Gordon Brown speech at Press Association

Gordon Brown speech at Press Association; Question: [Indistinct] and what makes you so confident that the others will follow, given the fact that the FSA has failed dramatically to pick up the problems of Northern Rock, the problems at the Royal Bank of Scotland, and your [indistinct] record is actually not good at all. So why should the others follow you? And as you know the German government has already poured cold water on your insurance scheme that you have. Prime Minister: First of all the colleges of supervisors will be global, and the reason is that the international institutions themselves recognise that this is a better way of moving forward and I know that there is American support for this as well as European support. The second thing is that the problems that regulators all over the world have been dealing with is that they were monitoring solvency, but the issues became issues also of liquidity, and regulators will have to make sure that in future they are not just monitoring the solvency of a particular institution, but its liquidity, its ability to get funds. And I think that the other thing that people are recognising is that a range of institutions were outside the traditional banking system, but the methods by which they were supervised were different. I happen to think that the Financial Services Authority, which brought the different self-regulated bodies together in 1997 and 1998, was a major step forward. The fact that other countries have followed that model and are looking at that model for financial services regulation is actually a sign that that is the right model for the future. But let’s be honest, regulators in every part of Europe, and in every part of the world, are recognising that they did not know enough about particularly the shadow banking activities of large institutions that were formally based in their countries. I believe that it is only by global cooperation that we can find an answer to these problems....
Gordon Brown speech at Press Association; Question: [Indistinct] and what makes you so confident that the others will follow, given the fact that the FSA has failed dramatically to pick up the problems of Northern Rock, the problems at the Royal Bank of Scotland, and your [indistinct] record is actually not good at all. So why should the others follow you? And as you know the German government has already poured cold water on your insurance scheme that you have. Prime Minister: First of all the colleges of supervisors will be global, and the reason is that the international institutions themselves recognise that this is a better way of moving forward and I know that there is American support for this as well as European support. The second thing is that the problems that regulators all over the world have been dealing with is that they were monitoring solvency, but the issues became issues also of liquidity, and regulators will have to make sure that in future they are not just monitoring the solvency of a particular institution, but its liquidity, its ability to get funds. And I think that the other thing that people are recognising is that a range of institutions were outside the traditional banking system, but the methods by which they were supervised were different. I happen to think that the Financial Services Authority, which brought the different self-regulated bodies together in 1997 and 1998, was a major step forward. The fact that other countries have followed that model and are looking at that model for financial services regulation is actually a sign that that is the right model for the future. But let’s be honest, regulators in every part of Europe, and in every part of the world, are recognising that they did not know enough about particularly the shadow banking activities of large institutions that were formally based in their countries. I believe that it is only by global cooperation that we can find an answer to these problems....
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Editorial #:
697011812
Collection:
ITN
Date created:
January 26, 2009
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Rights-ready
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Not released. More information
Clip length:
00:03:38:22
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576 25i
Source:
ITN
Object name:
r26010906_55428.mov