Brown addresses UN as US bailout package stalls

As Mortgage Strategy went to press Prime Minister Gordon Brown issued a call to the United Nations for a new world order to tackle the credit crunch.

Brown says: “The age of irresponsibility must end. We must become a new global order founded on transparency.”

This came as US President George W Bush continued to plead with Congress to give the go-ahead to the $700bn (£380.7bn) mortgage rescue scheme proposed by US Treasury secretary Henry Paulson.

The FTSE 100 closed 2% lower after news of the delay. This was despite news that the Bank of England was injecting £40bn into the market.

The US plan proposes that the Federal government buy toxic mortgage assets to reopen the financial markets.

The BBC reports that negotiations ended in a shouting match as a group of Republican Congress members blocked the plan.

But Bush says: “We are going to get a package passed.”