all of the issues. [speaking italian] >> and the opinions that he expresses are the correct positions looking into the immediate future. [speaking italian] >> and these are absolutely based on common sense. .

do you have met this to people who are protesting in the streets? all of us have been watching the news from iran. i want to start off by being very clear that with the violence we have seen on television -- i think that the

gimmick -- democratic process, freedom of speech, the ability of people with -- these are universal values that need to be respected. whenever the american people see certain things, they are troubled rightfully. my understanding is that the iranian government says they will look into the irregularities that have taken place. we were not on the ground. we did not have observers there were international observers on hand. i cannot state definitively what happened with respect to the election. what i can say is that there

appears to be a sense on the part of the people who were so engaged and so committed -- to democracy will now feel betrayed. i think it is important that moving forward, what ever investigations take place is done in a way that does not result in bloodshed and does not result in people being stifled in expressing their views. with respect to the united states and our interactions with iran, i have always believed that as odious as i consider some of his statements, as deep as the differences that exist between the united states and iran on a range of core issues, that the use of tough diplomacy

about iran and the nature of the differences between our countries is critical when pursuing a course set of our national security interests, specifically making sure that we are not seeing a nuclear arms race in the middle east trip by iran obtaining nuclear weapons. making sure they are not encouraging terrorist activities. those are court interests not just to the united states but to a peaceful world in general. we will continue to pursue a tough, direct dialogue between these countries and we will see where it takes us. even as we do so, it would be well for me to be silent -- wrong for me to be silent about

what we have seen on the television or the last few days. some people have put so much hope and energy and optimism into the political process. i would say to them that the world is watching and is inspired by their peers as a patient, regardless of what the ultimate outcome of the election was. they should know that the world is watching, and particularly to the use of iran, of wanting to know that we in the united states do not want to make any decisions for the iranians, but we do believe the iranian people and their voices should be heard and respected. [speaking italian]

[speaking italian] [speaking italian] [speaking italian]

[speaking italian] [speaking italian] [speaking italian]

[speaking italian] >> what do you expect from the relationship between the united states and your country. do you hope to build the same type of relationship with this

other person as well? >> [speaking italian] >> i took an oath of gratitude towards the united states. it gave me freedom and gave my country dignity after wwii.

i am here to cooperate with the president' obama as i did with president clinton and president bush. i hope we can build a friendly relationship. i will be more than happy to do so with president obama. i think we have a good start. >> absolutely. we have had a very good start. what i expect from the prime minister is an honest, frank sharing of views and their recognition that the united states and italy share common values and interests. our economies have very strong commercial ties. if we are acting on those mutual interests, then we will continue

to see strong corroboration. as i said before, his assistants on our efforts to close guantanamo bay is very important. bermuda has done as a great service on that front as well. we are grateful to them. when it comes to afghanistan and pakistan, we are part of the same coalition that wants to make sure the afghan government is able and strong to sustain development for the afghan people and make sure they are not serving extremists. when it comes to the world economy, all of us have an interest in improving financial regulations that will prevent the kinds of crises we saw happening most recently. across the board, we have a host of common interests, in addition to the others.

our people like each other. we recognize we have shared interests. i think that will make the path for continued cooperation that much more easier. >> [speaking italian] f [speaking italian]

>> my answers and some very elegant. [laughter] >> prime minister netanyahu announced some conditions yesterday. what do you think about them? [speaking italian]

-- >> [speaking italian] >> first of all, i think it is important not to immediately assess the situation based on commentary the day after a speech. i think anytime and israeli prime minister makes a statement, the immediate action tends to be negative on one side and -- . overall i think there was positive movement in his speech. he is acknowledged the need for two states. there were a lot of conditions.

working through the conditions on the issue aside for security as well less territorial integrity -- that is exactly what negotiations are supposed to be about. we are seeing the possibility that we can restart serious talks. i have been very clear from the perspective of the united states that israel's security is non-negotiable. we will stand behind that stance. i have made it clear that both sides are going to have to move in some politically different -- difficult ways to achieve long-

term interests of the israelis and palestinians and the international community. on the israeli side, that means some settlements. there is the tendency to try to determine what this means. the parties on the ground understand. if you have a continuation of settlements that in past agreements have been categorized as alico, that is going to be an impediment -- kady -- categorized as the legaillegal,s going to be an impediment to progress. israel has a right to exist. past agreements must be abided to.

they must end violence against israel. those are necessary pallors -- pillars of any serious agreement that is to be reached. those have to be supported by the arab states, because israel's security concerns extend beyond simply the palestinian territories. the extent to concerns they have in a whole host of neighbors where there is perceived and real hostility toward israel's security. i am glad that the prime minister netanyahu made the speech. united states will continue to be as honest as possible to all sides in this dispute.

it is in everybody's interest to move in a new direction. i think it can be accomplished. it will require a lot of work and a partnership with key countries like italy to help parties come together. >> [speaking italian]

[inaudible] -- [unintelligible] >> you discussed during the meeting the economic crisis. the measures you are discussing right now, will this be discussed at the next g-8 in g-

20 meeting? >> our respective prime ministers have been meeting diligently. they have put forward a framework that will be discussed and hopefully ratified at the g-8 meeting. that will provide a broad consensus. the united states is putting forth a very specific regulatory reform that will make sure that we do not find ourselves in this position again. it improves oversight, ensures that banks are not taking risks with highly leveraged money that can result in systemic collapse , and that consumers and investors are protected more effectively.

we have a lot of work to do. it is going to be a big accompli -- complex piece of legislation. the banking system in italy has not been under the same kind of pressures as the banking system in the united states and some of the other european countries. i think the general principle that we will have is improved oversight, better practices, and some coordination in information sharing between countries on certain topics said that we do not have global capital avoiding more stringent rules by going to countries with weaker rules. i think that is going to be something that all g-8 members will act very much appreciate. >> [speaking italian]

[speaking italian] [speaking italian] >> [speaking italian]

>> our minister of finance has been working on all of these issues. they are wanting more transparency and regulation along with accounting rules. president obama has also mentioned the need to prevent certain situations from happening again. we want to have the rules and regulations that can prevent situations like the ones that have recently occurred. >> thank you.

[captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2009] >> in a few moments, treasury secretary tim cutler talks about the economy -- timothy geithner artalks about the economy. "washington journal" is live at 7:00 a.m. eastern. the u.s. house will be talking about the supplemental spending bill that includes about $80 million for military operations in iraq and afghanistan. that is at 12 noon. >> a couple of live events to tell you about on our companion network c-span3. the house of financial services

subcommittee holds a hearing on the insurance industry oversight. later, the senate commerce committee considers nominations for the federal communications commission. that is set at 2:30 p.m. eastern. next, the treasury secretary will speak on the economy and the government's effort to eight the financial markets. he was interviewed by an editor at time magazine. this is half an hour.

>> our guest this morning has been described by president obama as a treasury secretary who faces the most daunting tasks at this time. the president is right. in just under five months, the treasury secretary has led their unprecedented effort to rebuild the the financial system to restore trust. that process as we all know is in the middle of going on right now. he is taking on our economic crisis with energy and intelligence, so i put my money on him. we all have put our money on at the treasury secretary. [laughter] leading this morning's

discussion is one of our most thoughtful journalists. he is the 16th managing editor at time magazine. he is committed to journalism excellence. he is leading our 21st century reinvention of the time brand. in conceiving this interview, we were motivated by the fact that it is good to watch cnn on television, but there is nothing like a face-to-face discussion to get you the ideas but also the thinking behind the ideas. please join me in welcoming the 75th treasury secretary of the united states, the hon. timothy geithner. [applause]