October 8, 2008 / 9:11 AM / 9 years ago

HIGHLIGHTS-Brown, Darling outline UK bank rescue

LONDON, Oct 8 (Reuters) - British Prime Minister Gordon Brown and Finance Minister Alistair Darling held a joint news conference to outline a 50 billion pound ($87.84 billion) rescue package for UK banks on Wednesday.

Following are their key comments:

DARLING ON FRIDAY'S G7 FINANCE MINISTERS' MEETING

"On Friday, I think two things are necessary. We need to make sure the supervisory system that we have is far more attuned to the global problems that now exist.

"The second thing is, ... if you look around the world it is patently obviously that this isn't just a thing for national governments, it's a problem for Europe, it's a problem for every major country around the world."

"The G7 has got an opportunity to show a lead here."

"I think acting together to stabilise the banking system and develop measures to look at the wider economy are absolutely essential and that's what we'll be looking at on Friday and Saturday."

BROWN

"We have led the world today with a proposal to restructure our banking system. We are taking the steps that I believe that other countries will take in the future."

"This is the set of measures that we taking to deal with the problems as we see it. It is dealing with the short, medium and long-term problems that we face."

"We will do whatever it takes to stabilise the banking system."

"We are resuming medium-term lending, providing it at a commercial rate that gets a return on our money.

"This problem started in America with irresponsible actions and lending by some institutions. In some cases nobody actually knew what irresponsible lending was done."

"There is a failure of responsibility by many in the banking system. The FSA have said that they could have done some things better. It has become a whole problem in the banking system, we have got to deal with it.

"We're insisting in the individual negotiations with the banks that we have to be satisfied with executive remuneration."

DARLING

"The key problem we are trying to address is that we are in a situation now that too many banks will not lend to each other or just overnight.

"We needed to unjam this problem and that's why we have introduced this guarantee to underwrite these loans and that's why a fee is charged."

"We are not seeking to take public control of these institutions, we are absolutely not doing that. This is a completely different proposition.

"It's open to banks, if they choose to do that, to raise that money through conventional market operations. What we are doing is recognising those markets may be difficult for some.

"The banks are going to be run as a commercial operation albeit with government help. There is a fundamental difference."

BROWN

"We're putting this morning to all our European colleagues a proposal for (a) European funding scheme.

"If you take a big multinational firm, (it is) better to have one college of supervisors so it's clear what (the firm) is doing across frontiers.... We are looking for cooperation on a macroeconomic level also."

DARLING

"We need to make sure the supervisory system that we have is far more attuned to the global problems that now exist.

BROWN

"The conditions in our discussions with the banks include executive remuneration, dividend payments and the flow of lending to small businesses and home owners."

BROWN

"Our stability and restructuring programme is comprehensive, it is specific and it breaks new ground.

"The programme is designed to restore confidence and trust in the financial system.

"This is not a time for conventional thinking or outdated dogma but for the fresh and innovative intervention that gets to the heart of the problem."

"Because these are also global problems, global action is required. We are in active consultation about how we can adopt (a) European funding plan and I have spoken to (French President Nicolas) Sarkozy about this this morning."

"We are taking legal action against the Icelandic authorities to recover the money lost to people who deposited (money) in UK branches of its banks."

"We're insisting in the individual negotiations with the banks that we have to be satisfied with executive remuneration."

It is "a tough deal for everybody but the right deal for the British public.

DARLING

"We've been considering this proposal for a while, we needed to work it through. I said I would make an announcement when I was ready to make it. It takes time."

London newsroom

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