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Syria has moved 20 trucks worth of equipment and material used for the manufacturing of chemical weapons into neighboring Iraq, the Lebanese daily Al-Mustaqbal reported on Sunday. The government in Baghdad has denied allegations that it is helping the Syrian government conceal chemical stockpiles.

The report came just a day after the United States and Russia struck a deal stipulating that Syrian President Bashar Assad's regime would destroy its chemical arsenal to avert an American military assault.The newspaper reported that the trucks crossed the boundary separating Syria with Iraq over the course of Thursday and Friday. Border guards did not inspect the contents of the trucks, which raises suspicions that they contained illicit cargo, according to Al-Mustaqbal.Al-Mustaqbal, a publication that has long been affiliated with anti-Syrian political elements in Lebanon, quoted a spokesperson for Iraq's interior ministry, Saad Maan, as saying that security forces were deployed along the border and were checking all vehicles coming into the country.

"Iraq today is not Saddam Hussein's Iraq," he said. "It is not an Iraq which resorts to the use of chemical weapons against its own people or against its neighbors." "These accusations are all rumors and are useless and no one believes them," he said.Last week, the head of the Free Syrian Army told CNN that opposition intelligence indicated Assad was moving chemical arms out of the country."Today, we have information that the regime began to move chemical materials and chemical weapons to Lebanon and to Iraq," General Salim Idriss told CNN."We have told our friends that the regime has begun moving a part of its chemical weapons arsenal to Lebanon and Iraq. We told them do not be fooled," Idris told reporters in Istanbul."All of this initiative does not interest us. Russia is a partner with the regime in killing the Syrian people. A crime against humanity has been committed and there is not any mention of accountability."

The European Parliament's research department has found that four out of five member states surveyed carry out wide-scale telecommunications surveillance. In a report released on Friday the department revealed that the U.K., France, Germany and Sweden all engaged in bulk collection of data. The Netherlands, which was also examined, has not done so, so far, but is engaged in setting up an agency for that purpose.

"It appears unlikely that the programmes of EU member states such as Sweden, France and Germany come close to the sheer magnitude of the operations launched by GCHQ and the NSA," says the report. Reports allege that GCHQ has placed data interceptors on approximately 200 U.K. fiber-optic cables that transmit Internet data and that by 2012 the agency was able to process data from at least 46 fiber-optic cables at any one time. This gives the agency the possibility to intercept more than 21 petabytes of data a day. This is estimated to have contributed to a 7,000 percent increase in the amount of personal data available to GCHQ from Internet and mobile traffic in the past five years. In order to deal with this vast amount of data, GCHQ uses a system of so-called "Massive Volume Reduction," removing 30 percent of less intelligence-relevant data such as peer-to-peer downloads. The remaining data is combed using some of up to 40,000 "selectors" such as keywords, email addresses or phone numbers of targeted individuals by about 300 GCHQ and 250 NSA staff working together.

Fighters from the Islamic State of Iraq and the Levant have vowed to march on Baghdad, as Iraq's parliament failed to agree the declaration of a nationwide state of emergency. "We will march toward Baghdad because we have an account to settle there," said the armed group's spokesman on Thursday in an audio recording posted on the internet. The statement could not be independently verified.

In a sign of ISIL's confidence, he even boasted that its fighters would take the southern Shia cities of Karbala and Najaf, which hold two of the holiest shrines for Shia Muslims, following the fall of cities in the Sunni north. Its boasts come as Iraq's parliament failed to reach a quorum on Thursday to vote on a nationwide state of emergency. Most of those boycotting parliament were from the country's Sunni and Kurdish factions, who oppose giving extraordinary powers to the Shia prime minister, Nouri al-Maliki.

The schism came even after days of advances had left ISIL in control of towns 50km from the capital. On Wednesday, the group seized Tikrit, 140km northwest of Baghdad, as Iraqi soldiers fled.  The day before, it captured Mosul, Iraq's second-largest city. ISIL and its allies among local tribesmen also hold the city of Fallujah and other pockets of the Sunni-dominated Anbar province to the west of Baghdad.

The Phantom of the (tragic) Middle East Opera is back. A killer without a clue, he can’t be blamed for not being consistent. His most recent opus speaks for itself; like a Kabuki mask high on Earl Grey tea, the Phantom is eviscerated by his own mighty pen, actually sword. The fact that the Phantom keeps getting away with his vast desert of convoluted lies – instead of languishing in some rotten, extraordinary rendition hotel - spells out all we need to know about so-called Western “elites”, of which he’s been a faithful, and handsomely rewarded, servant. So Western “inaction” in Syria has led to the latest Iraq tragedy? Sorry, Tony; it was yours and "Dubya’s" 2003 Shock and Awe “action” that set the whole Shakespearean tragedy in motion.

A secretive British police investigation focusing on journalists working with Edward Snowden’s leaked documents remains ongoing two years after it was quietly launched, The Intercept can reveal. London’s Metropolitan Police Service has admitted it is still carrying out the probe, which is being led by its counterterrorism department, after previously refusing to confirm or deny its existence on the grounds that doing so could be “detrimental to national security.” The disclosure was made by police in a letter sent to this reporter Tuesday, concluding a seven-month freedom of information battle that saw the London force repeatedly attempt to withhold basic details about the status of the case. It reversed its position this week only after an intervention from the Information Commissioner’s Office, the public body that enforces the U.K.’s freedom of information laws.

