S&P downgrade showed 'terrible' judgement: Geithner

Aug 08, 2011 |

Washington

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US Treasury Secretary Timothy Geithner slammed Standard and Poor's on Sunday as showing "terrible judgement" in downgrading the US credit rating for the first time ever.

"I think S&P has shown really terrible judgement and they've handled themselves poorly, and they have shown a stunning lack of knowledge about basic US fiscal budget math and I think they came to exactly the wrong conclusion," Geithner said in an interview with NBC News.

His comments came amid growing suspense over the impact on world financial markets of the downgrade of S&P's rating for US Treasuries from AAA to AA+.

Geithner not to resign

Earlier, his office said Geithner will not resign despite calls from some Republicans for him to leave his post after a recent US credit rating downgrade, his office said on Sunday.

"Secretary Geithner has let the president know that he plans to stay on in his position at Treasury. He looks forward to the important work ahead on the challenges facing our great country," Treasury Department spokeswoman Jenni Lecompte said in a statement.

On Saturday Republican Senator Rand Paul called on Geithner to step down for what Paul's office called a "gross mismanagement of federal economic policy and his role in the first-ever downgrade of United States debt."

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