Gordon Brown asks G20 to consider a global tax on banks

British Prime Minister Gordon Brown today called for a global tax on financial transactions among other measures to make banks more accountable to society.

Addressing the G20 finance ministers assembled in London, Brown said "a global financial transactions levy" would be one way "to reflect the global responsibilities of financial institutions to society."

"There have been proposals for an insurance fee to reflect systemic risk or a resolution fund or contingent capital arrangements or a global transaction levy," Brown told the G20 meeting in Scotland.

Although the British prime minister warned of the need to avoid "prohibitive costs" on the banking sector, he said Britain would join a combined initiative if all countries act together.

"I do not think these difficulties should prevent us from considering with urgency the legitimate issues," Brown said.

"I do not in any way underestimate the enormous and difficult practical and technical issues that will need to be overcome that a globally cohesive system requires and raises," he added.

Although such a move may be against the interests of the City of London, which is a global financial hub, Brown said such issues wouldn't prevent him from considering regulatory actions.