 2008 and early 2009.
Paulson was Bush’s Treasury secretary when the crisis hit, while Geithner was president of the Federal Reserve Bank of New York.
Geithner will continue the meeting of the economic minds later in the day. He is scheduled to meet privately with Federal Reserve Chairman Ben Bernanke and his successor at the Federal Reserve Bank of New York, William Dudley.
Most Viewed RSS Feed »
