FROM: THE WHITE HOUSE
February 23, 2015
Remarks by the President at the AARP
AARP
Washington, D.C.
**Please see below for a correction, marked with an asterisk.
2:05 P.M. EST
THE PRESIDENT: Thank you. (Applause.) It is great to be back here -- not just to pick up my AARP card. (Laughter.) I want to thank Jo Ann and everybody at AARP for the work you do every single day on behalf of seniors. I am especially grateful to all of you for the work you're doing to help us prepare for the White House Conference on Aging, which will be coming up later this year and will cover a whole host of issues, including protecting one of the most critical components of middle-class life, and that's a secure and dignified retirement. And that’s what we're here to talk about today.
I want to thank some other people who care passionately about this issue: My energetic, tireless Secretary of Labor, Tom Perez. (Applause.) A couple of outstanding Senators, Cory Booker from New Jersey -- (applause) -- and Elizabeth Warren from Massachusetts. (Applause.) And Congressmen John Delaney is here -- proud of the work he is doing. (Applause.)
So six years after the financial crisis that shook a lot of people’s faith in a secure retirement, the good news is our economy is steadily growing and creating new jobs. Last year was the best year for job growth since the 1990s. And all told, over the past five years, the private sector has created nearly *2 12 million new jobs. And since I took office, the stock market has more than doubled, which means that 401ks for millions of families have been replenished.
America is poised -- as long as Washington doesn’t screw it up, as long as we keep the progress going with policies that help and don't hinder the middle class, no stalemates, no standoffs, no self-inflicted wounds or manufactured crisis -- if we stay away from those things, then the projections are that the economy can do very well again this year.
But we're going to have to choose whether we accept an economy where only a few of us do spectacularly well, or whether we build an economy where everybody who works hard can get ahead, and have some semblance of security in this ever-changing world?
Because while we’ve come a long way, we’ve got a lot more work to do to make sure that the recovery reaches every single American out there and not just those at the top. That’s what I've been calling middle-class economics -- the idea that this country does best when everybody does their fair share, and everybody gets a fair shot and everybody is playing by the same set of rules.
And that last part -- everybody playing by the same set of rules -- is why we passed historic Wall Street reform that put in place smarter, tougher, common-sense rules of the road to protect consumers and to end taxpayer-funded bailouts. And by the way, I know that there have been times where folks questioned whether or not Wall Street reform works. If you look at how the banking system has responded, if you look at what’s happened on Wall Street, when you look at how the markets gauge what we've done, reform has been meaningful. It has been effective.
That's why we passed a Credit Card Bill of Rights that gives consumers a simpler credit card bill -- no more hidden fees, no more shifting deadlines, no more sudden changes of terms, or “any time, any reason” rate hikes. It’s why we created a new consumer watchdog agency that protects hardworking Americans from everything from predatory mortgage practices to payday loans that can destroy people’s finances. And I want to thank our outstanding CFPB Director Rich Cordray and his team -- (applause) -- they are working day in, day out to protect working families, and when families are taken advantage of, they’ve been working hard to get them their hard-earned money back.
Today, we’re going to build on these consumer protections for the middle class by taking a new action to protect hardworking families’ retirement security. Because, in America, after a lifetime of hard work, you should be able to retire with dignity and a sense of security.
And in today’s economy, that's gotten tougher. Most workers don’t have a traditional pension. A Social Security check often isn't enough on its own. And while the stock market is doing well right now, that doesn't help folks who don't have retirement accounts. As a consequence, too few Americans at or near retirement have saved enough to have peace of mind.
So, in addition to keeping Social Security strong -- and we will keep it strong as long as I am President. That is going to be a priority for me. (Applause.) In addition to keeping Social Security strong, I’ve proposed ways to make it easy and automatic for workers to save for retirement through their employer, including offering tax incentives to small businesses that offer retirement plans. And these proposals, it's estimated, would expand workplace savings opportunities to 30 million more workers. We’ve also proposed paying for them by closing tax loopholes for the wealthy.
At the same time, we’ve got to make sure that Americans who are doing the responsible thing by preparing for retirement are getting a fair share of the returns on those savings. That's what I want to focus on today. If you are working hard, if you're putting away money, if you're sacrificing that new car or that vacation so that you can build a nest egg for later, you should have the peace of mind of knowing that the advice you’re getting for investing those dollars is sound, that your investments are protected, that you're not being taken advantage of.
And the challenge we've got is right now, there are no uniform rules of the road that require retirement advisors to act in the best interests of their clients -- and that’s hurting millions of working and middle-class families. There are a lot of very fine financial advisors out there, but there are also financial advisors who receive backdoor payments or hidden fees for steering people into bad retirement investments that have high fees and low returns. So what happens is these payments, these inducements incentivize the broker to make recommendations that generate the best returns for them, but not necessarily the best returns for you.
They might persuade investors, individuals with savings, to roll over their existing savings out of a low-fee plan and into a high-cost plan. They might even recommend investments with worse returns simply because they get paid to recommend those products. And one study by professors at Harvard and MIT had researchers send people to pose as middle-class investors seeking investment advice from advisors. In 284 client visits, advisors recommended higher-fee funds about half the time. The lowest-fee funds were recommended only 21 times.
So think about what that means. You’ve done the right thing. You’ve worked hard. You’ve saved what you could. You're responsibly trying to prepare for retirement, but because of bad advice, because of skewed incentives, because of lack of protection, you could end up in a situation where you lose some of your hard-earned money simply because your advisor isn’t required to put your interests first. And the truth is most people don’t even realize that’s happening.
We read a story in the paper about Merlin and Elaine Toffel, a retired couple from near my hometown of Chicago -- Lindenhurst, Illinois. They had worked their whole lives so they could rest easy in their golden years. They got bad advice to invest in expensive annuities that made it hard for them to access their money. Suddenly, they were short on cash -- which is exactly what they had tried to avoid by saving and acting responsibly all those years. They were taken advantage of by an advisor of an institution where they had been longtime clients and it was an institution they trusted. And Merlin now lives in a nursing home and he and Elaine aren’t here today. As they get older, their children are trying to help them get all this sorted out. And that's just one family. They’re not alone.
On average, conflicts of interest in retirement advice results in annual losses of 1 percentage point for affected persons. I know 1 percent may not sound like a lot, but the whole concept of compounding interest -- it adds up. It can cut your savings by more than a quarter over the course of 35 years -- cut your savings by more than 25 percent. So, instead of $10,000 in savings growing to more than $38,000, it will grow to just over $27,500. That's a big spread. And all told, bad advice that results from conflicts of interest costs middle-class and working families about $17 billion a year -- $17 billion every year.
So you can put a number on how this affects us. But it affects something else. It offends our basic values of honesty and fair play. The values that say, in America, responsibility is rewarded and not exploited.
I want to emphasize once again, there are a whole lot of financial advisors out there who do put their clients’ interests first. There are a lot of hardworking men and women in this field and got into this field to help people. They’re folks like financial advisor Sheryl Garrett, from Arkansas, who says, “The role” -- is Sheryl here? There she is. Sheryl, stand up just so we know where you are. (Applause.) We're proud of Sheryl. So I'm quoting you, Sheryl. Sheryl says, “The role of a financial advisor is one of the most important jobs. But there is a segment of the industry today that operates like the gunslingers of the Wild West. We don’t have the rules and regulations to protect those who we’re supposed to be serving.”
Couldn't have said it better myself, which is why I quoted you. (Laughter.) Sheryl is right. The rules governing retirement investments were written 40 years ago, at a time when most workers with a retirement plan had traditional pensions, and IRAs were brand new, and 401ks didn’t even exist. So it's not surprising that the rules that existed 40 years ago haven't caught up to the realities of most families today. Now, outdated regulations, legal loopholes, fine print -- all that stuff today makes it harder for savers to know who they can trust. Financial advisors absolutely deserve fair compensation for helping people save for retirement and helping people figure out how to manage their investments. But they shouldn’t be able to take advantage of their clients. The system makes it harder, in fact, for those financial advisors like Sheryl who are trying to do the right thing, because if she’s making really good advice but somebody who is competing with her is selling snake oil, she’s losing business. And ultimately, those clients are going to lose money.
So, today, I’m calling on the Department of Labor to update the rules and requirements that retirement advisors put the best interests of their clients above their own financial interests. It's a very simple principle: You want to give financial advice, you’ve got to put your client’s interests first. You can't have a conflict of interest.
And this is especially important for middle-class families, who can't afford to lose even a penny of the hard-earned savings that they’ve put away. These folks aren’t asking for any special help or special consideration. They just want to be treated with fairness and respect. And that’s what this new rule would do. And for outstanding advisors out there, it levels the playing field so that they can do what they know is the right thing to do -- putting their clients first.
Now, here’s one last element of it I've got to emphasize. Just because we put forward a new rule doesn’t mean that it becomes law. There are a lot of financial advisors who support these basic safeguards to prevent abuse, but there are also some special interests that are going to fight it with everything they’ve got, saying that these costs will skyrocket or services are going to be lost.
But it turns out that we can actually look at the evidence. These industry doomsday predictions have not come true in other countries that have taken even more aggressive action on this issue than we're proposing. And if your business model rests on taking advantage, bilking hardworking Americans out of their retirement money, then you shouldn’t be in business. (Applause.) That's pretty straightforward.
So we welcome different perspectives and ideas on how to move forward. That's what the comment period for the rule is all about. What I won’t accept is the notion that there’s nothing we can do to make sure that hardworking, responsible Americans who scrimp and save somehow end up losing some of those savings to less than scrupulous practices. We should be able to make sure that folks are treated fairly, and give every possible assistance we can so that they can retire with security and dignity.
So we’re going to keep on pushing for this rule. It’s the right thing to do for our workers. It’s the right thing to do for our country. We are thrilled that AARP is supporting this, but AARP is not alone. We've got all kinds of organizations that are stepping up -- consumer advocates, civil rights organizations, labor organizations. We've got a great coalition of people who understand that the strength of our economy rests on whether hardworking families can feel more secure, knowing that if they do the right thing, they can get ahead. And that’s what I’m going to keep fighting for -- an economy where not only everybody is sharing in America’s success, but they’re also contributing to America’s success. This is a important component in that basic promise that makes America the greatest country on Earth.
So thank you so much, everybody. God bless you. God bless America. (Applause.)
END
2:28 P.M. EST
Wednesday, February 25, 2015
MAN CHARGED WITH FRAUD RELATED TO A MULTI-MILLION DOLLAR CLAIM TO DEEPWATER HORIZON SPILL COMPENSATION FUND
FROM: U.S. JUSTICE DEPARTMENT
Monday, February 23, 2015
North Carolina Man Charged for Making $2.3 Million Fraudulent Claim to Deepwater Horizon Spill Compensation Fund
A North Carolina resident was arrested today for allegedly making a fraudulent claim on the fund set up to compensate victims of the 2010 Deepwater Horizon oil spill, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Michael R. Rosella, 45, of Wilmington, North Carolina, was arrested in connection with an indictment returned last week and unsealed following his arrest. The indictment by a grand jury in the District of Columbia charges Rosella with one count of mail fraud, three counts of wire fraud and two counts of money laundering.
According to allegations in the indictment, Rosella, who lived in the District of Columbia in 2010, submitted a claim for compensation in the amount of $2.3 million to the Gulf Coast Claims Facility (GCCF), the entity that formerly handled claims for persons and businesses injured by the Deepwater Horizon oil spill. Rosella allegedly submitted the claim on behalf of a fictitious entity called the Bayou Barataria Sportsmen’s Resort, which Rosella allegedly represented to have been a successful hotel and sport fishing business in Louisiana immediately before the spill, and to have suffered lost profits due to the spill’s impact on the Gulf of Mexico. The documents submitted by Rosella allegedly included false affidavits of the Resort’s “owners,” federal tax filings, state sales tax records, financial statements, and invoices.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the U.S. Secret Service and is being prosecuted by Trial Attorney Gary A. Winters of the Criminal Division’s Fraud Section.
Monday, February 23, 2015
North Carolina Man Charged for Making $2.3 Million Fraudulent Claim to Deepwater Horizon Spill Compensation Fund
A North Carolina resident was arrested today for allegedly making a fraudulent claim on the fund set up to compensate victims of the 2010 Deepwater Horizon oil spill, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Michael R. Rosella, 45, of Wilmington, North Carolina, was arrested in connection with an indictment returned last week and unsealed following his arrest. The indictment by a grand jury in the District of Columbia charges Rosella with one count of mail fraud, three counts of wire fraud and two counts of money laundering.
According to allegations in the indictment, Rosella, who lived in the District of Columbia in 2010, submitted a claim for compensation in the amount of $2.3 million to the Gulf Coast Claims Facility (GCCF), the entity that formerly handled claims for persons and businesses injured by the Deepwater Horizon oil spill. Rosella allegedly submitted the claim on behalf of a fictitious entity called the Bayou Barataria Sportsmen’s Resort, which Rosella allegedly represented to have been a successful hotel and sport fishing business in Louisiana immediately before the spill, and to have suffered lost profits due to the spill’s impact on the Gulf of Mexico. The documents submitted by Rosella allegedly included false affidavits of the Resort’s “owners,” federal tax filings, state sales tax records, financial statements, and invoices.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the U.S. Secret Service and is being prosecuted by Trial Attorney Gary A. Winters of the Criminal Division’s Fraud Section.
Tuesday, February 24, 2015
U.S. ASSISTANT AG CALDWELL ANNOUNCES REWARD FOR LEADER OF MALWARE CYBER-GANG
FROM: U.S. JUSTICE DEPARTMENT
Assistant Attorney General Leslie R. Caldwell Announces Reward for Cyber Fugitive at Washington Foreign Press Center
Washington, DCUnited States ~ Tuesday, February 24, 2015
Good afternoon, thank you all for joining us.
Today, we are announcing a reward for information leading to the arrest and/or conviction of Evgeniy Bogachev, an alleged leader of a tightly knit gang of cyber criminals based in Russia and Ukraine who were responsible for the development and operation of both the Gameover Zeus and Cryptolocker malware.
Gameover Zeus was one of the most sophisticated and damaging botnets ever encountered, infecting between 500,000 and one million computers worldwide, and causing more than $100 million in financial losses to businesses and consumers in the United States alone.
On top of that, the Cryptolocker ransomware infected more than 250,000 computers worldwide, and targeted companies big and small, as well as individuals.
In May and June 2014, we were able to wrest control of the Gameover Zeus botnet from the criminals and take Cryptolocker offline. This was thanks to an unprecedented action orchestrated by law enforcement and private sector partners in 10 different countries.
Today, due to the work of the FBI and its partners, Gameover Zeus has been neutralized and is out of the criminals’ hands and Cryptolocker remains non-operational.
But one significant part of the puzzle remains incomplete, as Bogachev remains at large. Although we were able to significantly disrupt the Gameover Zeus and Cryptolocker criminal enterprise, we have not yet brought Bogachev himself to justice.
We must not allow international borders to shield criminals from the law. As more nations join the fight against international cybercrime, the number of countries once perceived as sanctuaries is shrinking, and will continue to shrink.
In the case of Bogachev, the same international coalition that brought down his botnet is now chasing him.
We appreciate the State Department shining the light on this important case again today. This reward will reinvigorate the efforts to find Bogachev and encourage others to join the hunt.
I am confident that Bogachev will one day be caught and brought to face justice in the United States.
Assistant Attorney General Leslie R. Caldwell Announces Reward for Cyber Fugitive at Washington Foreign Press Center
Washington, DCUnited States ~ Tuesday, February 24, 2015
Good afternoon, thank you all for joining us.
Today, we are announcing a reward for information leading to the arrest and/or conviction of Evgeniy Bogachev, an alleged leader of a tightly knit gang of cyber criminals based in Russia and Ukraine who were responsible for the development and operation of both the Gameover Zeus and Cryptolocker malware.
Gameover Zeus was one of the most sophisticated and damaging botnets ever encountered, infecting between 500,000 and one million computers worldwide, and causing more than $100 million in financial losses to businesses and consumers in the United States alone.
On top of that, the Cryptolocker ransomware infected more than 250,000 computers worldwide, and targeted companies big and small, as well as individuals.
