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Context of 'January 19, 2008: British Prime Minister Confirms Stricken Lender May Be Nationalized'

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The Taliban’s former chief spokesman, Mullah Mohammad Is’haq Nizami, reveals that talks are being held between Afghan President Hamid Karzai’s government and key lieutenants of former Taliban leader Mullah Omar. Mullah Nizami says that he has been relaying messages for months from Kabul to Mullah Omar’s aides in the Quetta Shura, the Taliban’s ruling council based in Pakistan. The Quetta Shura is thought to be responsible for orchestrating attacks across the border in Kandahar and Helmand provinces, Afghanistan. The disclosure contradicts British Prime Minister Gordon Brown’s carefully worded statement to Parliament a day earlier insisting that no negotiations would be held with Taliban leaders. “We are not negotiating with the leadership, but we want to support President Karzai in his efforts at reconciliation. If he is successful in bringing across those members of the insurgency who then declare that they will give up fighting and support democracy and be part of the system, then these are efforts at reconciliation that are important to the future of the whole country,” Brown states during a session of prime minister’s questions. Mullah Nizami, who also ran the regime’s radio station Voice of Sharia until 2001, says that the negotiations aim to isolate Mullah Omar by wooing his lieutenants in the Quetta Shura. “Karzai is trying to get the 18 people in the Quetta Shura. If he succeeds it will be a defeat for Mullah Omar. The Taliban and the government are tired of fighting and they want to negotiate,” he says. Nizami fled to Pakistan in 2001 when the Taliban regime collapsed, but returned to Kabul under an ongoing reconciliation programme in an effort to open talks. Mullah Nazimi further explains that the Taliban want to take part in the Afghan government, want sharia law instituted, and want the withdrawal of international forces. The Belfast Telegraph reports that talks will continue “under the table” until the two sides can agree on something warranting a public announcement. The Independent reports that the British government was prepared to admit that the talks between the Afghan government and the Taliban had taken place and that dialogue should be opened with Taliban leaders, but Gordon Brown changed his mind just before prime minister’s questions on December 12, denying any negotiations with Taliban leadership. Brown’s denial is further contradicted by a report that British MI6 agents had engaged in secret talks with the Taliban and other Afghan insurgent leaders in Helmand Province earlier this summer (see Summer 2007). [Independent, 12/12/2007; Belfast Telegraph, 12/13/2007]

Entity Tags: Quetta Shura, Mohammad Is’haq Nizami, Afghan Government, Gordon Brown, Hamid Karzai, Taliban, Mullah Omar

Timeline Tags: War in Afghanistan

The British Treasury signs Ron Sandler, an experienced banker, to head ailing mortgage giant Northern Rock in the event of its nationalization, according to media reports. [Daily Telegraph, 2/26/2008] Commercial companies are currently finalizing bids in an attempt to keep the bank private, but it will be nationalized the next month and Sandler will be appointed to run it. [BBC, 8/5/2008]

Entity Tags: Northern Rock plc, Her Majesty’s Treasury, Ron Sandler

Timeline Tags: Global Economic Crises

British Prime Minister Gordon Brown confirms that talks are taking place to secure a private sale of ailing mortgage bank Northern Rock. However, he also says he has not ruled out the possibility of nationalizing the bank. [BBC, 8/5/2008]

Entity Tags: Northern Rock plc, Gordon Brown

Timeline Tags: Global Economic Crises

British Chancellor Alistair Darling announces a plan to sell government-guaranteed bonds worth about £25 billion ($50 billion) to help the sale of stricken mortgage giant Northern Rock to a private investor. The proceeds from the sale of the bonds would be used to pay off emergency loans the bank has taken out from the Bank of England. The British treasury thinks the bonds would speed up a private sale of the troubled lender. Although Northern Rock shares rise by about 42 percent on the news, the bank will be nationalized the next month and the bonds will not be issued. [Daily Telegraph, 2/26/2008; BBC, 8/5/2008]

