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Context of 'July 2009: British Unemployment Rivals 1995 Level, 2.47 Million Seeking Jobs'

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Mervyn King, governor of the Bank of England, is first alerted to the problems at the troubled British mortgage giant Northern Rock. [Daily Telegraph, 2/26/2008] In a phone call with officials at the Financial Services Authority (FSA) and the Treasury, he is told about the potential impact of the global credit crunch on Northern Rock’s business. [BBC, 8/5/2008]

Entity Tags: Her Majesty’s Treasury, Financial Services Authority, Mervyn King, Northern Rock plc, Bank of England

Timeline Tags: Global Economic Crises

Matt Ridley, a former chairman of the troubled British mortgage giant Northern Rock, asks Governor of the Bank of England Mervyn King about possible support to help Northern Rock overcome a difficult period. In addition, Ridley starts to look for a buyer for the distressed bank. [Daily Telegraph, 2/26/2008]

Entity Tags: Bank of England, Mervyn King, Matthew Ridley

Timeline Tags: Global Economic Crises

Governor of the Bank of England Mervyn King writes to the Treasury Select Committee about current problems on financial markets. He tells it that the Bank will be prepared to provide emergency loans to any commercial bank that runs into short-term difficulties, provided this is because of temporary market conditions. However, he appears to rule out following the lead of the European Central Bank and US Federal Reserve in pumping huge sums into the banking system to ease problems with liquidity. [BBC, 9/13/2007; BBC, 8/5/2008]

Entity Tags: Bank of England, Mervyn King

Timeline Tags: Global Economic Crises

The Bank of England says it will inject £10 billion ($20 billion) into the money markets to try to bring down the cost of inter-bank lending. The move is prompted by the financial crisis, which has recently engulfed leading British bank Northern Rock. One week ago, Bank of England governor Mervyn King had said the Bank would not make such an injection (see September 12, 2007). [Daily Telegraph, 2/26/2008; BBC, 8/5/2008] “This represents a U-turn on support for money markets,” says Ian Kernohan, an analyst at Royal London Asset Management. He adds, “As every parent knows, it’s all very well to talk tough, but if you don’t follow up your credibility is damaged.” Calyon analyst Daragh Maher says: “Only one week ago, governor King was arguing against providing liquidity to money markets as this would risk causing greater problems further down the road. This strategy has come in for considerable criticism… [and the change announced today] will of course open it to further criticism that its earlier strategy was flawed and that this shift may be too little too late.” [Agence France-Presse, 9/19/2007]

Entity Tags: Ian Kernohan, Mervyn King, Bank of England, Daragh Maher

Timeline Tags: Global Economic Crises

Governor of the Bank of England Mervyn King defends his handling of the banking crisis that has recently hit mortgage giant Northern Rock to members of parliament. Facing accusations of “being asleep at the wheel,” King says it would have been “irresponsible” to have intervened earlier to save Northern Rock. He also says that he would have liked to have offered financial support to the company in secret but that British and European regulations made this impossible. [BBC, 8/5/2008]

