March 7, 2009

Brown calls for morality in banking

British Prime Minister Gordon Brown says he wants international standards to limit the pay of bankers and an end to a culture of short-term bonuses.

Speaking Friday at the Scottish Labor Party conference in Dundee, Brown said free markets need morality and claimed his plan for a global new deal, which includes new rules on banking regulation, is finding a warm reception among world leaders, The Daily Telegraph reported.

Only government can make the markets work in the public interest and not their own interest, Brown said. We believe that markets need not just money-men but morals, that being fair matters far more than being laissez faire and that banks must always serve the public, not just serve themselves.

With his Labor Party trailing opposition Conservatives badly in public opinion polls, Brown tying his political fortunes on a summit of the Group of 20 advanced economies in London next month, where he is set to propose his global new deal reform package, the Telegraph said.

A foundation of the package is an worldwide effort toward shared international rules for banks, observers said.