In May and June 2014, we were able to wrest control of the Gameover Zeus botnet from the criminals and take Cryptolocker offline. This was thanks to an unprecedented action orchestrated by law enforcement and private sector partners in 10 different countries.
Today, due to the work of the FBI and its partners, Gameover Zeus has been neutralized and is out of the criminals’ hands and Cryptolocker remains non-operational.
But one significant part of the puzzle remains incomplete, as Bogachev remains at large. Although we were able to significantly disrupt the Gameover Zeus and Cryptolocker criminal enterprise, we have not yet brought Bogachev himself to justice.
We must not allow international borders to shield criminals from the law. As more nations join the fight against international cybercrime, the number of countries once perceived as sanctuaries is shrinking, and will continue to shrink.
In the case of Bogachev, the same international coalition that brought down his botnet is now chasing him.
We appreciate the State Department shining the light on this important case again today. This reward will reinvigorate the efforts to find Bogachev and encourage others to join the hunt.
I am confident that Bogachev will one day be caught and brought to face justice in the United States.
PRESIDENT OBAMA'S VETO XL PIPELINE VETO MESSAGE SENT TO THE SENATE
FROM: THE WHITE HOUSE
February 24, 2015
Veto Message to the Senate: S. 1, Keystone XL Pipeline Approval Act
TO THE SENATE OF THE UNITED STATES:
I am returning herewith without my approval S. 1, the "Keystone XL Pipeline Approval Act." Through this bill, the United States Congress attempts to circumvent longstanding and proven processes for determining whether or not building and operating a cross-border pipeline serves the national interest.
The Presidential power to veto legislation is one I take seriously. But I also take seriously my responsibility to the American people. And because this act of Congress conflicts with established executive branch procedures and cuts short thorough consideration of issues that could bear on our national interest -- including our security, safety, and environment -- it has earned my veto.
February 24, 2015
Veto Message to the Senate: S. 1, Keystone XL Pipeline Approval Act
TO THE SENATE OF THE UNITED STATES:
I am returning herewith without my approval S. 1, the "Keystone XL Pipeline Approval Act." Through this bill, the United States Congress attempts to circumvent longstanding and proven processes for determining whether or not building and operating a cross-border pipeline serves the national interest.
The Presidential power to veto legislation is one I take seriously. But I also take seriously my responsibility to the American people. And because this act of Congress conflicts with established executive branch procedures and cuts short thorough consideration of issues that could bear on our national interest -- including our security, safety, and environment -- it has earned my veto.
FDIC INSTITUTIONS REPORT NET INCOME OF $36.9 BILLION IN 4TH QUARTER 2014
FROM: U.S. FEDERAL DEPOSIT INSURANCE CORPORATION
Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reported aggregate net income of $36.9 billion in the fourth quarter of 2014, down $2.9 billion (7.3 percent) from earnings of $39.8 billion that the industry reported a year earlier. The decline in earnings was mainly attributable to a $4.4 billion increase in litigation expenses at a few large banks. More than half of the 6,509 insured institutions reporting (61.2 percent) had year-over-year growth in quarterly earnings. The proportion of banks that were unprofitable during the fourth quarter fell to 9.4 percent from 12.7 percent a year earlier.
"The banking industry continued to improve at the end of the year," FDIC Chairman Martin J. Gruenberg said. "Although total industry earnings declined as a result of significant litigation expenses at a few large institutions and a continued decline in mortgage-related income, a majority of banks reported higher operating revenues and improved earnings from the previous year. In addition, banks made loans at a faster pace, asset quality improved, and the number of banks on the 'Problem List' declined to the lowest level in six years."
Chairman Gruenberg added: "Community banks performed especially well during the quarter. Their earnings were up 28 percent from the previous year, their net interest margin and rate of loan growth were appreciably higher than the industry, and they increased their small loans to businesses."
Community banks earned $4.8 billion during the quarter. Based on criteria developed for the FDIC Community Banking Study published in December 2012, there were 6,037 community banks (92.7 percent of all FDIC-insured institutions) in the fourth quarter of 2014 with assets of $2.1 trillion (13.3 percent of industry assets). Fourth quarter net income of $4.8 billion at community banks was up $1.0 billion (27.7 percent) from a year earlier, driven by higher net interest income, increased noninterest income, and lower loan-loss provisions. Community banks' net income, net interest income, noninterest income, and loan balances all grew at a faster pace than the industry as a whole. Asset quality indicators showed further improvement, and community banks continued to hold 45 percent of small loans to businesses.
For the industry as a whole, loan and lease balances rose $149.4 billion (1.8 percent) in the fourth quarter to $8.3 trillion. Commercial and industrial loans increased by $42.2 billion (2.5 percent), and credit card balances grew by $35.4 billion (5.2 percent). Over the past 12 months, loan and lease balances increased 5.3 percent. This is the highest 12-month growth rate for loans since mid-year 2008.
Net interest income was $1.1 billion (1 percent) higher than a year ago, as the industry's interest-bearing assets increased 6.2 percent in 2014. Almost three out of four institutions (70.5 percent) reported higher net interest income than in the fourth quarter of 2013. The average net interest margin (the difference between the average yield banks earn on loans and other investments and the average cost of funding those investments) was 3.12 percent, down from the 3.27 average in the fourth quarter of 2013. This is the lowest quarterly average margin since the 3.11 percent reported in the third quarter of 1989, as larger institutions continued to increase their holdings of low-yield, liquid investments.
Noninterest income was down $160 million (0.3 percent) from a year ago, as income from the sale, securitization, and servicing of residential mortgages declined $1.6 billion (30.8 percent). More than half of all banks (54.4 percent) reported year-over-year increases in quarterly noninterest income.
Noninterest expenses were $4.9 billion (4.8 percent) higher than a year ago, as itemized litigation expenses at a few of the largest banks were $4.4 billion higher. Banks set aside $8.2 billion in provisions for loan losses, up 12 percent from $7.3 billion a year earlier. This is the second consecutive quarter that the industry has reported a year-over-year increase in loss provisions.
Asset quality indicators continued to improve as insured banks and thrifts charged off $9.9 billion in uncollectible loans during the quarter, down $2.2 billion (18.3 percent) from a year earlier. The amount of noncurrent loans and leases (those 90 days or more past due or in nonaccrual status) fell $9.2 billion (5.4 percent) during the fourth quarter. The percentage of loans and leases that were noncurrent declined to 1.96 percent, the lowest level since the 1.73 percent posted at the end of the first quarter of 2008.
The average return on assets (ROA) fell to 0.96 percent in the fourth quarter from 1.09 percent a year earlier. The average return on equity (ROE) declined from 9.76 percent to 8.56 percent.
Chairman Gruenberg concluded: "The current operating environment remains challenging. Revenue growth continues to be held back by narrow interest margins and lower mortgage-related income. And, many institutions are reaching for yield given the low interest-rate environment, which is a matter of ongoing supervisory attention. Nevertheless, results from the fourth quarter generally were positive for the banking industry, and for community banks in particular."
Financial results for the fourth quarter of 2014 and the full year are contained in the FDIC's latest Quarterly Banking Profile, which was released today. Also among the findings:
Full-year earnings totaled $152.7 billion. Total net income for 2014 was $1.7 billion (1.1 percent) less than the industry reported in 2013. This is the first decline in annual net income in five years. Full-year ROA was 1.01 percent, marking the third year in a row that the annual ROA has exceeded 1 percent. Reduced revenues from the sale, securitization, and servicing of residential mortgages (down $9.1 billion or 35 percent) and increased litigation expenses at a few large banks (up $6.5 billion or 206 percent) were the main causes of the drop in full-year earnings. Almost two out of every three banks (64 percent) reported higher net income than in 2013.
The number of "problem banks" fell for the 15th consecutive quarter. The number of banks on the FDIC's "Problem List" declined from 329 to 291 during the quarter, the lowest since the end of 2008. The number of "problem banks" now is 67 percent below the post-crisis high of 888 at the end of the first quarter of 2011.
The Deposit Insurance Fund (DIF) balance continued to increase. The DIF balance (the net worth of the Fund) rose to a record $62.8 billion as of December 31 from $54.3 billion at the end of September. The Fund balance increased primarily due to decreases in estimated losses for past bank failures. Estimated insured deposits increased 1.0 percent, and the DIF reserve ratio (the Fund balance as a percentage of estimated insured deposits) rose to 1.01 percent as of December 31 from 0.88 percent as of September 30. A year ago, the DIF reserve ratio was 0.79 percent.
Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reported aggregate net income of $36.9 billion in the fourth quarter of 2014, down $2.9 billion (7.3 percent) from earnings of $39.8 billion that the industry reported a year earlier. The decline in earnings was mainly attributable to a $4.4 billion increase in litigation expenses at a few large banks. More than half of the 6,509 insured institutions reporting (61.2 percent) had year-over-year growth in quarterly earnings. The proportion of banks that were unprofitable during the fourth quarter fell to 9.4 percent from 12.7 percent a year earlier.
"The banking industry continued to improve at the end of the year," FDIC Chairman Martin J. Gruenberg said. "Although total industry earnings declined as a result of significant litigation expenses at a few large institutions and a continued decline in mortgage-related income, a majority of banks reported higher operating revenues and improved earnings from the previous year. In addition, banks made loans at a faster pace, asset quality improved, and the number of banks on the 'Problem List' declined to the lowest level in six years."
Chairman Gruenberg added: "Community banks performed especially well during the quarter. Their earnings were up 28 percent from the previous year, their net interest margin and rate of loan growth were appreciably higher than the industry, and they increased their small loans to businesses."
Community banks earned $4.8 billion during the quarter. Based on criteria developed for the FDIC Community Banking Study published in December 2012, there were 6,037 community banks (92.7 percent of all FDIC-insured institutions) in the fourth quarter of 2014 with assets of $2.1 trillion (13.3 percent of industry assets). Fourth quarter net income of $4.8 billion at community banks was up $1.0 billion (27.7 percent) from a year earlier, driven by higher net interest income, increased noninterest income, and lower loan-loss provisions. Community banks' net income, net interest income, noninterest income, and loan balances all grew at a faster pace than the industry as a whole. Asset quality indicators showed further improvement, and community banks continued to hold 45 percent of small loans to businesses.
For the industry as a whole, loan and lease balances rose $149.4 billion (1.8 percent) in the fourth quarter to $8.3 trillion. Commercial and industrial loans increased by $42.2 billion (2.5 percent), and credit card balances grew by $35.4 billion (5.2 percent). Over the past 12 months, loan and lease balances increased 5.3 percent. This is the highest 12-month growth rate for loans since mid-year 2008.
Net interest income was $1.1 billion (1 percent) higher than a year ago, as the industry's interest-bearing assets increased 6.2 percent in 2014. Almost three out of four institutions (70.5 percent) reported higher net interest income than in the fourth quarter of 2013. The average net interest margin (the difference between the average yield banks earn on loans and other investments and the average cost of funding those investments) was 3.12 percent, down from the 3.27 average in the fourth quarter of 2013. This is the lowest quarterly average margin since the 3.11 percent reported in the third quarter of 1989, as larger institutions continued to increase their holdings of low-yield, liquid investments.
Noninterest income was down $160 million (0.3 percent) from a year ago, as income from the sale, securitization, and servicing of residential mortgages declined $1.6 billion (30.8 percent). More than half of all banks (54.4 percent) reported year-over-year increases in quarterly noninterest income.
Noninterest expenses were $4.9 billion (4.8 percent) higher than a year ago, as itemized litigation expenses at a few of the largest banks were $4.4 billion higher. Banks set aside $8.2 billion in provisions for loan losses, up 12 percent from $7.3 billion a year earlier. This is the second consecutive quarter that the industry has reported a year-over-year increase in loss provisions.
Asset quality indicators continued to improve as insured banks and thrifts charged off $9.9 billion in uncollectible loans during the quarter, down $2.2 billion (18.3 percent) from a year earlier. The amount of noncurrent loans and leases (those 90 days or more past due or in nonaccrual status) fell $9.2 billion (5.4 percent) during the fourth quarter. The percentage of loans and leases that were noncurrent declined to 1.96 percent, the lowest level since the 1.73 percent posted at the end of the first quarter of 2008.
The average return on assets (ROA) fell to 0.96 percent in the fourth quarter from 1.09 percent a year earlier. The average return on equity (ROE) declined from 9.76 percent to 8.56 percent.
Chairman Gruenberg concluded: "The current operating environment remains challenging. Revenue growth continues to be held back by narrow interest margins and lower mortgage-related income. And, many institutions are reaching for yield given the low interest-rate environment, which is a matter of ongoing supervisory attention. Nevertheless, results from the fourth quarter generally were positive for the banking industry, and for community banks in particular."
Financial results for the fourth quarter of 2014 and the full year are contained in the FDIC's latest Quarterly Banking Profile, which was released today. Also among the findings:
Full-year earnings totaled $152.7 billion. Total net income for 2014 was $1.7 billion (1.1 percent) less than the industry reported in 2013. This is the first decline in annual net income in five years. Full-year ROA was 1.01 percent, marking the third year in a row that the annual ROA has exceeded 1 percent. Reduced revenues from the sale, securitization, and servicing of residential mortgages (down $9.1 billion or 35 percent) and increased litigation expenses at a few large banks (up $6.5 billion or 206 percent) were the main causes of the drop in full-year earnings. Almost two out of every three banks (64 percent) reported higher net income than in 2013.
The number of "problem banks" fell for the 15th consecutive quarter. The number of banks on the FDIC's "Problem List" declined from 329 to 291 during the quarter, the lowest since the end of 2008. The number of "problem banks" now is 67 percent below the post-crisis high of 888 at the end of the first quarter of 2011.
The Deposit Insurance Fund (DIF) balance continued to increase. The DIF balance (the net worth of the Fund) rose to a record $62.8 billion as of December 31 from $54.3 billion at the end of September. The Fund balance increased primarily due to decreases in estimated losses for past bank failures. Estimated insured deposits increased 1.0 percent, and the DIF reserve ratio (the Fund balance as a percentage of estimated insured deposits) rose to 1.01 percent as of December 31 from 0.88 percent as of September 30. A year ago, the DIF reserve ratio was 0.79 percent.
DEFENSE SECRETARY CARTER STOPPED IN KANDAHAR TO THANK TROOPS
Right: U.S. Defense Secretary Ash Carter talks with troops on Kandahar Airfield, Afghanistan, Feb. 22, 2015. Carter answered a range of questions and thanked troops for their service. DoD photo by Glenn Fawcett.
By Cheryl Pellerin
DoD News, Defense Media Activity
WASHINGTON, Feb. 22, 2015 – As part of his first official trip to Afghanistan as defense secretary, Ash Carter made a stop in Kandahar today to thank U.S. troops there for their dedication to the mission and the progress they and their NATO and Afghan allies have achieved.
His visit was to the Train Advise and Assist Command South, or TAAC South, formerly Regional Command South. The command’s area of responsibility includes the provinces of Kandahar, Uruzgan, Zabul and Daykundi.
The U.S. 1st Cavalry Division is what is called the TAAC South framework element, and contributing countries include Romania, Slovakia, the United Kingdom, Belgium, Australia, Jordan and Georgia.
At TAAC South’s Kandahar Airfield headquarters, Carter told the troops that they are his priority.
Thanking the Troops
“You're what I wake up to every morning” he said. “I never forget for one minute that you're here and what you're doing, the sacrifice that being here entails and the risk that it entails for you.”
He thanked the troops personally and on behalf of the Defense Department and the nation.
While in Afghanistan, the secretary will assess progress being made in the country so he can determine future actions and make recommendations to President Barack Obama, he told service members.
The train, advise and assist mission is becoming the heart of the effort in Afghanistan that will make permanent the success that U.S. and coalition troops have sacrificed so much for, Carter said.
An Important Country in the World
“We'll never be gone from Afghanistan because Afghanistan is an important country in the world,” he added, “but when our presence here is reduced to something much smaller than today, we want to make sure that the Afghans themselves are able to preserve the environment our forces have created over the last few years, one of relative security and stability.”
