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UK and US 'share blame' over financial crisis

09/10/2008

Gordon Brown has accepted that British banks must take their share of the blame for the global financial crisis.

The prime minister has previously consistently emphasised the role of the United States in the turmoil stalking world markets and economies.

But in an interview on Thursday he said irresponsible behaviour in the City had to be punished.

"Most of this has come out of America and then affected the British banking system, but there have been abuses in our system as well and these have got to be dealt with too," Mr Brown told GMTV.

"Where these guys have taken irresponsible risks; that is completely unacceptable. The problem is they didn't know what they were buying from America."

The prime minister expressed anger at some of the risks that were taken; in a sign Downing Street is trying to reflect the national mood of resentment against the City.

"I'm angry too. I am angry at irresponsible behaviour," Mr Brown said.

"Our economy is built around people who work hard, who show effort, who take responsible decisions, and whether there is excessive and irresponsible risk-taking; that has got to be punished."

Mr Brown responded to questions about bonuses in the same way he did during prime minister's question time yesterday. There, calls for a pledge on bonuses were met with assurances that banks' exact obligations would be hammered out during individual negotiations.

He did, however, adopt a stronger tone about bonus culture.

"The days of big bonuses are over. One of the conditions of us helping the banks is that we will have to reach an agreement about their executive remuneration," he said.