The ironic thing was that I had been planning to write a positive piece this morning about Obama’s remarks on housing in yesterday’s Twitter town hall , as I was pleased he was acknowledging the mistakes of his housing policy, and was hopeful that this statement — along with the outstanding news this morning of new Treasury rules forcing banks to give some mortgage relief to unemployed homeowners — signaled a tougher stance on Wall Street. And I was hoping that Christine Varney’s departure from the antitrust division at the Department of Justice might give an opportunity for someone more aggressive to be appointed there, so my mood was pretty good before I saw this morning’s all-hope-dies-here headline on Social Security. Oh, well. This administration has specialized at raising progressive hopes one minute and crushing them the very next. The question now on Social Security is what exactly is on the table and what isn’t. The statement the White House put out this morning is this: There is no news here. The President has always said that while Social Security is not a major driver of the deficit, we do need to strengthen the program and the President said in the State of the Union Address that he wanted to work with both parties to do so in a balanced way that preserves the promise of the program and doesn’t slash benefits. That not slashing benefits part of the statement sure sounds good and makes me feel better, but what does working with the Republicans in a balanced way mean? They want to cut benefits, not raise the payroll tax. And Social Security — unlike Medicare and Medicaid which include a lot of payments to providers that can be tinkered with in different ways to potentially lower costs — is all benefits. So is it on the table or isn’t it? The White House says the President is opposed to cutting benefits, which is wonderful, and I’m grateful for them reiterating that in the wake of the news reports this morning. But if you put it on the table, that means benefits might get cut, which is a disaster for the middle class, and a disaster for the Democratic Party. It would break the Democratic coalition into pieces, do more to alienate the base than any other thing the President could do, alienate seniors, who have never been too crazy about Obama anyway and who we need to move toward us in 2012, take away the political high ground Democrats seized because of the Ryan budget’s attacks on Medicare and Medicaid. It is the high rollers on Wall Street and their friends in the media and D.C. establishment who want to put Social Security on the table. The funders of the “we can solve our budget problems by cutting Social Security and Medicare and Medicaid” PR campaign are people like Wall Street billionaire Pete Peterson. Billionaires and multimillionaires demanding that retired people getting an average of $14,000 a year in Social Security get their benefits cut has always struck me as just a little wrong. Especially when these wealthy and powerful elitists figure out how to shelter their own income so they can avoid paying the same rate as their secretaries. But these hypocritical powerbrokers are exactly the ones for whom the entire Republican Party is fighting so hard. The question now: will Obama join them in screwing the middle class? When it comes to government policy, there is no way to avoid the question of who wins and who loses. And over the last three years, in this massive economic crisis America has faced, it is the Wall Street big boys, the overgrown banks who own assets equal to 64 percent of our country’s GDP, who keep winning. When they blew up the economy and taxpayers bailed them out with no strings attached, Wall Street won. When the biggest banks swallowed up their competitors and got even bigger, Wall Street won. When bonuses and profits returned to record levels a year after they were bailed out, in the midst of the worst recession since the 1930s, Wall Street won. When the legislation allowing judges to force them to negotiate on mortgage writedowns failed, Wall Street won. When their carried interest tax loophole failed to get repealed, Wall Street won. When the amendment to force the break-up of the biggest banks lost, Wall Street won. When loopholes were added to derivatives regulations, Wall Street won. When the antitrust division at DOJ refused to lift a finger against the huge mega-banks, Wall Street won. When none of the top executives at these banks that had manipulated the economy went to jail, and few of them even lost their job, Wall Street won. The biggest question of our times is this: in spite of the naked greed, corruption, and excess exposed in the 2008 panic, will the win streak keep going? Will they succeed in taking Social Security money away from low and middle-income seniors? Or will, just maybe, the Obama administration stand up to Wall Street corruption this time? If Obama knows he needs to change his policy on housing, and starts doing more truly great things like the announcement today in terms of helping unemployed people keep their homes, that would be a major victory for the middle class over the Wall Street titans. If Obama were to replace Christine Varney with a head of antitrust who was more aggressive at breaking up huge companies who have too much market power, like the Too Big to Fail banks, that would be a blockbuster victory for both the economy and our democracy. If Obama finally does the right thing and gives Elizabeth Warren a recess appointment to the new Consumer Financial Protection Bureau, that would be an exciting victory for the middle class over the big banks who have been trying to stop her. These issues are all tied together in the same question: does the middle class win, or does Wall Street win? If Obama chooses Wall Street, gives into the banks on all these issues, and hurts senior citizens with Social Security cuts, he will break apart the Democratic coalition and doom his re-election chances. If he challenges Wall Street and fights for the middle class, he will win the 2012 election in a landslide. No matter what Obama does, though, progressives need to keep fighting for what we believe in: we need to fight with all our strength to preserve Social Security benefits, and we need to take on the Wall Street banks on behalf of homeowners and consumers.