Carter told the men and women in uniform that he’d met with Afghan President Ashraf Ghani and Chief Executive Dr. Abdulla Abdullah in Kabul.
“There's one thing President Ghani said that I want to share with you. He said, ‘Would you please tell your people that I appreciate the sacrifice they have made for my country.’”
Carter said, “Just think about that -- remember that.”
Questions From the Troops
Before giving each service member a coin and having his picture taken with them, Carter took questions from his audience that ranged from cybersecurity to military retirement to downsizing the force. But first he commented on the coins.
“Let me tell you a little bit about the coin. … I'm so new they haven't made coins with my name on them yet, so I'm sorry about that. It's a more generic secretary of defense coin. It may not be as valuable on eBay as an Aston B. Carter coin,” he said to laughter from the audience, “but you can trade up later.”
His first question was about the cyber dimension of building a force of the future.
“Cyber has to be part of building the force of the future -- is in fact part of the force of right now,” the defense secretary said.
Leveraging Technology
One of the reasons the United States has the finest fighting force the world has ever seen is because of the way the nation leverages technology, Carter said, especially information technology.
The field is exploding and it's everywhere in the world, he added, “and that means if we don't change and we don't keep up, we can't keep our position as the best in the world.”
The United States has a substantial lead in cyberspace now, Carter said, “and there’s no reason why we can't keep it.”
“The reason we'll stay the greatest is that we'll keep striving to be at the forefront,” the secretary added. “And in today's world the only way to be excellent is to be open to ideas from the outside. You can't think of everything yourself and you can't do everything yourself.”
Military Retirement System
To a question about the military retirement system, Carter said he’s open to reconsidering the system.
The Military Compensation and Retirement Modernization Commission studied the current system and sent its report to Carter, who said he’s studying it.
“Ultimately under the law I'm required to then tell President Obama what I think about it and I haven't had a chance to do all that yet, and absorb it,” he said.
But Carter added that his starting point is that such a system attracts those who will keep the all-volunteer force healthy in the future and that continues to offer a retirement structure that is attractive and gives recruits appropriate incentives along the way to stay in the military or retire at a time that is best for them and best for the force.
Keeping the All-volunteer Force Healthy
“That’s the criterion that I will principally apply in considering these things,” the secretary added. “It's not about money [or] anything else. It's fundamentally mostly about the health of the force in the future and that's the lens through which I will look at it.”
The military retirement system has financial implications for each individual service member and for the country as a whole, Carter said, but the priority is to make sure the services have the right people.
“Any change we make [should] be one that those already in service don't have to make if they don't want to,” the secretary said, adding that this in line with what the commission recommended.
“I don't want to breach our understanding with you at the time you joined, that's not fair, he told service members.
The services can make alternatives available to those who may join the military in the future, and available to those who are in now, Carter said, “but if we made a deal with you when you first got in, I think we ought to keep that deal.”
Defending the Nation
To a question about downsizing the military at a time when multiple national security challenges face the nation, Carter said he’s adamantly opposed to the budget cuts known as sequestration.
The sequestration process is unwise and unsafe for national security going forward,” he told troops.
“We’ve got to spend enough money on defense to protect our country and protect our interests,” the secretary said. “We just can't have a mindless mechanism that decides what the defense budget is.” The nation, he added, must decide what it needs to protect itself, its interests and its allies, and consider those elements to build a budget.
It’s also imperative, he said, to put every defense dollar to good use.
“My reaction every time somebody says … how are you spending your money? Fair enough. It’s fair enough to be challenged and make sure we're using all that money” in the best possible ways, Carter said.
DEFENSE SECRETARY CARTER MEETS WITH THE AMIR OF KUWAIT
Right: Defense Secretary Ash Carter, left, meets with the Amir of Kuwait Sabah al-Ahmad al-Jaber al-Sabah in Kuwait City, Kuwait, Feb. 23, 2015. DoD photo by Glenn Fawcett.
Carter Thanks Kuwait's Leaders for Strategic Partnership
DoD News, Defense Media Activity
WASHINGTON, Feb. 23, 2015 – In Kuwait, Defense Secretary Ash Carter expressed U.S. appreciation for the strategic partnership between the United States and Kuwait during his meetings with His Highness Amir Sabah al-Ahmad al-Jabir al-Sabah and Deputy Prime Minister and Minister of Defense Sheikh Khalid al-Jarrah al-Sabah, Pentagon Press Secretary Navy Rear Adm. John Kirby said in a statement issued today.
Appreciation for Strategic Partnership
Carter also expressed his thanks for Kuwait's willingness to host U.S. and coalition forces in support of military operations against the Islamic State of Iraq and the Levant, Kirby said in the statement.
The leaders also discussed their shared commitment to continue the two nations' close security cooperation during Carter’s leadership of the defense department, Kirby said.
Afghanistan, Middle East Visit
The meetings come at the end of the defense secretary’s first week in office, the admiral said, during which he made it a priority to travel to Afghanistan and the Middle East.
SECURITY DISCUSSED BY GEN. DEMPSEY, AUSTRALIAN CHIEF OF DEFENSE FORCE
FROM: U.S. DEFENSE DEPARTMENT
Dempsey, Australian Defense Chief Discuss Security Issues
By Lisa Ferdinando
DoD News, Defense Media Activity
SYDNEY, Feb. 23, 2015 – The chairman of the Joint Chiefs of Staff and his Australian counterpart met here today to examine security challenges and find ways to further strengthen ties as the U.S. military rebalances to the Pacific.
The day-long meeting between Army Gen. Martin E. Dempsey and the Australian chief of the Defense Force, Air Chief Marshal Mark Binskin, was the second Defense Chiefs Strategic Dialogue held between the United States and Australia. The first DCSD was held in Washington in 2013.
A Complex Global Security Environment
Dempsey said the meeting was an important opportunity for both nations to discuss today’s complex global security environment. He cited diverse challenges including Iran, Russian aggression in Ukraine, and the campaign against Islamic State of Iraq and the Levant terrorists.
"We really have to keep our eye on the future while dealing with the issues of the present," the chairman said at the meeting.
There needs to be talk about the long-term threat posed by violent extremists, Dempsey said. The terrorist attack in a café in Sydney in December in which two hostages were killed was a "terrible tragedy," the chairman said.
Australia is a strong U.S. partner and ally that has made incredible contributions to stability efforts in the Pacific and around the globe, said Dempsey's spokesman, Air Force Col. Ed Thomas.
"The United States and Australia have a shared worldview that is governed by international law that has been the foundation for peace and security in the region," Thomas said. "Today's dialogue and the commitment it represents are important as we continue to rebalance to the Pacific."
The defense chiefs, along with their senior staff, talked candidly about the challenges each nation faces and how their militaries can continue to strengthen relations and interoperability, the colonel said.
Expanding Security Partnership
A key aspect of the U.S.-Australian alliance is the expanding security relationship, supported by the Force Posture Agreement, which provides an "enduring foundation for regional security and complements the initiatives upon which the two governments have embarked since 2011," Thomas explained.
Currently, there’s a 1,150-member rotational presence of U.S. Marines in Darwin, Australia, he said. And the growing cooperation between the countries' air forces, he added, is a "tangible measure of the strength of the U.S.-Australia defense alliance and our shared vision for regional security.”
The basis of the military relationship between the United States and Australia is the 1951 Australia, New Zealand, United States Security Treaty, or ANZUS Treaty, Thomas said.
Australia invoked the treaty once -- in response to the Sept. 11, 2001, terrorist attacks on the United States.
Dempsey, Australian Defense Chief Discuss Security Issues
By Lisa Ferdinando
DoD News, Defense Media Activity
SYDNEY, Feb. 23, 2015 – The chairman of the Joint Chiefs of Staff and his Australian counterpart met here today to examine security challenges and find ways to further strengthen ties as the U.S. military rebalances to the Pacific.
The day-long meeting between Army Gen. Martin E. Dempsey and the Australian chief of the Defense Force, Air Chief Marshal Mark Binskin, was the second Defense Chiefs Strategic Dialogue held between the United States and Australia. The first DCSD was held in Washington in 2013.
A Complex Global Security Environment
Dempsey said the meeting was an important opportunity for both nations to discuss today’s complex global security environment. He cited diverse challenges including Iran, Russian aggression in Ukraine, and the campaign against Islamic State of Iraq and the Levant terrorists.
"We really have to keep our eye on the future while dealing with the issues of the present," the chairman said at the meeting.
There needs to be talk about the long-term threat posed by violent extremists, Dempsey said. The terrorist attack in a café in Sydney in December in which two hostages were killed was a "terrible tragedy," the chairman said.
Australia is a strong U.S. partner and ally that has made incredible contributions to stability efforts in the Pacific and around the globe, said Dempsey's spokesman, Air Force Col. Ed Thomas.
"The United States and Australia have a shared worldview that is governed by international law that has been the foundation for peace and security in the region," Thomas said. "Today's dialogue and the commitment it represents are important as we continue to rebalance to the Pacific."
The defense chiefs, along with their senior staff, talked candidly about the challenges each nation faces and how their militaries can continue to strengthen relations and interoperability, the colonel said.
Expanding Security Partnership
A key aspect of the U.S.-Australian alliance is the expanding security relationship, supported by the Force Posture Agreement, which provides an "enduring foundation for regional security and complements the initiatives upon which the two governments have embarked since 2011," Thomas explained.
Currently, there’s a 1,150-member rotational presence of U.S. Marines in Darwin, Australia, he said. And the growing cooperation between the countries' air forces, he added, is a "tangible measure of the strength of the U.S.-Australia defense alliance and our shared vision for regional security.”
The basis of the military relationship between the United States and Australia is the 1951 Australia, New Zealand, United States Security Treaty, or ANZUS Treaty, Thomas said.
Australia invoked the treaty once -- in response to the Sept. 11, 2001, terrorist attacks on the United States.
AG HOLDER'S REMARKS ON 800-YEAR ANNIVERSARY OF THE MAGNA CARTA
FROM: U.S. JUSTICE DEPARTMENT
Attorney General Holder Delivers Remarks at the Global Law Summit to Commemorate the 800-Year Anniversary of Magna Carta
LondonUnited Kingdom ~ Monday, February 23, 2015
Thank you for that kind introduction. It’s a pleasure to be back in London this morning, where history has brought our predecessors so many times before. And it’s a great privilege to join you all in opening this important forum – as we gather to reaffirm the rights and principles of Magna Carta; as we pledge to renew our shared commitment to these timeless ideals; and as we resolve to carry them forward into a new century.
I’d like to thank the board of the Global Law Summit for bringing us together today. I want to thank Prime Minister [David] Cameron, members of Her Majesty’s government, and of course the City of London for hosting this unique event. Most of all, I want to thank the sponsors, speakers, and delegates who are here with us for lending your voices – and perspectives – to this historic gathering.
It was 800 years ago this June – just two dozen miles from here, along the banks of the River Thames at Runnymede – that King John forever changed the course of history when he put his seal to a sheet of parchment and extended basic rights to those subject to his reign.
The circumstances that gave rise to this Great Charter belong not merely to another millennium, but another age. Yet this singular document, comprising just 54 lines of Latin text, would come to be regarded as the source to which many fundamental building blocks of liberty trace their origin. And as we convene this morning, the enumerated rights and bedrock principles set down in Magna Carta remain as contemporary as any challenge we now face – standing at the center of our modern societies and our systems of government.
From the reigns of successive monarchs, to the fires of revolution; from the birth of modern democracy, to the global movement for civil rights – our dedication to these principles has been repeatedly challenged, and rigorously tested, over the last eight centuries. Our collective history has been shaped by our fidelity to these essential tenets. And our future will be determined, in no small measure, by our ongoing efforts to venerate their spirit – and vindicate their promise.
It was during the American civil rights movement – as millions marched, and rallied, and sacrificed to bring an end to my country’s long night of racial injustice – that I first became conscious of this notion in my own life. In June of 1963 as a young boy, I watched, on a black-and-white television in the basement of my childhood home, as a charismatic young President, John F. Kennedy – and another Attorney General, Robert Kennedy – sought to bend the course of history towards justice by enforcing a court order that allowed two courageous African-American students to enroll in a segregated Southern university.
Many years after that indelible moment, one of those brave students, Vivian Malone, would become my sister-in-law. And as I began to walk the path that would take me from that very small house in New York City, to the United States Department of Justice, to this last official trip to this great nation as a representative of my government – a journey made possible by the sacrifices of countless trailblazers who had gone before – I have never forgotten those images, that dramatic “Stand in the Schoolhouse Door,” or the formative lesson it imparted: that the law, at its best, can be a strong, deft instrument for positive change – a framework for doing that which is right.
It was this vision of promise and possibility – a promise rooted in Magna Carta, broadened by the United States Constitution and Bill of Rights it inspired, and illustrated by the examples of my nation's civil rights movement and the call to service by the brothers Kennedy – that first led me to dream of a life of public service. It was the same conception of justice that drove me to build my career – in both the public and the private sectors – as a steward of America’s legal system. And it is the same imperative – to do that which is right – that guides my colleagues and me, at every level of my country’s Justice Department, even today.
I am deeply proud of all that these dedicated men and women have accomplished, over the past six years, in securing the rights that flow from Magna Carta’s timeless guarantees. During my tenure as Attorney General, we have taken decisive action to reform America’s criminal justice system – and pull it closer to our founding ideals – while keeping our people safe.
We have kept faith with our belief in the power of our great judicial system and the appropriate interrogation techniques used thereunder – which owe so much to your own – to fairly and effectively adjudicate any cases, including those that implicate threats to our national security.
We have fought hard to secure the civil rights of all people, particularly the most vulnerable members of our society – and taken strong action to safeguard the most basic of American rights: the right to vote.
We have begun to realize the promise of equality for our lesbian, gay, bisexual and transgender brothers and sisters, and their families. And we are forcefully supporting those who have taken the struggle for marriage equality to the highest court in our land.
We have stood firm against financial fraud, and worked to bring fairness to the rules by which our commercial enterprises operate. We have taken rigorous steps to protect the environment. And we have presided over the first reduction in America’s federal prison population in decades, along with a continued decrease in the national crime rate – the first time these two critical markers have declined together in more than forty years.
Now, despite these extraordinary results, there’s no question that a great deal of work remains to be done. But the progress we have secured, and the difference we’ve made, is real. Through all of these efforts, we have been guided by a steadfast devotion to the core protections of Magna Carta; a dedication to securing the vastly expanded rights in which they take modern expression; and a determination to harness the law as a tool for protecting our people.
No principle is more fundamental than Magna Carta’s single most powerful assurance: that justice is not an abstraction defined merely by the powerful. It lives in our daily work and lives. And it must never be an act that’s imposed arbitrarily, by the state upon the individual. Rather, it is a sacred compact, to be fulfilled by the people and their government, working side by side.
This is an ideal that must be realized in every interaction between our institutions, our laws, and the lives of our citizens. Like many of you, this is something I’ve seen firsthand. During my time as chief federal prosecutor for the District of Columbia – during the mid-1990s – Washington, D.C., was a city in crisis. And I saw, with my own eyes, that mistrust between law enforcement and local residents was – in some areas – both corrosive and widespread.
In response, my colleagues and I launched a community prosecution initiative – an innovative program that led us to build engagement and establish rapport between prosecutors, police officers, community leaders and the residents we were sworn to protect. Over time, these connections helped to restore trust and strengthen the fabric of the community. And as we speak, today’s Justice Department is employing the very same approach – by implementing engagement and community policing strategies from coast to coast – to advance a critical national dialogue to address mistrust, and resolve long-simmering tensions, that have been exposed by a series of recent tragedies.
We know that doing so will enable our brave men and women in law enforcement to perform their dangerous jobs with maximum safety and effectiveness. It will help us to ensure the unbiased and equal treatment of every citizen. And it will reinforce the notion that public safety is not a cause to be served by a courageous few, but a calling to be fulfilled by citizens as well as public servants.
Of course, our ongoing effort to build community trust also implicates broader questions about the fairness of America’s justice system as a whole. And just as Magna Carta provided an early conception of the law as a social contract, so, too, did it give rise to another key principle that must always guide our work: the notion that the rule of law is dependent on the guarantee of due process.
