Brown proposes global rescue

Prime Minister Gordon Brown today urges nations across the world to follow Britain's example and recapitalise their banking systems, warning that unless a global push to make banks start lending to each other again takes place, the banking crisis will deepen.

Writing in the Times, he calls for governments "to address at one and the same time the three essential components of a modern banking system - sufficient liquidity, funding and capital."

In Britain this meant a £50bn cash injection to the banks in return for shares, and hundreds of billions of pounds to guarantee lending between banks as well as a further £200bn of loans made available by the Bank of England.

Brown refers to the crisis as a "global problem, requiring a global solution" and proposes "meeting" of the world's leaders "in which we must lay down the principles and the new policies for restructuring our banking and financial system all around the globe."

"New times require new ideas," the British Prime Minister continues. "The old solutions of yesterday will not serve us well for the challenges of today and tomorrow. So we must leave behind outworn dogmas and embrace new solutions."

The British plan has been widely applauded by governments across Europe and the world, and the US Tresury Secretary Henry Paulson is believed to be considering similar moves in addition to the $700bn bail-out agreed last week.