Continue reading …Progressives Are Holding All The Cards On Social Security Deal. Will They Blink?
July 8, 2011 No CommentProgressives are steamed at the news of a possible sellout on Social Security cuts, so let’s look at the politics of such a deal. If progressives block it, and the Republicans force the federal government into default, Democrats, the White House and the media will blame the progressives, not the Republicans . Remember how that worked with the public option? “Are you going to be the ones who stop this historic healthcare reform?” Much pressure was brought to bear. This time, it might be different. (For one thing, the caucus has new leadership.) If pissed-off Democrats let the members of the Progressive Caucus that we’ll have their backs if they stand up to Social Security cuts, our support may give them the cover they need. Time to hit the phones! We won’t know for a while what, if any, deal will emerge on the debt ceiling. Or what, if anything, that might mean for Social Security and other entitlement programs. But this much is clear: Liberals are livid that President Obama even raised the possibility of touching them, reports the Los Angeles Times . Two examples from today: Sen. Bernie Sanders reminded all that then-candidate Obama rebuffed John McCain’s proposal to hit Social Security. “The American people expect the president to keep his word,” said Sanders. Moveon.org, meanwhile, warned that Obama would have trouble drumming up volunteers for his 2012 run if he didn’t keep that promise. Negotiators better not dismiss such opposition, writes Nate Silver at the New York Times . The debt deal vote is a rare instance in the 112th Congress in which the liberal vote could sway the outcome. John Boehner will have trouble enough getting a majority of Republicans to approve any deal. By Silver’s reckoning, he also will need at least 12 of the 80 or so members of the liberal Congressional Progressive Caucus to go along . That makes a big deal on entitlement programs unlikely. In this case, “the views of liberal Democrats are far more than a token issue.” We saw how the caucus got in line for the health care bill. This time? Not so easy. We’ll see.
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American companies added just 18,000 jobs in June, the US labour department said, well below forecasts of 90,000 to 120,000 US employers hired the fewest workers in nearly two years last month, pushing up the jobless rate and rattling financial markets. Crushing hopes of a turnaround in the jobs market, companies became increasingly cautious about hiring new staff amid the continuing economic uncertainty and added just 18,000 jobs in June, the US labour department said, well below the consensus forecast of 90,000 to 120,000, and the weakest reading since September 2010. The shock figures pushed the US unemployment rate up from 9.1% to 9.2% – the highest level since December 2010, when it stood at 9.4%. The FTSE 100, which was up about 27 points before the release of the June payroll figures, dropped more than 55 points to 5998.81 as investors fretted about the global impact of a slowdown in the world’s biggest economy. The private sector added just 57,000 jobs last month – against expectations of 110,000 – while the government shed 39,000. Rob Carnell, of ING Bank, described the figures as “absolutely awful” and said they would “rock” the markets. Markets analyst Louise Cooper said: “There was a collective gasp on the trading floor here at BGC when the non-farm payrolls number was released. Even given that this data is volatile and subject to large revisions, this number is worrying. “America is the country that creates jobs – flexible employment laws are supposed to ensure that in an economic recovery, people are re-employed quickly and easily. Eighteen thousands jobs created in a country of 400 million people with a 9.2% unemployment rate means that more needs to be done. But what? “[Regarding] monetary policy – the federal funds target rate is already at 0.25% – [there is] no room to cut there and QE2 [the second round of quantitative easing] finished last week. [With] $14tn debt and the deadline for the budget deal on 2 August, fiscal policy is tightening. Most economists are expecting a rebound to the US economy in the second half of the year [and] this number will cause them to return to their models.” The labour department also revised May’s disappointing job creation figures down further, saying companies added just 25,000 jobs in the month – less than half its previous estimate of 54,000. The job figures for April were also revised downwards, though far more moderately, to 217,000 from the previous estimate of 221,000. The figures are particularly disappointing after strong job creation figures on Thursday prompted many analysts to raise their forecast for Friday’s figures, from a consensus of 90,000 to 120,000. Those figures, from American payroll processor ADP, said that the private sector added 157,000 jobs last month – more than double the number expected and dwarfing the 36,000 jobs added in May. US unemployment and employment data US economy United States Global economy Tom Bawden guardian.co.uk
