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Collapsed UK Bank Attempts to Censor Wikileaks

James Hardine writes "Wikileaks has released a couple of hilarious legal demands over a confidential briefing memo entitled Project Wing — Northern Rock Executive Summary. Northern Rock Bank (UK) collapsed spectacularly late last year on the back of the sub-prime lending crisis and was re-floated by the Bank of England at a cost of over £24bn. The memo was used by the Financial Times, the Telegraph and others. It attracted a number of censorship injunctions, as reported by the Guardian, which only Wikileaks continues to withstand. In their legal demand to Wikileaks, Northern Rock's well-known media lawyers, Schillings, invoke the DMCA & WIPO, claim it'll be 10 years in prison for Wikileaks operators for not following the UK injunction, but then, incredibly, refuse to hand over a copy of the order unless Wikileaks' London lawyers promise not to give it to Wikileaks. Finally they claim copyright and more — on their demands! The letters raise a serious issue about the climate of censorship in the UK, where one can apparently easily obtain a censorship order — a judge made law — that everyone is meant to obey, but no one is meant to know."

230 comments

  1. It's obvious. by Pig+Hogger · · Score: 4, Funny

    All your leaks are belong to us!

    1. Re:It's obvious. by intnsred · · Score: 5, Interesting

      What's obvious is that this issue is not about censorship per se -- it's about the move to fascism. Corporations rule. Here in the US, corporations often literally write the bills that the corporate-funded Congress then pass into law. This UK innovation just has the courts directly acting on the corporations' behalf.

      "Fascism could better be called 'corporatism', for it is merely the merging of state power with corporate power." -- Benito Mussolini, the Italian dictator who "invented" fascism.

      "I hope we shall take warning from the example of England and crush in its birth the aristocracy of our moneyed corporations which dare already to challenge our Government to trial and bid defiance to the laws of our country." -- Thomas Jefferson

    2. Re:It's obvious. by Anonymous Coward · · Score: 0

      Let's view the situation fifteen years into the future and see whether the role of governments and government proportion of economic activity and oversight over people's lives has markedly increased or decreased in the world.

      Whoever is right gets to form an organisation dedicated to revenging themself on individuals responsible for the state of affairs.

    3. Re:It's obvious. by actiondan · · Score: 5, Informative

      While I agree with your sentiments, I have to point out that the quote you ascribe to Mussolini is something of a myth, probably based on a mistranslation. He is not known to have said that and, based on what he wrote, his philiosophy did not include giving power to anything other than the fascist state.

      (see http://www.publiceye.org/fascist/corporatism.html)

    4. Re:It's obvious. by giulioo · · Score: 4, Interesting

      Note that in Italian the term "corporazioni" (ie: corporations) has a complete different meaning than the English one.
      The term "Corporazioni", especially in the Mussolini context, refers to "associations" of people/companies doing the same kind of work.

      It would be like

              Associations of car makers
              Associations of car makers' employees
              Associations of lawyers ...

    5. Re:It's obvious. by ContractualObligatio · · Score: 1

      This UK innovation just has the courts directly acting on the corporations' behalf.

      RTFA. Corporation doesn't want any stories published, and wants to know who leaked the story. Court allows the newspapers to print their articles, and to protect their source. What is the innovation you refer to, and in what way is turning down most of the corporation's request acting directly in their interest?

    6. Re:It's obvious. by Cctoide · · Score: 1

      Have you seen the Loituma leakspin video yet?

      --
      "Let's face it, it's a good story. Accuracy would kill it."
    7. Re:It's obvious. by Stavr0 · · Score: 1
      It's really a new type, the three-tiered fascism:
      • The People exist to do the bidding of the State.
      • The State exists to do the bidding of the Corporation.
    8. Re:It's obvious. by FreeGamer · · Score: 0, Offtopic

      I like the quote from the one of your founding fathers. Sadly not enough people seem to be familiar with this or the only presidential candidate who seems to stand by them. I can barely find anything on our "impartial" bbc news pages relating to Ron Paul; I can imagine he gets pretty much blanked in the US media.

    9. Re:It's obvious. by Anonymous Coward · · Score: 0

      You people who live in the U.S should really get your heads out of your arse. Time and time again I hear you people blatantly label another country's practices as 'Socialist' or in this case 'Facist'.

      Wake up to yourself and grow some balls (ie. grow up).

    10. Re:It's obvious. by Cassius+Corodes · · Score: 1

      Ron Paul is for "smaller government" - which inevitably means more privatisation, deregulation and tax cuts which invariable make the rich / corporations better off at the expense of everyone else.

      Not only that but he doesn't believe in evolution, and supports an economic model which the overwhelming majority of economists think is a joke (and interestingly enough is referred to as the creationism of economics, in economic circles). So why anyone thinks he is some kind of political messiah is beyond me.

      --
      Control is an illusion, order our comforting lie. From chaos, through chaos, into chaos we fly
    11. Re:It's obvious. by zoney_ie · · Score: 1

      That sounds sort of like the model we have here in Ireland with "Social Partnership". One of the most common terms in political discourse here in Ireland is "vested interests".

      --
      -- *~()____) This message will self-destruct in 5 seconds...
    12. Re:It's obvious. by Anonymous Coward · · Score: 0

      Partially true. Giovanni Gentile said it first and then Mussolini personally claimed credit for it in the Encyclopedia Italiana.

  2. No comment yet ? by neutrino38 · · Score: 1

    I guess that they have been censored.

  3. billion? by Speare · · Score: 1

    I'm just a clueless American, but as the blurb says "£24bn", I would guess reads "24 billion pounds". Is that billion as in "million million" or billion as in "thousand million"? I always wondered how that verbal discrepancy got started, seems that accountants on either side would get a bit huffy about a potential 1:1000 error.

    --
    [ .sig file not found ]
    1. Re:billion? by u38cg · · Score: 4, Funny

      We have pretty much standardised nowadays on the 1000 million version, primarily because it allows newspaper editors to use the word 'billion' a thousand times more often.

      --
      [FUCK BETA]
    2. Re:billion? by thetroll123 · · Score: 2, Informative

      Thousand million. The million million meaning is obsolete.

    3. Re:billion? by Anonymous Coward · · Score: 0

      We use US billions over here these days, so it would be a thousand million.

    4. Re:billion? by Peter+Cooper · · Score: 2, Informative

      Thousand million. No-one has seriously used billion to mean "million million" in perhaps the last 25 years here in the UK. Usage of billion to mean thousand million was certainly common on TV news by at least the early 90s.

    5. Re:billion? by Anonymous Coward · · Score: 0

      In the English language it is pretty standard that the short scale is used so you don't have anything to worry about. If this statement was made in French or Spanish then you might worry whether they are incorrectly using English billion to mean their milliard or if they are using billion correctly to mean the English trillion.

    6. Re:billion? by jimicus · · Score: 1

      The generally accepted UK use of the word "billion" is "thousand million".

      Whichever way you read it, £24bn is a fair bit of cash.

    7. Re:billion? by Anonymous Coward · · Score: 0

      "400 pounds for each person in the United Kingdom"
      = £400 * 60 000 000 people
      = £24 000 000 000

    8. Re:billion? by gnick · · Score: 1

      I believe that the "million-million" definition has been deprecated and the wayward "billion" word replaced by "bazillion" ("Trillion" is used exclusively when discussing the US national debt.) Billion is now exclusively "thousand-million".

      --
      He's getting rather old, but he's a good mouse.
    9. Re:billion? by notmyusualnickname · · Score: 1

      Thousand million. The long scale is deprecated.

    10. Re:billion? by Anonymous Coward · · Score: 0

      Blame France and Italy - that is where the "short scale" arose in parallel with the long scale. The French (and most major countries in Europe) subsequently largely converted to the short scale, leaving the Brits and Scandinavia stuck with long scale. The French then officially adopted the long scale in the 60s, while usage was waning in the UK until they started using short scale for official government use in the mid seventies.

    11. Re:billion? by KiloByte · · Score: 1, Insightful

      US, UK, Australia, etc... -- in other words "English-speaking countries".
      With an emphasis on "English".

      Billion in a text in English is 1e9, everywhere. In a text in French or Polish that may be 1e12, but there is no ambiguity because the language tells you what that word means. In Polish, "pies" means "dog" while in English that's plural of "pie" -- the same word has different meanings in different languages. Or, "actual" being "real" in English and "current" in Polish and German.

      Of course, this confuses poor bastards in outskirts of Quebec, and those who were born in Poland (aaargh...), but it's no different from any other false friend.

      --
      The creatures outside looked from Alt-Right to Antifa; but already it was impossible to say which was which.
    12. Re:billion? by nagora · · Score: 1
      No-one has seriously used billion to mean "million million" in perhaps the last 25 years here in the UK.

      I'm 42 and I have never seen billion used here in the UK to mean anything other than "thousand million". If it wasn't for Americans asking which meaning is intended I doubt anyone here would even know of the "million million" sense.

      TWW

      --
      "Encyclopedia" is to "Wikipedia" what "Library" is to "Some people at a bus stop"
    13. Re:billion? by oliverthered · · Score: 1

      yes,
      Mi = 1
      Bi = 2
      Tri = 3

      so a bilion must be twice a million which is a million million, the words tell you exactly what they mean.

      --
      thank God the internet isn't a human right.
    14. Re:billion? by eat+here_get+gas · · Score: 1

      good thing you posted AC, you know nothing of math:

      there are alway 3 digits to the left of a decimal point in order to use the comma to delintiate thousandths...

      --
      the significance of a signature is insignificant
    15. Re:billion? by Angostura · · Score: 2, Interesting

      Gentleman, we've pinned it down. I'm 43 and at school was taught that a billion was a million million, but by the time I got to work thousand million was the norm.

    16. Re:billion? by aussie_a · · Score: 1

      I think the problem isn't Americans, but people who know anything about maths.

    17. Re:billion? by Fred_A · · Score: 1

      Billion in a text in English is 1e9, everywhere. In a text in French or Polish that may be 1e12, but there is no ambiguity because the language tells you what that word means. No it doesn't.

      Does the language tell you what "toddick" means (in English that is) ?

      Billion Has been deprecated in French (to take one of your examples, and since that's where I am) for a while. It *used* to mean 1E12, milliard being (and still being used for) 1E9.

      If very large numbers are required, people just use the SI notations nowadays instead of silly names that changed every dozen kilometres (like feet, yards or miles used to, for which you could find hundreds of definitions throughout Europe -- natural measures my neither regions), and let's not go into currencies weights or volumes, bah, those were even more fickle.

      The only thing imperial (aka medieval) measures are good for is measuring beer (pints). Unfortunately pints are shrinking down to metric (50cl) in Europe nowadays (although the UK and Ireland seem to resist so far --Yay). Bit of a shame. ;)
      --

      May contain traces of nut.
      Made from the freshest electrons.
    18. Re:billion? by greenbird · · Score: 4, Funny

      so a bilion must be twice a million which is a million million, the words tell you exactly what they mean.

      Twice a million is two million. What the hell do they teach in math classes these days anyway?

      --
      Who is John Galt?
    19. Re:billion? by c_g_hills · · Score: 2, Informative

      Unless you live in most of mainland Europe, where the decimal separator is a comma not a full stop.

      Good think you didn't post AC, you have shown your ignorance.

    20. Re:billion? by Keith_Beef · · Score: 1

      I'm 39, born and raised in the UK; I was taught that a billion is 1,000,000,000,000 but that the Americans had long ago failed to keep up with this meaning, and that by shear force of numbers have imposed the de facto standard of billion being 1E9.

      I struggled against this for a whole year or so, but when I realised that my university colleagues couldn't handle the E notation, I apathetically caved in.

      After all, I'm writing down to the level of my readers. That's what I'm paid for, not for works of truth.

      The accepted meaning now, in English texts, is that billion is 1E9. However, I still have to ask for clarification when sitting through finance presentations given in English by German or French people, and I sometimes still see the term "milliard" in their slides.

    21. Re:billion? by Fred_A · · Score: 1

      If it wasn't for Americans asking which meaning is intended I doubt anyone here would even know of the "million million" sense. Listening to the US people talk about Europe is presumably like listening to Earthlings talking about TauCeti...

      I remember when (I live in Paris) I went to get my (then) girlfriend's US penpal at the airport and she (the penpal) confided to me that she had brought her hair-drier because she knew we wouldn't have any, although she really wasn't sure we had electricity yet(*). This was in the 80s though. And to put the US people at rest, yes, all of western Europe did have ample electric power at the time. And we still do. The plugs are different though. Bring adaptors.

      I also remember when I went to some pub (we have an astounding number of "Irish" pubs in Paris, with Irish people in them and everything, some of them are even kind of old) where I met this US guy with his UK guide. The US guy had been promoted and was just flabbergasted because, as he put it, "I've just been touring Europe for the last week, and you'll never guess (actually I never would have), people don't really care about the US !".(**)

      I really feel that when people from the US dive into Europe, it's as much of a culture shock to them as it would be if they went to Japan. Maybe more because on the surface it looked a bit similar.

      I know that each time I go to the US (although it's been a while because I'm not too keen on the new border regulations), I feel like I'm on Mars, which along with the gorgeous scenery makes for much of the thrill.

      So, anyway, I could go on for a bit but I was offtopic to begin with and I'm just digging deeper, so just mod me down.

      (*) 100% true. She actually kind of expected horse carriages too. Although I only found that out the next week. I never found out where those fantasies came from. Reading Dickens maybe.

      (**) As far as I can remember, his exact words. I spent the whole evening chatting with the guy and his UK friend, much to the chagrin of the girl that I had brought there; and yes, I'm a cretin.
      --

      May contain traces of nut.
      Made from the freshest electrons.
    22. Re:billion? by owlnation · · Score: 1

      um... No. not exactly...