This guarantee hinges on the integrity of our institutions, on remedies such as habeas corpus, and on the ability of the legal system to deliver fair and impartial outcomes – something I saw during my service as a judge in the late 1980s and early 1990s.
During my time on the bench, I came face-to-face with the destructive cycle of poverty, criminality, and incarceration that has trapped far too many people and weakened entire communities. I recognized the counterproductive practices that have contributed to an unprecedented rise in the American prison population over the last 30 years. And I grew determined to help forge a better path.
As we speak – with support from leaders and experts across the political spectrum – my colleagues and I are working to break this destructive cycle, to strengthen the federal justice system in the United States, and to overturn our country’s overreliance on incarceration. About 18 months ago, I launched a series of reforms known as the Smart on Crime initiative. As part of this initiative, I mandated policy changes to ensure that low-level, nonviolent defendants – who stand accused of certain federal drug crimes – will face sentences appropriate to their alleged conduct, rather than excessive mandatory minimum sentences better suited to violent criminals or kingpins.
Today, I am proud to report that – by every measure we’ve seen so far – these reforms are working as intended. Since the launch of the Smart on Crime initiative, we’ve witnessed a decline in the number of people charged with federal drug trafficking crimes. We’ve experienced an increase in the seriousness of federal crimes charged, indicating that resources are being used to pursue the most dangerous criminals. And we’ve seen an unprecedented reduction in our reliance on mandatory minimums – without any impact on our ability to elicit cooperation or secure guilty pleas.
Across the board, these changes are improving the efficiency, the effectiveness and the fairness of our criminal justice system. But even this fundamental notion – that justice must be applied equally, to every individual – rests on yet another principle inherited from Magna Carta: that the law itself must be held as supreme. That no one is above it. And that no one is immune from either its protections or its limitations.
It was nearly four decades ago, during my first job at the United States Department of Justice, that I came to understand the singular importance of this principle. At the beginning of my career, I spent a dozen years prosecuting elected leaders and public officials accused of betraying the public trust. I witnessed the acutely corrosive nature of official corruption. And I saw how it can imperil our values, undermine the rule of law, and impose costs that are immense and long-lasting.
I also saw, as my career unfolded, that these challenges are anything but unique to the United States. That’s why, as Attorney General, I have been proud to work with my colleagues in the United Kingdom – and around the world – to make anticorruption and asset forfeiture major priorities for the community of nations.
Five years ago, I launched a Kleptocracy Asset Recovery Initiative to help the Justice Department combat large-scale foreign corruption – and return stolen funds to the citizens to whom they belong. More recently, I stood with my international counterparts in Doha, and in Marrakech, for the first and second Arab Forums on Asset Recovery. And last spring, here in London, I helped to convene the first-ever Ukraine Forum on Asset Recovery, dedicated to supporting the Ukrainian people as they strive to chart their own, independent course to safety, prosperity, and peace.
The aims of this work are far from transitory. They reflect a universal desire – as old as recorded time – to shape one’s own future. And they underscore the enduring importance of Magna Carta not just as a legal document, but as a potent symbol of freedom under the rule of law – a symbol whose power and significance are truly global, and whose reach must be made global as well.
After all, we know that our democratic values, our open societies – and our commitment to tolerance and inclusion – must be continuously protected against intolerance, extremism, and hate. And we are bound together by our conviction that the world must stand united in support of the rule of law – and in opposition to all who threaten it.
This is the reality that drives President Obama’s 2015 National Security Strategy, which lays out a credible vision of leadership – through patience, persistence, and a clear sense of purpose – in concert with America’s global allies. The events now unfolding in Syria and Iraq remind us every day that we cannot afford to be passive in the face of violent extremism, however it is cloaked. It is clear that we must address those underlying causes that tend to breed this mindless desire to join a cause that is in the truest sense of the word – barbaric – and antithetical to all that we celebrate today. And we must ensure that there can be no impunity for those who actively contemplate committing terrorist acts – because, if we wait for our citizens to travel to regions in conflict, to become radicalized, and to return home, it may be too late to adequately protect our security.
As we assemble this morning – in an hour of challenge and tremendous consequence – we are separated from the sealing of Magna Carta by a gulf of time; by the sweep of eight centuries; by the rise and fall of empires; by the ravages of global war. Yet the principles of this Great Charter endure. Our governments, and our societies, continue to be defined by the protection of due process, the supremacy of law, and the engagement of our citizens in the work of public safety and economic prosperity. And just as our histories are bound together at Runnymede – where, today, there stands a monument to Magna Carta, built by my American Bar Association – so, too, does our sovereign soil intermingle there, along the banks of the Thames.
A short distance from the Magna Carta monument lies a block of stone inscribed to the memory of a man who spent his life in defense of the principles that found their origin in that meadow – the very same leader whose service inspired my own career, President John Fitzgerald Kennedy. This memorial rests on land that was given to the American people, as a symbolic gift, by Her Majesty Queen Elizabeth II. And it speaks not just to the contributions of one individual – or the common heritage of our legal systems – but to the common aspirations of our peoples.
Through 800 years of transformative change, our progress has been rooted in values that are long-shared; values that define us. Over time, Magna Carta’s story has become our story. Its history has shaped our history. And its future will define our future.
So the question now before this gathering – and the decision that rests with each of us – is whether, and how, this progress will continue. What will history record of this moment – our moment – in this age of possibility and peril? What will we do to bolster the protections with which our leaders are now entrusted? And how will future generations measure our worthiness to carry Magna Carta’s principles into yet another new century?
My own dearest hope, for the fleeting time I’ve been privileged to stand with you on the world stage, has been to do honor to the faith that’s been placed in me – by my country; by my fellow citizens; and by the legacies of all who have gone before. So let it be said of us – when this brief moment is completed – that we held true to the path we have been walking together for eight centuries.
Let it be said that we strengthened the social contract – and served as protectors not just of our citizens, but of our systems.
Let it be said that we fought for the equality of all people in the eyes of the law.
And let it be said that – in an hour of grave danger, just as those who preceded us – we faithfully bore the burdens of justice. That, in a time of contemporary great darkness, we held high the torch of liberty and principle.
And that, in a time of uncommon threat, we dared – with intention, with clarity of purpose, and with an audacity that will be long remembered – to rise, together, against the tyranny of injustice and inhumanity.
May this be our legacy – and our challenge – to all who may succeed us in this endeavor.
I’d like to thank you all, once again, for your leadership and your steadfast support over the years. It has been the greatest honor of my professional life to stand with you in this work, to count you as colleagues and partners, and to join you in advancing the cause of justice. More than an occupation, this has become my life’s work. And in the months and years to come – and as my time in public service draws to a close – it will remain a calling that continues to push me forward, wherever my path may take me.
I wish you all a most productive Summit – may it help to lead us all to a new age of justice and enlightenment and be truly worthy of the promise of Runnymede.
Thank you.
Attorney General Holder Delivers Remarks at the Global Law Summit to Commemorate the 800-Year Anniversary of Magna Carta
LondonUnited Kingdom ~ Monday, February 23, 2015
Thank you for that kind introduction. It’s a pleasure to be back in London this morning, where history has brought our predecessors so many times before. And it’s a great privilege to join you all in opening this important forum – as we gather to reaffirm the rights and principles of Magna Carta; as we pledge to renew our shared commitment to these timeless ideals; and as we resolve to carry them forward into a new century.
I’d like to thank the board of the Global Law Summit for bringing us together today. I want to thank Prime Minister [David] Cameron, members of Her Majesty’s government, and of course the City of London for hosting this unique event. Most of all, I want to thank the sponsors, speakers, and delegates who are here with us for lending your voices – and perspectives – to this historic gathering.
It was 800 years ago this June – just two dozen miles from here, along the banks of the River Thames at Runnymede – that King John forever changed the course of history when he put his seal to a sheet of parchment and extended basic rights to those subject to his reign.
The circumstances that gave rise to this Great Charter belong not merely to another millennium, but another age. Yet this singular document, comprising just 54 lines of Latin text, would come to be regarded as the source to which many fundamental building blocks of liberty trace their origin. And as we convene this morning, the enumerated rights and bedrock principles set down in Magna Carta remain as contemporary as any challenge we now face – standing at the center of our modern societies and our systems of government.
From the reigns of successive monarchs, to the fires of revolution; from the birth of modern democracy, to the global movement for civil rights – our dedication to these principles has been repeatedly challenged, and rigorously tested, over the last eight centuries. Our collective history has been shaped by our fidelity to these essential tenets. And our future will be determined, in no small measure, by our ongoing efforts to venerate their spirit – and vindicate their promise.
It was during the American civil rights movement – as millions marched, and rallied, and sacrificed to bring an end to my country’s long night of racial injustice – that I first became conscious of this notion in my own life. In June of 1963 as a young boy, I watched, on a black-and-white television in the basement of my childhood home, as a charismatic young President, John F. Kennedy – and another Attorney General, Robert Kennedy – sought to bend the course of history towards justice by enforcing a court order that allowed two courageous African-American students to enroll in a segregated Southern university.
Many years after that indelible moment, one of those brave students, Vivian Malone, would become my sister-in-law. And as I began to walk the path that would take me from that very small house in New York City, to the United States Department of Justice, to this last official trip to this great nation as a representative of my government – a journey made possible by the sacrifices of countless trailblazers who had gone before – I have never forgotten those images, that dramatic “Stand in the Schoolhouse Door,” or the formative lesson it imparted: that the law, at its best, can be a strong, deft instrument for positive change – a framework for doing that which is right.
It was this vision of promise and possibility – a promise rooted in Magna Carta, broadened by the United States Constitution and Bill of Rights it inspired, and illustrated by the examples of my nation's civil rights movement and the call to service by the brothers Kennedy – that first led me to dream of a life of public service. It was the same conception of justice that drove me to build my career – in both the public and the private sectors – as a steward of America’s legal system. And it is the same imperative – to do that which is right – that guides my colleagues and me, at every level of my country’s Justice Department, even today.
I am deeply proud of all that these dedicated men and women have accomplished, over the past six years, in securing the rights that flow from Magna Carta’s timeless guarantees. During my tenure as Attorney General, we have taken decisive action to reform America’s criminal justice system – and pull it closer to our founding ideals – while keeping our people safe.
We have kept faith with our belief in the power of our great judicial system and the appropriate interrogation techniques used thereunder – which owe so much to your own – to fairly and effectively adjudicate any cases, including those that implicate threats to our national security.
We have fought hard to secure the civil rights of all people, particularly the most vulnerable members of our society – and taken strong action to safeguard the most basic of American rights: the right to vote.
We have begun to realize the promise of equality for our lesbian, gay, bisexual and transgender brothers and sisters, and their families. And we are forcefully supporting those who have taken the struggle for marriage equality to the highest court in our land.
We have stood firm against financial fraud, and worked to bring fairness to the rules by which our commercial enterprises operate. We have taken rigorous steps to protect the environment. And we have presided over the first reduction in America’s federal prison population in decades, along with a continued decrease in the national crime rate – the first time these two critical markers have declined together in more than forty years.
Now, despite these extraordinary results, there’s no question that a great deal of work remains to be done. But the progress we have secured, and the difference we’ve made, is real. Through all of these efforts, we have been guided by a steadfast devotion to the core protections of Magna Carta; a dedication to securing the vastly expanded rights in which they take modern expression; and a determination to harness the law as a tool for protecting our people.
No principle is more fundamental than Magna Carta’s single most powerful assurance: that justice is not an abstraction defined merely by the powerful. It lives in our daily work and lives. And it must never be an act that’s imposed arbitrarily, by the state upon the individual. Rather, it is a sacred compact, to be fulfilled by the people and their government, working side by side.
This is an ideal that must be realized in every interaction between our institutions, our laws, and the lives of our citizens. Like many of you, this is something I’ve seen firsthand. During my time as chief federal prosecutor for the District of Columbia – during the mid-1990s – Washington, D.C., was a city in crisis. And I saw, with my own eyes, that mistrust between law enforcement and local residents was – in some areas – both corrosive and widespread.
In response, my colleagues and I launched a community prosecution initiative – an innovative program that led us to build engagement and establish rapport between prosecutors, police officers, community leaders and the residents we were sworn to protect. Over time, these connections helped to restore trust and strengthen the fabric of the community. And as we speak, today’s Justice Department is employing the very same approach – by implementing engagement and community policing strategies from coast to coast – to advance a critical national dialogue to address mistrust, and resolve long-simmering tensions, that have been exposed by a series of recent tragedies.
We know that doing so will enable our brave men and women in law enforcement to perform their dangerous jobs with maximum safety and effectiveness. It will help us to ensure the unbiased and equal treatment of every citizen. And it will reinforce the notion that public safety is not a cause to be served by a courageous few, but a calling to be fulfilled by citizens as well as public servants.
Of course, our ongoing effort to build community trust also implicates broader questions about the fairness of America’s justice system as a whole. And just as Magna Carta provided an early conception of the law as a social contract, so, too, did it give rise to another key principle that must always guide our work: the notion that the rule of law is dependent on the guarantee of due process.
This guarantee hinges on the integrity of our institutions, on remedies such as habeas corpus, and on the ability of the legal system to deliver fair and impartial outcomes – something I saw during my service as a judge in the late 1980s and early 1990s.
During my time on the bench, I came face-to-face with the destructive cycle of poverty, criminality, and incarceration that has trapped far too many people and weakened entire communities. I recognized the counterproductive practices that have contributed to an unprecedented rise in the American prison population over the last 30 years. And I grew determined to help forge a better path.
As we speak – with support from leaders and experts across the political spectrum – my colleagues and I are working to break this destructive cycle, to strengthen the federal justice system in the United States, and to overturn our country’s overreliance on incarceration. About 18 months ago, I launched a series of reforms known as the Smart on Crime initiative. As part of this initiative, I mandated policy changes to ensure that low-level, nonviolent defendants – who stand accused of certain federal drug crimes – will face sentences appropriate to their alleged conduct, rather than excessive mandatory minimum sentences better suited to violent criminals or kingpins.
Today, I am proud to report that – by every measure we’ve seen so far – these reforms are working as intended. Since the launch of the Smart on Crime initiative, we’ve witnessed a decline in the number of people charged with federal drug trafficking crimes. We’ve experienced an increase in the seriousness of federal crimes charged, indicating that resources are being used to pursue the most dangerous criminals. And we’ve seen an unprecedented reduction in our reliance on mandatory minimums – without any impact on our ability to elicit cooperation or secure guilty pleas.
Across the board, these changes are improving the efficiency, the effectiveness and the fairness of our criminal justice system. But even this fundamental notion – that justice must be applied equally, to every individual – rests on yet another principle inherited from Magna Carta: that the law itself must be held as supreme. That no one is above it. And that no one is immune from either its protections or its limitations.
It was nearly four decades ago, during my first job at the United States Department of Justice, that I came to understand the singular importance of this principle. At the beginning of my career, I spent a dozen years prosecuting elected leaders and public officials accused of betraying the public trust. I witnessed the acutely corrosive nature of official corruption. And I saw how it can imperil our values, undermine the rule of law, and impose costs that are immense and long-lasting.
I also saw, as my career unfolded, that these challenges are anything but unique to the United States. That’s why, as Attorney General, I have been proud to work with my colleagues in the United Kingdom – and around the world – to make anticorruption and asset forfeiture major priorities for the community of nations.
Five years ago, I launched a Kleptocracy Asset Recovery Initiative to help the Justice Department combat large-scale foreign corruption – and return stolen funds to the citizens to whom they belong. More recently, I stood with my international counterparts in Doha, and in Marrakech, for the first and second Arab Forums on Asset Recovery. And last spring, here in London, I helped to convene the first-ever Ukraine Forum on Asset Recovery, dedicated to supporting the Ukrainian people as they strive to chart their own, independent course to safety, prosperity, and peace.
The aims of this work are far from transitory. They reflect a universal desire – as old as recorded time – to shape one’s own future. And they underscore the enduring importance of Magna Carta not just as a legal document, but as a potent symbol of freedom under the rule of law – a symbol whose power and significance are truly global, and whose reach must be made global as well.