Entity Tags: Bank of England, Northern Rock plc, Mervyn King

Timeline Tags: Global Economic Crises

Two British High Court judges rule against releasing documents describing the torture and abuse of Guantanamo detainee Binyam Mohamed (see May-September, 2001). The judges cite threats from the US government as shaping their decision, saying that the US had threatened to withhold intelligence cooperation from Britain if the information on Mohamed’s treatment were made public.
Confession through Torture, Detainee Alleges - Mohamed is a British resident who was arrested in Pakistan in 2002 (see September 2001 - April 9, 2002). He was initially charged with planning a “dirty bomb” attack in the US (see November 4, 2005); those charges were later dropped (see October-December 2008), but he has allegedly confessed to being an al-Qaeda operative and remains in detention without charges. Mohamed says that the confession was tortured out of him during his detention in secret prisons in Pakistan (see April 10-May, 2002 and May 17 - July 21, 2002), Morocco (see July 21, 2002 -- January 2004), and Afghanistan (see January-September 2004), and later in Guantanamo. During his incarcerations at these various prisons, he says he was beaten, deprived of sleep, and had his genitals cut with a scalpel. Mohamed’s attorneys argue that he has committed no crime and is a victim of torture and rendition by US officials, with British cooperation (see February 24, 2009). [Washington Post, 2/5/2009; Los Angeles Times, 2/5/2009]
Judges, Lawmakers 'Dismayed' at US Threats - In their decision, Judges John Thomas and David Lloyd Jones write, “We did not consider that a democracy governed by the rule of law would expect a court in another democracy to suppress a summary of the evidence… relevant to allegations of torture and cruel, inhumane, or degrading treatment, politically embarrassing though it might be.” [Washington Post, 2/5/2009] They are dismayed that “there would be made a threat of the gravity of the kind made by the United States government, that it would reconsider its intelligence-sharing relationship” with Britain, one of its closest allies, if the British government made the summary public. [Los Angeles Times, 2/5/2009] They warn that a US withdrawal from intelligence-sharing could “inflict on the citizens of the United Kingdom a very considerable increase in the dangers they face at a time when a serious terrorist threat” remains. Conservative member of parliament David Davis tells the House of Commons, “The government is going to have to do some pretty careful explaining about what’s going on.” It is absolutely inappropriate for the US to have “threatened” the British government, Davis says: “The ruling implies that torture has taken place in the Mohamed case, that British agencies may have been complicit, and further, that the United States government has threatened our High Court that if it releases this information the US government will withdraw its intelligence cooperation with the United Kingdom.… Frankly, it is none of their business what our courts do.”
Lawyer Objects - Clive Stafford Smith, Mohamed’s attorney, says that by not disclosing the evidence, Britain is guilty of “capitulation to blackmail.… The judges used the word ‘threat’ eight times. That’s a criminal offense right there. That’s called blackmail. Only the Mafia have done that sort of stuff.” Smith continues: “It is hardly Britain’s finest hour. As the judges say, it is up to President Obama to put his money where his mouth is. He must repudiate his predecessor’s reprehensible policy.”
Prime Minister Knows Nothing of Threats - Officials in Prime Minister Gordon Brown’s office say they know nothing of any threats from Obama officials. “We have not engaged with the new administration on the detail of this case,” says a Brown spokesman. But British Foreign Secretary David Miliband notes: “Matters regarded as secret by one government should be treated as secret by others. For it to be called into question would pose a serious and real risk to continuing close intelligence-sharing with any government.” Miliband notes that the British government has made “strenuous efforts” to have Mohamed released (see August 2007). [New York Times, 2/4/2009; Washington Post, 2/5/2009]
ACLU Asks for Clarification - The American Civil Liberties Union (ACLU) has sent a letter to Secretary of State Hillary Clinton, asking that she clarify the Obama administration’s position on the Mohamed case and to reject what it described as the Bush administration’s policy of using false claims of national security to avoid judicial review of controversial programs. According to ACLU head Anthony Romero, “The latest revelation is completely at odds with President Obama’s executive orders that ban torture and end rendition, as well as his promise to restore the rule of law.” State Department spokesman Robert Wood refuses to comment on the judges’ statement, saying, “It’s the first I’ve heard of it.” [Washington Post, 2/5/2009; Los Angeles Times, 2/5/2009]

Entity Tags: Robert Wood, John Thomas, Binyam Mohamed, Anthony D. Romero, American Civil Liberties Union, Bush administration (43), Obama administration, Clive Stafford Smith, David Lloyd Jones, David Davis, Gordon Brown, David Miliband, Hillary Clinton

