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| Version 1 | Version 2 |
|---|---|
| Brown urges new banks 'contract' | Brown urges new banks 'contract' |
| (10 minutes later) | |
| UK Prime Minister Gordon Brown has called for a new "social contract" with the world's banks to make them more responsible to society. | UK Prime Minister Gordon Brown has called for a new "social contract" with the world's banks to make them more responsible to society. |
| Mr Brown told a G20 meeting in Scotland it was not acceptable that banking success was reaped by the few but failure was "borne by all of us". | Mr Brown told a G20 meeting in Scotland it was not acceptable that banking success was reaped by the few but failure was "borne by all of us". |
| He called for a fund for future bank bailouts to be set up, possibly paid for by a tax on transactions. | He called for a fund for future bank bailouts to be set up, possibly paid for by a tax on transactions. |
| He also said it was "essential" there was progress on funding climate change. | He also said it was "essential" there was progress on funding climate change. |
| Taxpayers' burden | Taxpayers' burden |
| Mr Brown told the meeting of G20 finance ministers in St Andrews that there should be a "just distribution of risks and rewards". | Mr Brown told the meeting of G20 finance ministers in St Andrews that there should be a "just distribution of risks and rewards". |
| He said: "I believe we should discuss whether we need a better economic and social contract to reflect the global responsibilities of financial institutions to society." | He said: "I believe we should discuss whether we need a better economic and social contract to reflect the global responsibilities of financial institutions to society." |
| Alistair Darling urges his G20 colleagues to make progress on climate change | Alistair Darling urges his G20 colleagues to make progress on climate change |
| Mr Brown said the financial sector was so key that governments had no choice but to step in when it failed. | Mr Brown said the financial sector was so key that governments had no choice but to step in when it failed. |
| He added: "And it cannot be acceptable that the benefits of success in this sector are reaped by the few but the costs of its failure are borne by all of us." | He added: "And it cannot be acceptable that the benefits of success in this sector are reaped by the few but the costs of its failure are borne by all of us." |
| Mr Brown repeatedly stressed the need for "global" action on reforming the world's banking system. | Mr Brown repeatedly stressed the need for "global" action on reforming the world's banking system. |
| He insisted: "Britain will not move unless others move with us." | He insisted: "Britain will not move unless others move with us." |
| Mr Brown admitted there would be "enormous and difficult practical and technical issues" but a "better social contract" was needed with banking systems to make them more responsible. | Mr Brown admitted there would be "enormous and difficult practical and technical issues" but a "better social contract" was needed with banking systems to make them more responsible. |
| He said it could be funded in a number of ways, including a global levy on transactions. | He said it could be funded in a number of ways, including a global levy on transactions. |
| Other options, he said, were an insurance scheme, a global "resolution fund" or a contingent capital arrangement. | Other options, he said, were an insurance scheme, a global "resolution fund" or a contingent capital arrangement. |
| The UK has in the past been opposed to transaction levies, known as Tobin taxes, believing they could damage the interests of the City of London. | |
| The BBC's Andrew Walker in St Andrews says Mr Brown did not specifically endorse the Tobin tax, but mentioning it could give it some new momentum. | |
| The British Bankers' Association quickly cast doubt on the effectiveness of such financial transaction levies. | |
| Chief executive Angela Knight said: "[They] don't work as they require perfect or near-perfect global implementation." |