UK Prime Minister Gordon Brown in his first state visit to Washington since the start of the Obama administration met with the President to push a global new deal which would coordinate a worldwide response to the global economic crisis.
Brown will be hosting a G20 summit of leaders from top industrialized nations in London on April 1.
As far as the common interests that we're pursuing -- look, there is the possibility in the next few months of a global new deal that will involve all the countries of the world in sorting out and cleaning up the banking system, Brown said. And there is the possibility of all the different countries of the world coming together to agree to expansion in the economy that is necessary to both restore confidence and to give people jobs and growth and prosperity for the future.
He noted that at the G20 conference participants would look to set principles with the banking system for the future, and make sure that banks subscribe to lending agreements where they actually increase the lending that is available to citizens in every country.
Brown said the financial system needed to be rebuilt, indicating weÃ¯Â¿Â½ve got to isolate the bad assets and underwrite the system so that loans could flow to businesses and families again.
He said there would have to be deep regulatory change and a need for proper supervision of shadow banking systems which are not covered are not being overseen as stringently as most firms in the banking sector.