The chancellor Alistair Darling says the events of the last couple of months have proven that the UK financial sector now needs tougher regulation.
Speaking at the Labour Party Conference in Manchester today, Darling says: “10 years ago we had to change the regulatory system when it didn’t work and we need to toughen it up again.”
Darling says the events of the past few months have shown that the UK needs a tougher regulatory system.
He says: “We will be looking at credit rating agencies and the need for better supervision.”
He also says there needs to be stricter rules for banks who have over-exposed themselves in the past.
Prime Minister Gordon Brown hinted that global regulation could be the next step forward to tackle the global downturn.
He says: “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 globalisation.”
Speaking about the Northern Rock fiasco, Brown says: “We had a choice, we could have done what other countries did and not acted. We had a choice again last week and we made the right choice.”
Brown adds that the merger of HBOS and Lloyds TSB put the interests of mortgage holders and savers before the interests of hedge funds.
He also hit out at the Conservative Party for actually wanting to deregulate the financial services market over a year ago.