Bush says financial crisis needs coordinated response

By Jeremy Pelofsky

WASHINGTON (Reuters) - U.S. President George W. Bush on Saturday said the financial crisis will require a global, coordinated response and the top industrial nations will work together to solve it quickly, but cautioned it would not be fixed overnight.

"All of us recognise that this is a serious global crisis and therefore requires a serious global response," he told reporters after an unusual Saturday gathering with the Group of Seven economic chiefs and leaders of the International Monetary Fund and World Bank.

"I'm confident that the world's major economies can overcome the challenges we face," Bush said. He argued the United States had a leadership role to play to resolve the crisis.

Credit markets seized up as the U.S. housing market crumbled over the last year, which sent global stocks plummeting and forced the Bush administration to take extraordinary steps to shore up the U.S. financial system.

Bush has insisted the $700 billion bailout package approved a week ago by the U.S. Congress is adequate to address the problems but it will take time to implement.

"These extraordinary efforts are being implemented as quickly and as effectively as possible," he said, flanked by the G7 finance ministers as well as key members of his own Cabinet, including Treasury Secretary Henry Paulson.

"The benefits will not be realized overnight, but as these actions take effect, they will help restore stability to our markets and confidence to our financial institutions," Bush said.

To address the credit crunch, global central banks have cut lending costs and Washington intervened to offer additional liquidity to lenders and protect more bank deposits.