U.K. Prime Minister Gordon Brown said he and German Chancellor Angela Merkel agreed to tighten global regulation of banking and financial services industries.
“A bad bank in one country can undermine good banks in any country,” Brown said at a press conference in London today after meeting Merkel. “Markets should be free but they should not be values free. Markets need more and effective supervision. We must act to reshape our financial supervision. Regulation in one country must cooperate with regulation in another country.”
“The old tax havens and regulatory havens have no place. We should set down international principles for the workings of the economy in the future” and rewards for bankers “should be based on long-term success.”