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Brown pledges no safe havens for banks to hide
Joe Murphy, Political Editor03.03.09
Rogue countries which shelter banks from proper regulation face an unprecedented international crackdown, Gordon Brown revealed today.
Speaking exclusively to the Evening Standard as he arrived in Washington for his first White House summit with Barack Obama, the Prime Minister disclosed that he is pressing for moves to isolate and close "regulatory havens".
It could mean "naming and shaming" havens to make them too toxic for banks or companies to locate inside, despite the lure of lower costs and less red tape.
In the same interview, the Prime Minister hailed the Anglo-US relationship as "a partnership with a purpose" and praised President Obama as "a leader of vision" with whom he is already on good terms.
Mr Brown warned America against retreating into protectionist policies, saying worldwide economic recovery would require "commerce [to] flow across the world".
His two-day trip to the US capital was to start with around 45 minutes of private one-to-one talks with the President, expected to cover the economy, the military commitment to Afghanistan and the environment.
The pair were then having a lunch with advisers present and Mr Brown was going on to talks with vice-president Joe Biden. The White House downgraded a scheduled press conference, however, deciding the two leaders would make informal comments in the Oval Office instead.
Mr Brown said he was already getting on well with Mr Obama, who is due to come to London on 2 April for the G20 summit of major nations, hosted by Mr Brown. "I've enjoyed all my conversations with President Obama," he said.
"He's a leader of vision that the world recognises to be taking on one of the most challenging of times. We will be talking about how we can work together to achieve an economic recovery." Tomorrow, Mr Brown will address a joint session of Congress with a speech making the case for free trade and bold international action to stimulate the world economy.
The Premier believes that the economic crisis has created a unique window of opportunity for major economies to unite against a minority who leech off the world by offering tax and regulatory havens. "I think people will want to be sure that we don't have havens that can operate at the expense of the rest of the world and want to be sure that supervision of our banking institutions cannot be undermined by regulatory havens outside of our shores," he said.
The plan will be on the agenda at the G20 summit. It represents a major stepping up of the Prime Minister's pledge to "clean up the banks" and could extend the reach of regulators to the offshore "shadow banking" world of hedge funds and insurance-based instruments.
Mr Brown found that some Triple A-rated assets exposed as duds in the credit crunch were managed inside havens where regulators were denied access to information.
Tax havens are countries that offer strict banking secrecy, including Switzerland, Austria and Luxembourg, even from the tax authorities and police. Regulatory havens are nations that offer companies the opportunity to avoid global standards for reporting, governance, auditing, and openness.
Mr Brown will also press the President to sign up to action plans to tackle the global economic downturn, climate change and security issues.
The Prime Minister warned Americans not to pressure the President to adopt protectionist policies against imports and foreign jobs when, he said, free trade was vital to the future growth of the world economy.
"I think we have common cause in wanting to see commerce flow across the world and not just to get us out of the downturn but to build prosperity for the years to come," he said.
Mr Brown was in combative mood, believing that he has no reason to take the blame for the economic crisis which, he insists, started in American banks and contaminated Britain and the rest of the world's financial system.
After gloomy opinion polls, his aides are desperate for the US trip to boost his standing at home.
Reader views (14)
Who would want to listen to anything he has to say.
- David, Fleet UK
With Gordon in such a bullish mood will he life the lid on his MP's expenses?
- Albert Hall, hove england
There was also a pledge made in black and white on a Labour manifesto to have a vote on the EU Constitution, funnily enough that didn't happen.
Talk is cheat in Broon's Broken Britain, the cost in real terms to the tax payer is billions and a national debt greater than after the WWII.
- Frank, Home Counties, England.
Mr Brown just opens his mouth and what a load or rubbish comes out. He speaks about problems we now face and does nothing about it.
- Stan White, leeds
Brown - Go away
You made life miserable for millions of people.
You are not wanted.
- Matthew, luxembourg
Nice to know that some of the Bankers insisting on contractual bonuses from Banks bailed out by the honest taxpayer have their bonuses paid in the Isle of Man to avoid UK Tax. Why should they get any money from the Taxpayer?
- T Turk, Isleworth England
Brown has now become invisible, a non person.
- Dee Jay, Fleet Hampshire
there should also be no safe havens for rogue politicians
who leech the taxpayer in a dizzying variety of perks and scams. they too should not be able to hide behind the dubious interpretation of the letter of the law, whilst blatantly ignoring the spirit of it.
- M.O'Brien, london.uk
... only man who can make paper worthless just by putting ink on it! Take a look at sterling the past 6 months. nice one crash.
- Dave, herts
Well if is Crash Gordon I would not be exactly scared! Haha. I mean, has he actually EVER achieved anything? I mean he is not even ELECTED... and it shows. The man has real psychological problems needs his head checked. It is very big but also empty.
- Georgie, Islington, London
"You've made such a fine job of running the country."
Yes, I agree wholeheartedly. Well done Gordon Brown.
- Keith Price, Luton, England
Yes of course we believe you Brown. You've made such a fine job of running the country. Into the ground sadly.
- Lezli Taubler, London / UK
Well done Gordon. Tories will always try to findd fault in your responsible actions but that is what you expect after 12 years of Labour Govt. I look forward to another 12. Keep it up.
- Keith Price, Luton, England
"I've enjoyed all my conversations with President Obama," I'm embarrassed that he is the Prime Minister. He has little standing, zero honesty and can never admit when he is wrong. We need a real leader. If you have no concept of right or wrong, how can you be trusted to make decisions that affect an entire nation. I'm sure Obama is just humouring Brown as he knows he won't last long as PM, thank goodness.
- Dan, Manchester
