This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/uk/7903985.stm
The article has changed 9 times. There is an RSS feed of changes available.
| Version 4 | Version 5 |
|---|---|
| Brown signals 100% mortgages curb | Brown signals 100% mortgages curb |
| (about 1 hour later) | |
| Gordon Brown has said he is considering curbs on 100% mortgages to encourage more responsibility in the market. | Gordon Brown has said he is considering curbs on 100% mortgages to encourage more responsibility in the market. |
| The prime minister said the Financial Services Authority would be considering controls which will force people to save for longer before buying homes. | The prime minister said the Financial Services Authority would be considering controls which will force people to save for longer before buying homes. |
| Writing in The Observer, he called for a new age of sobriety in UK banking, calling for the return of "prudent", old-fashioned high street banks. | Writing in The Observer, he called for a new age of sobriety in UK banking, calling for the return of "prudent", old-fashioned high street banks. |
| He also said banks should not dabble in complex international investments. | He also said banks should not dabble in complex international investments. |
| Critics have described the calls as "humbug" after Mr Brown's previous support of light-touch bank regulation. | Critics have described the calls as "humbug" after Mr Brown's previous support of light-touch bank regulation. |
| During his time as chancellor, the prime minister was openly critical of other European banking systems for their strict regulation and inflexibility. | During his time as chancellor, the prime minister was openly critical of other European banking systems for their strict regulation and inflexibility. |
| Britain, he said, was strong because of its light-touch regulatory environment, which encouraged investment and created jobs and wealth. | Britain, he said, was strong because of its light-touch regulatory environment, which encouraged investment and created jobs and wealth. |
| But BBC business correspondent Joe Lynam said the credit crunch and the ensuing financial crisis had changed Mr Brown's attitude to banking. | |
| In The Observer, the prime minister sketches out a future where bankers will be the "servants" rather than the masters of Britain's currently ailing economy. | In The Observer, the prime minister sketches out a future where bankers will be the "servants" rather than the masters of Britain's currently ailing economy. |
| We have got to get the balance right between serving homeowners better and encouraging responsibility in the market Gordon Brown | We have got to get the balance right between serving homeowners better and encouraging responsibility in the market Gordon Brown |
| He says the Financial Services Authority will be considering controls on mortgages of more than 100% of a home's value and so-called high multiple mortgages offering loans of up to six times an applicant's salary. | He says the Financial Services Authority will be considering controls on mortgages of more than 100% of a home's value and so-called high multiple mortgages offering loans of up to six times an applicant's salary. |
| More caution in the mortgage market, he says, would reduce chances of a future property crash. | More caution in the mortgage market, he says, would reduce chances of a future property crash. |
| Mr Brown argues "more responsible" banking will restore trust and unlock more business and mortgage lending for families and businesses. | Mr Brown argues "more responsible" banking will restore trust and unlock more business and mortgage lending for families and businesses. |
| He wants banks to make loans "on prudent and careful terms, not just to people with large deposits but to first-time buyers and those on middle and modest incomes who wish to buy their home but who have not been able to save a huge deposit." | He wants banks to make loans "on prudent and careful terms, not just to people with large deposits but to first-time buyers and those on middle and modest incomes who wish to buy their home but who have not been able to save a huge deposit." |
| 'Absolute madness' | 'Absolute madness' |
| He went on: "We have got to get the balance right between serving homeowners better and encouraging responsibility in the market." | He went on: "We have got to get the balance right between serving homeowners better and encouraging responsibility in the market." |
| In the article he rules out legislation to create a "rigid divide" between retail high street banks, which offer standard deposit accounts and loans, and investment banks trading globally in complex financial instruments. | In the article he rules out legislation to create a "rigid divide" between retail high street banks, which offer standard deposit accounts and loans, and investment banks trading globally in complex financial instruments. |
| Mr Brown believes pressure from consumers seeking somewhere safe to put their money will drive banks back to a model more common before the de-regulatory "big bang" in the City. | Mr Brown believes pressure from consumers seeking somewhere safe to put their money will drive banks back to a model more common before the de-regulatory "big bang" in the City. |
| But Alex Brummer, City editor of the Daily Mail, told the BBC it was "humbug" for the prime minister to now ask people to forget those years of deregulation when bankers could "do what they wished". | But Alex Brummer, City editor of the Daily Mail, told the BBC it was "humbug" for the prime minister to now ask people to forget those years of deregulation when bankers could "do what they wished". |
| New Banking Act comes into effect | New Banking Act comes into effect |
| "He did nothing to put the brakes on - quite the opposite. He claimed we were being very prudent but, of course, we weren't being very prudent and we have now had the consequences of that," he said. | "He did nothing to put the brakes on - quite the opposite. He claimed we were being very prudent but, of course, we weren't being very prudent and we have now had the consequences of that," he said. |
| Mr Brummer also argued it was "absolute madness" for Mr Brown to pretend Britain could "turn the clock back". | Mr Brummer also argued it was "absolute madness" for Mr Brown to pretend Britain could "turn the clock back". |
| "Banking has changed, the world has changed - finance moves much faster now and I think it is impossible now to go back to that era," he added. | "Banking has changed, the world has changed - finance moves much faster now and I think it is impossible now to go back to that era," he added. |
| Mr Brown's comments came a day after the UK's new Banking Act, which gives greater powers of intervention to the Bank of England, was introduced. | Mr Brown's comments came a day after the UK's new Banking Act, which gives greater powers of intervention to the Bank of England, was introduced. |
| The act enables the Bank to intervene more quickly to help troubled banks and protect investors. It will be able to give hidden support to stricken banks, with the aim of maintaining financial stability. | The act enables the Bank to intervene more quickly to help troubled banks and protect investors. It will be able to give hidden support to stricken banks, with the aim of maintaining financial stability. |
| However, critics of the act say it throws a cloak of secrecy around the banking world, which could be detrimental for consumers. | However, critics of the act say it throws a cloak of secrecy around the banking world, which could be detrimental for consumers. |