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• ‘Massive quantities’ of archive allegedly deleted • Emails believed to be between News of the World editors Police are investigating evidence that a News International executive may have deleted millions of emails from an internal archive, in an apparent attempt to obstruct Scotland Yard’s inquiry into the phone-hacking scandal. The archive is believed to have reached back to January 2005 revealing daily contact between News of the World editors, reporters and outsiders, including private investigators. The messages are potentially highly valuable both for the police and for the numerous public figures who are suing News International. According to legal sources close to the police inquiry, a senior executive is believed to have deleted ‘massive quantities’ of the archive on two separate occasions, leaving only a small fraction to be disclosed. One of the alleged deletions is said to have been made at the end of January this year, just as Scotland Yard was launching Operation Weeting, its new inquiry into the affair. The allegation directly contradicts repeated claims from News International that it is co-operating fully with police in order to expose its history of illegal news-gathering. It is likely to be seen as evidence that the company could not pass a ‘fit and proper person’ test for its proposed purchase of BSkyB. A Guardian investigation has found that, in addition to deleting emails, the company has also: • infuriated police by leaking sensitive information in spite of an undertaking to police that they would keep it confidential; and • risked prosecution for perverting the course of justice by trying to hide the contents of a senior reporter’s desk after he was arrested by Weeting detectives in April. News International originally claimed that the archive of emails did not exist. Last December, their Scottish editor, Bob Bird, told the trial of Tommy Sheridan in Glasgow that the emails had been lost en route to Mumbai. Also in December, the company’s solicitor, Julian Pike from Farrer and Co, provided the High Court with a statement claiming that they were unable to retrieve emails which were more than six months old. The first hint that this was not true came in late January when News International handed Scotland Yard evidence which led to the immediate sacking of their news editor, Ian Edmondson, and to the launch of Operation Weeting. It was reported at the time that this evidence consisted of three old emails. Three months later, on 23 March this year, Julian Pike formally apologised to the High Court and acknowledged that News International could locate emails as far back as 2005 and that no emails had ever been lost en route to Mumbai or anywhere else in India. In a signed statement seen by the Guardian, Pike said he had been misinformed by the News of the World’s in-house lawyer, Tom Crone, who had told him that he, too, had been misled. He offered no explanation for the misleading evidence given by Bob Bird. The original archive was said to contain half a terabyte of data – equivalent to 500 editions of Encyclopaedia Britannica. But police now believe that there was an effort to substantially destroy the archive before News International handed over their new evidence in January. They believe they have identified the executive responsible by following an electronic audit trail. They have attempted to retrieve the data which they fear was lost. The Crown Prosecution Service are believed to have been asked whether the executive can be charged with perverting the course of justice. At the heart of the affair is a specialist data company, Essential Computing, based in Clevedon, near Bristol. Staff there have been interviewed by Operation Weeting. One source speculated that it was this company which had compelled News International to admit that the archive existed. The Guardian understands that Essential Computing has co-operated with police and has provided evidence about an alleged attempt by the News International executive to destroy part of the archive while they were working with it. This is said to have happened after the executive discovered that the company retained material of which News International was unaware. The alleged deletion has caused tension between News International and Scotland Yard, who are also angry over recent leaks. When the Murdoch company handed over evidence of their journalists’ involvement in bribing police officers in late June, they wanted to make a public announcement, claiming credit for their assistance to police. They were warned that this would interfere with inquiries and finally