      I would assume that this is the accepted standard in journalism, science textbooks etc. But as some who is in late middle-age in the UK I was taught million million in school -- and in fact, this is the first I'm hearing of it being officially anything else here. (I don't work with numbers and I've no reason to keep up to date with such things). I suspect that many of us have been misinterpreting and misusing the term in its modern form for many years.

      I guarantee you that, for certain, it is not always used in the modern form correctly, and won't be fully reliably so for at least another 30 years.

    23. Re:billion? by king-manic · · Score: 1

      I'm just a clueless American, but as the blurb says "£24bn", I would guess reads "24 billion pounds". Is that billion as in "million million" or billion as in "thousand million"? I always wondered how that verbal discrepancy got started, seems that accountants on either side would get a bit huffy about a potential 1:1000 error. In regards to currency I think it means a thousand million. Having it mean a million million is rare these days. Long scale being mostly replaced in all official capacity by short scale. Although I may be mistaken because I'm Canadian not British. Also, it'll probably be a million million USD soon.
      --
      "There are more things in heaven and earth, Horatio, than are dreamt of in your philosophy."
    24. Re:billion? by jonbryce · · Score: 1

      Billion means the same thing in proper english as in american english. It is milliard in french and a few other european languages.

    25. Re:billion? by speculatrix · · Score: 1

      yeah, that's rampant inflation for you... time was when a billion was worth a million million, it won't be long before it's only worth a million!

      I note too there's been a catastrophic devaluation of binary - 11 in binary is now only worth 3 in decimal! (with apologies to Verity Stob).

    26. Re:billion? by Roger+W+Moore · · Score: 1

      Unless you live in most of mainland Europe, where the decimal separator is a comma not a full stop.

      ...and if you are writing in French then it is correct to do that. However the post was in English and so it is incorrect to use ',' for the decimal point and '.' to separate numbers. It is the same with speech marks: you should adapt to the convention used by the language you are writing in. If I can manage that courtesy to you when writing French or German then perhaps you can manage the same courtesy in return when writing in English?

    27. Re:billion? by cheese_lord · · Score: 1

      I hate to tell you this but a pint is equal to about 47cl... so those damn mainlanders are actually gettin more beer then you.

    28. Re:billion? by Anonymous Coward · · Score: 0

      I'm sure that the AC was just trolling - rather successfully as it turns out. It was a nice touch to swap commas for full stops in the manner of continental Europe

      http://translate.google.com/translate?hl=en&sl=fr&u=http://fr.wikipedia.org/wiki/Milliard&sa=X&oi=translate&resnum=5&ct=result&prev=/search%3Fq%3Dmilliard%26hl%3Den%26client%3Dfirefox-a%26rls%3Dorg.mozilla:en-US:official%26hs%3DHP0

    29. Re:billion? by Fred_A · · Score: 1

      I hate to tell you this but a pint is equal to about 47cl... so those damn mainlanders are actually gettin more beer then you. Ah, ah can tell that you are from thah colonies my dear lad !
      A pint is (roughly) 570ml in the UK and Ireland. Maybe you ought to move ;)
      In the rest of Europe it's 500ml (or 50cl, or 1/2l), anyway you're being cheated of your well earned money my good fellow. Come back to the old country ! Where beer flows (well, at least trickles a bit more abundantly) and where you can still breathe with a woman on top of you ! (although that's probably a nice way to go)

      Anyway if you come visit, let us know and we'll pay you a glass (which is a half pint btw, cause there's actually some alcohol in beer over here ;) ) !

      (This was all in jest of course, come to Paris and if you want a visit of the old city drop me a mail --see top of post--, I'll find time for a true geek)
      --

      May contain traces of nut.
      Made from the freshest electrons.
    30. Re:billion? by Secrity · · Score: 1

      Wouldn't that be

      Whichever way you read it, £24bn is a fair bit of dosh .?

    31. Re:billion? by Shaddup · · Score: 1

      Must be crazy UK-math. No wonder their banks are going under. :)

    32. Re:billion? by DrSkwid · · Score: 1

      Perhaps you're one of those London types, oop North I was taught a million million and I'm in my 30s.

      --
      There are places where the networks are not touching,and there are places where they are-Boeing's Lori Gunter
    33. Re:billion? by Pope · · Score: 1

      Yes, yes, all very well and good. But how tall is Imhotep?

      --
      It doesn't mean much now, it's built for the future.
    34. Re:billion? by chunkymunky · · Score: 1

      Interestingly enough, gems such as BS8888 would tend to disagree. SHould only take us the next 20 years to get used to it, tho...

    35. Re:billion? by Orkie · · Score: 1

      I'm 17 and *I* was taught it is a million millions at school!

    36. Re:billion? by soliptic · · Score: 1

      Gentleman, we've pinned it down. Not quite :P

      I'm 43 and at school was taught that a billion was a million million, but by the time I got to work thousand million was the norm. I'm 26 and at school was taught that a billion was a million million, but by the time I got to uni thousand million was the norm.
    37. Re:billion? by Anonymous Coward · · Score: 0

      This question is impossible to answer. Imhotep is invisible.

    38. Re:billion? by Thomasje · · Score: 1

      Is that billion as in "million million" or billion as in "thousand million"? I always wondered how that verbal discrepancy got started There is some background on the 10^9 vs 10^12 confusion at http://en.wikipedia.org/wiki/Short_scale

      The article doesn't address why the long scale didn't become universal... My personal theory is that in mainland Europe, where the words million, milliard, billion, etc., are universally pronounced with stress on the final syllable, those words all sound very distinctive, while in English, where the stress is placed on the first syllable, the difference between million and milliard was just too awkward, and so the milliard fell out of favor and the billion moved down by a factor of 1000 to take its place.

      I'm sure any linguist will rip this theory to shreds, though. :-)

    39. Re:billion? by Weedlekin · · Score: 1

      "However, I still have to ask for clarification when sitting through finance presentations given in English by German or French people, and I sometimes still see the term "milliard" in their slides."

      Add Spanish people to that list, because they also use billion as 10E12, and milliard for 10E9.

      --
      I'm not going to change your sheets again, Mr. Hastings.
  4. Link to the full story is missing! by James+Hardine · · Score: 1, Redundant

    See the full Wikileaks story here!

    1. Re:Link to the full story is missing! by Anonymous Coward · · Score: 4, Informative

      Indeed, linking to the full Northern Rock vs. Wikileaks page is more useful, because it contains links to the all (hilarious) letters that have been received in that context

      At the end of that page, you find links to:

      Being able to read the letters in the right context is much more useful. The first censorship demand (a fax in PDF format) is well worth reading.

  5. HI-friggin' larious by EaglemanBSA · · Score: 1

    ...Seriously, I nearly soiled myself. What is this, Monty Python?

    --
    Quiz: True or False -- On a scale of 1 to 10, what is your middle name?
  6. As someone who lives in the UK.. by LingNoi · · Score: 4, Insightful

    .. I never realised until recently with the whole NHS thing on the news that we even had laws that tried to silence people.

    1. Re:As someone who lives in the UK.. by iminplaya · · Score: 3, Informative

      That law has been there for almost 300 years.

      --
      What?
    2. Re:As someone who lives in the UK.. by owlnation · · Score: 5, Interesting

      .. I never realised until recently with the whole NHS thing on the news that we even had laws that tried to silence people.
      Yes. It's true, and this isn't new. In the UK you categorically DO NOT have the right to freedom of speech. You have never had the right to free speech.

      (actually in most of the EU it's the same - e.g. in Germany, Nazi related things are illegal -- um, ironically...) In the UK this has most often been used in relation to the IRA, e.g. internment in the early 70's, or the forbidding of Sinn Fein to speak publicly in the early eighties -- which resulted in the BBC using actors to relay their words. Actually, it's very, very interesting that the BBC were keen on free speech in the Eighties, but are no longer so bothered about it.

      Nor, incidentally, do you truly have the right to remain silent. That was removed a few years ago as well. You silence can be construed as admission of guilt -- no pleading the fifth.

      It really is time that the UK people realised that Big Brother is here, today, right now. The UK is not as free as some dictatorships in the World. Democracy is smoke and mirrors here, nothing more. It probably is already too late. Americans, you need to ensure you have a change in your Government. Do not repeat the UK's mistakes.
    3. Re:As someone who lives in the UK.. by sa1lnr · · Score: 1

      You've never heard of a D Notice?

      The Tories were rather fond of those when they were in power.

    4. Re:As someone who lives in the UK.. by digitig · · Score: 1

      Were/are D Notices legally binding? I thought they were enforced on a "violate this and you won't be invited to press briefings any more" basis. Certainly the current equivalent is a "voluntary" scheme: http://www.dnotice.org.uk/.

      --
      Quidnam Latine loqui modo coepi?
    5. Re:As someone who lives in the UK.. by Anonymous Coward · · Score: 0

      Thats probably because everyone is busy focusing on America and Bush. You know how American is the root of all evil attempting to get laws limiting speech passed and all, George Bush took the focus away from the Laws that were already there.

    6. Re:As someone who lives in the UK.. by hptux06 · · Score: 4, Insightful

      The home office's website does actually say you have the right to remain silent.

      I find the arguments surrounding freedom of speech interesting. While it'd be brilliant to be able to say what you like, there are still some cases where it isn't ideal: for example, there are laws against slander and libel. Then there's soliciting crime, encouraging racial hatred and similar. The government try to cut a fine line between what *needs* to be restricted, and what doesn't, and they do get it wrong - I agree censoring Gerry Adams was idiotic.

      But if you RTFA, you'll find that the judge hearing the case ordered the leaked document to be removed from publication, but not to gag the press from talking about the fact that it had happened, nor to stop people reporting what was in it. This is not censorship, this is protecting confidentiality.

      As for the UK not having free speach, name a particular UK law regulating it that you believe shouldn't be a crime.

    7. Re:As someone who lives in the UK.. by Profane+MuthaFucka · · Score: 1

      http://www.youtube.com/watch?v=f2y2Pd2Ibw4
      http://www.youtube.com/watch?v=8M1gAUXARKY

      "God Save The Queen"

      God save the queen - The fascist regime - They made you a moron - Potential H-bomb
      God save the queen - She ain't no human being - There is no future - In England's dreaming

      --
      Fascism trolls keeping me up every night. When I starts a preachin', he HITS ME WITH HIS REICH!
    8. Re:As someone who lives in the UK.. by Blakey+Rat · · Score: 1

      What he means is that while you have the right to remain silence, your silence can be construed as an admission of guilt later on. Where in the United States, the 5th Amendment prevents your silence to be considered a factor in your trial.

      Or maybe I misunderstand the point.

    9. Re:As someone who lives in the UK.. by Rogerborg · · Score: 1

      As for the UK not having free speach, name a particular UK law regulating it that you believe shouldn't be a crime.

      Serious Organised Crime and Police Act 2005, section 132 - 138, aka Brian Haw's Law.

      --
      If you were blocking sigs, you wouldn't have to read this.
    10. Re:As someone who lives in the UK.. by Rogerborg · · Score: 1

      .. I never realised until recently with the whole NHS thing on the news that we even had laws that tried to silence people.

      Then you're doubtless nice but dim.

      Serious Organised Crime and Police Act 2005, section 132 - 138, aka Brian Haw's Law.

      --
      If you were blocking sigs, you wouldn't have to read this.
    11. Re:As someone who lives in the UK.. by LingNoi · · Score: 1

      What's your point? Could to make one instead of calling me an idiot and handing a link to your protest crap.

    12. Re:As someone who lives in the UK.. by CrossChris · · Score: 1

      Were/are D Notices legally binding? Yes, they are. I've been prosecuted for infringing a D-Notice in my radio programme.

    13. Re:As someone who lives in the UK.. by Rogerborg · · Score: 1

      Not an idiot, just dim. But nice, I've very sure.

      --
      If you were blocking sigs, you wouldn't have to read this.
    14. Re:As someone who lives in the UK.. by digitig · · Score: 1

      Not "Are", "Were". D Notices no longer exist, they've been replaced by DA notices which are voluntary.

      --
      Quidnam Latine loqui modo coepi?
    15. Re:As someone who lives in the UK.. by Fatalis · · Score: 1

      In the UK you categorically DO NOT have the right to freedom of speech.

      What about the European Convention of Human Rigts? I believe Britain has signed and ratified it and its protocols.

      --
      Deus est fatalis
  7. Go Wikileaks! by Anonymous Coward · · Score: 0

    Thanks for these good news, seems like Wikileaks is still holding up!

    Time some people in this world realize that truth actually is a factual reality and that people will stand up for it. That people will not run with the first stupid threat in sight. Now lets just all hope the majority of the public will realize the massive tool this represents and make a use of it.

    Tearing down the house of lies, brick by brick!

  8. Collapsed? by nmg196 · · Score: 5, Informative

    Northern Rock has not collapsed. It's share price has, but the bank itself is still trading normally.

    1. Re:Collapsed? by wall0159 · · Score: 4, Informative

      "Northern Rock has not collapsed."

      I think it has, actually. The UK government injected a huge amount of tax-payers money into it, and there has been talk of forced nationalisation.

