* But says Europe must move more aggressively
* Says US financial system stronger than 6-18 months ago
(Adds comments from CNN interview)
WASHINGTON (Reuters) - U.S. Treasury Secretary
Timothy Geithner said on Tuesday that Europe will not let its
monetary union fail, but must move more aggressively to erect
the financial capacity to safeguard it.
"They're not going to let the euro break up. They're not
going to let European monetary union fall apart," Geithner said
in an interview with "CNN's Erin Burnett OutFront" show.
"They're going to stand behind their financial system.
They're going to take the steps to move closer to fiscal union,
with the broader disciplines on budget policy you need to make
monetary union work," Geithner added.
He said European policymakers are now talking about a more
comprehensive, stronger financial firewall to support their
"But they've got to more quickly move, with more force," he
Asked whether the U.S. government should bail out a bank
the size of Morgan Stanley if one were to be crippled by
the European crisis, Geithner said, "Nobody in my position
could answer a question like that."
He added, however, that the U.S. financial system was in a
much stronger position than six months ago, 12 months ago and
18 months ago to weather pressures from Europe and slowing
growth around the world.
(Reporting by David Lawder; Editing by Gary Hill)
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