After all, we know that our democratic values, our open societies – and our commitment to tolerance and inclusion – must be continuously protected against intolerance, extremism, and hate. And we are bound together by our conviction that the world must stand united in support of the rule of law – and in opposition to all who threaten it.
This is the reality that drives President Obama’s 2015 National Security Strategy, which lays out a credible vision of leadership – through patience, persistence, and a clear sense of purpose – in concert with America’s global allies. The events now unfolding in Syria and Iraq remind us every day that we cannot afford to be passive in the face of violent extremism, however it is cloaked. It is clear that we must address those underlying causes that tend to breed this mindless desire to join a cause that is in the truest sense of the word – barbaric – and antithetical to all that we celebrate today. And we must ensure that there can be no impunity for those who actively contemplate committing terrorist acts – because, if we wait for our citizens to travel to regions in conflict, to become radicalized, and to return home, it may be too late to adequately protect our security.
As we assemble this morning – in an hour of challenge and tremendous consequence – we are separated from the sealing of Magna Carta by a gulf of time; by the sweep of eight centuries; by the rise and fall of empires; by the ravages of global war. Yet the principles of this Great Charter endure. Our governments, and our societies, continue to be defined by the protection of due process, the supremacy of law, and the engagement of our citizens in the work of public safety and economic prosperity. And just as our histories are bound together at Runnymede – where, today, there stands a monument to Magna Carta, built by my American Bar Association – so, too, does our sovereign soil intermingle there, along the banks of the Thames.
A short distance from the Magna Carta monument lies a block of stone inscribed to the memory of a man who spent his life in defense of the principles that found their origin in that meadow – the very same leader whose service inspired my own career, President John Fitzgerald Kennedy. This memorial rests on land that was given to the American people, as a symbolic gift, by Her Majesty Queen Elizabeth II. And it speaks not just to the contributions of one individual – or the common heritage of our legal systems – but to the common aspirations of our peoples.
Through 800 years of transformative change, our progress has been rooted in values that are long-shared; values that define us. Over time, Magna Carta’s story has become our story. Its history has shaped our history. And its future will define our future.
So the question now before this gathering – and the decision that rests with each of us – is whether, and how, this progress will continue. What will history record of this moment – our moment – in this age of possibility and peril? What will we do to bolster the protections with which our leaders are now entrusted? And how will future generations measure our worthiness to carry Magna Carta’s principles into yet another new century?
My own dearest hope, for the fleeting time I’ve been privileged to stand with you on the world stage, has been to do honor to the faith that’s been placed in me – by my country; by my fellow citizens; and by the legacies of all who have gone before. So let it be said of us – when this brief moment is completed – that we held true to the path we have been walking together for eight centuries.
Let it be said that we strengthened the social contract – and served as protectors not just of our citizens, but of our systems.
Let it be said that we fought for the equality of all people in the eyes of the law.
And let it be said that – in an hour of grave danger, just as those who preceded us – we faithfully bore the burdens of justice. That, in a time of contemporary great darkness, we held high the torch of liberty and principle.
And that, in a time of uncommon threat, we dared – with intention, with clarity of purpose, and with an audacity that will be long remembered – to rise, together, against the tyranny of injustice and inhumanity.
May this be our legacy – and our challenge – to all who may succeed us in this endeavor.
I’d like to thank you all, once again, for your leadership and your steadfast support over the years. It has been the greatest honor of my professional life to stand with you in this work, to count you as colleagues and partners, and to join you in advancing the cause of justice. More than an occupation, this has become my life’s work. And in the months and years to come – and as my time in public service draws to a close – it will remain a calling that continues to push me forward, wherever my path may take me.
I wish you all a most productive Summit – may it help to lead us all to a new age of justice and enlightenment and be truly worthy of the promise of Runnymede.
Thank you.
Monday, February 23, 2015
PRESIDENT ISSUES LETTER REGARDING CONTINUATION OF NATIONAL EMERGENCY WITH RESPECT TO LIBYA
FROM: THE WHITE HOUSE
February 23, 2015
Letter -- Continuation of the National Emergency with Respect to Libya
Dear Mr. Speaker: (Dear Mr. President:)
Section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)) provides for the automatic termination of a national emergency unless, within 90 days prior to the anniversary date of its declaration, the President publishes in the Federal Register and transmits to the Congress a notice stating that the emergency is to continue in effect beyond the anniversary date. In accordance with this provision, I have sent to the Federal Register for publication the enclosed notice stating that the national emergency declared in Executive Order 13566 of February 25, 2011, with respect to Libya is to continue in effect beyond February 25, 2015.
Colonel Muammar Qadhafi, his government, and close associates took extreme measures against the people of Libya, including by using weapons of war, mercenaries, and wanton violence against unarmed civilians. In addition, there was a serious risk that Libyan state assets would be misappropriated by Qadhafi, members of his government, members of his family, or his close associates if those assets were not protected. The foregoing circumstances, the prolonged attacks, and the increased numbers of Libyans seeking refuge in other countries caused a deterioration in the security of Libya, posed a serious risk to its stability, and led me to declare a national emergency to deal with this threat to the national security and foreign policy of the United States.
The violence that has spread throughout the country, resulting in the evacuation and temporary relocation of U.S. Embassy personnel, demonstrates the continued insecurity and threat to regional stability caused by the ongoing conflict in Libya. Much of the current conflict is over power and access to Libya's resources, and we run the risk of further destabilization if sanctions do not remain in effect. We continue to encourage Libyans to engage in dialogue and cease violence. Those that reject dialogue and obstruct and undermine Libya's democratic transition must be held accountable, which is why we worked with the U.N. Security Council to pass U.N. Security Council Resolution 2174 in August 2014 to address threats to Libya's peace, security, and stability. While we work with the international community to identify those individuals who pose a threat to Libya's democratic transition, we must also continue to ensure that the appropriate sanctions remain in place.
The situation in Libya continues to pose an unusual and extraordinary threat to the national security and foreign policy of the United States, and we need to protect against the diversion of assets or other abuse by certain members of Qadhafi's family and other former regime officials. Therefore, I have determined that it is necessary to continue the national emergency with respect to Libya.
February 23, 2015
Letter -- Continuation of the National Emergency with Respect to Libya
Dear Mr. Speaker: (Dear Mr. President:)
Section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)) provides for the automatic termination of a national emergency unless, within 90 days prior to the anniversary date of its declaration, the President publishes in the Federal Register and transmits to the Congress a notice stating that the emergency is to continue in effect beyond the anniversary date. In accordance with this provision, I have sent to the Federal Register for publication the enclosed notice stating that the national emergency declared in Executive Order 13566 of February 25, 2011, with respect to Libya is to continue in effect beyond February 25, 2015.
Colonel Muammar Qadhafi, his government, and close associates took extreme measures against the people of Libya, including by using weapons of war, mercenaries, and wanton violence against unarmed civilians. In addition, there was a serious risk that Libyan state assets would be misappropriated by Qadhafi, members of his government, members of his family, or his close associates if those assets were not protected. The foregoing circumstances, the prolonged attacks, and the increased numbers of Libyans seeking refuge in other countries caused a deterioration in the security of Libya, posed a serious risk to its stability, and led me to declare a national emergency to deal with this threat to the national security and foreign policy of the United States.
The violence that has spread throughout the country, resulting in the evacuation and temporary relocation of U.S. Embassy personnel, demonstrates the continued insecurity and threat to regional stability caused by the ongoing conflict in Libya. Much of the current conflict is over power and access to Libya's resources, and we run the risk of further destabilization if sanctions do not remain in effect. We continue to encourage Libyans to engage in dialogue and cease violence. Those that reject dialogue and obstruct and undermine Libya's democratic transition must be held accountable, which is why we worked with the U.N. Security Council to pass U.N. Security Council Resolution 2174 in August 2014 to address threats to Libya's peace, security, and stability. While we work with the international community to identify those individuals who pose a threat to Libya's democratic transition, we must also continue to ensure that the appropriate sanctions remain in place.
The situation in Libya continues to pose an unusual and extraordinary threat to the national security and foreign policy of the United States, and we need to protect against the diversion of assets or other abuse by certain members of Qadhafi's family and other former regime officials. Therefore, I have determined that it is necessary to continue the national emergency with respect to Libya.
U.S. CONGRATULATES PEOPLE OF ESTONIA ON THEIR NATIONAL DAY
FROM: U.S. STATE DEPARTMENT
On the Occasion of Estonia's National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
February 23, 2015
On behalf of President Obama and the people of the United States, I congratulate the people of Estonia as you celebrate 97 years since the founding of your republic.
President Obama’s historic visit to your country last year was a visible demonstration of the ties between our two countries. As he said then, the energy and optimism of today’s Estonians is a model for those yearning for freedom.
Estonia is a global leader in e-governance, Internet freedom, cybersecurity, and free-market economics.
Most recently, Foreign Minister Pentus-Rosimannus and I had the opportunity to discuss issues of mutual importance at the NATO Ministerial in December 2014.
As you raise the blue, black, and white flag of Estonia over Toompea Hill, I wish all Estonians peace and prosperity in the year ahead. The United States stands with you as a steadfast partner and looks forward to continuing to expand ties between our peoples.
On the Occasion of Estonia's National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
February 23, 2015
On behalf of President Obama and the people of the United States, I congratulate the people of Estonia as you celebrate 97 years since the founding of your republic.
President Obama’s historic visit to your country last year was a visible demonstration of the ties between our two countries. As he said then, the energy and optimism of today’s Estonians is a model for those yearning for freedom.
Estonia is a global leader in e-governance, Internet freedom, cybersecurity, and free-market economics.
Most recently, Foreign Minister Pentus-Rosimannus and I had the opportunity to discuss issues of mutual importance at the NATO Ministerial in December 2014.
As you raise the blue, black, and white flag of Estonia over Toompea Hill, I wish all Estonians peace and prosperity in the year ahead. The United States stands with you as a steadfast partner and looks forward to continuing to expand ties between our peoples.
DOD REPORTS ON AIRSTRIKES AGAINST ISIL
FROM: U.S. DEFENSE DEPARTMENT
Airstrikes Continue Against ISIL in Syria, Iraq
From a Combined Joint Task Force Operation Inherent Resolve News Release
SOUTHWEST ASIA, Feb. 22, 2015 – U.S. and coalition military forces continued to attack ISIL terrorists in Syria and Iraq, Combined Joint Task Force Operation Inherent Resolve officials reported today.
Officials reported details of the latest strikes, which took place between 8 a.m. yesterday and 8 a.m. today, local time, noting that assessments of results are based on initial reports.
Airstrikes in Syria
Attack, fighter and bomber aircraft conducted six airstrikes in Syria:
-- Near Al Hasakah, two airstrikes struck two ISIL tactical units.
-- Near Dayr az Zawr, an airstrike destroyed an artillery system.
-- Near Kobani, three airstrikes struck two ISIL tactical units, an ISIL counter mobility berm and destroyed two ISIL checkpoints.
Airstrikes in Iraq
Attack and fighter aircraft conducted four airstrikes in Iraq:
-- Near Kirkuk, an airstrike stuck an ISIL tactical unit.
-- Near Mosul, two airstrikes struck an ISIL staging area, an ISIL large tactical unit and destroyed nine ISIL vehicles, an ISIL fighting position and an ISIL building.
-- Near Tal Afar, an airstrike struck an ISIL large tactical unit and destroyed an ISIL vehicle.
All aircraft returned to base safely.
Part of Operation Inherent Resolve
The strikes were conducted as part of Operation Inherent Resolve, the operation to eliminate the ISIL terrorist group and the threat they pose to Iraq, Syria, the region, and the wider international community. The destruction of ISIL targets in Syria and Iraq further limits the terrorist group's ability to project terror and conduct operations.
Coalition nations which have conducted airstrikes in Iraq include the U.S., Australia, Belgium, Canada, Denmark, France, the Netherlands, and the United Kingdom. Coalition nations which have conducted airstrikes in Syria include the U.S., Bahrain, Jordan, Saudi Arabia, and the United Arab Emirates.
Airstrikes Continue Against ISIL in Syria, Iraq
From a Combined Joint Task Force Operation Inherent Resolve News Release
SOUTHWEST ASIA, Feb. 22, 2015 – U.S. and coalition military forces continued to attack ISIL terrorists in Syria and Iraq, Combined Joint Task Force Operation Inherent Resolve officials reported today.
Officials reported details of the latest strikes, which took place between 8 a.m. yesterday and 8 a.m. today, local time, noting that assessments of results are based on initial reports.
Airstrikes in Syria
Attack, fighter and bomber aircraft conducted six airstrikes in Syria:
-- Near Al Hasakah, two airstrikes struck two ISIL tactical units.
-- Near Dayr az Zawr, an airstrike destroyed an artillery system.
-- Near Kobani, three airstrikes struck two ISIL tactical units, an ISIL counter mobility berm and destroyed two ISIL checkpoints.
Airstrikes in Iraq
Attack and fighter aircraft conducted four airstrikes in Iraq:
-- Near Kirkuk, an airstrike stuck an ISIL tactical unit.
-- Near Mosul, two airstrikes struck an ISIL staging area, an ISIL large tactical unit and destroyed nine ISIL vehicles, an ISIL fighting position and an ISIL building.
-- Near Tal Afar, an airstrike struck an ISIL large tactical unit and destroyed an ISIL vehicle.
All aircraft returned to base safely.
Part of Operation Inherent Resolve
The strikes were conducted as part of Operation Inherent Resolve, the operation to eliminate the ISIL terrorist group and the threat they pose to Iraq, Syria, the region, and the wider international community. The destruction of ISIL targets in Syria and Iraq further limits the terrorist group's ability to project terror and conduct operations.
Coalition nations which have conducted airstrikes in Iraq include the U.S., Australia, Belgium, Canada, Denmark, France, the Netherlands, and the United Kingdom. Coalition nations which have conducted airstrikes in Syria include the U.S., Bahrain, Jordan, Saudi Arabia, and the United Arab Emirates.
U.S. CONGRATULATES PEOPLE OF COOPERATIVE REPUBLIC OF GUYANA ON THEIR INDEPENDENCE DAY
FROM: U.S. STATE DEPARTMENT
Guyana Republic Day Message
Press Statement
John Kerry
Secretary of State
Washington, DC
February 22, 2015
On behalf of President Obama and the American people, I congratulate the people of the Cooperative Republic of Guyana as you celebrate 45 years of independence on February 23.
Your nation will hold national elections this year. I am confident that it will serve as an example of the peaceful exercise of the right to vote. Your actions will strengthen the entire region’s commitment to democratic institutions.
Guyana participates positively in the region through the Caribbean Basin Security Initiative, the Caribbean Community, and the Union of South American Nations.
The United States stands with you as a partner and friend in the Inter-American System and in continuing to strengthen and revitalize the Organization of American States.
We will continue to work together to achieve energy and environmental sustainability, as agreed upon during the recent Caribbean Energy Security Summit.
I wish you all a joyful Mashramani and Guyanese Republic Day.
Guyana Republic Day Message
Press Statement
John Kerry
Secretary of State
Washington, DC
February 22, 2015
On behalf of President Obama and the American people, I congratulate the people of the Cooperative Republic of Guyana as you celebrate 45 years of independence on February 23.
Your nation will hold national elections this year. I am confident that it will serve as an example of the peaceful exercise of the right to vote. Your actions will strengthen the entire region’s commitment to democratic institutions.
Guyana participates positively in the region through the Caribbean Basin Security Initiative, the Caribbean Community, and the Union of South American Nations.
The United States stands with you as a partner and friend in the Inter-American System and in continuing to strengthen and revitalize the Organization of American States.
We will continue to work together to achieve energy and environmental sustainability, as agreed upon during the recent Caribbean Energy Security Summit.
I wish you all a joyful Mashramani and Guyanese Republic Day.
