Gordon Brown has called on other governments to follow Britain's lead by supporting their struggling banks.
Gordon Brown has called on other governments to follow Britain's lead by supporting their struggling banks.
Writing in the Times, he said the crisis needed a "global solution" and wants world leaders to meet and plan a restructuring of financial markets.
Writing in the Times, he said the crisis needed a "global solution" and urged world leaders to meet and plan a restructuring of financial markets.
It comes as the UK chancellor, Alistair Darling, is in Washington to meet finance ministers from the G7 group of richest nations.
His call comes as the UK chancellor, Alistair Darling, is in Washington to meet finance ministers from the G7 group of richest nations.
The UK's FTSE 100 index fell 10% on opening, extending Thursday's losses.
The UK's FTSE 100 index fell 10% on opening, extending Thursday's losses.
The falls come despite Wednesday's historic bail-out package for ailing banks, totalling £500bn.
The falls come despite Wednesday's historic bail-out package for ailing banks, totalling £500bn.
'Global solution'
'Global solution'
Because this is a global problem, it requires a global solution Gordon Brown
Because this is a global problem, it requires a global solution Gordon Brown
Mr Brown said that the banking system was fundamental to "everything we do".
Mr Brown said that the banking system was fundamental to "everything we do".
He said: "Because this is a global problem, it requires a global solution.
He said: "Because this is a global problem, it requires a global solution.
"Indeed this now moves to a global stage with a range of international meetings starting this week with the G7 and the International Monetary Fund and, we propose, culminating in a leaders meeting in which we must lay down the principles and the new policies for restructuring our banking and financial system all around the globe."
"Indeed this now moves to a global stage with a range of international meetings starting this week with the G7 and the International Monetary Fund and, we propose, culminating in a leaders meeting in which we must lay down the principles and the new policies for restructuring our banking and financial system all around the globe."
Mr Brown said that it is "only through the boldest of co-ordinated actions across the globe" that families and businesses could be "adequately supported".
Mr Brown said that it is "only through the boldest of co-ordinated actions across the globe" that families and businesses could be "adequately supported".
However, other European countries are thought to be sceptical about offering the same level of support to banks as in the UK with France understood not to want to guarantee billions of new bank debt.
However, other European countries are thought to be sceptical about offering the same level of support to banks as in the UK with France understood not to want to guarantee billions of new bank debt.
In an interview with BBC political editor Nick Robinson on Thursday, Mr Brown said: "We are leading the world in the action we have taken, as everybody internationally has recognised."
In an interview with BBC political editor Nick Robinson on Thursday, Mr Brown said: "We are leading the world in the action we have taken, as everybody internationally has recognised."
Recession warning
Recession warning
Mr Brown said the UK bail-out plan is "designed not only to strengthen the banking system but to get the economy moving again".
Mr Brown said the UK bail-out plan was "designed not only to strengthen the banking system but to get the economy moving again".
Pressed on whether the British economy was heading into a recession, Mr Brown said: "I can not predict what is going to happen because there are so many international factors."
Pressed on whether the British economy was heading into a recession, Mr Brown said: "I can not predict what is going to happen because there are so many international factors."
Earlier on Thursday, Work and Pensions minister Tony McNulty became the first member of the government to publicly say Britain was facing recession.
Earlier on Thursday, Work and Pensions minister Tony McNulty became the first member of the government to publicly say Britain was facing recession.
"We're slowly getting to a stage where the slowdown may well turn technically into recession and then we'll be talking about the nature and depth of the recession," he told BBC2's Daily Politics.
"We're slowly getting to a stage where the slowdown may well turn technically into recession and then we'll be talking about the nature and depth of the recession," he told BBC2's Daily Politics.
Lib Dem leader Nick Clegg said the bail-out had "probably bought us a recession rather than a depression" but he called for another round of co-ordinated worldwide interest cuts and action by the IMF to help Iceland, which has seen its banks collapse.
Lib Dem leader Nick Clegg said the bail-out had "probably bought us a recession rather than a depression" but he called for another round of co-ordinated worldwide interest cuts and action by the IMF to help Iceland, which has seen its banks collapse.
A team of Treasury officials is visiting Iceland on Friday in an effort to defuse a diplomatic row between Britain and Iceland over protection for investors and clarify how individual savers and public bodies such as local authorities can retrieve their money.
A team of Treasury officials is visiting Iceland on Friday in an effort to defuse a diplomatic row between Britain and Iceland over protection for investors and clarify how individual savers and public bodies such as local authorities can retrieve their money.
Share losses
Share losses
Mr Darling's Washington meeting comes after the Dow Jones in New York slumped to its lowest level in five years, closing below the 9000 points barrier.
Mr Darling's Washington meeting comes after the Dow Jones in New York slumped to its lowest level in five years, closing below the 9000 points barrier.
In London, the FTSE 100 index of leading shares fell 10% in the first few minutes of trading, extending Thursday's losses.
In London, the FTSE 100 index of leading shares fell 10% in the first few minutes of trading, extending Thursday's losses.
The index has lost nearly 19 percent so far this week, on track for its worst weekly losses since October 1987
The index has lost nearly 19% so far this week, on track for its worst weekly losses since October 1987
In a further development, the value of city bonuses in the UK is expected to fall this year by 58%, according to the Centre for Economics and Business Research.
In a further development, the value of City bonuses in the UK is expected to fall this year by 58%, according to the Centre for Economics and Business Research.
But it still forecasts that bonuses of about £3.5bn will be paid out.
But it still forecasts that bonuses of about £3.5bn will be paid out.
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