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G20: US Geithner: Against Global Transaction Tax Idea

ST. Andrews, Scotland -(Dow Jones)- U.S. Treasury Secretary Timothy Geithner is against an idea floated over the weekend by U.K. Prime Minister Gordon Brown that would impose a global tax on financial transactions.

"That's not something we're prepared to support," Geithner said, speaking after meetings of Group of 20 finance ministers and central bank governors in Scotland Saturday.

He added that it is an idea that has been around a long time and has received mixed results.

Geithner said he and Brown had a lengthy discussion on the matter. Brown pitched the idea to the world in a speech Saturday.

Despite conflicting views on how to do it, however, Geithner said global economic leaders agree that taxpayers shouldn't have to pay for any future losses the financial sector may experience.

"We agree that we have to build a system in which taxpayers are not exposed to the risk of losses in the future, where institutions and investors don't live with the expectation that governments are going to come in and save them from their mistakes in the future," he said.

Geithner continued to promote the U.S. way of ensuring taxpayers aren't on the hook for future losses suffered in the financial system. The U.S. is proposing firms pay a fee that would go into a fund to be used for future resolution costs, should the need arise.

-By Meena Thiruvengadam, Dow Jones Newswires; 202-862-9255; meena.thiruvengadam@dowjones.com

  (END) Dow Jones Newswires
  11-07-091404ET
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