COMPANY, OWNER AND EMPLOYEE CHARGED WITH ILLEGALLY EXPORTING AND IMPORTING MILITARY ITEMS
FROM: U.S. JUSTICE DEPARTMENT
Thursday, February 19, 2015
Arlington Heights, Illinois, Company and its Owner and Employee Charged with Illegal Export and Import of Military Articles
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Zachary T. Fardon of the Northern District of Illinois, Special Agent in Charge Gary Hartwig of Homeland Security Investigations Chicago, Special Agent in Charge James C. Lee of the Internal Revenue Service’s (IRS) Chicago Office and Special Agent in Charge Brian Reihms of the Department of Defense Criminal Investigative Service in Chicago announced today that an Arlington Heights, Illinois, company, its president and a former employee were indicted on federal charges for unlawfully exporting and importing military articles, including components used in night vision systems and an M1A1 Abrams tank, which is the main battle tank used by the U.S. Armed Forces. The defendants were charged in an indictment returned by a federal grand jury in January and made public this week.
Vibgyor Optical Systems Inc., a company located in Arlington Heights, purported to manufacture optics and optical systems, including items that were to be supplied to the U.S. Department of Defense (DOD). Instead of manufacturing the items in Illinois, as it claimed, Vibgyor illegally sent the technical data for, and samples of, the military articles to manufacturers in China, then imported the items from China to sell to its customers—including DOD prime contractors. Bharat “Victor” Verma, 74, of Arlington Heights, Vibgyor’s president, and Urvashi “Sonia” Verma, 40, of Chicago, a former Vibgyor employee and owner of a now-defunct company that operated as a subcontractor for Vibgyor, were also charged in the indictment.
According to the indictment, between November 2006 and March 2014, the defendants conspired to defraud the United States and violate the Arms Export Control Act (AECA) and International Traffic in Arms Regulations. The AECA prohibits the export or import of defense articles and defense services without first obtaining a license from the U.S. Department of State and is one of the principal export control laws in the United States. Under the International Traffic in Arms Regulations, any person seeking to import items designated as defense articles on the United States Munitions Import List is required to obtain a permit to do so from the Bureau of Alcohol, Tobacco, Firearms and Explosives. Vibgyor won subcontracts to supply optical components and systems to DOD prime contractors by misrepresenting the location of manufacture of the items it supplied. Bharat Verma falsely claimed that the items Vibgyor supplied were manufactured in domestically, when they actually had been manufactured in China, based on information illegally exported to Chinese manufacturers. In addition to illegally providing technical data for a military item to China, Urvashi Verma attempted to ship an example of one of the military items to the Chinese manufacturer.
“The Arms Export Control Act and the International Traffic in Arms Regulations are vital to preventing embargoed countries from gaining access to our sensitive military technology, and to ensuring that our armed forces are not issued substandard equipment,” said U.S. Attorney Fardon. “Where companies and individuals seek to violate the AECA and the International Traffic in Arms Regulations, we will not hesitate to act."
Vibgyor, Bharat Verma and Urvashi Verma are charged with one count of conspiracy to violate both the AECA and the International Traffic in Arms Regulations; one count of conspiracy to defraud the United States—each offense is punishable by up to five years’ imprisonment—and one count of violating the AECA, with a maximum possible penalty of 20 years in prison and a fine up to $1,000,000. Vibgyor and Bharat Verma were also charged with international money laundering, an offense with a maximum possible sentence of 20 years’ imprisonment and a fine up to $500,000. The defendants are scheduled to be arraigned Friday, Feb. 20, 2015, before U.S. Magistrate Judge Sidney I. Schenkier.
The case is being prosecuted by Trial Attorney Casey Arrowood of the Justice Department’s National Security Division, and Assistant U.S. Attorneys Diane MacArthur, Bolling W. Haxall and Shoba Pillay of the Northern District of Illinois.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Thursday, February 19, 2015
Arlington Heights, Illinois, Company and its Owner and Employee Charged with Illegal Export and Import of Military Articles
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Zachary T. Fardon of the Northern District of Illinois, Special Agent in Charge Gary Hartwig of Homeland Security Investigations Chicago, Special Agent in Charge James C. Lee of the Internal Revenue Service’s (IRS) Chicago Office and Special Agent in Charge Brian Reihms of the Department of Defense Criminal Investigative Service in Chicago announced today that an Arlington Heights, Illinois, company, its president and a former employee were indicted on federal charges for unlawfully exporting and importing military articles, including components used in night vision systems and an M1A1 Abrams tank, which is the main battle tank used by the U.S. Armed Forces. The defendants were charged in an indictment returned by a federal grand jury in January and made public this week.
Vibgyor Optical Systems Inc., a company located in Arlington Heights, purported to manufacture optics and optical systems, including items that were to be supplied to the U.S. Department of Defense (DOD). Instead of manufacturing the items in Illinois, as it claimed, Vibgyor illegally sent the technical data for, and samples of, the military articles to manufacturers in China, then imported the items from China to sell to its customers—including DOD prime contractors. Bharat “Victor” Verma, 74, of Arlington Heights, Vibgyor’s president, and Urvashi “Sonia” Verma, 40, of Chicago, a former Vibgyor employee and owner of a now-defunct company that operated as a subcontractor for Vibgyor, were also charged in the indictment.
According to the indictment, between November 2006 and March 2014, the defendants conspired to defraud the United States and violate the Arms Export Control Act (AECA) and International Traffic in Arms Regulations. The AECA prohibits the export or import of defense articles and defense services without first obtaining a license from the U.S. Department of State and is one of the principal export control laws in the United States. Under the International Traffic in Arms Regulations, any person seeking to import items designated as defense articles on the United States Munitions Import List is required to obtain a permit to do so from the Bureau of Alcohol, Tobacco, Firearms and Explosives. Vibgyor won subcontracts to supply optical components and systems to DOD prime contractors by misrepresenting the location of manufacture of the items it supplied. Bharat Verma falsely claimed that the items Vibgyor supplied were manufactured in domestically, when they actually had been manufactured in China, based on information illegally exported to Chinese manufacturers. In addition to illegally providing technical data for a military item to China, Urvashi Verma attempted to ship an example of one of the military items to the Chinese manufacturer.
“The Arms Export Control Act and the International Traffic in Arms Regulations are vital to preventing embargoed countries from gaining access to our sensitive military technology, and to ensuring that our armed forces are not issued substandard equipment,” said U.S. Attorney Fardon. “Where companies and individuals seek to violate the AECA and the International Traffic in Arms Regulations, we will not hesitate to act."
Vibgyor, Bharat Verma and Urvashi Verma are charged with one count of conspiracy to violate both the AECA and the International Traffic in Arms Regulations; one count of conspiracy to defraud the United States—each offense is punishable by up to five years’ imprisonment—and one count of violating the AECA, with a maximum possible penalty of 20 years in prison and a fine up to $1,000,000. Vibgyor and Bharat Verma were also charged with international money laundering, an offense with a maximum possible sentence of 20 years’ imprisonment and a fine up to $500,000. The defendants are scheduled to be arraigned Friday, Feb. 20, 2015, before U.S. Magistrate Judge Sidney I. Schenkier.
The case is being prosecuted by Trial Attorney Casey Arrowood of the Justice Department’s National Security Division, and Assistant U.S. Attorneys Diane MacArthur, Bolling W. Haxall and Shoba Pillay of the Northern District of Illinois.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
AG HOLDER PRAISES COURT DECISION THAT AMERICAN EXPRESS VIOLATED ANTITRUST LAWS
FROM: U.S. JUSTICE DEPARTMENT
THURSDAY, FEBRUARY 19, 2015
U.S. DISTRICT COURT RULES THAT AMERICAN EXPRESS
VIOLATED ANTITRUST LAWS
WASHINGTON — Attorney General Eric Holder today praised the decision by a judge in the United States District Court in the Eastern District of New York who found in favor of the Justice Department’s lawsuit claiming that American Express’ rules for merchants violate antitrust laws.
“Today’s decision is a triumph for fair competition and for American consumers,” said Attorney General Holder. “By recognizing that American Express’s rules harm competition, the court vindicates the promise of robust marketplaces that is enshrined in our antitrust laws. I salute the hardworking men and women who led the lengthy investigation and trial with uncommon skill and unwavering dedication. With this achievement, we are sending an unambiguous message that the Department of Justice is prepared to litigate any case, no matter how complex, in its pursuit of justice and protection for the American people.”
The United States Department of Justice and 17 state attorneys general sued American Express, Visa Inc. and MasterCard International Inc., in 2010 to eliminate restrictions that the three credit card networks imposed on merchants. Over the course of a seven week trial during the summer of 2014, the department argued that these restrictions obstruct merchants from using competition to try to keep credit card fees from increasing. The civil case, brought under Section 1 of the Sherman Antitrust Act, sought to end the violation and to restore competition.
The trial focused on credit card “swipe fees” which generate over $50 billion annually for credit card networks. Millions of merchants of all sizes and in scores of industries pay those fees. Despite these large fee revenues, the Justice Department argued that price competition over merchant swipe fees has been almost non-existent and for decades the credit card networks have not competed on price. Today’s decision was rendered by Judge Nicholas G. Garaufis.
“Merchants pay over $50 billion in credit card swipe fees each year. The department and the attorneys general of 17 states brought this case because competition over those fees was being suppressed,” said Deputy Assistant Attorney General for the Antitrust Division Leslie C. Overton. “The Court’s ruling establishes that the American Express anti-steering rules block merchants from using competition to keep credit card swipe fees down, which means higher costs to those merchants’ customers. I am proud of the outstanding work done by the investigative and trial teams. As today’s decision reaffirms, the Antitrust Division remains committed to ensuring that competition is not restricted in this important sector of the economy.”
Settlements with Visa and MasterCard were filed at the same time the case against American Express was begun; the settlements prohibit the two networks from continuing their rules and practices that had obstructed competition. The court approved the settlements on July 20, 2011, and they applied immediately to Visa and MasterCard. American Express was not a party to the settlements, and the litigation against American Express continued.
The department argued that the principal reason for an absence of price competition among credit card companies has been rules imposed by each of the networks that limit merchants’ ability to take advantage of a basic tool to keep prices competitive. That tool – commonly used elsewhere in the economy – is merchants’ freedom to “steer” transactions to a network willing to lower its price. Each network has long prohibited such steering to lower-cost cards. Now that Visa and MasterCard have reformed their anti-steering rules, American Express rules stood as the last barrier to competition.
At trial, an array of merchants came forward to explain both the substantial costs they incur when their customers pay with credit cards and their inability to ignite competition among the networks to reduce those costs. In fact, the rules not only prevent merchants from offering their customers lower prices or other incentives for choosing a less costly card, they even block merchants from providing consumers with truthful price information about the cost of swipe fees of different credit cards.
Closing arguments in the trial took place on Oct. 9, 2014. Craig Conrath was the lead trial attorney for the United States. The 17 plaintiff states were Arizona, Connecticut, Idaho, Illinois, Iowa, Maryland, Michigan, Missouri, Montana, Nebraska, New Hampshire, Ohio, Rhode Island, Tennessee, Texas, Utah and Vermont. The court also entered a scheduling order instructing the parties to submit, within 30 days, a joint proposed remedial order.
THURSDAY, FEBRUARY 19, 2015
U.S. DISTRICT COURT RULES THAT AMERICAN EXPRESS
VIOLATED ANTITRUST LAWS
WASHINGTON — Attorney General Eric Holder today praised the decision by a judge in the United States District Court in the Eastern District of New York who found in favor of the Justice Department’s lawsuit claiming that American Express’ rules for merchants violate antitrust laws.
“Today’s decision is a triumph for fair competition and for American consumers,” said Attorney General Holder. “By recognizing that American Express’s rules harm competition, the court vindicates the promise of robust marketplaces that is enshrined in our antitrust laws. I salute the hardworking men and women who led the lengthy investigation and trial with uncommon skill and unwavering dedication. With this achievement, we are sending an unambiguous message that the Department of Justice is prepared to litigate any case, no matter how complex, in its pursuit of justice and protection for the American people.”
The United States Department of Justice and 17 state attorneys general sued American Express, Visa Inc. and MasterCard International Inc., in 2010 to eliminate restrictions that the three credit card networks imposed on merchants. Over the course of a seven week trial during the summer of 2014, the department argued that these restrictions obstruct merchants from using competition to try to keep credit card fees from increasing. The civil case, brought under Section 1 of the Sherman Antitrust Act, sought to end the violation and to restore competition.
The trial focused on credit card “swipe fees” which generate over $50 billion annually for credit card networks. Millions of merchants of all sizes and in scores of industries pay those fees. Despite these large fee revenues, the Justice Department argued that price competition over merchant swipe fees has been almost non-existent and for decades the credit card networks have not competed on price. Today’s decision was rendered by Judge Nicholas G. Garaufis.
“Merchants pay over $50 billion in credit card swipe fees each year. The department and the attorneys general of 17 states brought this case because competition over those fees was being suppressed,” said Deputy Assistant Attorney General for the Antitrust Division Leslie C. Overton. “The Court’s ruling establishes that the American Express anti-steering rules block merchants from using competition to keep credit card swipe fees down, which means higher costs to those merchants’ customers. I am proud of the outstanding work done by the investigative and trial teams. As today’s decision reaffirms, the Antitrust Division remains committed to ensuring that competition is not restricted in this important sector of the economy.”
Settlements with Visa and MasterCard were filed at the same time the case against American Express was begun; the settlements prohibit the two networks from continuing their rules and practices that had obstructed competition. The court approved the settlements on July 20, 2011, and they applied immediately to Visa and MasterCard. American Express was not a party to the settlements, and the litigation against American Express continued.
The department argued that the principal reason for an absence of price competition among credit card companies has been rules imposed by each of the networks that limit merchants’ ability to take advantage of a basic tool to keep prices competitive. That tool – commonly used elsewhere in the economy – is merchants’ freedom to “steer” transactions to a network willing to lower its price. Each network has long prohibited such steering to lower-cost cards. Now that Visa and MasterCard have reformed their anti-steering rules, American Express rules stood as the last barrier to competition.
At trial, an array of merchants came forward to explain both the substantial costs they incur when their customers pay with credit cards and their inability to ignite competition among the networks to reduce those costs. In fact, the rules not only prevent merchants from offering their customers lower prices or other incentives for choosing a less costly card, they even block merchants from providing consumers with truthful price information about the cost of swipe fees of different credit cards.
Closing arguments in the trial took place on Oct. 9, 2014. Craig Conrath was the lead trial attorney for the United States. The 17 plaintiff states were Arizona, Connecticut, Idaho, Illinois, Iowa, Maryland, Michigan, Missouri, Montana, Nebraska, New Hampshire, Ohio, Rhode Island, Tennessee, Texas, Utah and Vermont. The court also entered a scheduling order instructing the parties to submit, within 30 days, a joint proposed remedial order.
U.S. OFFICIAL'S REMARKS ON BALLISTIC MISSILE DEFENSE IN EAST ASIA
FROM: U.S. STATE DEPARTMENT
02/21/2015 12:53 PM EST
Ballistic Missile Defense and Strategic Stability in East Asia
Remarks
Frank A. Rose
Assistant Secretary, Bureau of Arms Control, Verification and Compliance
Federation of American Scientists
Washington, DC
February 20, 2015
Introduction
Thank you all very much, and a special thanks to Bruce and Chuck for having me here today to address this important workshop.
I’m told that this group is exploring China’s potential interest in and deployment of strategic ballistic missile defense and what that means for U.S. and allied security.
At the State Department, we’re taking a hard look at it as well, and in particular, the role of ballistic missile defense in achieving the overarching goal of strategic stability between the United States and China.
Overview of Strategic Stability with China
Before discussing China’s interest in developing a BMD system and the possible implications of such an effort, I’d first like to provide an overview of what the United States is doing to ensure a stable U.S.-China strategic relationship in the region.
As stated in the Nuclear Posture Review, the United States is committed to maintaining strategic stability in U.S.-China relations and supports initiation of a dialogue on strategic stability and nuclear postures aimed at fostering a more stable, resilient, and transparent security relationship with China.
During the Cold War, many associated strategic stability with what we called “mutual assured destruction,” the notion that the incentive to initiate nuclear use would be discouraged by the fear of suffering unacceptable retaliatory damage. This notion, of course, is ill-suited and too narrow to fully capture the U.S.-China relationship given our multifaceted and shared interests. In today’s world, strategic stability encompasses much more than just nuclear relations and reflects the fact that the U.S.-China relationship, which has both elements of competition and cooperation, is not adversarial.
