March 4 (Bloomberg) -- Gordon Brown told U.S. lawmakers to “seize the moment” created by the credit crunch and election of President Barack Obama and reshape the global banking system.

The fifth British prime minister to address a joint session of Congress, Brown, 58, said that where predecessors such as Winston Churchill, Tony Blair and Margaret Thatcher came “in times of war to talk of war,” his message is “of a global economy in crisis and a planet imperiled.”

The remarks were aimed at gathering U.S. support for his agenda at the summit of leaders from the Group of 20 nations, which Brown hosts in London next month. Brown wants global financial regulations to bolster the power of national watchdogs including the Securities and Exchange Commission in the U.S. and Financial Services Authority in Britain.

Brown’s speech omitted his usual reference to the turmoil in financial markets as having their origins in the U.S. and its regulatory system. He also reiterated his message that governments around the world should cut interest rates and raise fiscal spending.

“America and a few countries cannot be expected to bear the burden of the fiscal and interest rate stimulus alone,” Brown said. “We must share it globally. So let us work together for a worldwide reduction of interest rates and a scale of stimulus round the world equal to the depth of the recession and the dimensions of the recovery we must make.”

Poll Support

For the prime minister, the speech was an opportunity to boost his status with British voters by portraying himself as a leader on the world stage. Opinion polls show he would now lose an election, which he must call within 18 months, and suggest that the Conservative opposition is more trusted to steer Britain out of recession.

The speech was well received by both Democratic and Republican lawmakers, who granted Brown several standing ovations.

“It was a great speech,” said Senator Jim Webb of Virginia, a Democrat. “There is a tremendous amount and U.S. and the U.K. can work together on to resolve the international banking crisis.”

Mitch McConnell, the top Republican in the Senate, said it was an “excellent speech” and emphasized the “bilateral relationship” between Britain and the U.S. Democratic Senator Frank Lautenberg of New Jersey said “the delivery was almost perfect.”

‘Economic Hurricane’

Brown said, “An economic hurricane has swept the world. When banks have failed and markets have faltered, we the representatives of the people have to be the people’s last line of defense.”

The prime minister amplified the message he and Obama gave after meeting in Washington yesterday, that the rulebook governing banks must be modernized to prevent future turmoil in markets that tipped the world economy into recession.

Obama last month signed into law one of the biggest economic rescue efforts in U.S. history, a $787 billion stimulus bill that he says will restore some of the jobs lost in the recession and spur future U.S. growth. Brown has set out his own plans for 20 billion pounds ($28 billion) in tax cuts and spending increases and may have further measures in a budget statement due on April 22.

Tax Havens

“How much safer would everybody’s savings be if the whole world finally came together to outlaw shadow banking systems and offshore tax havens?” Brown said. “Each of our actions, if combined, could mean a whole much greater than the sum of the parts. All and not just some banks stabilized. On fiscal stimulus, the impact multiplied because everybody does it.”

In a speech that quoted Abraham Lincoln and was interrupted by 16 standing ovations, Brown said the election of a new president “gave the world renewed hope” and that “now, more than ever, the rest of the world wants to work with you.”

He warned his audience not to “succumb to a race to the bottom and a protectionism that history tells us in the end protects no one.”

The passages calling for increased spending and regulation were received more warmly on the Democratic side of the chamber than the Republican. When Brown referred to outlawing tax havens, some Democrats cheered.

Opportunity in Crisis

Brown argued that the current crisis offers an opportunity for governments as well as a challenge. “We are summoned not just to manage our times but to transform them,” he said. “And if perhaps some once thought it beyond our power to shape global markets to meet the needs of the people, we know now it is our duty.”

The prime minister also urged Americans to back European efforts to protect the environment and to focus on cutting emissions of carbon associated with burning oil and gas.

“You, the nation that had the vision to put a man on the moon, are also the nation with the vision to protect and preserve our planet Earth,” Brown said.

The prime minister also announced that Queen Elizabeth II will give Senator Edward Kennedy an honorary knighthood, for his work for peace in Northern Ireland and his contribution to U.S.- U.K. relations.

To contact the reporter on this story: Robert Hutton in Washington at rhutton1@bloomberg.net.

Last Updated: March 4, 2009 12:33 EST