Geithner praises new global capital standards

/ Source: The Associated Press

Treasury Secretary Timothy Geithner said Wednesday that U.S. banks are in a good position to meet new global capital standards because of the stress tests conducted in the United States last year.

In testimony to the House Financial Services Committee, Geithner praised the new global rules on capital adopted at a meeting earlier this month in Basel, Switzerland.

He said that stress tests conducted in the spring of 2009 in the U.S. forced banks to raise needed capital, the cushion that banks have to hold against losses.

Because of those tests, Geithner said U.S. banks have been left in a strong position internationally and will be able to meet the new requirements.