agreed that they would keep the entire matter confidential until early August, to allow police to make arrests. In the event, this week, a series of leaks has led Scotland Yard to conclude that News International breached the agreement. There was friction, too, in April when Weeting detectives arrested a senior journalist, James Weatherup. When they went to the News of the World’s office to search his desk, they found that all of its contents had been removed and lodged with a firm of solicitors, who initially refused to hand it over. The solicitors eventually complied. A file is believed to have been sent to the Crown Prosecution service seeking advice on whether anybody connected with the incident should be charged. Phone hacking Newspapers & magazines National newspapers Newspapers News International Nick Davies Amelia Hill guardian.co.uk
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Click here to view this media I wrote about this case the other day when John Fund was on Fox touting how wonderful this would be for Rick Perry politically if he decided to jump into the 2012 Republican presidential primary race — Fox Host and John Fund Ask Whether Allowing Execution of Mexican National is Good Politics for Rick Perry . Well, it looks like after tonight, he may get his answer. Texas Executes Mexican After Court Declines Action : Texas has executed a Mexican national for the kidnapping and rape of a 16-year-old San Antonio girl. Humberto Leal Garcia, 38, was put to death less than two hours after the U.S. Supreme Court, by a 5-to-4 vote, rejected pleas from the Obama administration for a delay to avoid what it called serious international repercussions. This was Texas’s seventh execution of the year and the second execution since 2008 of a Mexican national who was denied access to the Mexican consul before trial. Before Leal Garcia’s trial, Texas authorities failed to inform him of his right to speak with officers from the Mexican consulate and failed to inform the consulate that a Mexican national had been arrested. Both of those failures violated a 1963 treaty signed by the U.S. Indeed, the consular access provision was added to the treaty at the insistence of the United States. The U.S. relies on the treaty to secure legal help and often to win release of Americans imprisoned abroad, some in countries such as Iran, Libya and Syria. Last year alone the U.S. invoked the treaty for 3,500 Americans imprisoned in other countries. In Leal Garcia’s case, Mexico said that if it had known of his arrest, it could have provided sufficient legal help and information about his abusive childhood that the death penalty might well have been averted. In 2008, in a similar case brought by the Bush administration, the Supreme Court ruled that the consular access treaty does not bind state courts unless Congress, in addition to its ratification of the treaty, enacts an enforcement law. The Obama administration last month endorsed such a law and last week asked the Supreme Court to stay the Leal Garcia execution to allow it time to win passage of the proposed statute. Read on… Democracy Now had more on this earlier today before the man was executed this evening — Mexican Denied Consular Rights Faces Texas Execution Tonight Despite White House Opposition : The Obama administration has urged Texas to delay tonight’s execution of a Mexican national, saying it would put the U.S. in breach of international obligations. Humberto Leal Garcia is set to be executed for the 1994 kidnapping, rape and murder of Adria Sauceda, a 16-year-old girl. After his arrest, Leal was provided with court-appointed lawyers but never informed he could have access to Mexican consular officials, as is required under the United Nations’ Vienna Convention on Consular Relations. Leal’s family still maintains he is innocent and defense attorney says his case was also hurt by inadequate counsel by his court-appointed attorney. Barring a last minute stay by Texas Governor Rick Perry or the U.S. Supreme Court, Leal is set to be executed at 6pm. We speak with Humberto Leal’s attorney, Sandra Babcock. [Includes rush transcript]
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• Man reached for ball thrown by Texas’ Josh Hamilton • Ryan: ‘Our thoughts and prayers are with his family’ A fan fell to his death at Rangers Ballpark on Thursday after catching a ball tossed to him by the Texas outfielder Josh Hamilton. The man was reaching for a ball thrown to him by Hamilton during the second inning of the match against Oakland and toppled over a railing after making the catch. Television pictures showed him falling some 20 feet from the outfield seats to a paved area behind a scoreboard. It is almost a year to the day since a similar accident at Rangers Ballpark when a fan named Tyler Morris fell from the second level to the lower bowl while trying to catch a foul ball on 6 July 2010. He suffered a fractured