      The London Review of books has a very interesting article about it that also gives quite a bit of financial background (eg. regarding futures, options, and the way that banks operate) that helped me to better understand the context of the whole thing.

      http://www.lrb.co.uk/v30/n01/lanc01_.html

    2. Re:Collapsed? by bri2000 · · Score: 4, Interesting

      If you consider having to get an emergency government loan of £24 billion in order to maintain solvency in the face of depositors withdrawing their money, together with a government guarantee worth £30 billion or so in order to allow you to access the wholesale money markets, trading normally then that's right. It's more accurate, I think, to say that Northern Rock's business model of borrowing short (by issuing short term paper secured on their mortgage portfolio) to lend long collapsed following the flight from mortgaged backed securities in August/September. There may be a legitimate debate to be had over whether or not Northern Rock's mortgage assets are really as valueless as the markets think - the UK government certainly seems to think not but I'm not sure that's a punt I want them taking with my taxes.

    3. Re:Collapsed? by UbuntuDupe · · Score: 4, Insightful

      Well, you have to be careful in distinguishing the kinds of solvency problems. If it was merely a matter of "We can give you your money, but only after our loans are paid back with interest", that's what central banks are for: to lend when the bank has trouble selling its (good quality) loans because of temporary market kinks. (i.e. liquitiy crisis) So it wouldn't be that bad for the government to do it also. It's just making it a loan that will be paid back with the stream of income from the bank's loans come in.

      HOWEVER, if it was a case of "We're lending you the money, even though we know your loans are bad and you can't actually pay us back but we're going to prop you up anyway", THEN you have good reason to object to it, and it would be an unfair taxpayer bailout.

    4. Re:Collapsed? by badfish99 · · Score: 1

      Actually, its share price is doing very well. The FTSE (London stock exchange average) fell 5% today, but Northern Rock shares are up 25%.

      Some people might be naive enough to thing that, if a bank becomes insolvent and requires to be bailed out with £60 billion of government money to repay its investors, then the owners of the bank would lose their money. In fact they seem to be making a fat profit out of the situation.

    5. Re:Collapsed? by moosesocks · · Score: 1

      It's even partially responsible for the fact that the pound is tanking, even compared to the already-pathetic US dollar.

      Once Bush gets his second round of suicidal tax cuts, I'm sure things will even themselves out....

      --
      -- If you try to fail and succeed, which have you done? - Uli's moose
    6. Re:Collapsed? by ghyd · · Score: 1
      I'm not an economist but from reading the journal of the same name:

      Northern Rock has not collapsed It has ("The government faces this stark choice--between finding a fully financed private-sector saviour (which now looks increasingly elusive), taking the bank into public ownership or just letting it go bust").

      the bank itself is still trading normally. The government is injecting lots of money to make it so ("Taxpayers' total exposure amounts to at least half of Northern Rock's balance sheet").
    7. Re:Collapsed? by jimicus · · Score: 4, Insightful

      but Northern Rock shares are up 25%.

      Very true. Over the course of the last 24 hours, Northern Rock shares are up 25%.

      But 12 months ago, Northern Rock shares were touching 1200p each. Today they're worth 88p each. That's more than a 90% drop. Take a look at the graph for the last years' share prices here:

      http://www.citywire.co.uk/Shares/ShareFactsheet.aspx?InstrumentID=2375

      Right now Northern Rock shares are only for those with brass balls so big they need a wheelbarrow to carry them around in.

    8. Re:Collapsed? by ghyd · · Score: 2, Informative
    9. Re:Collapsed? by aristolochene · · Score: 1

      yes, "up" to around 90p, from a year high of £11.65...........

      price only up this morning as it looks like a deal has been reached which would avoid nationalising NR, which would make the shares essentially worthless.

      The 'owners' of the bank are the shareholders, and they've gone and lost a whole shed-load of money. Although I believe the directors took a nice bonus this year.

      "Past performance is not necessarily a guide to future performance and the value of an investment may fall as well as rise." As they say in the small print.

      --
      echo $SIGNATURE
    10. Re:Collapsed? by u38cg · · Score: 5, Insightful
      It isn't tax money. The Bank of England is a central bank, a lender of last resort that can lend essentially unlimited sums in situations where it (and government oversight) deems appropriate. Appropriate circumstances are where a bank is in danger of folding despite being essentially sound businesses. This is the case with Northern Rock - they have plenty of assets, in the form of mortgages; the problem is they tried to fund it with a source of lending that was not (despite their protestations) guaranteed to continue. When the credit markets ground to a halt, they were sitting ducks.

      The Bank did the right thing in extending credit (albeit at an uncompetitive rate), but the Government did the wrong thing in guaranteeing saver's deposits. They would probably have survived anyway and given the entire industry a harsh lesson in the realities of financing. As soon as they did that the nationalisation genie was out the bottle, and once it's out it is very difficult to put back.

      --
      [FUCK BETA]
    11. Re:Collapsed? by Hazelnut · · Score: 1

      They agreed that they would lend anything up to a huge amount of money - IF Northern Rock needed it. This was a case of NR doing the diligent thing and covering the potential disaster, even though it wasn't sure, or even that likely. Turned out they wouldn't need the money, except the amount of dis-information and media scare mongering made it into a crisis. Read, understand, think, react!! Is that really so damn hard for the 99.9% of the population who seem to go: read, jump to conclusion, react? It was and still is a very viable business, although it would be in a much better state without the tabloids and hysteria.

    12. Re:Collapsed? by Anonymous Coward · · Score: 0

      The pound is tanking? Hmm...

    13. Re:Collapsed? by Threni · · Score: 1

      > I think it has, actually. The UK government injected a huge amount of tax-payers money into it, and there has been talk of forced nationalisation.

      That's not collapse - that's support.

    14. Re:Collapsed? by nagora · · Score: 1
      It was and still is a very viable business

      It's not really. Its business model was to lend money to almost anyone based on the rising house market. Now that the market has peaked they're screwed and rightly so because the value of their mortgages is falling while their real - cash - assets have shrunk too; they are effectively bankrupt although on paper they have some wiggle-room to pretend otherwise. That room shrinks everyday the house market contracts.

      The reason they've lent so much in such a little time is that they were reckless and now the Bank of England is going to prop them up in a way which you or I could only dream of if our businesses got into trouble for being stupid, reckless, and negligent.

      NR's big break is that the Government's entire economic policy is based on house prices going up forever (or at least unlil the Tories get in again and have to deal with the consequences). In order to do keep prices going up at trans-inflation levels, the government will do ANYTHING to prevent a major mortgage lender going to the wall because that would cause a meltdown in the house market and the result of that would be the vaporisation of hundreds of billions of pounds in credit - credit which is keeping the economy afloat. We would be looking at double digit inflation by the end of the year and a recession that would put us out of the G8.

      But that's normal for ecomomies based on credit - they're very fragile because, like the Northern Rock itself, they only work as long as no one starts asking for repayments of the capital.

      TWW

      --
      "Encyclopedia" is to "Wikipedia" what "Library" is to "Some people at a bus stop"
    15. Re:Collapsed? by CrackedButter · · Score: 1

      Thank you for explaining the reasons for why the government did lend NR money, the news I've seen never explained this to me, I think sometimes the news channels assume everybody has an understanding of such financing 'things' :-). Most tend to sensationalise rather than provide the in depth analysis.

    16. Re:Collapsed? by Anonymous Coward · · Score: 0

      BBC radio is carrying a story that the 24 billion pounds, which was a loan, is now in government bonds; the UK government will have a stake in the bank. http://news.bbc.co.uk/2/hi/business/7199516.stm

    17. Re:Collapsed? by Tony+Hoyle · · Score: 2, Informative

      If the government hadn't issued the guarantees they did the run on the bank would have continued and NR wouldn't have had any assets left with which to continue lending (in fact if it went on long enough there wouldn't be any assets with which to pay people withdrawing money from their accounts, which could(would?) be a disaster for banking in general - most people still believe that banks keep all the money they're given in safes... if joe public realised that that hasn't been true for 200 years it could trigger mass withdrawl from other banks as well, putting them in jeopardy).

      I've heard it argued that the gov. should have guaranteed the assets much, much sooner to avoid the run on the bank in the first place. Certainly once it had started they IMO made the best of a bad situation.

    18. Re:Collapsed? by Tony+Hoyle · · Score: 1

      But that's normal for ecomomies based on credit - they're very fragile because, like the Northern Rock itself, they only work as long as no one starts asking for repayments of the capital.

      IANABanker, but IIRC they're safe as long as inflation is above 0%.. as long as more wealth is being created, there's always more money to pay the loans plus interest (which is why the UK has an inflation target of 2.5% not 0%).

      If inflation drops too low, or (worse) negative, then there's not enough wealth in the economy and the system basically collapses, leading to recession (presumably until the economy has deflated enough to sustain the existing loans).

      I heard that about 98% of the wealth in a modern economy is loan generated... so it's a big issue that system keeps running.

    19. Re:Collapsed? by Tony+Hoyle · · Score: 1

      The second case could fall foul of EU law anyway, although I'm not sure of the specifics (press reporting hasn't been very deep in this area). That's the reason for the rapid sale/nationalisation options - if they kept it going much longer they'd be in breach (and, it appears, may already be in the opinion of some).

    20. Re:Collapsed? by locofungus · · Score: 1

      It isn't tax money. The Bank of England is a central bank, a lender of last resort that can lend essentially unlimited sums in situations where it (and government oversight) deems appropriate. ... snip ...

      The Bank did the right thing in extending credit (albeit at an uncompetitive rate), but the Government did the wrong thing in guaranteeing saver's deposits. They would probably have survived anyway and given the entire industry a harsh lesson in the realities of financing. As soon as they did that the nationalisation genie was out the bottle, and once it's out it is very difficult to put back.


      Effectively it is taxpayers money. Either the money has come from government reserves or it has been "printed". Provided NR eventually repays this money then no harm will have been done, but if it defaults then the taxpayer will have lost this money, either in devaluation of the pound or loss of government reserves.

      The government had to guarantee saver's deposits. Above everything else, it had to prevent a total loss of confidence and a run on all the banks. Savers money was never in any doubt in the Northern Rock - it had about 100bn of assets to guarantee something like 20bn of deposits (who will have had first call on the money raised from a firesale). So the run was not rational (anybody who was likely to suffer immediate cashflow problems maybe needed to extract a months worth of money), and could easily have spread to any/all of the other banks.

      It is somewhat surprising that the government is doing as much as it is to preserve the (remaining) shareholder equity. Many of the "little people" who have shares got them via a windfall when the bank was privatized. On top of that they've received something like 200p/share in dividends over the years. Of course, they're now looking back at those heady days when their 500 shares were worth 6 grand and wishing they'd sold then (there's an approximately 9k annual CGT allowance so the majority would have had to pay no tax at all on the sale).

      Tim.

      --
      God said, "div D = rho, div B = 0, curl E = -@B/@t, curl H = J + @D/@t," and there was light.
    21. Re:Collapsed? by Tony+Hoyle · · Score: 1

      price only up this morning as it looks like a deal has been reached which would avoid nationalising NR, which would make the shares essentially worthless.

      It's still a *huge* risk. The strings attached to the deal mean that the prospective buyers might just walk away, leaving nationalisation the only option.

      At least they've taken the shareholders out of the loop. They vetoed all the previous rescue bids and are basically to blame for how long this fiasco has gone on.

    22. Re:Collapsed? by wall0159 · · Score: 1

      "It isn't tax money ...."

      I'm not an authority, but I think this is incorrect. But to be honest, you don't sound like you really know what you're talking about either. Can I recommend again reading the article? (I know the LRB is a bit left, but there are a lot of interesting things in the article).

      "the Government did the wrong thing in guaranteeing saver's deposits."

      This is a big (belatedly-recognised) problem with the arrangement at the moment, and is discussed in the article to which I linked. The banks lended out (to unsafe borrowers) too much money. Why do this? Because they were trying to make money for their shareholders. So, essentially the bank was risking depositors money, and leveraging it to pay dividends to shareholders. Sound unfair to you? This is (according to some speculators) the only reason the government stepped in - shareholders are aware of the risks in the sharemarket, but people's money in the bank _should_ be safe.

      Now, I go on a bit about this, cause I think it's disgusting that banks sell shares. The shareholders _should_ be the people who've put their money in there. (yes yes, naive idealism, I know)

    23. Re:Collapsed? by Tony+Hoyle · · Score: 1

      it had about 100bn of assets

      Actually most of that 100bn is worthless because it is mostly in mortgages, which it can't sell in the current market climate. That's why it got into that mess in the first place. If its depositors tried to withdraw their money there was a risk of running short of liquid assets. Plus if your reserves get too low you can't lend any more, and your business model is hosed - no loans == no new income.

      Because NR didn't diversify (all the other banks did) it was left with a problem, hence this mess started.

    24. Re:Collapsed? by xtracto · · Score: 1

      Right now Northern Rock shares are only for those with brass balls so big they need a wheelbarrow to carry them around in.

      Or for speculators. If the share are at 88p each one it means they can not go down further, it would be clever then to buy and maybe hedge whatever risk (how much will you lose if you buy 200 shares?) in another investment (some Option or whatnot).

      --
      Ubuntu is an African word meaning 'I can't configure Debian'
    25. Re:Collapsed? by flink · · Score: 1

      Now, I go on a bit about this, cause I think it's disgusting that banks sell shares. The shareholders _should_ be the people who've put their money in there. (yes yes, naive idealism, I know)
      I'm pretty sure what you're describing is a credit union -- it's basically a not-for-profit, depositor owned bank.
    26. Re:Collapsed? by speculatrix · · Score: 1

      google for "fractional reserve banking", read a few articles and then tell me that your savings and pensions are safe, or maybe you';d prefer to buy gold or other precious metal first?

    27. Re:Collapsed? by rcs1000 · · Score: 1

      "Actually most of that 100bn is worthless because it is mostly in mortgages"...

      Whoah there!

      Worthless? Let's take some assumptions. Assume 20% of Northern Rock borrowers default (10x historic levels).