The strategic relationship between the United States and China is complex, and we each view stability differently. Thus, it is important that we have frank and open dialogue about how our nations define and view strategic stability and how we perceive our nuclear postures and policies impacting this balance. As part of these discussions, the United States is willing to discuss all issues, including missile defense, space-related issues, conventional precision strike capabilities, and nuclear weapons issues, with the goal of improving the conditions for a more predictable and safer security environment.
A sustained and substantive discussion of our national approaches to maintaining effective deterrent postures and modernization of associated strategic capabilities can increase understanding, enhance confidence and reduce mistrust.
Overview of China’s BMD Activities
As you’re all aware, China is continuing to develop its BMD capabilities.
Although China does not say much about its BMD programs, China publicly announced that it conducted ground-based mid-course BMD tests in 2010, 2013, and 2014. I’ll say more about the 2014 “BMD” test later. Chinese state media has stated that such tests are defensive in nature and are not targeted at any country.
I was in Beijing earlier this month, and the message I delivered was clear: It is important that our governments have a sustained dialogue on the role that our BMD systems have in our respective defense policies and strategies. We would welcome an opportunity to learn more about how BMD fits into China’s defense policy and strategy.
More broadly, a sustained dialogue would improve our understanding of China’s strategic perspective and enhance China’s understanding of U.S. policy and strategy. Institutionalizing discussions of strategic issues is a prudent long-term approach to strengthening strategic stability and exploring means for strengthening mutual trust and risk reduction.
To encourage that dialogue, we have taken and will continue to take steps to keep China informed about developments in U.S. BMD policy.
Potential Chinese BMD through the Lens of the U.S. Experience
The U.S. experience with BMD and specifically with our Ground-based Midcourse Defense System, or GMD, provides a useful lens for examining the challenges the Chinese would face in developing a BMD capability to threaten our nuclear deterrent.
We have been clear that our homeland BMD capabilities provide for defense of the U.S. homeland from limited ICBM attack, and are purposely not intended to affect Russia’s or China’s strategic deterrent. The GMD system is designed to support that policy, and it is not scaled, intended, or capable of defending the United States against the larger and more sophisticated arsenals of Russia and China. GMD is designed to protect the U.S. homeland only from limited ICBM attacks from states such as North Korea and Iran.
The U.S. experience with BMD suggests that attempting to develop a comprehensive homeland BMD system to defend against ballistic missile attack from China or Russia would be extremely challenging – and costly - given the size and sophistication of Chinese and Russian ICBMs. This owes to several factors, including the relatively low number of GMD interceptors and the sophistication and large numbers of Russian and Chinese missiles.
Former Secretary of Defense Robert Gates stated this publically on May 18, 2010, in testimony to the Senate Foreign Relations Committee when he said that trying to eliminate the viability of the Russian nuclear capability would be “unbelievably expensive.”
Given these factors, we could potentially expect a notional Chinese equivalent to the GMD system to provide at most a limited defense of the Chinese homeland, which would not counter the U.S. strategic deterrent and therefore would not undermine strategic stability.
This is for the same reason that GMD does not impact strategic stability: the number of interceptors is low and they are not designed to deal with complex threats, and developing a comprehensive system to cope with a full-scale attack from another nuclear-armed great power would be expensive and ultimately unsuccessful.
Relationship to ASAT Testing
There is a another important aspect of China’s BMD program that bears discussing, which is its connection with China’s anti-satellite, or ASAT, weapons program.
On July 23, 2014, the Chinese Government conducted a non-destructive test of a missile designed to destroy satellites in low Earth orbit. However, China publicly called this ASAT test a “land-based missile interception test.”
Despite China’s claims that this was not an ASAT test; let me assure you the United States has high confidence in its assessment, that the event was indeed an ASAT test.
The continued development and testing of destructive ASAT systems is both destabilizing and threatens the long-term security and sustainability of the outer space environment. A previous destructive test of the Chinese system in 2007 created thousands of pieces of debris, which continue to present an ongoing danger to the space systems—as well as astronauts—of all nations, including China.
The destructive nature of debris-generating weapons has decades-long consequences: they can increase the potential for further collisions in the future, which only create more debris. A debris-forming test or attack may only be minutes in duration, but the consequences can last for decades. It is for these reasons that the United States believes testing debris-generating ASAT systems threaten the security, economic well-being, and civil endeavors of all nations.
Space systems and their supporting infrastructures enable a wide range of services, including communication; position, navigation, and timing; intelligence, surveillance, and reconnaissance; and meteorology, which provide vital national, military, civil, scientific, and economic benefits. Other nations recognize these benefits to the United States and seek to counter the U.S. strategic advantage by pursuing capabilities to deny or destroy our access to space services.
The use of such ASAT weapons could be escalatory in a crisis.
China’s ASAT program, and the lack of transparency accompanying it, also impedes bilateral space cooperation. While we prefer cooperation, it will by necessity have to be a product of a step-by-step approach starting with dialogue, leading to modest CBMs, which might then perhaps lead to deeper engagement. However, none of this is possible until China changes its behavior with regard to ASATs.
Conclusion
As many of you know, one of my biggest priorities as Assistant Secretary is to look over the horizon a bit and begin to structure our Bureau to address the emerging security challenges of the 21st Century.
For me, that means an increased focus on developing a stable strategic relationship with China, while at the same time reassuring our Allies.
Managing the U.S.-China relationship will take a lot of time and effort, and we won’t always be successful. It’s a challenge. But as Secretary Kerry likes to remind us, it’s important for us to get caught trying, and that’s what we intend to do.
Thanks very much.
02/21/2015 12:53 PM EST
Ballistic Missile Defense and Strategic Stability in East Asia
Remarks
Frank A. Rose
Assistant Secretary, Bureau of Arms Control, Verification and Compliance
Federation of American Scientists
Washington, DC
February 20, 2015
Introduction
Thank you all very much, and a special thanks to Bruce and Chuck for having me here today to address this important workshop.
I’m told that this group is exploring China’s potential interest in and deployment of strategic ballistic missile defense and what that means for U.S. and allied security.
At the State Department, we’re taking a hard look at it as well, and in particular, the role of ballistic missile defense in achieving the overarching goal of strategic stability between the United States and China.
Overview of Strategic Stability with China
Before discussing China’s interest in developing a BMD system and the possible implications of such an effort, I’d first like to provide an overview of what the United States is doing to ensure a stable U.S.-China strategic relationship in the region.
As stated in the Nuclear Posture Review, the United States is committed to maintaining strategic stability in U.S.-China relations and supports initiation of a dialogue on strategic stability and nuclear postures aimed at fostering a more stable, resilient, and transparent security relationship with China.
During the Cold War, many associated strategic stability with what we called “mutual assured destruction,” the notion that the incentive to initiate nuclear use would be discouraged by the fear of suffering unacceptable retaliatory damage. This notion, of course, is ill-suited and too narrow to fully capture the U.S.-China relationship given our multifaceted and shared interests. In today’s world, strategic stability encompasses much more than just nuclear relations and reflects the fact that the U.S.-China relationship, which has both elements of competition and cooperation, is not adversarial.
The strategic relationship between the United States and China is complex, and we each view stability differently. Thus, it is important that we have frank and open dialogue about how our nations define and view strategic stability and how we perceive our nuclear postures and policies impacting this balance. As part of these discussions, the United States is willing to discuss all issues, including missile defense, space-related issues, conventional precision strike capabilities, and nuclear weapons issues, with the goal of improving the conditions for a more predictable and safer security environment.
A sustained and substantive discussion of our national approaches to maintaining effective deterrent postures and modernization of associated strategic capabilities can increase understanding, enhance confidence and reduce mistrust.
Overview of China’s BMD Activities
As you’re all aware, China is continuing to develop its BMD capabilities.
Although China does not say much about its BMD programs, China publicly announced that it conducted ground-based mid-course BMD tests in 2010, 2013, and 2014. I’ll say more about the 2014 “BMD” test later. Chinese state media has stated that such tests are defensive in nature and are not targeted at any country.
I was in Beijing earlier this month, and the message I delivered was clear: It is important that our governments have a sustained dialogue on the role that our BMD systems have in our respective defense policies and strategies. We would welcome an opportunity to learn more about how BMD fits into China’s defense policy and strategy.
More broadly, a sustained dialogue would improve our understanding of China’s strategic perspective and enhance China’s understanding of U.S. policy and strategy. Institutionalizing discussions of strategic issues is a prudent long-term approach to strengthening strategic stability and exploring means for strengthening mutual trust and risk reduction.
To encourage that dialogue, we have taken and will continue to take steps to keep China informed about developments in U.S. BMD policy.
Potential Chinese BMD through the Lens of the U.S. Experience
The U.S. experience with BMD and specifically with our Ground-based Midcourse Defense System, or GMD, provides a useful lens for examining the challenges the Chinese would face in developing a BMD capability to threaten our nuclear deterrent.
We have been clear that our homeland BMD capabilities provide for defense of the U.S. homeland from limited ICBM attack, and are purposely not intended to affect Russia’s or China’s strategic deterrent. The GMD system is designed to support that policy, and it is not scaled, intended, or capable of defending the United States against the larger and more sophisticated arsenals of Russia and China. GMD is designed to protect the U.S. homeland only from limited ICBM attacks from states such as North Korea and Iran.
The U.S. experience with BMD suggests that attempting to develop a comprehensive homeland BMD system to defend against ballistic missile attack from China or Russia would be extremely challenging – and costly - given the size and sophistication of Chinese and Russian ICBMs. This owes to several factors, including the relatively low number of GMD interceptors and the sophistication and large numbers of Russian and Chinese missiles.
Former Secretary of Defense Robert Gates stated this publically on May 18, 2010, in testimony to the Senate Foreign Relations Committee when he said that trying to eliminate the viability of the Russian nuclear capability would be “unbelievably expensive.”
Given these factors, we could potentially expect a notional Chinese equivalent to the GMD system to provide at most a limited defense of the Chinese homeland, which would not counter the U.S. strategic deterrent and therefore would not undermine strategic stability.
This is for the same reason that GMD does not impact strategic stability: the number of interceptors is low and they are not designed to deal with complex threats, and developing a comprehensive system to cope with a full-scale attack from another nuclear-armed great power would be expensive and ultimately unsuccessful.
Relationship to ASAT Testing
There is a another important aspect of China’s BMD program that bears discussing, which is its connection with China’s anti-satellite, or ASAT, weapons program.
On July 23, 2014, the Chinese Government conducted a non-destructive test of a missile designed to destroy satellites in low Earth orbit. However, China publicly called this ASAT test a “land-based missile interception test.”
Despite China’s claims that this was not an ASAT test; let me assure you the United States has high confidence in its assessment, that the event was indeed an ASAT test.
The continued development and testing of destructive ASAT systems is both destabilizing and threatens the long-term security and sustainability of the outer space environment. A previous destructive test of the Chinese system in 2007 created thousands of pieces of debris, which continue to present an ongoing danger to the space systems—as well as astronauts—of all nations, including China.
The destructive nature of debris-generating weapons has decades-long consequences: they can increase the potential for further collisions in the future, which only create more debris. A debris-forming test or attack may only be minutes in duration, but the consequences can last for decades. It is for these reasons that the United States believes testing debris-generating ASAT systems threaten the security, economic well-being, and civil endeavors of all nations.
Space systems and their supporting infrastructures enable a wide range of services, including communication; position, navigation, and timing; intelligence, surveillance, and reconnaissance; and meteorology, which provide vital national, military, civil, scientific, and economic benefits. Other nations recognize these benefits to the United States and seek to counter the U.S. strategic advantage by pursuing capabilities to deny or destroy our access to space services.
The use of such ASAT weapons could be escalatory in a crisis.
China’s ASAT program, and the lack of transparency accompanying it, also impedes bilateral space cooperation. While we prefer cooperation, it will by necessity have to be a product of a step-by-step approach starting with dialogue, leading to modest CBMs, which might then perhaps lead to deeper engagement. However, none of this is possible until China changes its behavior with regard to ASATs.
Conclusion
As many of you know, one of my biggest priorities as Assistant Secretary is to look over the horizon a bit and begin to structure our Bureau to address the emerging security challenges of the 21st Century.
For me, that means an increased focus on developing a stable strategic relationship with China, while at the same time reassuring our Allies.
Managing the U.S.-China relationship will take a lot of time and effort, and we won’t always be successful. It’s a challenge. But as Secretary Kerry likes to remind us, it’s important for us to get caught trying, and that’s what we intend to do.
Thanks very much.
U.S. SENDS CONGRATULATIONS TO PEOPLE OF BRUNEI DARUSSALAM ON THEIR NATIONAL DAY
FROM: U.S. STATE DEPARTMENT
Brunei Darussalam National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
February 20, 2015
On behalf of President Obama and the people of the United States of America, I wish to send my congratulations to the people of Brunei Darussalam as you celebrate your 31st National Day on February 23rd.
I have enjoyed my visits to your country, and we work together in so many areas of critical importance to the region, including trade, energy, English language training, and maritime security. Our relationship has only deepened over the years, and I look forward to finding new areas of cooperation in the future. We hope our partnership will continue to be a force for peace and stability in the region.
I wish His Majesty Hassanal Bolkiah and all the people of Brunei the very best on this special anniversary and look forward to many more years of working closely together.
Brunei Darussalam National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
February 20, 2015
On behalf of President Obama and the people of the United States of America, I wish to send my congratulations to the people of Brunei Darussalam as you celebrate your 31st National Day on February 23rd.
I have enjoyed my visits to your country, and we work together in so many areas of critical importance to the region, including trade, energy, English language training, and maritime security. Our relationship has only deepened over the years, and I look forward to finding new areas of cooperation in the future. We hope our partnership will continue to be a force for peace and stability in the region.
I wish His Majesty Hassanal Bolkiah and all the people of Brunei the very best on this special anniversary and look forward to many more years of working closely together.
Sunday, February 22, 2015
U.S. CONGRATULATES PEOPLE OF SAINT LUCIA ON THEIR INDEPENDENCE DAY ANNIVERSARY
FROM: U.S. STATE DEPARTMENT
Saint Lucia's Independence Day
Press Statement
John Kerry
Secretary of State
Washington, DC
February 22, 2015
On behalf of President Obama and the people of the United States, I congratulate the people of Saint Lucia on the 36th anniversary of your independence.
The United States and Saint Lucia are united in our shared democratic values and cultural and linguistic diversity.
We cooperate on a wide range of issues – including at the Organization of American States, whose Permanent Council was chaired by Saint Lucia last summer.
Most recently, we welcomed Prime Minister Kenny Anthony to the U.S. Department of State for the Caribbean Energy Security Summit. We discussed the importance of attracting energy investments to move us down the path of energy independence.
By working together, we can create a more stable, prosperous, and environmentally friendly region for both our peoples.
As you gather to celebrate with family and friends, I wish you a happy and fulfilling Independence Day.
Saint Lucia's Independence Day
Press Statement
John Kerry
Secretary of State
Washington, DC
February 22, 2015
On behalf of President Obama and the people of the United States, I congratulate the people of Saint Lucia on the 36th anniversary of your independence.
The United States and Saint Lucia are united in our shared democratic values and cultural and linguistic diversity.
We cooperate on a wide range of issues – including at the Organization of American States, whose Permanent Council was chaired by Saint Lucia last summer.
Most recently, we welcomed Prime Minister Kenny Anthony to the U.S. Department of State for the Caribbean Energy Security Summit. We discussed the importance of attracting energy investments to move us down the path of energy independence.
By working together, we can create a more stable, prosperous, and environmentally friendly region for both our peoples.
As you gather to celebrate with family and friends, I wish you a happy and fulfilling Independence Day.