skull and broken ankle. “We are deeply saddened that the man who fell has passed away as a result of this tragic accident,” the club’s president, Nolan Ryan, said in a statement on the Rangers website. “Our thoughts and prayers are with his family.” The former US president George W Bush was sitting in the front row with Ryan when the accident happened. Ryan left moments later while Bush remained in the seats. The Rangers clubhouse was closed following the game as the players were informed of the tragedy. “We spoke to the ballclub, so they understand what happened,” Ryan said. “As any of us would be, Josh is very distraught over this.” Ronnie Hargis was sitting in the stands next to the victim, who was at the game with his young son. The men were talking to each other before the accident. “He went straight down. I tried to grab him but I couldn’t,” Hargis said. “I tried to slow him down a little bit.” Hargis’s daughter said the victim’s head was bleeding badly. Safawna Dunn, who was sitting behind the victim, said he appeared to have injuries to both arms and was conscious when taken away on a stretcher. “Josh Hamilton tried to throw [the ball] up to the guy because they were yelling for the ball,” Dunn said. Ryan said it was too early to talk about the two accidents and what evaluations the team may make about railings at the stadium. “Tonight, we’re not prepared to speak about anything further than the accident and the tragedy,” Ryan said. “That’s where I’m going to leave it.” MLB US sport guardian.co.uk
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Islamabad hits back at claim by Admiral Mike Mullen over murder of Syed Saleem Shahzad Pakistan “sanctioned” the killing of a journalist who wrote about the country’s powerful security establishment, the top military commander in the US Admiral Mike Mullen, has said. The death of the journalist, Syed Saleem Shahzad, prompted intense speculation about the possible involvement of the Pakistan military’s powerful spy agency, Inter Services Intelligence (ISI), but Mullen said on Thursday he could not confirm its involvement. The remarks by Mullen, chairman of the joint chiefs of staff, are likely to place new strains on Pakistan-US ties, which were seriously damaged by the killing of Osama bin Laden by US forces in Pakistan in May. The Pakistan government hit back at Mullen’s claims. “If it is true, then the statement is extremely irresponsible,” a Pakistani government spokesman said. “It will not help in investigating the issue.” Shahzad, 40, who worked for the Hong Kong-based Asia Times Online, disappeared from Islamabad on 29 May. His body was found in a canal two days later, bearing what police said were signs of torture. Before his death Shahzad told friends he’d been threatened by the ISI, which is notorious for harassing reporters in a country considered one of the deadliest in the world for journalists. The ISI has denied it had anything to do with killing Shahzad, but suspicions have persisted and prompted unusual levels of public criticism of the spy agency. Mullen said that the reported abuse of journalists in Pakistan was not a good road for the government in Islamabad. “It’s a way to continue to, quite frankly, spiral in the wrong direction,” said Mullen, who has devoted time in the past four years to trying to improve relations with Pakistani leaders. Pakistan Journalist safety US military United States guardian.co.uk
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British Gas announces 18% and 16% rises to its gas and electricity prices, as Scottish & Southern Energy suspends all doorstep sales with the loss of 900 jobs British Gas has stunned households across the UK by announcing a rise in gas and electricity prices of 18% and 16%, just eight months after it raised its prices by 7%. The increase, which will affect 9 million customers and be effective from 18 August, provoked energy minister Chris Huhne to today demand change in the UK electricity market. At a time when households are struggling with soaring food bills amid persistently high inflation, the price rise will add £192 to the average annual dual fuel bill, which will increase from £1,096 to £1,288 as a result. Mike O’Connor, chief executive of Consumer Focus , said: “This price rise will send a shock wave across the country. The impact on customers will be severe, piling more pressure on severely stretched household budgets and pushing hundreds of thousands more households into fuel poverty.” The news comes on the same day Scottish & Southern Energy (SSE) announced it is suspending all its doorstep sales activity in Great Britain with immediate effect, leading to 900 job losses. Two months ago the utility giant was found guilty of misleading potential customers when doorstepping them in a bid to get them to switch gas and electricity supplier, following a successful prosecution by trading standards. SSE said commission-based