      Then assume they have loans at an average loan-to-value of 90% (which it isn't). And assume that house prices have fallen 30% (which they haven't). So - approximately - Northern Rock would lose one-in-five pounds lent to those who defaulted. Or, a 4% total loss on assets. (Which would be 5x the greatest loss a Swedish bank managed when their house prices dropped 25% in the early 90s.)

      So, the 100bn would be worth 96bn.

      Hardly worthless...

      --
      --- My dad's political betting
    28. Re:Collapsed? by digitig · · Score: 2, Informative

      In UK terminology it's a "Mutual Society" I think. There are very few left in the UK, though. Most of them demutualised when the government relaxed the banking regulations some years ago.

      --
      Quidnam Latine loqui modo coepi?
    29. Re:Collapsed? by Anonymous Coward · · Score: 0

      This actually happened in the US in the late 1920s. There was a bank run that bankrupt most of the regional banks and a couple of national banks in the US, and was within a day or two or wiping out the entire banking industry (there was a period of about a week between total solvency and absolute ruin). The government declared a temporary banking holiday which ran for a week or so, and ultimately lead to the creation of the FDIC, which guaranteed the first $100,000 of a person's deposits in a given bank, and which ultimately resolved the bank run.

      It still left thousands with a total loss of their life savings, and steeply harshed what would become the Great Depression. It took a world war to recover from that bank run.

    30. Re:Collapsed? by TheLink · · Score: 3, Insightful

      If crap really happens some people would rather have lots of supplies of fuel, food and water.

      Of course some people would rather have lots of ammo and guns.

      You can't eat gold. Maybe it might be used as a currency, but maybe not.

      --
    31. Re:Collapsed? by nagora · · Score: 1
      IANABanker, but IIRC they're safe as long as inflation is above 0%..

      That's the core issue for the NR: if house-price inflation drops to less than 0% (which it has at least in parts of the country) then the jig is up unless they have substantial deposits from savers to carry them through. Oh dear.

      By extension, given just how much of the UK economy has been based on remorgaging homes during the housing boom, recession is a real danger. In reality, given that house prices have gone up far faster than wages, it's inevitable because people HAVE to run out of money to pay their morgages eventually. My home town has had 25 and 50% house price increases for several years of the last decade; we're rapidly running out of 1st-time buyers to feed that market. It's not quite tulipmania (after all, you couldn't live in your tulip!) but it's looking more like it everyday.

      TWW

      --
      "Encyclopedia" is to "Wikipedia" what "Library" is to "Some people at a bus stop"
    32. Re:Collapsed? by Splab · · Score: 1

      Actually I think the news stations have absolutely no idea what it means, but fear to show failure and thus just act like it should be common knowledge (and not just regarding this, but generally).

    33. Re:Collapsed? by gknoy · · Score: 1

      If the share are at 88p each one it means they can not go down further...


      It can always go down further. If you buy at 88, and it drops to 44, or 22, you've just lost 50% or 75% of your investment.

      So - again, it IS for speculators. I agree that in the case of a bank like this, it might seem likely that it will go back up ... but that's not a certainty, is it?
    34. Re:Collapsed? by TobascoKid · · Score: 1

      but the Government did the wrong thing in guaranteeing saver's deposits

      I don't think they had much of a choice. The Government has been actively encouraging people to save for years. If a lot of people lost their savings a lot of blame would be directed at the Government for their blind encouragement of saving.

      I think it all comes down which would look worse in the media - the situation we have now, or the situation that would have happened had the government not backed up peoples savings.

      --
      At some point, somewhere, the entire internet will be found to be illegal.
    35. Re:Collapsed? by speculatrix · · Score: 1

      gold is nice and dense, ideal for beating people to death, but you do need quite a lot of it for that!!!

    36. Re:Collapsed? by drsquare · · Score: 1

      I think what he means is, as they're in mortgages, which no-one wants to buy, they can't use them to pay back deposits.

    37. Re:Collapsed? by larytet · · Score: 1
      but only after our loans are paid back with interest

      ... and this is where the problem starts. too many guys over there including the bank itself do not believe that loans the bank holds are going to be repaid. Check e-trade recent deals. According to some estimations ETrade got less than 0.25$ for every $1 of sold mortgage backed securities.

    38. Re:Collapsed? by jamesbulman · · Score: 1

      I would hardly the say the pound is tanking, especially if you look at it over a more sensible time frame.

      http://finance.yahoo.com/q/bc?s=GBPUSD=X&t=5y&l=on&z=m&q=l&c=

    39. Re:Collapsed? by locofungus · · Score: 1

      I think what he means is, as they're in mortgages, which no-one wants to buy, they can't use them to pay back deposits.

      Nobody wants to buy them (or lend against them) at their face value.

      But if NR was in administration then they would be sold at the best value that could be got for them. It is inconceivable, even in the current market, that they wouldn't realize enough to pay off the NR depositors.

      Even Baring depositors got paid off in full although some will have been very worried for about a week.

      IIRC BCCI depositors got about 75% back eventually although it took years.

      Tim.

      --
      God said, "div D = rho, div B = 0, curl E = -@B/@t, curl H = J + @D/@t," and there was light.
    40. Re:Collapsed? by TheWizardOfCheese · · Score: 1

      The Bank did the right thing in extending credit (albeit at an uncompetitive rate), but the Government did the wrong thing in guaranteeing saver's deposits. They would probably have survived anyway and given the entire industry a harsh lesson in the realities of financing. As soon as they did that the nationalisation genie was out the bottle, and once it's out it is very difficult to put back.

      This statement is completely wrong: the governemnt did (and is doing) the wrong thing in failing to guarantee deposits until it was too late, but attempting to bail out equity holders with a loan. All countries with developed banking systems guarantee deposits, up to some maximum, the purpose being to forestall bank runs. In return for the guarantee, banks must abide by regulations intended to ensure prudent business practices. The problem in the UK is that the maximum for 100% guarantee is absurdly low, just 2,000 pounds. The next 33,000 are 90% guaranteed, but since nobody wants to lose 10% of their savings, this guarantee is useless for preventing bank runs - it really is just a waste of money.

      Had the full guarantee been in place for 35,000, the Northern Rock run might never have happened. Even if it did happen, the governement would have been in a politically viable position to allow the bank to fail, thus teaching "the entire industry a harsh lesson in the realities of financing." As it is, they have managed to combine a bank run, a bailout, and a non-viable bank.

      The need to nationalize is a consequence of the bank bailout, not the deposit guarantee. The reason that nationalization will probably necessary is essentially the same as the reason the bank got into trouble in the first place: decline in interbank lending, and consequently, lending generally. Although, as others have mentioned, the Rock engaged in some doubtful lending, their real sub-prime difficulties lie on the liability side of the book, not the asset side (they funded their mortgage book by a combination of securitization and borrowing on the international money market.) Although the value of their assets appears to exceed the value of their liabilities by at least a few hundred million pounds (a couple of billion claim RAB et al), the government cannot find a buyer because nobody can borrow the 25 billion needed to pay back the B of E loan. Another bank would be the natural buyer, but these are frantically seeking to raise more capital, not looking for places to spend it. That is another consequence of the sub-prime crisis.
      --

      "The good reader is a rarer swan than the good writer."
    41. Re:Collapsed? by Skippy_kangaroo · · Score: 1

      All countries with developed banking systems guarantee deposits, up to some maximum, the purpose being to forestall bank runs.
      Sorry, that is incorrect.

      A deposit guarantee system is not ubiquitous and it is not necessary to prevent bank runs. Australia, for one, has no explicit guarantee of bank deposits yet has had remarkably few bank failures and no runs in modern times. Furthermore, as you observe, a guarantee system is clearly not sufficient. The UK has a guarantee that involves a considerable time lag and only gives you back 90% of your funds above 2000 pounds. Given the option, I would prefer to have my money now rather than wait a long time to get back 90%.

      Had the full guarantee been in place for 35,000, the Northern Rock run might never have happened.
      Maybe, or maybe it would have for exactly the same reasons. I would prefer to have my money now rather than wait for the whole thing to go pear shaped and wait some more time to get my money back.

      Even if it did happen, the governement would have been in a politically viable position to allow the bank to fail, thus teaching "the entire industry a harsh lesson in the realities of financing."
      No government is going to allow an institution that holds the life savings of millions of voters to fail. It's all very well to talk tought now, but when push comes to shove, it's not going to happen. The government will bail it out to protect depositors/voters.

      The need to nationalize is a consequence of the bank bailout
      The need to nationalise is not a consequence of the bank bailout. Absent the bank bailout it would already be nationalised or shut. The need to nationalise is a consequence of international financial markets being unwilling to purchase mortgage backed securities at any price and the resulting cash flow crunch for the bank - which is exactly the same reason for the bailout.

    42. Re:Collapsed? by moosesocks · · Score: 2, Interesting

      The important bit to note is that this is the first time the pound has taken a hit against the Dollar in quite a long time -- and it's been a significant one at that, considering the short timeframe.

      Likewise, a more enlightening comparison would be against the Euro, where a *VERY* perceptible dip is noticeable, considering that the exchange rate between the two has remained constant, apart from a bit of "noise" for the past few years. This is the first time the pound has taken a noticeable "hit" against the Euro. The dollar's been rather volatile for the past few years, so it's not exactly the best benchmark to compare against -- the EU, on the other hand, is a quite good benchmark to tell how well the pound's been doing, especially considering that Britain is a part of the EU and all....

      Similarly, fears over the US economy caused international markets to take the biggest hit they've seen since 9/11 today. The US exchanges aren't trading today because of MLK day, so it'll be interesting to see what happens tomorrow. Hopefully it won't be a "black Tuesday", although there are fears that it could happen, especially considering what happened abroad today.

      The dollar has definitely taken a definite hit over the past 8 years (and is inexplicably recovering at the moment....), but this is the first time that the Pound Sterling itself has taken a hit, which is indeed something to make note of.

      --
      -- If you try to fail and succeed, which have you done? - Uli's moose
    43. Re:Collapsed? by eipgam · · Score: 1

      I'm not sure I agree that the government shouldn't have guaranteed deposits. The funding provided by the Bank of England did nothing to shore depositor confidence and the run was doing huge damage to the reputation of the UK financial services industry - when the UK bills itself (rightly or wrongly) as a financial centre, queues of panicking depositors aren't a good thing. However, maybe I would agree about having put a realistic cap on the level of deposits guaranteed.

    44. Re:Collapsed? by eipgam · · Score: 1

      Borrowing short and lending long is fundamental to banking. Most banks use wholesale funding to support lending, but not always to the same extent as Northern Rock.

    45. Re:Collapsed? by Anonymous Coward · · Score: 0

      no you are mistaken,

      if the central bank increases the money supply in the economy,
      there is more money chasing few economic goods,

      if 100 GBP you could earlier buy 100 Kg wheat,
      now with 100 GBP you could only buy 100 Kg wheat

      you ARE paying for it.

    46. Re:Collapsed? by RockDoctor · · Score: 1

      Savers money was never in any doubt in the Northern Rock - it had about 100bn of assets to guarantee something like 20bn of deposits (who will have had first call on the money raised from a firesale).

      At best second call ; more likely third call. Still probably safe, but the people who were running from the bank were thinking with their twitching sphincters, not their brains.
      In a liquidation, the first two organisations in the line for getting paid out of the assets are the tax man and the beancounters doing the liquidation ; this is obviously because the beancounters wouldn't do the job if they weren't sure of getting paid, and the taxman sets the laws about the taxman ALWAYS getting paid.
      Normal (and secured) creditors form the next line. I'm not sure about the sequence of the taxman and the liquidators.

      So the run was not rational

      Agreed. As a non-investor, may I add the phrase "rib-ticklingly hilarious"?
      --
      Birds are not dinosaur descendants;birds are dinosaurs, for all useful meanings of "birds", "are" and "dinosaurs"
    47. Re:Collapsed? by malsdavis · · Score: 1

      "It has ("The government faces this stark choice--between finding a fully financed private-sector saviour (which now looks increasingly elusive), taking the bank into public ownership or just letting it go bust"). "

      Um, it would only be "collapsed" if both a private buyer could not be found and the government were unwilling to loan it cash or buy it.

      Otherwise all banks would be deemed either collapsed or near collapse at the end of a bad trading day (which these days is almost every other day). As long as someone is willing to help keep z company afloat by definition it has not yet "collapsed".

    48. Re:Collapsed? by malsdavis · · Score: 1

      Um, you completely contradict yourself there. It would only be "collapsed" if both a private buyer could not be found and the government were unwilling to loan it cash or buy it; thereby forcing it to stop trading.

      As long as someone is willing to help keep a company afloat by definition it has not yet "collapsed". Otherwise lots of banks would be deemed either collapsed or near collapse at the end of a bad trading day (which these days is almost every other day!).

  9. Were you taught monetary theory in school? by Trevelyan · · Score: 3, Informative

    Modern banking does rely an some non understanding and/or acceptance of the system to work. This video explains how banks today came to be, and why our governments are so entangled with them. The UK government bailing northern rock doesn't surprise me, nor does their desire to keep some things out of the public eye. Its scary that our press can be silenced so easily.

    1. Re:Were you taught monetary theory in school? by Tony+Hoyle · · Score: 5, Informative

      The problem with that video is it confuses fractional reserve with tort money and as a result its conclusions are nonsense.

      If the system were as that video states than banks would never go bust - they could make infinite money just by lending it to each other!

