UPDATE 2-Growth momentum to top Europe’s woes–Geithner

*Geithner says U.S. banks solid, an example for others

*Push in Korea for consensus on curbing bank risk-taking

*Sees more U.S. hiring eventually as confidence rises
(Rewrites first paragraph, adds quotes, details)

By Glenn Somerville and Emily Kaiser

WASHINGTON, June 3 (BestGrowthStock) – The global recovery had
enough momentum before Europe’s debt crisis struck to be able
to weather it without being derailed, U.S. Treasury Secretary
Timothy Geithner said on Thursday.

He also maintained that the United States, having acted
early on broad financial reforms, had a banking system that was
much better capitalized than others and said that put the
United States in position to tell Europe how to tighten up on
risky lending.

In an interview on CNBC television from Alaska, while en
route to a Group of 20 meeting in Busan, Korea, on Friday and
Saturday, Geithner played down fears Europe’s woes will drag
down U.S. and global growth.

“We have a moderate but pretty solid recovery in place” he
said. “The world economy came into this period of concern about
Europe with stronger underlying momentum and growth than many
people expected, and we’re in a much stronger position to get
through this.”

Geithner said finance ministers and central bankers heading
for the G20 session share a commitment on the need for setting
common standards across global financial markets that will
constrain some of the risk-taking that helped fire the
2007-2008 U.S. financial crisis.


“Risk doesn’t respect national boundaries, it’s going to
move to where the constraints are weakest,” he said.

“We all have an important stake in making sure we have a
strong set of consistent standards in place across these global
markets, across these global institutions and what we’re going
to try to do in Korea is to try to make sure … we’re
solidifying that consensus,” Geithner added.

While the U.S. Treasury chief has resisted suggestions that
the Obama administration has a set of prescriptions for Europe
to follow, Geithner was straightforward in saying that the U.S.
response to crisis was faster and more broad-based than
Europe’s has been so far.

“U.S. firms come into this — because of the actions we took
early in our crisis to recapitalize the financial system —
with much stronger capital positions than is true for most of
their competitors around the world,” he said.

“So I think the U.S. is in a very strong position … to
lead the world to much better-designed, more conservative
constraints on risk-taking, including constraints on leverage,”
Geithner added.


The U.S. Treasury chief visited Britain and Germany last
week en route home for a trip to China, discussing Europe’s debt crisis with finance ministers and central bankers in
London, Frankfurt and Germany.

There is concern that Europe’s banking system is at risk
because it holds much of the debt issued by the most indebted
euro zone members like Greece, Portugal and Spain.

In response to a question about Friday’s scheduled Labor
Department report on May employment, Geithner said broad
measures of U.S. economic activity show a gradual improvement
in confidence that will eventually mean more hiring. But he did
not say what he expected from the report.

Analysts surveyed by Reuters are forecasting 513,000 new
jobs were created last month.

Stock Market Analysis
(Reporting by Glenn Somerville and Emily Kaiser; Editing by
Kenneth Barry)

UPDATE 2-Growth momentum to top Europe’s woes–Geithner