FXstreet.com

EU's Mandelson: US Politicians 'Taken Leave Of Their Senses'

LONDON -(Dow Jones)- European Union Trade Commissioner Peter Mandelson said Monday that U.S. politicians had "taken leave of their senses" when they rejected the $700 billion bailout package for the financial sector.

Speaking on the BBC's Newsnight program, Mandelson said he hoped European authorities would be able to avoid "the sort of irresponsibility and partisanship that we have seen in Washington."

After governments and investors moved to shore up several banks in Europe on Monday, Mandelson said it's crucial that authorities act in a "rapid and flexible way" to go "to the aid of banking companies."

Mandelson stronger rules and regulation for the financial system will be needed in the future to ensure banks take less risk.

He backed up a call from several European leaders that the U.S. administration organize an international conference to forge new financial regulations and make reforms to global economic institutions. Any such conference must include Brazil, China, India and other large emerging economies.

-By Laurence Norman, Dow Jones Newswires; 44-207-842-9270; Laurence.norman@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=PK0OV90UXF2xy5dbxr5Zow%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

September 29, 2008 19:12 ET (23:12 GMT)


Copyright 2008 Dow Jones & Company, Inc.