      The wikipedia article covers what really happens http://en.wikipedia.org/wiki/Fractional-reserve_banking

  10. link to file to mirror by BestNicksRTaken · · Score: 3, Informative

    https://secure.wikileaks.org/leak/Project_Wing_-_Northern_Rock_Executive_Summary.pdf

    grab it before it gets taken down.

    when i lived in the usa i got quite peeved by the way bills were just put into place by companies who "owned" congressmen and senators (dmca is a prime example). now i'm back in the uk the practice seems to have followed me - it wasn't my fault honest!

    --
    #include <sig.h>
  11. Assassinate the assassins by devnullkac · · Score: 2, Insightful

    Taking a page from the business of assassination: censor the censoring documents.

    --
    What do you mean they cut the power? How can they cut the power, man? They're animals!
  12. This is what the DMCA is really about- censorship by kurt555gs · · Score: 4, Insightful

    In the era that I grew up, no one would try to use copyright laws to censor wrongdoing. Edward R Murrow would not have even thought that leaked documents could not be used as a news source.

    History will show that the DMCA is one of the most evil laws ever past in the country, and is the lynch pin to Fascism.

    The whole WIPO organization is simply there to protect the rich, and do no good whatsoever for the common man.

    But it is censorship, not music that the DCMA is about.

    Just try and see how far anyone gets getting congress to repeal this one.

    This is the keystone of total control by the rich.

    Have a nice day.

    --
    * Carthago Delenda Est *
  13. Censorship is dying of a slow, terminal illness. by Thanshin · · Score: 1

    You can't put out wildfires by spitting on them.

  14. FUD by Anonymous Coward · · Score: 0

    "The letters raise a serious issue about the climate of censorship in the UK, where one can apparently easily obtain a censorship order" It's all very well saying that but I'll believe it when I see it enforced. As you point out, the Guardian is still talking about it and it was used elsewhere at the time.

  15. Lawyers don't care about spirit of law by Pecisk · · Score: 1

    They care about getting things done (as anyone else in corporate culture). And it means using all means necessary, even fraudulent cease and desist letters, copyright claims, etc. Think SCO, but as common sense in lawyer's mind.

    I hope Wikileaks will get trough this and will be stronger than ever.

    --
    user@ubuntubox:~$ stfu This server is going down for shutdown NOW!
    1. Re:Lawyers don't care about spirit of law by Anonymous Coward · · Score: 0

      "They care about getting things done (as anyone else in corporate culture). And it means using all means necessary, even fraudulent cease and desist letters, copyright claims, etc. "

      It is funny - this has always rather been my perception of "ideal" organisations and governments (up to and well including violence and fraud), with the clear difference from private companies that there does not exist any political will to limit or sanction these (their own, and those of their study friends') activities.

  16. Stick with facts by Anonymous Coward · · Score: 0

    The bank hasn't collapsed - yes loans blah blah - possible nationalisation - blah blah.

    hasn't collapsed /FACT/

    strange that ./ers ignore the facts eh.....

  17. Start as you mean to continue... by EddyPearson · · Score: 2, Insightful

    "re-floated by the Bank of England at a cost of over £24bn."
    and of course the first thing they do is spent as much of it as possible on lawyers for frivolous suits. You've fucked up once, why not try it a different way this time?

    --
    You feel sleepy. Close your eyes. The opinions stated above are yours. You cannot imagine why you ever felt otherwise.
    1. Re:Start as you mean to continue... by gbjbaanb · · Score: 1

      erm no. They spent it on secret bonuses for managers and directors. Who'd have thought!

  18. Raising a serious issue by hey! · · Score: 5, Insightful

    The letters raise a serious issue about the climate of censorship in the UK...


    Well, maybe. I can claim anything I want, and unless you can put a dollar figure on the cost of my making that claim, you don't have a legal claim against me. In some ways the more outrageous the claim, the safer I am in making it. I can claim I own everything written on Slashdot because God told me it was mine. If Slashdot shut down, and sued me for damages, I suspect the judge would throw the case out on the basis that we're both as crazy as a bedbug.

    The art, I suppose, is to make a threat that is credible enough to make others do your bidding, but not so credible it can't be construed as fraud. Making wild DMCA claims is pretty borderline. What you're really saying is that while I'd almost certainly beat the snot out of you in a court of law, life's short and is it really worth my while just for this? If there were quantifiable money on the table, I'd got to court, but if I could assuage you for nothing, I might well do so, even if I wouldn't bother if you were asking nicely.

    With respect to this being censorship -- well whether it is or not depends on whether the content is the deciding issue. If you break into my house and steal my diary, and a judge orders you not to print my diary, it's not censorship, because the issue here is ownership. If you anonymously mail the diary to my local paper, I can get an injunction against their publishing it. It's not the content of the diary that is at issue, it's the fact that I have a common law copyright to my private, unpublished papers.

    If you want to publish your diary and I don't like what you have to say about me, my stopping you would be censorship, except if it were defamation.

    There are two issues here: freedom of expression and privacy. I don't like the term "balancing", because that gives a false impression of what has to be done. The two issues have to be reconciled. Freedoms to do something do not, in general, mean you are free of obligations that might restrict you. If you have a document I created, the question is what duties do you have to me relating to publishing that document and disclosing its content? Whether you have a right to even posses the document certainly matters. Your duties to others and the public certainly matters. If I carelessly leave a private letter in the coffee shop, and it just has personal (although amusing) information, a reporter who discovered it would, I think, be duty bound to return it to me unpublished. If it details my involvement in embezzling public funds, the reporter's duty to the public is paramount.

    It's not cut and dried.
    --
    Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
    1. Re:Raising a serious issue by Stiletto · · Score: 3, Insightful

      With respect to this being censorship -- well whether it is or not depends on whether the content is the deciding issue. If you break into my house and steal my diary, and a judge orders you not to print my diary, it's not censorship, because the issue here is ownership. If you anonymously mail the diary to my local paper, I can get an injunction against their publishing it.

      Whether or not something is "censorship" has nothing to do with the content. Censorship is simply the act of erasing something that is deemed objectionable by someone else. It doesn't matter what the "thing" is, who is erasing it, or who "someone else" is.

      You might argue that some kind of censorship, such as your diary example, is justifiable, but it is still censorship.

    2. Re:Raising a serious issue by Anonymous Coward · · Score: 0

      Extreme public interest trumps privacy and information restriction afforded by privacy.

      If a true and legitimate document exists that has information stating for instance:
        - President Bush and the Saudi gov't collaborated to fund the events of 9/11
        - Senator Clinton has plans to bring certain large public banks under the control of the Federal Reserve
        - The recent extraterrestrial sightings in Texas were actual extraterrestrial alien craft

      then no matter how 'private' the document, distribution in the public interest is of the higher priority.

    3. Re:Raising a serious issue by maxume · · Score: 1

      It's a little bit cut and dried. The reporters personal ethics should lead him to return you personal letter, but it shouldn't be a law that he must do so. The same thing with letter detailing embezzlement, his ethics should lead him to disclose the contents publicly, but it shouldn't be a law.

      --
      Nerd rage is the funniest rage.
    4. Re:Raising a serious issue by Tony+Hoyle · · Score: 1

      It's not censorship at all it's copyright.

      There are also tortuous laws concerning corporate secrets (that we borrowed from the US) and can be invoked here.

      Basically if you leak that kind of shareholder information you can end up in jail - that much is made clear to *anyone* who is party to such information. Printing that leak is a copyright issue, and also may open up the journal that prints it to other legal problems.

      That's why leaks are always anonymous - wikileaks are treading a *very* thin line by not being anonymous. The NR lawyers also have a legal duty to protect such information and are acting within the law.

    5. Re:Raising a serious issue by ContractualObligatio · · Score: 1

      Censorship is simply the act of erasing something that is deemed objectionable by someone else.

      Yes, although that particular definition strips the word of all the implications of the other dictionary definitions, and goes against the way many interpret the word. That's bad use of the English language. Worse, it could still carry those implications and therefore reduce the chances of having an objective discussion of the situation. It's like the dissembling used by crooks and politicians - technically correct but nonetheless bullshit. Using words to play on people's fears while confusing the situation is a bad thing.

    6. Re:Raising a serious issue by Anonymous Coward · · Score: 0

      If you want to publish your diary and I don't like what you have to say about me, my stopping you would be censorship, except if it were defamation. Whether the material is defamatory or not, restricting its publication is still censorship. You can't claim that it's not censorship simply because it's a form of speech that you don't like.
    7. Re:Raising a serious issue by hey! · · Score: 1

      Censorship is simply the act of erasing something that is deemed objectionable by someone else


      Then it is about content.

      If I speak a bunch of my opinions about people you've never heard of, but I do it in front of your house at 3am using a bullhorn, you can call the cops without it being censorship. Yes, you find what I'm doing objectionable, but it is not the content that matters, it is the manner and circumstances (especially if I stole the bullhorn from you).

      If I am writing opinions on my blog you find objectionable, and you lobby the service provider to pull my account, that is censorship.
      --
      Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
    8. Re:Raising a serious issue by Thundersnatch · · Score: 1

      Censorship has everything to do with content. From Webster's: "an official (as in time of war) who reads communications (as letters) and deletes material considered sensitive or harmful".

      Note to Slashdot readers under the age of 30: words mean things. Most actually have fairly unambiguous meanings. You can't just make it up as you go along, even if Bill Clinton once tried to redefine "is" on TV when you were 10.

  19. Orthography vs Copyright by Anonymous Coward · · Score: 0

    Does lettre misplecament cosntitute the legla asnwer to copyrgihts?
    I say let's kill some lawyers this time not just the nobles.

    Unicorn

  20. Once again! by Vinegar+Joe · · Score: 1

    "The dark night of fascism is always descending in the United States and yet lands only in Europe." - Tom Wolfe

    --
    "The average reporter we talk to is 27 years old......They literally know nothing." - Ben Rhodes
  21. A more nuanced question by ContractualObligatio · · Score: 4, Insightful

    The letters raise a serious issue about the climate of censorship in the UK, where one can apparently easily obtain a censorship order -- a judge made law -- that everyone is meant to obey, but no one is meant to know.

    Does it? From the linked newspaper article:

    But the judge, Mr Justice Tugendhat, rejected a more stringent prohibition that Northern Rock had sought - to ban news coverage of the memo on FT.com and other websites.

    "We were looking at funding a principled legal case about news that was looking increasingly historic by the day," said Paul Murphy, the editor of Alphaville.

    Northern Rock failed to win an injunction against the Telegraph after the paper revealed details of the sales document sent out to prospective bidders.

    The bank failed to force the Daily Telegraph to reveal its source for the article and failed to get the newspaper to remove its article.

    Even as a British taxpayer, I struggle to work up much concern about "censorship" when clearly no-one's freedom of speech is being curtailed. A judge says newspapers can't publish private documents, and the newspaper drops the "public interest" appeal because it's already become old news. In the meantime, newspapers remained free to publish their articles and protect their sources.

    It's quite a leap to go from those decisions to taking a mercenary law firm's typically overstated demands as being a "serious issue".

    p.s. on the subject of not being serious, I can't be the only one who would struggle to take a judge called "Tugendhat" seriously. Tug who's end into who's hat, I'd like to know...

    1. Re:A more nuanced question by jschrod · · Score: 1

      p.s. on the subject of not being serious, I can't be the only one who would struggle to take a judge called "Tugendhat" seriously. Tug who's end into who's hat, I'd like to know...
      You might be even more amused when you learn that "tugend" means "virtue" in German. To put one's virtue in one's hat; that's great, for sure. :-)

      Joachim

      --

      Joachim

      People don't write Manifestos any more -- what's going on in this world? [Frank Zappa]

    2. Re:A more nuanced question by Anonymous Coward · · Score: 0

      You'd be a lot less amused if you knew how these ridiculous names came to existence. A few hundred years ago jewish inhabitants in the old austrian empire were forced to change their jewish names to something german. A bunch of anti semitic administration officials made a habit of handing out the most pathetic names unless bribed. Most of these names went away (either changed or people having them getting killed in the nazi empire), but those who made it to the US appparently kept them because nobody understood what they meant anyway.

    3. Re:A more nuanced question by capnez · · Score: 1

      I'd like to elaborate on jschrod's comment a little further: I speculate that the judge's name stems from the adjective "tugendhaft" (notice the only difference in the added "f"), which means "virtuous" (I do not think it has anything to do with the headdress). What a great name for a judge!

  22. A dangerous precedent by Drasil · · Score: 1

    Life imitates art once again.

    The thing that he was about to do was to open a diary. This was not illegal (nothing was illegal, since there were no longer any laws), but if detected it was reasonably certain that it would be punished by death, or at least by twenty-five years in a forced-labour camp.

    While I accept this this Orwellian vision is not quite the same as the instance contained in the story, it seems the logical conclusion. If a law is secret how can one obey it? If a law cannot be read does it even exist? If we are to be punished for breaking laws that cannot be shown to exist then what hope is there for our Freedoms?

  23. This is rubbish by Gordonjcp · · Score: 3, Insightful

    The letters raise a serious issue about the climate of censorship in the UK, where one can apparently easily obtain a censorship order -- a judge made law -- that everyone is meant to obey, but no one is meant to know.

    This is false. There is no legal basis in the UK for what they are doing. They're chancing their arm, and hoping that the threat of big scary lawyers will frighten away the... other big scary lawyers. I can't see that working.

    1. Re:This is rubbish by JasterBobaMereel · · Score: 1

      This is irrelevant to the UK they are using US Laws to stop a US based site ... ?

      The DMCA has no relevance to UK or European laws ...and the Wikileaks site is hosted in the US so is outside UK juristriction?

      --
      Puteulanus fenestra mortis
    2. Re:This is rubbish by Cederic · · Score: 1


      I'd say there is legal basis in the UK for what they are doing; they have a court order, things don't get much more legal than that.

