It is easy to understand Bob Diamond’s miscalculation. In the great pantheon of banking scandals, it was unlikely, he thought, that Libor interest-rate rigging would rank very high. Libor is the average interest rate at which banks lend to each other — or, rather, the rate at which they admit to lending to each other.
The NatWest banking disaster is an ominous reminder of the way in which technology has come to control our lives. We now know what a proper IT collapse feels like: a piece of computer code goes wrong and, within days, bank machines shut down and chaos ensues. This week the stories range from unpaid bills
The folly of jetting off to an international summit in a pleasant tropical resort during a time of emergency at home was amply demonstrated by Jim Callaghan in 1979 when he arrived, suntanned, back from the Caribbean apparently unaware of the seriousness of growing industrial unrest at home. But at least he never actually uttered
The American political scientist Wallace Sayre said that the bitterness of a political debate was inversely proportional to its importance. This has been true for US politics, where at each election time the issue of gay marriage divides the country — even when the president has no authority to either legalise or ban it. It’s
As Britain prepares for a week of peaceful celebration, Syria will be bracing itself for more bloodshed. The Assad regime, perhaps emboldened by the knowledge that the west has no appetite to intervene in Syria, is becoming ever more brutal in its repression. The massacre in villages around Houla, where 108 were slain, most of
The Climate Change Secretary, Ed Davey, promised this week to ‘reduce the volatility of energy bills’. Unfortunately, his proposal to eliminate the peaks and troughs in the electricity market involves elevating bills to a much higher level and leaving them there. Besides the pain this will inflict on already stretched households, the result of the
There is one crumb of comfort that Fleet Street can extract from the phone-hacking scandal: its own foibles still create a vastly bigger splash than do those of newer media. This week Facebook investors harangued the company’s chief executive for wearing a hoodie in meetings and Yahoo’s chief executive resigned after a shareholder questioned his
This government has run out of good ideas; that was what the Queen’s speech told us this week. When the coalition was formed, it united behind a genuinely bold agenda: school reform, welfare reform, health reform and deficit elimination. Where has the boldness gone? The coalition’s courage has vanished, as has its sense of purpose
At the end of the month, a group of protestors plan to descend upon a field in Hertfordshire and ‘decontaminate’ (i.e. destroy) a field of genetically modified wheat. The activists, from an organisation called Take the Flour Back, claim to be saving Britain from a deadly menace. In reality, they are threatening not only to
The Joint Committee on the Draft House of Lords Reform Bill could have saved itself a lot of bother if, instead of producing a lengthy report, it had simply quoted the words of Lucius Cary, 2nd Viscount Falkland, in the House of Lords in 1641: ‘When it is not necessary to change, it is necessary
There was a time when the British could look upon the French, and their monstrously big government, with a sense of superiority: not any more. There is now a horrible similarity to our political predicaments. We both have political leaders who have failed to kick-start an economic recovery, in spite of repeated promises. We
There is a danger in this week’s ruling by the European Court of Human Rights that Abu Hamza and four other Islamic extremists can be extradited to face terror charges in America. The danger is that it makes the court look reasonable and in doing so weakens the case for removing Britain from its jurisdiction.
The government’s desire for a ‘green economy’ has become such an obsession that it has begun to override common sense. This week, the Department for Energy and Climate Change invited bidders to apply for £1 billion of public funding for a commercial-scale carbon capture and storage project. The money will be used, we are told,
‘When the Cold War ended, we thought we were going to have a clash of civilisations,’ wrote the American author and businessman David Rothkopf. ‘It turns out we’re having a clash of generations.’ As the aftermath of last week’s Budget demonstrated, this clash is well under way in Britain. Behind it lies the idea that
For the past couple of months, government business has been bogged down in the detail of taxation policy. Higher personal tax allowances, a lower top rate, more stamp duty for £2 million mansions, a tycoon tax — all have been batted across the coalition ping-pong table at dizzying speed. While engaged in this game the
If an inquiry were to be launched into the excesses of the dentistry profession, it would not be conducted by a body made up entirely of dentists. You wouldn’t put a team of journalists in charge of the Leveson inquiry. Why, then, was Nick Clegg allowed to appoint a commission on a bill of rights
Vince Cable has a point. The government does, alas, lack a ‘compelling vision for the economy’ but the Liberal Democrats see this as an opportunity, not a defect. They regard George Osborne’s agenda as a blank slate on to which they can write all sorts of policies: a mansion tax, capital gains tax, even a
Professor Hamid Ghodse, president of the UN’s International Narcotics Control Board, is not the first to observe that Liverpool, Manchester and Birmingham have acquired ‘no-go’ areas of ‘fractured communities’ ruled by gangs. But if he were brave enough to venture just a little bit closer to the frontline of Britain’s drug problem he would realise
Britain is in the middle of the deepest slump in our modern history. What can be done? The best idea we seem to have is one which Danny Alexander drew up on the back of an envelope. When advising Nick Clegg, the now Chief Secretary to the Treasury came up with the idea that no
In the same week that Sun journalists were subjected to dawn raids at home, the British justice system released one of the leading ideologues of al-Qa’eda to walk the streets. The fact that Abu Qatada should never have been here in the first place, having arrived in 1993 on a forged passport, is not a