Gordon Brown has pledged to "clean-up" the financial system following the rescue of Britain's biggest mortgage lender HBOS by Lloyds TSB. The prime minister said he had taken "quick action" to "maintain the stability of the financial system". But he said he also had proposals to end "irresponsible behaviour" in the money markets to prevent similar problems happening in the future. The government by-passed competition laws to allow the takeover to happen.The "Quick action" being turning a blind eye to law to enable this takeover. And the fact is he wouldn't have to turn a blind eye if he had not allowed our banks to get into this situation. Only now does he commit to "clean up" the financial system - the same system he allowed to flourish unchecked.
George Osborne said:
"Conservatives have proposed changes to capital rules, for banks to ensure responsible lending, new protection for depositors from financial collapse and tough new powers for the Bank of England to intervene in financial markets.What Gordon Brown is actually doing is taking credit for Lloyds TSB cleaning up his mess.
"Gordon Brown now says he wants to 'clean up' the City. He seems to forget that he is the man who in 10 years as chancellor created the current system of regulation. For 10 years he boasted about his achievements. Today he is trying to disown them."