      Posting the text of the document infringes copyright. That's illegal. The court order reflects that.

      Posting facts gleaned from the document does not infringe copyright. That's (presumably) why the court didn't block publication of a press report based on it.

      I'd say that (within the constraints of copyright law) the law is working fine, nobody is being unduly censored, and the court has managed to simultaneously serve both its duties to the copyright holder and also the public interest.

      That the FT were appealing against the ban on posting the copyrighted document is interesting, but I can't be arsed to find out the legal justification they were using. I would guess it would be a public interest argument, but go ask the lawyers if you really care.

    3. Re:This is rubbish by Sigma+7 · · Score: 1

      Posting the text of the document infringes copyright. That's illegal. The court order reflects that. [citation needed]

      As shown in the last paragraph of demand posted on Wikileaks, the plaintiffs want their English legal advisers provide a written undertaking that the court orders will only be used for legal advice and not republished - and they won't give a copy of these orders beforehand. How does the court order reflect that posting the text of the document infringe copyright?

      I understand that some court documents may be sealed, but I doubt this one is (since it will need to be distributed to others, perhaps in bulk.)
    4. Re:This is rubbish by Cederic · · Score: 1


      On that regard I suspect there is no legal obligation - hence requesting a written undertaking.

      Anyway, this is slashdot, fuck off with your 'citation needed'. This is uneducated opinion masquerading as fact, of course there are no citations.

  24. Re:This is what the DMCA is really about- censorsh by zappepcs · · Score: 1

    I know I'm a bit ahead of the calendar on this, but there is one thing that the French did right - Bastille Day is how they celebrate it. Now, I'm not advocating that anyone use their second amendment rights to do anything rash, but now might be a good time to buy some ammo from Walmart.

  25. That may be a good thing by Anonymous+Brave+Guy · · Score: 4, Insightful

    While I am as wary of any kind of censorship as the next guy, we would also do well to remember that the entire Northern Rock episode was basically caused by media over-hyping a short term liquidity problem, which is a relatively benign, if somewhat unusual, banking situation.

    The way the credit crunch/government loan issue has been portrayed in the mainstream media, even relatively decent sources like the BBC, has made it sound disastrous, thus prompting a full scale run on a bank. Given that the entire consumer banking industry basically runs on a trust system, everything would probably have worked out fine, but the resulting panic has exacerbated the problem and now we have had the big government bail out.

    So, while I'm all for free speech, I'm also all for people using it responsibly. The responsible thing to do before would have been for the media to explain that Northern Rock had a relatively sound loans book in the long term (they actually have far less exposure to sub-prime losses than many of the big banks), and that the central bank (well, "the government" in this case, argue it how you like) stepping in to smooth over a temporary liquidity problem is the correct response to this, economically speaking. Indeed, it seems unlikely that these circumstances are specific to Northern Rock: much the same could have happened (and perhaps more deservedly) to many other banks in the current economic climate. NR were just in the wrong place at the wrong time, metaphorically speaking. So it would be better if the average person had some understanding of the basic economic idea, so we don't see a repeat performance when the next big bad announcement is made by another bank.

    The responsible thing to do now would be to allow Northern Rock, the government, Virgin, and whoever else is playing behind the scenes to get on with making a deal. All leaking confidential documents mid-process does is make it harder to find a mutually beneficial way out of the current predicament, which ultimately just shafts everyone, including the taxpayer and potentially those who have money held by NR.

    Censorship has a chilling effect, but so does irresponsible spreading of half-truths and misinformation by the tinfoil hat brigade on the pretence of defending free speech. With freedom comes responsibility, always.

    --
    If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
    1. Re:That may be a good thing by mikael · · Score: 0

      Northern Rock was known for doing some rather dodgy lending practices such as offering internet loans - no need to enter a bank to get a loan - just visit their website, enter the amount you wish to borrow, the account you want the money to go into, and your desired monthly repayment rate. Not forgetting the 125% mortgage deals that they were offering. It is estimated that every house in the UK has lost 5000 pounds in value since Northern Rock experienced the credit crunch.

      Given that this is a very similar situation to Farepak, it is not a surprise that every saver was wanting to take their money out of Northern Rock.

      --
      Vintage computer adverts: http://www.vintageadbrowser.com/computers-and-software-ads
    2. Re:That may be a good thing by EasyTarget · · Score: 2, Insightful

      Err.. No. This is basically caused by a wunch of bankers who loaned money they did not have to people who cannot afford to repay it.

      It's merely the visible tip of the iceberg of debt that passes for a 'booming economy' in these times. Stop blaming the lookouts and meteorologists when it's the captain and his employers who set the course.

      --
      "Oops, I always forget the purpose of competition is to divide people into winners and losers." - Hobbes
    3. Re:That may be a good thing by Anonymous+Brave+Guy · · Score: 4, Interesting

      This is basically caused by a wunch of bankers who loaned money they did not have to people who cannot afford to repay it.

      That's what the sub-prime crisis is all about, yes. But Northern Rock's problem was not primarily that they did not have the money, but rather that they did not have the liquidity and were caught off guard. Also, while NR did lend in some dubious ways (another reply to my previous post noted some particularly daft examples), so did almost everyone else in recent years, and Rock are reportedly much less exposed in this way than much of the competition.

      --
      If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
    4. Re:That may be a good thing by Hazelnut · · Score: 1

      Exactly - spot on in a sea of FUD. Mod parent up!! (My father is a independent mortgage adviser who knows what he's talking about so I can say this for sure)

    5. Re:That may be a good thing by Simon+Brooke · · Score: 1, Interesting

      While I am as wary of any kind of censorship as the next guy, we would also do well to remember that the entire Northern Rock episode was basically caused by media over-hyping a short term liquidity problem, which is a relatively benign, if somewhat unusual, banking situation.

      While I agree that Northern Rock had relatively little exposure to sub-prime lending in the US, it was doing the equivalent of sub-prime lending in the UK - lending inflated amounts on uncertain security to people who couldn't afford to make the repayments. They were on the outer limits of legitimate business, an accident waiting to happen. And the government has bailed them out with over £1,000 for each man, woman and child in the whole United Kingdom - an utterly colossal sum of money. Is that good value for your taxes? It certainly doesn't look like good value for money for mine.

      The Rock is bankrupt. It has suffered the consequences of bad lending practices. Admittedly the hype over sub-prime lending didn't help, but sooner or later this sort of thing was going to happen. The government should just have stood back and let it crash.

      --
      I'm old enough to remember when discussions on Slashdot were well informed.
    6. Re:That may be a good thing by Anonymous+Brave+Guy · · Score: 5, Insightful

      And the government has bailed them out with over £1,000 for each man, woman and child in the whole United Kingdom - an utterly colossal sum of money. Is that good value for your taxes? It certainly doesn't look like good value for money for mine.

      That depends on whether there's a good chance of getting it back, doesn't it?

      Certainly the government takes a lot of my money and does things I don't approve of with it. But in this case, if it really is effectively just a loan and it avoids a financial melt-down, it's probably a loan I'd rather make.

      The Rock is bankrupt. It has suffered the consequences of bad lending practices. Admittedly the hype over sub-prime lending didn't help, but sooner or later this sort of thing was going to happen. The government should just have stood back and let it crash.

      Perhaps. But then a lot of innocent people who kept their savings with NR would lose money. Confidence in the UK's banking industry would collapse. A large-scale run on every major bank would inevitably follow, and if not rapidly corrected by much more dramatic government action than what we've seen with Rock, that in turn would be followed by the biggest national financial meltdown in history.

      At that point, it wouldn't matter whether you were a higher-rate taxpayer with lots of savings or a minimum wage slave living month to month. It wouldn't matter whether you prudently checked out your bank's policies on sub-prime lending before keeping your savings there, or just went with what looked like the best deal when you compared the numbers. If the banks collapse, in a modern economy that depends on them and the trust system underwriting them, everyone is seriously f**ked — I'm not talking a tax hike next year, I'm talking likely total failure of law and order.

      This is what a lot of the "shoulda just let 'em crash" brigade don't seem to appreciate. Even if we do all lose £1k each because of the government intervention, it's still a lot less in real terms than we would have lost if they hadn't intervened and things had gone south fast. Of course, no remotely competent government would ever let things get anywhere near that far, but the point is that if you don't act decisively early on, you may be forced to take even more dramatic actions later that are even more dubious if you look at the long-term economic picture alone.

      Now, letting the investors in an organisation that fails off the hook is an entirely different question. The government shouldn't underwrite bad investments, because it just encourages more bad investments and rewards those who should pay for their poor choices using taxpayers' money. But remember, a lot of the government money involved in the Rock case isn't underwriting the investors, it's underwriting the everyday people who have savings with Rock. If Rock gets bought out at well below its previous value, that's just market forces in action, but it's only the investors who lose out, not the customers or the taxpayer. There's a world of difference.

      --
      If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
    7. Re:That may be a good thing by DM9290 · · Score: 1

      "With freedom comes responsibility, always."

      There are all kinds of examples of people who enjoy greater freedoms *AND* fewer responsibilities than others. For example : 21-year-olds and very young children.

      I don't see how you can make such a sweeping generalization.

      --
      No one has a right to their *own* opinion. They have a right to the TRUTH.
    8. Re:That may be a good thing by EasyTarget · · Score: 3, Informative

      I don't have any special insight about why it's Northern Rock and not other banks, they are merely the one on everybody's radar since they actually got caught short.

      However, your repeated claims they 'have the money' are false. They did not, (+ do not, and never will) 'have the money', and therefore they could not honour their creditors when they got nervey and tried to withdraw their money. Wham! Instacrisis.

      Having the deeds on a lot of property on which you have lent Mortgages is not the same as having the actual money itself, since it's 'value' is wildly overinflated in our current economics. Basically they (and indeed most other 'geniuses' of the modern economics) are treating money reserves that have been unrealistically inflated by the housing bubble as if it is real, cash-in-your-pocket money.

      This is the same root cause as the sub-prime crisis, the whole pack of cards is built on a fictional basis: 'lending money you don't have to people who cannot afford to repay it'.

      It's easier to see in the Sub-Zero examples because the lending was done to obvious bad risks. Whereas with Northern Rock the lending is done to ostensibly affluent people who can easily be painted as 'good risks'. But in fact their debt is also crippling them and if there is any downturn in their income they're screwed, if it's a mass downturn in income the banks are screwed too. (Think: governments urging pay restraint to combat inflation and most people getting meagre pay-rises.)

      --
      "Oops, I always forget the purpose of competition is to divide people into winners and losers." - Hobbes
    9. Re:That may be a good thing by Cederic · · Score: 4, Insightful


      You could not take out a loan entirely online with Northern Rock.

      I know, I have a loan with them. It is, in fact, one of their (smaller) assets.

      You can apply for the loan online. You can use their loan calculator to view your payments reschedule. You can do that with a dozen other lenders too.

      I went with them because they offered the best rate. Looks like they couldn't quite afford it. But to actually get the cash, I had to sign and return a printed loan agreement. And pass a credit check.

      No different to going into a bank really. Except less hassle, cheaper (for me and for the loan provider) and easier to comparison shop.

      Offering internet loans is not a dodgy lending practice. Failing to predict a sub-prime credit crunch possibly is. And I strongly doubt Northern Rock are remotely to blame for the state of the housing market - my guess is that it's closer to the opposite.

    10. Re:That may be a good thing by Znork · · Score: 2, Interesting

      But Northern Rock's problem was not primarily that they did not have the money

      The initial problem may have been a liquidity crunch, but the subsequent problem is that they do not, in fact, have the money. They cannot sell their mortgages for the booked value on the market today, they cannot borrow against them, they cannot in any way obtain the money needed. This is not a liquidity problem, this is a solvency problem.

      so did almost everyone else in recent years

      Yeah, well, some didn't.

      The fact is, 'everyone else' will also get what's coming. The sheer scale of this bubble outclasses most before, and it will hit even the most conservative lenders. Even the ones that didn't lend to more than 90% are in trouble; 90% loan on a house valued at 200% of historical markets is still 180% of loan-to-value when the market's settled.

      Perhaps we'll get regulation requiring longer term valuations for collateral to avoid further asset bubbles, but that's far in the future. This time unwinding of debt will be excrutiating.

    11. Re:That may be a good thing by Simon+Brooke · · Score: 1

      And the government has bailed them out with over £1,000 for each man, woman and child in the whole United Kingdom - an utterly colossal sum of money. Is that good value for your taxes? It certainly doesn't look like good value for money for mine.

      That depends on whether there's a good chance of getting it back, doesn't it?

      Certainly does, yes. I haven't heard the weather forecast for Hell, yet, but I don't think it's cold enough for snowballs.

      Certainly the government takes a lot of my money and does things I don't approve of with it. But in this case, if it really is effectively just a loan and it avoids a financial melt-down, it's probably a loan I'd rather make.

      The Rock is bankrupt. It has suffered the consequences of bad lending practices. Admittedly the hype over sub-prime lending didn't help, but sooner or later this sort of thing was going to happen. The government should just have stood back and let it crash.

      Perhaps. But then a lot of innocent people who kept their savings with NR would lose money. Confidence in the UK's banking industry would collapse. A large-scale run on every major bank would inevitably follow, and if not rapidly corrected by much more dramatic government action than what we've seen with Rock, that in turn would be followed by the biggest national financial meltdown in history.

      That's a fairy story. Northern Rock was never a significant bank anyway - it was a fairly minor regional mortgage lender with a reputation for lax lending practices. If the financial sector had seriously believed that the Northern Rock going down would have taken any other bank down, they could easily have bailed it out with private sector money. They chose not to: therefore the risk to them was not significant.