doorstep selling is “no longer an effective way to gain customers for the long term”, because consumer confidence in the way companies sell on doorsteps, and the way in which salespeople are remunerated, is low. It also said it was closing its doorstep sales arm because the sales process “rightly requires increasingly significant customer safeguards”. Alistair Phillips-Davies of SSE said: “The world has moved on. We understand that fewer people are willing to engage with traditional doorstep sellers.” Richard Lloyd, executive director at Which? , welcomed SSE’s move: “Very few people think energy suppliers are trustworthy, so it’s good news that SSE is listening to consumers and trying to restore its reputation. As energy suppliers consider their policies on doorstep selling, it is important they don’t simply shift their efforts to other forms of cold calling. “We found that almost half (44%) of people have been phoned by an energy company in the past 12 months, and six in 10 felt pressured to switch, so suppliers should be focusing on better value products and customer service, rather than hard selling.” ‘Unwelcome but unsurprising announcement’ British Gas last increased its prices in December by 6.9% (or £43) for gas and 6.7% (£28) for electricity. In total, within a year its customers will have seen their bills rise by £258 or 25%. This compares with the £239 or 21% increase seen by Scottish Power customers last month . British Gas blamed steep rises in wholesale costs, which have increased 30% since last winter because of a higher global demand for gas, driven by increased consumption in Asia and the impact on supply of unrest in the Middle East and north Africa. It said customers could benefit from free loft and wall cavity insulation, free energy use monitoring, and flexible payment terms. British Gas managing director Phil Bentley said: “We know there is never a good time to raise prices, but we are buying in a global energy market and have to pay the market rate.” But consumer groups were outraged. Which?’s Lloyd said: “This is an unwelcome but unsurprising announcement for British Gas’s millions of customers. Many people are already having to cut back on essentials because of the rising cost of living, and with energy bills rising further this could be a cold winter for many.” Ann Robinson of uSwitch.com said there was a danger the move could lead the remaining four major suppliers to follow suit with price increases – the first round of rises which ended in March hit almost 28 million customers and added £630m on to household energy bills. Robinson said: “The impact on family budgets will be huge, but it will be particularly hard on those living on fixed incomes, and I would urge both suppliers and the government to start thinking now of how they can provide some support. “It may seem a long way ahead, but winter will be coming too quickly for those who cannot afford their fuel bills.” Earlier this week, energy secretary Chris Huhne held a summit with small energy suppliers to find out what help they need to break the dominance of the big six gas and electricity companies and help keep domestic energy prices down. His plan is to cut the red tape that makes it difficult for smaller energy companies to compete with the big six providers. Huhne said today: “Britain’s consumers are being buffeted by the violent and unpredictable winds of global fossil fuel prices. I refuse to stand by and watch this happen. I’m pushing the big six suppliers to help their customers overhaul their draughty homes and understand the best tariffs on offer, and I’m backing new entrants to bring more competition to the market. “The UK electricity market has to change so that we escape the cycle of fossil fuel addiction. Alternatives like renewables and nuclear power must be allowed to become the dominant component of our energy mix.” Shadow energy secretary Meg Hillier said: “Today’s announcement is bad news for bill-payers across Britain. Just as their belts cannot get any tighter, a whopping increase in energy bills will be landing on their doormats. It’s unfair, and many will feel they are being ripped off. “Enough is enough. David Cameron is sitting on his hands whilst our gas and electricity bills soar. It is time for the Competition Commission to launch an investigation into the stranglehold the big six energy suppliers have on the market. The Tory-led government have failed to act on behalf of the public. Customers’ household budgets are at breaking point, and this unfair British Gas price hike is the last straw.” The British Gas managing director of services and commercial, Chris Jansen, said on Sky News this morning that he is happy for customers to email him at chris.jansen@britishgas.co.uk and he will respond personally. Energy bills Household bills Consumer affairs Centrica Energy industry Utilities Scottish and Southern Energy Social exclusion Mark King guardian.co.uk
