Dishonest bankers should face prison for taking dangers with taxpayers’ cash, ex-prime minister Gordon Brown says.
In his memoir, Mr Brown stated failing to place fraudsters in jail would “give a green light” to one of these behaviour that resulted in the monetary crash.
He additionally stated “little has changed” for the reason that crash, which got here all the way through his time in Number 10.
The 12 months 2009 “has proved to be the turning point at which history failed to turn”, he stated.
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Mr Brown was once Labour top minister all the way through the worst monetary disaster for the reason that nice despair of the 1930s, and in October 2008 his executive unveiled a £400bn bundle geared toward rescuing the United Kingdom’s banking device.
In his memoir My Life, Our Times, he stated he have been ready to surrender Downing Street if it had now not long gone in keeping with plan.
“As I walked into the office, I didn’t know if I’d still be there at the end of the day,” he stated.
Nearly a decade on, Mr Brown – who misplaced the 2010 normal election and give up as an MP in 2015 – has stated now not sufficient has been carried out to forestall some other crash.
“Little has changed since the promise in 2009 that we bring finance to heel,” he stated.
“The banks that were deemed ‘too big to fail’ are now even bigger than they were.”
He stated billions of kilos have been nonetheless being paid in bonuses, and that banks had “circumvented” the EU bankers’ bonus cap.
“One of the arguments for high pay in the banking sector – that they take risk – has not survived the crash,” he stated.
“With many banks backstopped by the taxpayers, they make their profits at least in part because of the government guarantee. The risks they are taking is often not with their money but with ours.”
He puzzled why bankers who have been concerned had now not been prosecuted in the way in which they have been in Ireland, Iceland, Spain and Portugal.
Mr Brown prompt provisions within the Fraud Act would possibly be a device for this to occur, including: “If bankers who act fraudulently in this way are not put in prison with their bonuses returned, assets confiscated and banned from future practice, we will only give a green light to similar risk-laden behaviour in new forms.”
He additionally expressed be apologetic about that his plans for a “global banking constitution” to go off long term monetary crises had now not been realised by the point he left place of business.
“Just at the time I argued for enhanced cooperation, I found resistance to change was growing,” he stated.