Bank bailout was necessary, says Brown

Last year's bailout of the banking and financial services sector was necessary, Gordon Brown has stated.

In an interview with the Metro, the prime minister was asked why the government was prepared to prop up banks and not small businesses.

Gordon Brown acknowledged that small businesses are vital to the UK economy, but said they too would have been under threat had the government not acted at the onset of the financial crisis.

He stated that if the banking industry had collapsed, permanent jobs, savings and businesses would have followed.

"There was a real risk that workers would not have been paid and that cashpoints would stop working," he commented.

"So we needed to take action."

Meanwhile, the prime minister has said he believes voters need to see the results of his fiscal policies before the general election.

He told Sky News that many people have "suspended judgment" until they see the level of success he achieves.

Updated: 25 September 2009.
Categories: banking-and-financial-services, market-and-industry-news.