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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2011/02/uk-banking-strategy-deeply-costly.jpg"><img class="alignnone size-full" title="United States Secretary of the Treasury Timothy Geithner (left) and Chancellor George Osborne" src="http://londonglossy.com/wp-content/uploads/2011/02/min-uk-banking-strategy-deeply-costly.jpg" alt="United States Secretary of the Treasury Timothy Geithner (left) and Chancellor George Osborne"/></a></p>
<p>The UK ran a &#8220;conscious&#8221; strategy of trying to attract bankers to London that proved &#8220;deeply costly&#8221; ahead of the banking crisis, the US Treasury Secretary has said.</p>
<p>Timothy Geithner said the UK&#8217;s &#8220;light touch&#8221; approach to financial regulation was designed to pull in the banking sector from New York, Frankfurt and Paris.</p>
<p>He said he was &#8220;very impressed&#8221; with Chancellor George Osborne&#8217;s deficit reduction plan, saying that the UK had to make cuts far quicker than the US.</p>
<p>Mr Geithner made his comments during an interview with BBC Radio 4&#8217;s Today programme at a meeting of finance ministers and central bank governors of G20 nations in Paris at the weekend.</p>
<p>He said: &#8220;Remember your colleagues in the UK ran a strategy for a long time called light touch approach to financial regulation that was designed consciously to pull financial activity from New York and Frankfurt and Paris to London. That was a deeply costly strategy for financial regulation.&#8221;</p>
<p>He said: &#8220;We made a huge amount of mistakes in the United States and we have a lot of challenges ahead so we have to approach this stuff with a huge amount of humility, scarred by the damage of those mistakes.&#8221;</p>
<p>Mr Geithner added: &#8220;We are learning those lessons. We have got to make sure we act on the memory of the crisis while it is still acute.&#8221;</p>
<p>Mr Geithner said the US government faced a &#8220;substantial deficit&#8221; but had better demographic make-up and growth rates, which meant it could implement its plan over a longer time period, adding that the UK had started from a worse position than the US.</p>
<p>Praising the Chancellor&#8217;s deficit reduction plan, Mr Geithner said: &#8220;I am very impressed &#8211; just as one man&#8217;s view looking from a distance &#8211; at the basic strategy that he has adopted.</p>
<p>&#8220;What he did was a very remarkable thing. At a time when it was easier to make tough choices quickly, because they were not problems created by this Government, he locked his coalition and the Government into a set of reforms that were very good.&#8221;</p>
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