      --
      I'm old enough to remember when discussions on Slashdot were well informed.
    12. Re:That may be a good thing by Anonymous Coward · · Score: 0

      But Northern Rock's problem was not primarily that they did not have the money, but rather that they did not have the liquidity and were caught off guard. Not having liquidity means the same as not having money, except that you also don't have anything that can easily be turned into money. If they had money then they would have liquidity, by definition. Money is liquid. So your statement is gibberish.
    13. Re:That may be a good thing by Anonymous Coward · · Score: 0

      > This is what a lot of the "shoulda just let 'em crash" brigade don't seem to appreciate.

      I am one of that brigade, and I do appreciate that economic collapse would mean big shit all around.

      But helping them is just buying time, and give an incentive to continue those w^Hbankers to fuck over.

      LTCM should not have been saved. Rock shouldn't either. In general, crisis coming from private decisions should not be prevented, because by avoiding them, you just guarantee that the next one will be even bigger.

      Hey, the Internet crash was a good thing. Would you have wanted to govt to protect the market ? Of course not, because in that case, the bubble would have burst later, with even bigger consequences...

    14. Re:That may be a good thing by lxw56 · · Score: 1

      So we are willing to bail out big (or in NR's case, influential) corporations who make bad business decisions, so that their mistakes don't hurt the economy. Maybe if we didn't bail them out, investors and corporations would be more careful with their decisions. Maybe they would even set up an economy that doesn't run the risk of crashing and taking the entire nation down with it. Maybe we should outlaw corporate systems so large they can destroy the economy with bad decisions like this. But I don't think we need to outlaw them - we just need to allow the free market to create a more robust system. Think the original intent of the internet - a distributed economic system, which could take serious blows all over but still function. This can be achieved by allowing a truly free market, rather than relying on the government to create national banks, force everyone to accept a single paper/electronic money, and essentially tie the entire nation to the national bank's economic system.

    15. Re:That may be a good thing by ultranova · · Score: 1

      If the financial sector had seriously believed that the Northern Rock going down would have taken any other bank down, they could easily have bailed it out with private sector money. They chose not to: therefore the risk to them was not significant.

      Or perhaps any particular private actor was hoping that someone else would take action with their money. The private sector is not, after all, a singular entity capable of making decision rational from the point of view of the economy as a whole. It is composed of individual actors who are calculating their own risk vs. reward; besides, 24 billion pounds is a lot of money, so it could be that no single private sector entity simply had that much, and, like said before, they don't neccessarily cooperate and pool their money for common good - they have the government for that.

      Besides, consider this: If a bank goes under, and people lose their money, mine will come out of my account and go into my purse and stay there. Not because of panic, but because it is simply impossible for me to keep myself aware of the financial situation of a bank - especially since the leadership would likely try to cover up any financial problems - and I can't afford to lose a significant portion of my savings, so the rational response is to not take the risk. Other wage-earners will likely react in the same way; the end result is, of course, a run on every bank and a huge financial risk.

      It doesn't really matter whether the professional money handlers think there's a risk; what matters is whether Joe Average, who has no economic training and can't keep an eye on his bank since he only has a limited amount of time per day, thinks that the bank is worth the trust this requires; and the only way it can be is if the government guarantees that he can get his money even if the bank collapses. Personal responsibility is all nice and good, but if everyone plays defensively, economy is going to collapse.

      --

      Forget magic. Any technology distinguishable from divine power is insufficiently advanced.

    16. Re:That may be a good thing by Znork · · Score: 1

      But in this case, if it really is effectively just a loan

      It is effectively just a loan. To a 'bank' with the equivalent of No Income, No Job and No Assets. We've seen how well that worked out for the mortgage industry. I hardly see it working better for the government institutions doing the same thing.

      A large-scale run on every major bank would inevitably follow

      That's fairly well underway. Funds freezing withdrawals, hedge funds collapsing, bonds being uncovered, etc. The trouble with financing bubbles like the housing market is that assets that seemed to cover the loans in the rising market don't cover them anymore in the falling market. A whole lot of that imaginary money is now gone, and a whole lot of those underwriting the imaginary money are now technically insolvent. This is not a liquidity crisis, this is a solvency crisis, and if you're too late in moving your money out of those assets you're not going to get your money back.

      Even if we do all lose £1k each because of the government intervention, it's still a lot less in real terms than we would have lost if they hadn't intervened and things had gone south fast.

      See, that's what the bail-them-out guys don't get, in a liquidity crisis that would have been right. In a solvency crisis, the loan doesn't help, the money's gone. Now you've thrown away £1k each, and will throw away another... and another... and another. And it will still go south.

      it's underwriting the everyday people who have savings with Rock.

      If it wanted to protect everyday people with savings with the bank they could still have let it fail and simply paid out the account insurance. What it is protecting is bond investors, whose money would explicitly not be covered in a bank crash (the fact that there is an overlap between 'savers' and 'bond investors' where the savers imagine that bonds are 'safe' is perhaps sad but not particularly relevant. A variable rate savings account is one thing, a long term fixed (and much higher rate) bond is another.).

      If you propose we go on and save everyone with money in mortgage bonds this is going to become quite expensive for the tax payers. And, in my opinion, quite unfair to both those who do not have large assets, and those who have put their assets in state bonds or other safer, but much less lucrative papers.

    17. Re:That may be a good thing by Fulcrum+of+Evil · · Score: 1

      So, while I'm all for free speech, I'm also all for people using it responsibly.

      Go to hell. Muckrakers are a small price to pay for a bit of transparency. Over here, we could use a bit more from our administration. When you go around talking about using free speech responsibly (or else?) it sounds a lot like 'shut up and keep your head down'

      --
      "We returned the General to El Salvador, or maybe Guatemala, it's difficult to tell from 10,000 feet"
    18. Re:That may be a good thing by eipgam · · Score: 1

      Northern Rock is neither in administration or liquidation - it is solvent.

    19. Re:That may be a good thing by eipgam · · Score: 1

      I couldn't agree with this more. Blame whomever you want for the crisis, but just think how much more difficult all these leaks are making the authorities' lives.

    20. Re:That may be a good thing by Anonymous+Brave+Guy · · Score: 1

      If it wanted to protect everyday people with savings with the bank they could still have let it fail and simply paid out the account insurance. What it is protecting is bond investors, whose money would explicitly not be covered in a bank crash

      I'm sorry, but I believe you're mistaken.

      The assets of Northern Rock, once the sound mortgages they are currently out are repaid, aren't so far off the amount of the initial Bank of England loans (short of a huge housing market crash, but I don't know anyone who thinks the 50% drop some in this discussion are talking about is credible). It's true there seems to have been some figure fiddling in the second round of BoE loans. Even so, there isn't much risk there relative to the overall sums of taxpayers' money being talked about; in particular, this doesn't support the £1k per person statistic being thrown around. If it were that dicey, why would not one but two private sectors buyers be seriously interested in a bail-out scheme at this point?

      The other half-or-so of the staggering sums of public money being talked about is the theoretical maximum the government would have to pay out if the Rock went under and everyone with savings there lost their own money as a consequence, i.e., it's underwriting the public, not the investors in NR.

      Personally, as I think I indicated earlier, I'm with those who don't like the first loans mentioned above but support the public guarantee. That is, if the Rock goes under and investors lose everything, that's their problem for making a bad investment, but the innocent public whose only involvement was letting Northern Rock run their savings account should be protected.

      --
      If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
    21. Re:That may be a good thing by Anonymous+Brave+Guy · · Score: 1

      Muckrakers are a small price to pay for a bit of transparency.

      It won't seem a small price if lots of people banking at Northern Rock literally lose their life savings because the deal fell through and the government washed their hands of it.

      When you go around talking about using free speech responsibly (or else?) it sounds a lot like 'shut up and keep your head down'

      No, I just don't believe in absolute free speech with no consequences for what you choose to say. Anyone who does is an idealist.

      Free speech is an important principle, and it certainly shouldn't be given up lightly, but it inherently conflicts with several other important ideals: among them are privacy, protection from defamation, secrets kept for legitimate national security purposes, and even physical safety in the classic "shouting fire in a crowded theatre" example. If you really believe that freedom of speech is an absolute right, then I'm afraid you'll have to give up all those other things. Personally, I think that is too high a price to pay for letting any old fool run off at the mouth without bothering to think about the consequences.

      --
      If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
    22. Re:That may be a good thing by Anonymous+Brave+Guy · · Score: 1

      I don't see how you can make such a sweeping generalization.

      I honestly don't see what either of your two examples does to counter it. Very young children have almost no freedoms in the ethical sense we're talking about, and as they grow, most societies continue to restrict their freedoms but lessen those restrictions as they become older and more responsible. Unless you live somewhere very different to where I live, a fully able 21-year-old is personally responsible for their actions both legally and ethically, just like any other adult.

      --
      If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
    23. Re:That may be a good thing by Fulcrum+of+Evil · · Score: 1

      Pointing out problems with liquidity in a bank is hardly akin to inciting a riot. As has been said elsewhere, the BoE is loaning a fair amount of money to this bank; presumably, it won't go under.

      --
      "We returned the General to El Salvador, or maybe Guatemala, it's difficult to tell from 10,000 feet"
    24. Re:That may be a good thing by Anonymous+Brave+Guy · · Score: 1

      Pointing out problems with liquidity in a bank is hardly akin to inciting a riot.

      The problem is, that is almost exactly what it was akin to a few weeks ago. People were literally fighting in the streets in some cases, trying to get to the front of the queue at a Northern Rock branch after waiting outside for hours to get their money out.

      --
      If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
    25. Re:That may be a good thing by ardle · · Score: 1

      Imagine if things had gone on for five years the way they were - who could afford to buy it then?

    26. Re:That may be a good thing by Anonymous Coward · · Score: 0

      Besides myself, I know two bank regulators in the US who think declines on that magnitude are credible.

      So far the government is only bailing out the savings accounts (they're providing loans to the bank to continue to meet depositor demands) while trying to sell the bank (so they don't have to worry about investors).

      Some might say that the recent crisis came about because "innocent" public doesn't do any due diligence about where their savings is located.

    27. Re:That may be a good thing by Znork · · Score: 1

      short of a huge housing market crash, but I don't know anyone who thinks the 50% drop some in this discussion are talking about is credible

      I'm so amazed at ideas like this. I mean, you see drops in that range in the US, you read about construction companies offloading inventory at 60 cents on the dollar, you see courthouse auctions in he US that don't even get bids for more than a few percent of inventory, how do you manage to ignore that data?

      We've seen prices go up 100%; heck, I've seen my own real estate first triple, then double again in ten years. How hard do you have to not look to think it can't go down as much as it's gone up? How hard do you have to shut your eyes to believe it cant go down even a third of what it's gone up?

      Have you seen Schillers graph on inflation adjusted real estate pricing over the last 100 years? This is the, without comparison, largest real estate bubble since the 1890's. Prices have become so far disconnected from the historical 1% plus inflation price increase it would be humorous if it weren't for the actual painful losses this will cause. A 50% drop is the good case 'adjustment' where prices remain somewhat above their historical average.

    28. Re:That may be a good thing by Zombywuf · · Score: 1

      Perhaps. But then a lot of innocent people who kept their savings with NR would lose money. Confidence in the UK's banking industry would collapse. A large-scale run on every major bank would inevitably follow, and if not rapidly corrected by much more dramatic government action than what we've seen with Rock, that in turn would be followed by the biggest national financial meltdown in history.


      The government said it would underwrite individual customers losses, essentially preventing the kind of meltdown you describe, but then went on to stuff the bank full of money in a desperate attempt to keep it afloat.

      I think a middle ground option between keep it afloat and let it crash would have been more sensible. Underwrite customer losses, if there are any, and let the bank declare bankruptcy while loaning it just enough money to let it sink gracefully while the auditors come in and sell everything required to repay it's debts. What's left gets to keep going. Admittedly tricky because most of what they owned (bad debt) was worthless.
      --
      If you can read this you've gone too far.
    29. Re:That may be a good thing by MasterOfCeremonies · · Score: 1

      >> And the government has bailed them out with over £1,000 for each man, woman and child in the whole United Kingdom - an utterly colossal sum of money. Is that good value for your taxes? It certainly doesn't look like good value for money for mine.

      > That depends on whether there's a good chance of getting it back, doesn't it?

      > Certainly the government takes a lot of my money and does things I don't approve of with it. But in this case, if it really is effectively just a loan and it avoids a financial melt-down, it's probably a loan I'd rather make.

      And where do you suppose this money came from? Does the UK government have billions of pounds lying around spare like this? I certainly hope not, or we're paying (even) more taxes than we should. This bail out loan is most likely itself a loan from the Bank of England, which it would have created out of nothing (which is a whole different controversy). This means there are now more pounds in the economy with the same amount of goods, which can only lead to inflation. So not only is the taxpayer underwriting this loan, we will be paying for it twice through the devaluation of the currency that it, and the inevitable future bailouts, will create.

      At some point in an economic model built on nothing (or "trust" as you like to call it), something has to give, and tax payer bail outs are only a short term solution.

  26. Mod Parent Up by Requiem18th · · Score: 1

    Great quotes. By the way, I've seen that some goons around here are starting to criticize anyone using liberal quotes, calling them unoriginal non thinking copy pasting drones. Ad hominus, are still quite popular it seems.