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• Andy Coulson to be arrested today • David Cameron to give press conference • Pressure on Rebekah Brooks to quit • NOTW staff angry at Murdoch’s decision to close paper 8.49am: Andy Coulson has arrived at West End Central Police Station, on Saville Row, to answer questions that he knew about, or had direct involvement in, phone hacking, according to the Times (paywall) . 8.33am: Milband has just finished speaking. Here are some key quotes. On politicians’ relationship with the press : For too long, political leaders have been too concerned about what people in the press would think and too fearful of speaking out about these issues. If one section of the media is allowed to grow so powerful that it becomes insulated from political criticism a nd scrutiny of its behaviour, the proper system of checks and balances breaks down and abuses of power are likely to follow. We must all bear responsibility for that. My party has not been immune from it. Nor has the current government and Prime Minister. All of this is difficult because of his personal relationships and the powerful forces here. On David Cameron’s relationship with Andy Coulson : Putting it right for the prime minister means starting by the appalling error of judgement he made in hiring Andy Coulson. Apologising for bringing him in to the centre of the government machine. Coming clean about what conversations he had with Andy Coulson before and after his appointment about phone-hacking. On the need for a judge-led inquiry : We need a judge-led inquiry to shine a light on the culture and practices which need to change. This should be established immediately with terms of reference agreed before the summer. The inquiry should cover the culture and unlawful practices of some parts of the newspaper industry, the relationship between the police and media, and the nature of regulation. On the BSkyB deal : Most immediately, the decision on BskyB has significant implications for media ownership in Britain. The public must have confidence that the right decisions are being made. That is why we have consistently said there should be a reference to the Competition Commission, the proper regulatory body. The government has chosen a different path which relies on assurances from executives at News Corporation. Given the doubts hanging over the assurances about phone hacking by News international executives, I cannot see, and the public will not understand, how this can provide the fair dealing that is necessary. On the culpability of News International executives : I welcome James Murdoch’s admission of serious errors. But closing the News of the World, possibly to re-open as the Sunday Sun, is not the answer. Instead those who were in charge must take responsibility for what happened. On Media regulation and the Press Complaints Commission : The PCC was established to be a watchdog. But it has been exposed as a toothless poodle. Wherever blame lies for this, the PCC cannot restore trust in self-regulation. It is time to put the PCC out of its misery. We need a new watchdog. There needs to be fundamental change. My instincts continue to be that a form of self-regulation would be the best way forward. That is a debate we should have. But it would need to be very different to work. Let me make some initial suggestions, drawing on many of the debates about the inadequacies of the system. A new body should have: far greater independence of its Board members from those it regulates; proper investigative powers; and an ability to enforce corrections. 8.23am: Ed Milband is giving a speech at Reuters. He says it “has been a tumultuous week for British journalism with allegations that have shocked the British public’s sense of decency”. 8.17am: Good morning. Welcome to the Guardian’s continued live coverage of the News of the World phone hacking scandal. • David Cameron’s former director of communications Andy Coulson has been told by police that he will be arrested this morning over suspicions that he knew about, or had direct involvement in, the hacking of mobile phones during his editorship of the News of the World. The Guardian understands that a second arrest is also to be made in the next few days of a former senior journalist at the paper. The Guardian knows the identity of the second suspect but is withholding the name to avoid prejudicing the police investigation. • The prime minister will hold a press conference at 9.30am at which he will be under pressure over the government’s handling of the phone hacking scandal and the BSkyB takeover deal, his hiring of Andy Coulson, who resigned in January, his friendship with Rebekah Brooks and his close links with the Murdochs. Phone hacking News of the World News International Rupert Murdoch Rebekah Brooks Andy Coulson James Murdoch David Cameron Ed Miliband Haroon Siddique guardian.co.uk
