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Date and page printing time: November 21th 2009 01:37 GMT
Trade's Tools | The FOREX market news
DJMN: UK's Brown: Should Consider Global Financial Transaction Levy
ST. ANDREWS, Scotland (Dow Jones)--The Group of 20 advanced economies should consider applying a global financial transaction tax to provide insurance against future banking crises, Prime Minister Gordon Brown said Saturday.
Embracing an idea that has long been called for by some developing nations and others, Brown said the G-20 should discuss whether it needs some kind of "insurance fee to reflect systemic risk or a resolution fund or contingent capital arrangements or a global financial transactions levy."
Brown strongly conditioned his proposals.
He said Britain would not adopt such a plan "unless others move with us together."
He also said the tax would have to be "nondistortionary to avoid damaging reductions in liquidity, inefficient allocation of capital and the temptation of avoidance."
He also said any tax must not undermine efforts to stabilize the financial system and that the contribution from the financial sector must be "fair" and "measured."
In the past, the U.K. has leaned against the idea of a Tobin tax, which would have seen a financial transaction tax used to increase support for developing nations.
-By Laurence Norman and Joe Parkinson, Dow Jones Newswires; 44-207-842-9270; laurence.norman@dowjones.com
(MORE TO FOLLOW) Dow Jones Newswires
November 07, 2009 06:28 ET (11:28 GMT)
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