    --
    But... the future refused to change.
    1. Re:Mod Parent Up by HTH+NE1 · · Score: 1

      I've seen that some goons around here are starting to criticize anyone using liberal quotes, calling them unoriginal non thinking copy pasting drones. There are those who have learned from history and would rather others not repeat it so that they can.
      --
      Oh, say does that Star-Spangled Banner entwine / The myrtle of Venus with Bacchus's vine?
    2. Re:Mod Parent Up by Bastard+of+Subhumani · · Score: 1

      In Latin, "ad" takes the accusative. Even if it didn't, the nominative is "homo".

      --
      Only three things are certain; death, taxes, and apocryphal quotations - Ben Franklin.
  27. There is no copyright on legal documents by jcdill · · Score: 4, Informative
    Copyright only exists for writing that is "creative" in nature.

    The text of a legal document sets forth a demand, a contract, etc. The writing is not creative, it is just a listing of facts or positions. I was told this by one of the top partners at WSGW (top legal firm in Silicon Valley) when he advised me to copy another company's contract. The formatting of the contract (e.g. the forms you can buy at a stationer's store or download pdfs online) is creative layout - you can't just photocopy the contract and use it as that is a copyright infringement. But if you want to make your own form with a different layout and using the exact same words, that is perfectly legal.

    Of course, lawyers can CLAIM copyright on their legal documents, but that doesn't mean they are correct. Lawyers make false claims all the time, when it suits them or suits their case. Recently the RIAA made a claim that it is illegal to rip music from your own CDs to listen to that music on different devices that you own. In the 1974 Supreme Court ruling in Sony VS Universal Studios, this type of personal use copying was ruled as fair use, but that didn't stop the RIAA from making this new outrageous claim.

    --
    "I'd much rather be mistaken as a lesbian by a bigot than be mistaken as a bigot by a lesbian."
    1. Re:There is no copyright on legal documents by Tony+Hoyle · · Score: 2, Interesting

      There most definately is copyright on legal documents. They may not be art but they have been created in some sense.

      By your definition I can freely copy anything by Britney Spears because it's not remotely creative :p

      "Recently the RIAA made a claim that it is illegal to rip music from your own CDs to listen to that music on different devices that you own"

      In the UK this is in fact 100% illegal. As is using a VCR to record a TV programme, for example.

      Luckily we don't enforce the law over here... In Europe we only seem to enforce laws when we feel like it, pretty much.. hence the number of silly laws still on the books eg. it's legal to kill a welsh man with a bow whilst in Hereford.

    2. Re:There is no copyright on legal documents by Tony+Hoyle · · Score: 1

      btw. the CD copying issue my be clarified eventually... http://www.ft.com/cms/s/0/d5cdcfcc-bd8d-11dc-b7e6-0000779fd2ac.html

    3. Re:There is no copyright on legal documents by sammy+baby · · Score: 1

      Copyright only exists for writing that is "creative" in nature.

      The text of a legal document sets forth a demand, a contract, etc. The writing is not creative, it is just a listing of facts or positions. I was told this by one of the top partners at WSGW (top legal firm in Silicon Valley) when he advised me to copy another company's contract. The formatting of the contract (e.g. the forms you can buy at a stationer's store or download pdfs online) is creative layout - you can't just photocopy the contract and use it as that is a copyright infringement. But if you want to make your own form with a different layout and using the exact same words, that is perfectly legal.


      IANAL.

      But you (or your lawyer friend) is simplifying things rather a lot. Documents that are not considered "creative" can absolutely be subject to copyright. Take, for example, the following notes from the US Copyright Office on "Who May Claim Copyright":

      In the case of works made for hire, the employer and not the employee is considered to be the author. Section 101 of the copyright law defines a "work made for hire" as:

            1.

                  a work prepared by an employee within the scope of his or her employment; or
            2.
                  a work specially ordered or commissioned for use as:
                          * a contribution to a collective work
                          * a part of a motion picture or other audiovisual work
                          * a translation
                          * a supplementary work
                          * a compilation
                          * an instructional text
                          * a test
                          * answer material for a test
                          * an atlas


      No idea how something like this applies to a legal document - if I'm a reporter, and a company issues a Cease & Desist on me in connection to a story I'm writing, may I cite Fair Use in order to quote it for journalistic purposes? - but it certainly seems to make the issue a bit less cut and dried than your summary.
    4. Re:There is no copyright on legal documents by perky · · Score: 1

      Copyright only exists for writing that is "creative" in nature.

      If by "creative", you mean fiction or poetry, then that's complete poppycock. True, you can't copyright facts, but you can absolutely copyright prose. So they are entirely within their right to try to stop the publication of a document to which they own the copyright.

      The separate substantive issue was whether they can suppress the resulting news articles, and the judge ruled that they couldn't.

      --
      "The new wave is not value-added; it's garbage-subtracted" - Esther Dyson, Dec 1994
    5. Re:There is no copyright on legal documents by Cederic · · Score: 1


      Joyfully I'm taking my longbow to Hereford next month for an organised roving shoot. Can any genuine born-in-the-valleys Welsh men living nearby please wave a flag with a dragon on it so I know where to aim?

    6. Re:There is no copyright on legal documents by ardle · · Score: 1

      Anyway, if it were somehow categorised as a creative work - isn't self-parody a form of satire?

  28. Re:Censorship is dying of a slow, terminal illness by somersault · · Score: 1

    Unless, perhaps, you wear braces (or a 'retainer').

    --
    which is totally what she said
  29. They're going to have slightly less assets shortly by rpjs · · Score: 1

    As I have my mortgage with NR, but I think I'm going to re-mortgage if this is how they're going to behave.

  30. MAFIAA? by ja · · Score: 5, Insightful

    You mean like the RIAA and MPAA?

    --

    send + more == money? ...
    1. Re:MAFIAA? by painlord2k · · Score: 1

      Right on the target. And unions too. In a fascist (or communist) regime you have groups deciding for the people. Fascism is not "big businness rule", is "big state rule all". State organize the life of the people, decide their jobs, their vacations, their interests. All of this for the "gretater good of the community".

    2. Re:MAFIAA? by ja · · Score: 1

      FYI: Despite his marxist past, Mussolini had ruled out the workers unions - as well as all other dissidents - in around 1928.

      --

      send + more == money? ...
  31. Re:This is what the DMCA is really about- censorsh by DoofusOfDeath · · Score: 1

    History will show that the DMCA is one of the most evil laws ever past in the country, and is the lynch pin to Fascism.

    Ahem... I believe that good form requires you to mention Hitler and Nazis at this point in your ./ rant. ;)

  32. For another bunch of UK cynics :) by dredwerker · · Score: 1

    goto http://www.housepricecrash.co.uk/forums/ There is always a good discussion on UK houseprices and Northern Rock and its credit abuse is always a hot topic. Lots of bears on there but as somebodys HPC sig says its always 100% correct guaranteed.

    --
    On a long enough timeline. The survival rate for everyone drops to zero. Chuck Palahniuk, Fight Club, 1996
  33. There hasn't been an England for some time by Iowan41 · · Score: 2, Insightful

    Since the Blair government. The wholesale overturn of the Magna Carta and the Bill of Rights of 1688 with the thought-crime laws and the disarmament of the Englishry-in-Arms, and the establishment of the Panopticon - the once-imaginary ideal prison - over all of England with the cctv Surveillance State has created Orwell's Oceana, where once there was an England.

    1. Re:There hasn't been an England for some time by hyades1 · · Score: 1

      What Hitler couldn't do with the Blitz, that smarmy little prick Blair did with the stroke of a pen.

      --
      I've calculated my velocity with such exquisite precision that I have no idea where I am.
  34. Re:This is what the DMCA is really about- censorsh by thisissilly · · Score: 2, Informative

    In part, that's because before the US joined the Berne Convention with the Berne Convention Implementation Act of 1988, they couldn't. Documents needed a claim of copyright [the (c) notice] to be considered for copyright, and registration with the copyright office to be able to sue for damages. Now everything, even your post and mine, are automatically considered copyrighted objects.

  35. Corporate Oligarchy by Molochi · · Score: 4, Informative

    Fascism has at its core, the philosophy that the people exist to support the government's needs. The first thing that fascist governments usually do is to remove corporate posession from owners and stockholders (a type of corporati). The merging you describe, refers to the people and how their goals and power become the goals and power of the government. Those people's groups (corporata, iirc) then no longer need to exist and, in a fascist state, will not be allowed outside of the government.

    Conversely, a trend towards allowing corporate entities more rights and responsibilities removes everyday power from the government and places it in the control of the officers and owners of the corporations. This is a move towards oligarchical control and is the antithesis of fascism.

    While a fascist state could itself be oligarchical in nature, it would still seek direct control of power and not divest it to the political systems that exist in and serve corporate interests.

    --
    "The Adobe Updater must update itself before it can check for updates. Would you like to update the Adobe Updater now?"
    1. Re:Corporate Oligarchy by kocsonya · · Score: 1

      > While a fascist state could itself be oligarchical in nature, it would still seek direct control of
      > power and not divest it to the political systems that exist in and serve corporate interests.

      Unless, of course, you assume that the oligarchs and the would-be fascist rulers are one and the same. In that case distorting the existing political system so that it channels the power from its existing owners into your direction is exactly what you want to do.

  36. Re:This is what the DMCA is really about- censorsh by ContractualObligatio · · Score: 1

    In the era that I grew up, no one would try to use copyright laws to censor wrongdoing.

    Previously, there was no equivalent to websites publishing private documents, so you have no basis on which to show that copyright law wouldn't have been the chosen means in a previous era. Further, successful attempts to censor wrongdoing have gone on for time immemorial, so what difference does the DMCA make? The longstanding ability to censor wrongdoing has not led to worldwide Facsism, suggesting your argument is not sound. If the DCMA is the lynch pin to Fascism, how did Fascism come about many years before the DMCA, and in a completely different part of the world?

    Hyperbolic rants rarely have any impact - if anything you only act to make the DMCA seem reasonable in comparison. Is that the intent?

  37. Re:This is what the DMCA is really about- censorsh by moosesocks · · Score: 1

    I should probably point out here that the DMCA is an American law, not a British one.

    The invocation of the DMCA as an extension of the WIPO Copyright treaty seems tenuous at best. If it *is* proven to be valid, both the DMCA and WIPO could effectively nullify each other (everyone's copyright laws are valid everywhere -- WTF?)

    We all already know that the DMCA is insidious and evil. The interesting part of the story comes in the fact that a British lawfirm is trying enforce an undeclared British copyright by using an American law.

    --
    -- If you try to fail and succeed, which have you done? - Uli's moose
  38. Re:This is what the DMCA is really about- censorsh by the_womble · · Score: 3, Interesting
  39. Nice! Very clever! by GameboyRMH · · Score: 1

    I like your subliminal joke there - you say "wunch of bankers" but the reader's mind auto-corrects it into "bunch of wankers." Then the reader goes over it again and gets the joke - but the meaning remains basically the same.

    Or at least that's how I saw it.

    --
    "When information is power, privacy is freedom" - Jah-Wren Ryel
    1. Re:Nice! Very clever! by Linker3000 · · Score: 1

      ...keep up at the back there!

      --
      AT&ROFLMAO
  40. We the People... by ayelvington · · Score: 1

    told them to pack sand and made out case. Now it sounds like they have to kick old George at home by themselves. Coffee anyone?

  41. Real bills doctrine... by Colin+Smith · · Score: 2, Informative

    Basically they (and indeed most other 'geniuses' of the modern economics) are treating money reserves that have been unrealistically inflated by the housing bubble as if it is real, cash-in-your-pocket money. Yes... This is the nature of the "real bills doctrine".

    --
    Deleted
  42. Freenet and TOR by EdIII · · Score: 1

    I find it interesting that they are trying to shut down a public website. This would seem to be the perfect opportunity for this website to move completely to a Freenet website. Eventually this will be a very effective measure, since any censorship would have to be performed on all Freenet nodes simultaneously. It is also perfectly logical that a single Freenet node operator can claim ignorance of the content, since it is designed that way from the start.

    I for one welcome these kind of actions, since the more frequently they occur, the faster the population of Freenet nodes, and TOR exit nodes multiply.

    I also understand, that ultimately this may make libel harder to defend against since there is no defendant for the plaintiff to sue, but I am willing to sacrifice that to protect our ability to exercise free speech.

  43. not an admission of guilt as such by feepcreature · · Score: 1

    In the UK, silence cannot be taken as an admission of guilt, as such.

    It's just that, as they say when cautioning you, if you fail to mention something when you are questioned, and that thing turns out to be a significant part of your defence, the jury may be entitled to wonder why you did not mention it at the time you were questioned. They will NOT be prevented from using their common sense - if, for example, it was the sort of detail that might have slipped your mind at the time.

    The caution states: You do not have to say anything, but it may harm your defence if you do not mention, when questioned, something you later rely on in court. Anything you do say may be given in evidence.

    --
    Paul "Say no to feeping creaturism"
  44. Re:This is what the DMCA is really about- censorsh by kurt555gs · · Score: 1

    Does this mean that copyright law without fair use can be used to suppress evidence of a crime?

    " Your Honor, that document can not be used against my client because he/she/it has not given permission for it to be viewed/read/thought about"

    Copyright never gave that much power.

    Cheers

    --
    * Carthago Delenda Est *
  45. Lending money you don't have is 'normal' by Tungbo · · Score: 1

    In fact, it's the entire basis of the modern banking systems. If a bank take in deposit of $100, it lends out no just
    $100 dollar, but up to $1000 if the reserve requirement is 10%. More prosaically, if you order supplies from a stationer and she extends credit to you and bill you at the end of the month, she has just loan you money she had (cost of goods) and also money that she didn't have (gross profit).

    Without these kinds of credit flexibility, there would be a fixed money supply which would slow our economies drastically. Of course, one can argue that that's a good thing....