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• Andy Coulson to be arrested today • David Cameron to give press conference • Pressure on Rebekah Brooks to quit • NOTW staff angry at Murdoch’s decision to close paper 8.49am: Andy Coulson has arrived at West End Central Police Station, on Saville Row, to answer questions that he knew about, or had direct involvement in, phone hacking, according to the Times (paywall) . 8.33am: Milband has just finished speaking. Here are some key quotes. On politicians’ relationship with the press : For too long, political leaders have been too concerned about what people in the press would think and too fearful of speaking out about these issues. If one section of the media is allowed to grow so powerful that it becomes insulated from political criticism a nd scrutiny of its behaviour, the proper system of checks and balances breaks down and abuses of power are likely to follow. We must all bear responsibility for that. My party has not been immune from it. Nor has the current government and Prime Minister. All of this is difficult because of his personal relationships and the powerful forces here. On David Cameron’s relationship with Andy Coulson : Putting it right for the prime minister means starting by the appalling error of judgement he made in hiring Andy Coulson. Apologising for bringing him in to the centre of the government machine. Coming clean about what conversations he had with Andy Coulson before and after his appointment about phone-hacking. On the need for a judge-led inquiry : We need a judge-led inquiry to shine a light on the culture and practices which need to change. This should be established immediately with terms of reference agreed before the summer. The inquiry should cover the culture and unlawful practices of some parts of the newspaper industry, the relationship between the police and media, and the nature of regulation. On the BSkyB deal : Most immediately, the decision on BskyB has significant implications for media ownership in Britain. The public must have confidence that the right decisions are being made. That is why we have consistently said there should be a reference to the Competition Commission, the proper regulatory body. The government has chosen a different path which relies on assurances from executives at News Corporation. Given the doubts hanging over the assurances about phone hacking by News international executives, I cannot see, and the public will not understand, how this can provide the fair dealing that is necessary. On the culpability of News International executives : I welcome James Murdoch’s admission of serious errors. But closing the News of the World, possibly to re-open as the Sunday Sun, is not the answer. Instead those who were in charge must take responsibility for what happened. On Media regulation and the Press Complaints Commission : The PCC was established to be a watchdog. But it has been exposed as a toothless poodle. Wherever blame lies for this, the PCC cannot restore trust in self-regulation. It is time to put the PCC out of its misery. We need a new watchdog. There needs to be fundamental change. My instincts continue to be that a form of self-regulation would be the best way forward. That is a debate we should have. But it would need to be very different to work. Let me make some initial suggestions, drawing on many of the debates about the inadequacies of the system. A new body should have: far greater independence of its Board members from those it regulates; proper investigative powers; and an ability to enforce corrections. 8.23am: Ed Milband is giving a speech at Reuters. He says it “has been a tumultuous week for British journalism with allegations that have shocked the British public’s sense of decency”. 8.17am: Good morning. Welcome to the Guardian’s continued live coverage of the News of the World phone hacking scandal. • David Cameron’s former director of communications Andy Coulson has been told by police that he will be arrested this morning over suspicions that he knew about, or had direct involvement in, the hacking of mobile phones during his editorship of the News of the World. The Guardian understands that a second arrest is also to be made in the next few days of a former senior journalist at the paper. The Guardian knows the identity of the second suspect but is withholding the name to avoid prejudicing the police investigation. • The prime minister will hold a press conference at 9.30am at which he will be under pressure over the government’s handling of the phone hacking scandal and the BSkyB takeover deal, his hiring of Andy Coulson, who resigned in January, his friendship with Rebekah Brooks and his close links with the Murdochs. Phone hacking News of the World News International Rupert Murdoch Rebekah Brooks Andy Coulson James Murdoch David Cameron Ed Miliband Haroon Siddique guardian.co.uk
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