Timeline Tags: Torture of US Captives

European Union Leaders hold an emergency summit in Brussels, saying they are determined to avoid protectionist moves in response to the economic crisis that might cause a rift between nations in the East and West. The summit comes on the heels of French President Nicolas Sarkozy’s pledge to help his nation’s car industry, if jobs were safeguarded in France. Sarkozy’s pledge raised fears that national protectionism could scuttle hopes of a Eurozone recovery. Speaking after their meeting, European Commission President Jose Manuel Barroso says, “There was consensus on the need to avoid any unilateral protectionist measures.” German Chancellor Angela Merkel says that the newest EU member states that are former communist countries were not all in the same situation. Czech Republic Prime Minister Mirek Topolanek, the current EU president who also chairs the talks, condemns Sarkozy’s comments, saying: “We need a Europe without barriers but also a just and fair Europe. I think that it was perfectly clear that the European Union isn’t going to leave anybody in the lurch.” British Prime Minister Gordon Brown adds: “Today was the start of a European consensus on all these major issues that are facing the world community, including ‘no’ to protectionism. Bold global action, a global grand bargain, is not now just necessary, but it is vitally urgent.” President Sarkozy denies accusations of protectionism levied at his €6 billion (approximately $8 billion) bail-out plan to keep French carmakers manufacturing in France, but says that if the US defended its own industries, perhaps Europe should do the same. There is no announcement of a new EU aid package for the badly-hit economies of Central and Eastern Europe. The summit comes a week after the same EU leaders met to discuss reforming the EU’s financial system. Brown says the G20 talks next month represent an opportunity to agree on a new deal. “Only by working together will we deliver the EU and international recovery we need,” he says. This week, Brown will become the first European leader to hold talks with President Obama, who is also expected to visit Prague in April. [BBC, 3/1/2009]

Entity Tags: Nicolas Sarkozy, Angela Merkel, Barack Obama, European Parliament, Gordon Brown, Mirek Topolanek, Jose Manuel Barroso

Timeline Tags: Global Economic Crises

According to unemployment statistics compiled by Eurostat, the European Union unemployment rate has risen to 9.2 percent, its highest since September 1999, with 3.1 million jobs lost in April 2009, an increase of 556,000 from March. In the Eurozone, 396,000 jobs were shed and almost 15 million became unemployed. The lowest unemployment figures were in the Netherlands at 3.0 percent and Austria at 4.2 percent. The highest figures were in Spain at 18.1 percent, Latvia, 17.4 percent, and Lithuania, 16.8 percent. Eurostat is the Statistical Office of the European Communities located in Luxumbourg and is charged with providing statistics for comparisons between European countries and regions. The Eurozone is comprised of the 15 EU states that have adopted the euro and created a currency union. [MercoPress, 6/3/2009; Eurostat.com, 6/3/2009; Ezine Articles, 6/3/2009]

Entity Tags: European Union, Eurostat

Timeline Tags: Global Economic Crises

The jobless rate in Britain climbs to its highest level since 1995, according to the Office of National Statistics in London. The number of people out of work hits 2.47 million, while unemployment claims rise to 1.61 million for the month of July. Data recently released by the statistics office indicate that unemployment through July rose to 7.9 percent, the most since 1996, compared to the European Union’s latest figure of 9.5 percent, 9.7 percent in the US, and 5.7 percent in Japan. Bank of England Governor Mervyn King says that even after the economy stops shrinking, households will continue feeling the recession’s pain, since “unemployment is either going to continue rising or remain high.” As much as £175 billion ($288 billion) is being printed to aid economic growth and avoid deflation. “If anything, the UK economy is only just emerging from recession, and this is a lagging indicator,” says economist Philip Shaw of London’s Investec Securities. “We’re looking at unemployment peaking towards the middle of next year. Things are likely to improve at a slow rate, but it’s likely to remain uncomfortable for a long time.” Employment minister Jim Knight tells BBC News: “Unemployment still remains a real problem for families up and down the country. We’ve got to keep the support going and not be tempted to celebrate the recovery.” In speaking on the recovery, Prime Minister Gordon Brown—up for re-election in 2010—says the economic rebound “is still fragile” and stimulus programs that boost the economy should be maintained. “There are no signs of recovery here,” Trades Union Congress General Secretary Brendan Barber says. “It might look rosier in city dealing rooms but, out in the real world, unemployment is the number one issue.” [Bloomberg, 9/16/2009]

Entity Tags: Investec Securities, Bank of England, Brendan Barber, European Union, Gordon Brown, United Kingdom, Office for National Statistics, Mervyn King, Jim Knight

Timeline Tags: Global Economic Crises

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