AS the global financial system crumbles Ian Pearson is in the frontline of action to cope with monetary meltdown.

After his appointment on Sunday to a new job at the Treasury, the Dudley South MP will be piloting the government’s Banking Reform Bill through Parliament as Prime Minister Gordon Brown and his ministers grapple with deepening economic problems.

The bill will give the government new powers to intervene in failing banks to prevent more high street lenders like Northern Rock and Bradford & Bingley going under.

Mr Pearson said: “There is no bigger issue facing the UK, there is a huge amount of work to do and we are pulling out all the stops.

“I appreciate people are going through difficult times and are concerned about their jobs and living standards.

“We have got to ensure financial stability and banking support for business.

“No one can predict with any certainty when these difficulties will be over and we have got to make sure we have powers to take action if necessary.

“There are lessons to be learned from what started in the United States, there needs to be more effective regulation of financial markets, that is what ministers are talking about.”

The Bill, which is set for a second reading in the House of Commons on Tuesday October 14, is expected to have a smooth passage into law after gaining cross-party support.