Brown plans crackdown on world financial markets

LONDON, Sept. 22 (Xinhua) -- British Prime Minister Gordon Brown Sunday launched a drive for tighter international controls of the global money markets and crackdown on the culture of irresponsible City bonuses.

However, the prime minister also paved the way for higher levels of public borrowing, in breach of the Treasury's own rules, following the world markets turmoil last week.

The package of measures was unveiled in what the Guardian newspaper described on Monody as "a hope to revive his premiership".

In his speech to the Labour party conference on Monday, the chancellor, Alistair Darling, will promise to do "whatever it takes" to rectify the mistakes made by the markets, the Guardian said.

The report added that Darling will also make clear, "just as one government alone cannot combat global terrorism, just as one government alone cannot combat climate change, so one government alone cannot deal with the consequences of globalization."

Brown's plan includes a stronger international regulatory system, based around an early-warning system run by the International Monetary Fund (IMF), a tighter control of "irresponsible" City bonuses and a regime of stronger intervention in the City, under the new chairman of the Financial Services Authority (FSA), Lord Adair Turner.

But the new FSA boss warned Sunday that "What has gone wrong with the world's financial system is not just a few minor things and it can't be tidied up by a little more disclosure or transparency."

Brown said, "it is right to borrow at the moment. Those people who say we should be cutting public expenditure and cutting investment at the moment are wrong. In these unique circumstances, it is right to borrow and raise public expenditure."

The prime minister's words are interpreted as a signal for Britain to borrow more against the financial crisis.

Brown and Darling will travel to Europe and the U.S. over the next few weeks, aiming to create an international consensus for a tougher global system of regulation.