FORMER NATIONAL GUARD SERGEANT SENTENCED FOR ROLE IN PROTECTING ALLEGED DRUG TRAFFICKERS
FROM: U.S. JUSTICE DEPARTMENT
Friday, February 20, 2015
Former Arizona Army National Guard Sergeant Sentenced to 52 Months in Prison for Participating in Scheme to Protect Purported Drug Traffickers
Fifty-Seven Individuals Previously Convicted and Sentenced as Part of This Investigation
A former member of the Arizona Army National Guard was sentenced today to 52 months in prison for his role in a scheme to accept bribes from purported drug traffickers in exchange for using his military position to protect shipments of cocaine during transportation, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Raul Portillo, 42, of Phoenix, Arizona, pleaded guilty on Nov. 21, 2014, to one count of conspiracy to commit bribery and interfere with commerce by attempted extortion. U.S. District Judge James A. Soto of the District of Arizona imposed the sentence.
According to admissions made in connection with his guilty plea, Portillo, a sergeant in the Arizona Army National Guard, conspired with others from the Arizona Army National Guard to accept cash bribes to protect narcotics traffickers who were purportedly transporting and distributing cocaine from Arizona to other locations in the southwestern United States. Unbeknownst to Portillo and the other co-conspirators, however, the supposed narcotics traffickers were actually undercover FBI agents.
Specifically, Portillo admitted that he wore his official uniform, carried official forms of identification, used official vehicles and used his official authority, where necessary, to prevent police stops and searches as he drove cocaine shipments through checkpoints manned by the U.S. Border Patrol, the Arizona Department of Public Safety, and Nevada law enforcement officers. Portillo admitted that he took bribe payments totaling $12,000 for transporting cocaine on two separate occasions. Portillo also admitted that he accepted a $2,000 cash payment in exchange for recruiting an Immigration and Customs Enforcement inspector into the conspiracy.
In 2006, an arrest warrant was issued for Portillo, and Portillo was arrested in May 2011, arraigned and released on personal recognizance. Portillo admitted that in or around July 2011, he fled to avoid prosecution.
To date, 58 defendants have been convicted and sentenced for charges stemming from this investigation.
This case is part of a joint investigation conducted by the Southern Arizona Corruption Task Force (SACTF), which is comprised of the FBI, the Drug Enforcement Administration, the Bureau of Immigration and Customs Enforcement, and the Tucson Police Department. Though not part of the SACTF, the Arizona National Guard, Air Force Office of Special Investigations, Defense Criminal Investigative Service and Internal Revenue Service’s Criminal Investigation Division also participated in the investigation. The case is being prosecuted by Trial Attorneys Monique T. Abrishami and Peter N. Halpern of the Criminal Division’s Public Integrity Section.
Friday, February 20, 2015
Former Arizona Army National Guard Sergeant Sentenced to 52 Months in Prison for Participating in Scheme to Protect Purported Drug Traffickers
Fifty-Seven Individuals Previously Convicted and Sentenced as Part of This Investigation
A former member of the Arizona Army National Guard was sentenced today to 52 months in prison for his role in a scheme to accept bribes from purported drug traffickers in exchange for using his military position to protect shipments of cocaine during transportation, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Raul Portillo, 42, of Phoenix, Arizona, pleaded guilty on Nov. 21, 2014, to one count of conspiracy to commit bribery and interfere with commerce by attempted extortion. U.S. District Judge James A. Soto of the District of Arizona imposed the sentence.
According to admissions made in connection with his guilty plea, Portillo, a sergeant in the Arizona Army National Guard, conspired with others from the Arizona Army National Guard to accept cash bribes to protect narcotics traffickers who were purportedly transporting and distributing cocaine from Arizona to other locations in the southwestern United States. Unbeknownst to Portillo and the other co-conspirators, however, the supposed narcotics traffickers were actually undercover FBI agents.
Specifically, Portillo admitted that he wore his official uniform, carried official forms of identification, used official vehicles and used his official authority, where necessary, to prevent police stops and searches as he drove cocaine shipments through checkpoints manned by the U.S. Border Patrol, the Arizona Department of Public Safety, and Nevada law enforcement officers. Portillo admitted that he took bribe payments totaling $12,000 for transporting cocaine on two separate occasions. Portillo also admitted that he accepted a $2,000 cash payment in exchange for recruiting an Immigration and Customs Enforcement inspector into the conspiracy.
In 2006, an arrest warrant was issued for Portillo, and Portillo was arrested in May 2011, arraigned and released on personal recognizance. Portillo admitted that in or around July 2011, he fled to avoid prosecution.
To date, 58 defendants have been convicted and sentenced for charges stemming from this investigation.
This case is part of a joint investigation conducted by the Southern Arizona Corruption Task Force (SACTF), which is comprised of the FBI, the Drug Enforcement Administration, the Bureau of Immigration and Customs Enforcement, and the Tucson Police Department. Though not part of the SACTF, the Arizona National Guard, Air Force Office of Special Investigations, Defense Criminal Investigative Service and Internal Revenue Service’s Criminal Investigation Division also participated in the investigation. The case is being prosecuted by Trial Attorneys Monique T. Abrishami and Peter N. Halpern of the Criminal Division’s Public Integrity Section.
SECRETARY KERRY'S STATEMENT ON ANNIVERSARY OF MAIDAN PROTESTS IN UKRAINE
FROM: U.S. STATE DEPARTMENT
One Year Anniversary of the Maidan Protests in Ukraine
Press Statement
John Kerry
Secretary of State
Washington, DC
February 21, 2015
For three months ending last year, Ukrainians braved long nights, bitter cold, and violent crackdowns by a government that refused to hear its own people. Snipers shot at them from rooftops, cutting down more than 100 people -- protestors and police alike.
We will never forget those who lost their lives and raised their voices for freedom and dignity.
Ukrainians celebrate this weekend the first anniversary of the Revolution of Dignity, when the EuroMaidan protestors stood up against injustice and sparked the birth of a new Ukraine.
I visited Kyiv in the aftermath of these protests, and I was inspired by the remarkable strength of the Ukrainian people.
I saw barricades made of mattresses and discarded chairs, burned tires stacked like firewood, and street lamps riddled with bullet holes. I paid my respects at the Rada, where photos of the fallen stood on display framed by crowns of thorns. And I placed roses and a candle on the Shrine of the Fallen on Institutska Street.
But what inspired me most was the Ukrainian people themselves, who are striving for a democratic and European future in the face of adversity and Russian aggression.
Today we are united with Ukraine in somber remembrance of the sacrifices made by the “heavenly hundred.” We also recognize the efforts of the people of Ukraine to make progress over this difficult year. From L’viv to Luhansk, from Chernivtsi to Sevastopol, Ukrainians are coming together to define their own future.
And finally, we join you in declaring, Slava Ukrayini. Glory to Ukraine.
America stands with you.
One Year Anniversary of the Maidan Protests in Ukraine
Press Statement
John Kerry
Secretary of State
Washington, DC
February 21, 2015
For three months ending last year, Ukrainians braved long nights, bitter cold, and violent crackdowns by a government that refused to hear its own people. Snipers shot at them from rooftops, cutting down more than 100 people -- protestors and police alike.
We will never forget those who lost their lives and raised their voices for freedom and dignity.
Ukrainians celebrate this weekend the first anniversary of the Revolution of Dignity, when the EuroMaidan protestors stood up against injustice and sparked the birth of a new Ukraine.
I visited Kyiv in the aftermath of these protests, and I was inspired by the remarkable strength of the Ukrainian people.
I saw barricades made of mattresses and discarded chairs, burned tires stacked like firewood, and street lamps riddled with bullet holes. I paid my respects at the Rada, where photos of the fallen stood on display framed by crowns of thorns. And I placed roses and a candle on the Shrine of the Fallen on Institutska Street.
But what inspired me most was the Ukrainian people themselves, who are striving for a democratic and European future in the face of adversity and Russian aggression.
Today we are united with Ukraine in somber remembrance of the sacrifices made by the “heavenly hundred.” We also recognize the efforts of the people of Ukraine to make progress over this difficult year. From L’viv to Luhansk, from Chernivtsi to Sevastopol, Ukrainians are coming together to define their own future.
And finally, we join you in declaring, Slava Ukrayini. Glory to Ukraine.
America stands with you.
SECRETARY KERRY, U.K. FOREIGN SECRETARY HAMMOND MAKE REMARKS BEFORE MEETING
FROM: U.S. STATE DEPARTMENT
Remarks With U.K. Foreign Secretary Philip Hammond Before Their Meeting
Remarks
John Kerry
Secretary of State
Carlton Gardens
London, United Kingdom
February 21, 2015
FOREIGN SECRETARY HAMMOND: Well, it’s a great pleasure to welcome John Kerry here this morning. We have got a series of important challenges to the rules-based international system which is so important both for the United States and the United Kingdom, and our cooperation, our alliance, is at the heart of the response to those challenges.
We’re going to take the opportunity this morning to talk about the challenge we face in Ukraine from Russia’s continued aggression, the unacceptable way in which the cease-fire agreement that was signed just 10 days ago has been so systematically breached. We’re going to talk about how we maintain European Union unity and U.S.-European alignment in response to those breaches of that agreement.
We’ll also be talking about the challenges that we face from Islamist extremism, particularly now the challenges that we’re seeing in Libya, where the extremists are getting a foothold and the UN special representative initiative is making some progress, but we urgently need to see a government of national unity emerging in Libya so that the international community can put its weight behind that government in order to squeeze the terrorists out of the ungoverned space that’s currently available to them in Libya.
We’ve got a lot of challenges ahead of us, but we’re going to have, I know, very constructive discussions today, and we will make sure that our alliance remains at the heart of the international community’s response to those challenges. John.
SECRETARY KERRY: Well, Philip, thank you very much. First of all, thank you for your welcome and thanks for being available to have this important discussion. I think the special relationship between the United Kingdom and the United States is really never more prominent than it is right now at this period where we are cooperating on so many different challenges all at the same time. We’re particularly appreciative for Britain’s home secretary’s presence at the White House summit on violent extremism just over the last few days.
And I have to say that I am personally encouraged by the unanimity of the response at that summit to steps that need to be taken over the course of the next months and years in order to counter violent extremism. But for the immediate moment, we face a series of very real, immediate challenges which we are determined to respond to. And we’re going to talk about each of them here today, and I will go on from here to discussions with respect to Iran. The P5+1 remains united on the subject of Iran. There is absolutely no divergence whatsoever in what we believe is necessary for Iran to prove that its nuclear program is going to be peaceful into the future.
But in the immediacy, Russia has engaged in an absolutely brazen and cynical process over these last days. There is no secret to any of us, not in this age of all kinds of visibility and technical means and satellites and the ability to watch what people are doing – we know to a certainty what Russia has been providing to the separatists, how Russia is involved with the separatists, and the ways in which Russia has cynically been willing to go to – even lead an effort at the UN, even simultaneously as it is continuing to do land grabbing in Ukraine. And what is happening with respect to Mariupol even now is just simply unacceptable.
So we are talking about additional sanctions, additional efforts. I’m confident that over the course of the next days, people are determined to make it clear we’re not going to play this game. We’re not going to sit there and be part of this kind of extraordinarily craven behavior at the expense of the sovereignty and integrity of a nation. This is behavior that is completely counter to everything that the global community has worked to achieve and to put in place ever since World War II. And I’m confident that the United Kingdom, the United States, and others are prepared to stand up to it.
With respect to ISIS/Daesh, there is a unanimity now that is even more determined than it was previously to put the people in the places that they need to be to get the job done, to commit the resources, and to continue to put the pressure on Daesh in Iraq and into Syria, and wherever they may be. And in Libya, there is an increasing determination – we had a meeting in Washington just the other day with the foreign minister of Egypt, with the EU high representative, with the secretary-general of the United Nations. I will have a discussion with Philip about that. And I’m confident that we’re going to have a unanimous approach over these next weeks that will begin to create an even more coordinated and effective response with respect to Libya itself.
And so there’s a great deal on the plate. We understand that. But one thing I think we know: We have the tools, we have the political will, we have the determination, and we are making gains in Iraq. Territory is increasingly beginning to come back into the hands of the Iraqi Government. The Iraqi military is now beginning to stand up with greater capacity. There is a fixed determination by every country in the region, every country in the region – even those with whom we have major disagreements – they are all standing in opposition to the brutality and to the extraordinary criminality of the Daesh enterprise wherever it is found. And I have genuine confidence in our ability to be able to continue to make that progress. So thank you all.
Remarks With U.K. Foreign Secretary Philip Hammond Before Their Meeting
Remarks
John Kerry
Secretary of State
Carlton Gardens
London, United Kingdom
February 21, 2015
FOREIGN SECRETARY HAMMOND: Well, it’s a great pleasure to welcome John Kerry here this morning. We have got a series of important challenges to the rules-based international system which is so important both for the United States and the United Kingdom, and our cooperation, our alliance, is at the heart of the response to those challenges.
We’re going to take the opportunity this morning to talk about the challenge we face in Ukraine from Russia’s continued aggression, the unacceptable way in which the cease-fire agreement that was signed just 10 days ago has been so systematically breached. We’re going to talk about how we maintain European Union unity and U.S.-European alignment in response to those breaches of that agreement.
We’ll also be talking about the challenges that we face from Islamist extremism, particularly now the challenges that we’re seeing in Libya, where the extremists are getting a foothold and the UN special representative initiative is making some progress, but we urgently need to see a government of national unity emerging in Libya so that the international community can put its weight behind that government in order to squeeze the terrorists out of the ungoverned space that’s currently available to them in Libya.
We’ve got a lot of challenges ahead of us, but we’re going to have, I know, very constructive discussions today, and we will make sure that our alliance remains at the heart of the international community’s response to those challenges. John.
SECRETARY KERRY: Well, Philip, thank you very much. First of all, thank you for your welcome and thanks for being available to have this important discussion. I think the special relationship between the United Kingdom and the United States is really never more prominent than it is right now at this period where we are cooperating on so many different challenges all at the same time. We’re particularly appreciative for Britain’s home secretary’s presence at the White House summit on violent extremism just over the last few days.
And I have to say that I am personally encouraged by the unanimity of the response at that summit to steps that need to be taken over the course of the next months and years in order to counter violent extremism. But for the immediate moment, we face a series of very real, immediate challenges which we are determined to respond to. And we’re going to talk about each of them here today, and I will go on from here to discussions with respect to Iran. The P5+1 remains united on the subject of Iran. There is absolutely no divergence whatsoever in what we believe is necessary for Iran to prove that its nuclear program is going to be peaceful into the future.
But in the immediacy, Russia has engaged in an absolutely brazen and cynical process over these last days. There is no secret to any of us, not in this age of all kinds of visibility and technical means and satellites and the ability to watch what people are doing – we know to a certainty what Russia has been providing to the separatists, how Russia is involved with the separatists, and the ways in which Russia has cynically been willing to go to – even lead an effort at the UN, even simultaneously as it is continuing to do land grabbing in Ukraine. And what is happening with respect to Mariupol even now is just simply unacceptable.
So we are talking about additional sanctions, additional efforts. I’m confident that over the course of the next days, people are determined to make it clear we’re not going to play this game. We’re not going to sit there and be part of this kind of extraordinarily craven behavior at the expense of the sovereignty and integrity of a nation. This is behavior that is completely counter to everything that the global community has worked to achieve and to put in place ever since World War II. And I’m confident that the United Kingdom, the United States, and others are prepared to stand up to it.
With respect to ISIS/Daesh, there is a unanimity now that is even more determined than it was previously to put the people in the places that they need to be to get the job done, to commit the resources, and to continue to put the pressure on Daesh in Iraq and into Syria, and wherever they may be. And in Libya, there is an increasing determination – we had a meeting in Washington just the other day with the foreign minister of Egypt, with the EU high representative, with the secretary-general of the United Nations. I will have a discussion with Philip about that. And I’m confident that we’re going to have a unanimous approach over these next weeks that will begin to create an even more coordinated and effective response with respect to Libya itself.
And so there’s a great deal on the plate. We understand that. But one thing I think we know: We have the tools, we have the political will, we have the determination, and we are making gains in Iraq. Territory is increasingly beginning to come back into the hands of the Iraqi Government. The Iraqi military is now beginning to stand up with greater capacity. There is a fixed determination by every country in the region, every country in the region – even those with whom we have major disagreements – they are all standing in opposition to the brutality and to the extraordinary criminality of the Daesh enterprise wherever it is found. And I have genuine confidence in our ability to be able to continue to make that progress. So thank you all.
Subscribe to:
Posts (Atom)