Entity Tags: Alistair Darling, Her Majesty’s Treasury, Northern Rock plc

Timeline Tags: Global Economic Crises

British Chancellor Alistair Darling rejects two bids to keep troubled lender Northern Rock in private hands and says the bank will be nationalized. Darling says that both bids would require a “very significant implicit subsidy” from the taxpayer, so the bank is to be placed into a “temporary period of public ownership.” Ron Sandler, a banking executive sounded out by the government in advance (see January 12, 2008), is placed in charge of the now state-owned bank. [Daily Telegraph, 2/26/2008; BBC, 8/5/2008] Shares in Northern Rock are suspended from trading the next day. Darling says the nationalized bank will operate “at arm’s length” from the government. Prime Minister Gordon Brown says the decision to nationalize is “the right move at the right time” and is one which “protects savers” and is in “the best interests of taxpayers.” Conservative Party shadow chancellor George Osborne tells MPs that Darling “is a dead man walking” and Conservative leader David Cameron demands Darling be fired over his handling of the nationalization. Sandler says it will take years for the bank to pay back its loans from the taxpayer, but declines to comment on potential job losses. [BBC, 8/5/2008]

Entity Tags: George Osborne, David Cameron, Ron Sandler, Her Majesty’s Treasury, Gordon Brown, Alistair Darling, Northern Rock plc

Timeline Tags: Global Economic Crises

The government of Iceland takes a 75 percent stake in the country’s third-largest bank, Glitnir, after the bank runs into short-term funding problems. [BBC, 2/2/2009]

Entity Tags: Glitnir

Timeline Tags: Global Economic Crises

The government of Iceland takes control of the country’s second and third largest banks, Landsbanki and Glitnir; it already had a majority in Glitnir (see September 29, 2008). The financial crisis hit Icelandic banks so severely because they owe relatively more money than banks in other countries. When the crisis starts in earnest, they owe around six times the country’s total gross domestic product. Therefore, when the world’s credit markets dry up, they are unable to refinance their loans. [BBC, 2/2/2009]

Entity Tags: Landsbanki, Glitnir

Timeline Tags: Global Economic Crises

Following the seizure of two Icelandic banks by that country’s government (see October 7, 2008), the British government invokes anti-terrorism legislation to seize Icelandic assets in Britain. Iceland’s Prime Minister Geir Haarde criticizes Britain, saying he is upset and shocked that it has used “hostile” anti-terrorism legislation to freeze Icelandic banks’ assets. However, British Prime Minister Gordon Brown condemns Iceland’s handling of the collapse of its banks and its failure to guarantee British savers’ deposits. He says Iceland’s policies are “effectively illegal” and “completely unacceptable.” Iceland will later threaten legal action against Britain. [BBC, 2/2/2009]

Entity Tags: Gordon Brown, Geir Haarde

Timeline Tags: Global Economic Crises

Iceland’s government takes control of the country’s biggest bank, Kaupthing. This follows a decision by the British government to invoke anti-terrorism legislation to freeze Icelandic assets in Britain (see October 8, 2008). [BBC, 2/2/2009]

Entity Tags: Kaupthing Bank

Timeline Tags: Global Economic Crises

October 20, 2008: New Banks Formed in Iceland

Iceland’s financial authorities formally announce the establishment of new Glitnir, Landsbanki, and Kaupthing banks. The old banks were taken over by the government two weeks previously as their condition had deteriorated due to the global credit crisis (see October 7, 2008 and October 8, 2008). [BBC, 2/2/2009]

Entity Tags: Glitnir, Landsbanki, Kaupthing Bank

Timeline Tags: Global Economic Crises

Afghan President Hamid Karzai reportedly briefs British Prime Minister Gordon Brown on talks his government has been holding with Taliban representatives on ways to work together to end the conflict in Afghanistan. The Independent discloses that Karzai’s government has also been holding secret talks with Gulbuddin Hekmatyar through members of his family, which is consistent with news published early the following year (see February 2009). Karzai is visiting London after meetings in New York with King Abdullah of Saudi Arabia and Pakistani President Asif Ali Zardari, figures who have also been involved in the ongoing Afghan government-Taliban insurgent dialogue. In September, the Saudi King sponsored talks between the Afghan government and emissaries of the Taliban and other insurgent groups, including representatives of Hekmatyar, at a series of confidential meetings held in Saudi Arabia and Pakistan (see Between September 24 and 27, 2008). The British government continues to publicly deny any involvement in negotiations or direct contact with the Taliban and other insurgents while encouraging the Afghan government to reach out to moderate elements of the insurgency and the Taliban. [Independent, 11/13/2008]

Entity Tags: Hamid Karzai, Abdullah bin Abdulaziz al-Saud, Afghan Government, Asif Ali Zardari, Taliban, Gordon Brown, Gulbuddin Hekmatyar

Timeline Tags: War in Afghanistan

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