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| Version 1 | Version 2 |
|---|---|
| Brown 'appalled' by bank bonuses | Brown 'appalled' by bank bonuses |
| (20 minutes later) | |
| Prime Minister Gordon Brown says he is "appalled" that some financial firms are continuing - or even extending - their bonus culture. | Prime Minister Gordon Brown says he is "appalled" that some financial firms are continuing - or even extending - their bonus culture. |
| In a BBC interview to mark a year since the collapse of Lehman Brothers, he said global action was needed to sort out "unfinished business" at banks. | In a BBC interview to mark a year since the collapse of Lehman Brothers, he said global action was needed to sort out "unfinished business" at banks. |
| Cleaning up the sector, including global regulation was needed, he added. | Cleaning up the sector, including global regulation was needed, he added. |
| President Barack Obama has also warned Wall Street bankers that they cannot go back to their old ways. | President Barack Obama has also warned Wall Street bankers that they cannot go back to their old ways. |
| 'Counterproductive' | 'Counterproductive' |
| Mr Brown said he was determined that world leaders meeting in Pittsburgh next week would "complete the unfinished business" of cleaning up banks - including establishing rules on bonuses. | Mr Brown said he was determined that world leaders meeting in Pittsburgh next week would "complete the unfinished business" of cleaning up banks - including establishing rules on bonuses. |
| BBC AFTERSHOCK SEASON The BBC reports on the first anniversary of the credit crunch across radio, TV, and online. See and hear the sights and sounds of the day of the crash in our audio slideshowOur crisis timeline shows the key events as the global recession unfoldedAnd follow the money: Track the $11tn of bailout spending and see what it means for the taxpayers who funded it Listen to WS radio on the crisis Full coverage of Aftershock series | BBC AFTERSHOCK SEASON The BBC reports on the first anniversary of the credit crunch across radio, TV, and online. See and hear the sights and sounds of the day of the crash in our audio slideshowOur crisis timeline shows the key events as the global recession unfoldedAnd follow the money: Track the $11tn of bailout spending and see what it means for the taxpayers who funded it Listen to WS radio on the crisis Full coverage of Aftershock series |
| Leaders were examining how limits could be imposed on bonuses as a percentage of profits or in revenues. | Leaders were examining how limits could be imposed on bonuses as a percentage of profits or in revenues. |
| But in an interview with BBC business editor Robert Peston, he reiterated that global action was essential so that one country was not "isolated" by its stance on remuneration. | But in an interview with BBC business editor Robert Peston, he reiterated that global action was essential so that one country was not "isolated" by its stance on remuneration. |
| "I'm appalled that some institutions are already wanting to return to the old ways; that some of our financial institutions are taking action which, in my view, is not only wrong but counterproductive in continuing, indeed extending the bonus culture of the past," Mr Brown said. | "I'm appalled that some institutions are already wanting to return to the old ways; that some of our financial institutions are taking action which, in my view, is not only wrong but counterproductive in continuing, indeed extending the bonus culture of the past," Mr Brown said. |
| "Some of our financial institutions are taking action which, in my view, is not only wrong but counterproductive in continuing, indeed extending the bonus culture of the past. | "Some of our financial institutions are taking action which, in my view, is not only wrong but counterproductive in continuing, indeed extending the bonus culture of the past. |
| "Now I will want an agreement - because we're talking about banks in other countries as well as banks in Europe - at the G20." | "Now I will want an agreement - because we're talking about banks in other countries as well as banks in Europe - at the G20." |
| Light touch | Light touch |
| The collapse of US investment bank Lehman Brothers, soon after troubled rival Bear Stearns was sold with Federal Reserve intervention, marked the start of a near-total collapse of the financial system that required unprecedented global intervention to keep it solvent. | The collapse of US investment bank Lehman Brothers, soon after troubled rival Bear Stearns was sold with Federal Reserve intervention, marked the start of a near-total collapse of the financial system that required unprecedented global intervention to keep it solvent. |
| Mr Brown argued that the UK was the first to recognise the need for stronger regulation of the financial services sector in the aftermath of the Lehman's collapse. | Mr Brown argued that the UK was the first to recognise the need for stronger regulation of the financial services sector in the aftermath of the Lehman's collapse. |
| The PM will wait for Germany, France and the US to cut their deficits before taking further steps to reduce the British national debt Robert PestonBBC business editor Read Robert's thoughts in full | |
| But this followed years of him pushing for light-touch regulation and non-intervention while as chancellor and later prime minister. | But this followed years of him pushing for light-touch regulation and non-intervention while as chancellor and later prime minister. |
| "It's true the mood of opinion in Britain was that we needed less [regulation] and not more. Now we've found we need more," he said. | "It's true the mood of opinion in Britain was that we needed less [regulation] and not more. Now we've found we need more," he said. |
| "We should all have been supervising more. The general public have got to feel that when they go to a bank that bank can be trusted. They've got to know that when they put money in that financial institution, that the money is safe and secure. And they've got to know that the bankers or financiers they are dealing with are taking risk, but not reckless risk. | "We should all have been supervising more. The general public have got to feel that when they go to a bank that bank can be trusted. They've got to know that when they put money in that financial institution, that the money is safe and secure. And they've got to know that the bankers or financiers they are dealing with are taking risk, but not reckless risk. |
| "That's what we're putting into the rules and regulations that will govern the banking system for the future." | "That's what we're putting into the rules and regulations that will govern the banking system for the future." |
| Mr Brown's comments came as a BBC World Service poll showed that 67% of people in 20 countries wanted more regulation and running of national economies. | Mr Brown's comments came as a BBC World Service poll showed that 67% of people in 20 countries wanted more regulation and running of national economies. |
| Overall, the survey suggested that people in developed countries were less satisfied than those in developing countries. | Overall, the survey suggested that people in developed countries were less satisfied than those in developing countries. |
| Responsible banking | Responsible banking |
| Mr Brown refused to blame Britons for the level of rising personal debt during his time as chancellor and prime minister, saying the vast majority of debt had been the result of the "legitimate aim" of people trying to buy a home. | Mr Brown refused to blame Britons for the level of rising personal debt during his time as chancellor and prime minister, saying the vast majority of debt had been the result of the "legitimate aim" of people trying to buy a home. |
| However banks needed to "be more responsible about how they approach people" when it comes to offering credit," he added. | However banks needed to "be more responsible about how they approach people" when it comes to offering credit," he added. |
| Stabilising the banking sector had seen an increase in personal savings, he said, adding: "Consumers themselves will want to be more prudent in the way they deal with their own finances." | Stabilising the banking sector had seen an increase in personal savings, he said, adding: "Consumers themselves will want to be more prudent in the way they deal with their own finances." |