The Icelandic government is reconsidering its national refugee quota after a social media campaign resulted in over 11,000 Icelanders offering up a room in their homes to refugees. As Europe struggles to cope with unprecedented levels of those seeking shelter, residents of the sparsely populated Nordic island country resorted to direct action to pressure their leaders. Iceland was recently awarded the title of “most peaceful country” in the Global Peace Index, with Syria ranking the least peaceful. With a population of 330,000 — less than many European cities — the country’s government had previously stated it could only take in 50 people this year. Taking matters into their own hands, over 16,000 Icelanders joined a Facebook page created on Sunday to pressurize the Icelandic government into accepting more refugees. In addition to offering rooms in homes, people have pledged financial support with air fares, language teaching, clothing, food, and toys, and the page has been inundated with messages of gratitude from Syrians, some of whom are writing from refugee camps. As a result of the outpouring of support, Icelandic Prime Minister Sigmundur David Gunnlaugsson announced that a committee is being formed to re-assess the country’s current policy.

Undoubtedly, thousands of people across the globe are equally horrified. Inspired by Iceland’s example, social media campaigns have sprung up and united those who are dismayed by the pitiful humanitarian response to the crisis. As distressing images and stories of the hurdles and barriers faced at every turn by those seeking sanctuary saturate the European press, similar schemes have snowballed throughout Europe. In Britain, more and more people are condemning the government’s shameful response to the crisis — a response particularly ironic considering most refugees are fleeing conflicts that the U.K.’s imperialist interventions have directly contributed to. .BottomResponsiveBanner { width: 300px; height: 250px; } @media (min-width:420px) { .BottomResponsiveBanner { width: 336px; height: 280px; } } @media (min-width:1300px) { .BottomResponsiveBanner { width: 728px; height: 90px; } } Not prepared to sit back, groups like Citizens UK are pressuring U.K. leaders to step up to the plate. More than 250,000 Brits have signed a petition calling for Britain to take its fair share of Syrian refugees. Ireland’s ”Pledge a Bed” campaign was overwhelmed with thousands of offers of spare rooms within hours of its launch while hundreds of Germans have offered to share their homes on the Refugees Welcome website.

Swiftly following suit and not to be outdone, offers of support haven’t stopped at Europe’s shores. A U.S. group called Open Homes, Open Hearts US – for Syrian refugees launched earlier this week. With no easy answers and no end in sight, the political firestorm will continue, as will the global outrage at the humanitarian tragedy. The only thing clear is that if the West were prepared to accept more refugees, desperate families wouldn’t be forced to rely on smugglers or to climb into perilous boats and refrigeration lorries.

Copies of messages sent to BP traders over the course of a year were provided to Bloomberg News by a person with access to the online conversations. The person, who redacted the names of banks sending the messages and dates of conversations, said they came from firms whose senior foreign-exchange traders belonged to a chat room called “The Cartel” that was set up by Usher and included dealers at JPMorgan, Citigroup Inc. (C), Barclays Plc and UBS Group AG. (UBSN) The information offered an insight into currency moves minutes, sometimes hours before they happened. The messages could drag the U.K.’s biggest energy company into a scandal that has enveloped 11 banks and led to more than 30 traders from London to Singapore losing or being suspended from their jobs. Last month six banks were fined $4.3 billion for passing along information about their clients and working together to rig foreign-exchange markets.

While there’s no evidence that any BP traders were members of the Cartel, Usher participated in at least one chat room with White, according to a person who has examined conversations that included both men. It couldn’t be determined from the messages reviewed by Bloomberg News who sent the information to BP or whether BP employees acted on any of the tips.

In the clubby, lightly regulated world of foreign exchange, traders passed around tips to their circle of trusted contacts like candy. The victims: mutual-fund investors, pensioners and day traders who took the other side of a transaction at a lower price than they would have if they had the same information. “The authorities have made it clear in the enforcement notices accompanying the recent fines that irrespective of whether specific markets are regulated, banks cannot have pockets of business where traders behave as if they’re dealing in the Wild West,” said Janine Alexander, a partner at law firm Collyer Bristow LLP in London who specializes in financial-services litigation. “Banks have a responsibility to preserve market integrity, and traders must consider the effect of their behavior on clients and the market as a whole.”

Troops from the Royal British Army's elite SAS unit and Special Reconnaissance Regiment have landed in Iraq and are pursuing Islamic State fighters, particularly the U.K. citizen known as "Jihadi John" who beheaded the American journalist James Foley on camera last week. The Sunday Mail reported that the British commandos were employing advanced technologies to find the killer. "It is possible to identify British jihadis on the battlefield by intercepting their radio messages. When they're captured by the Iraqis or Kurds we'll take a close interest in their questioning," an SAS member told the weekly paper. It already appears that the U.S. and U.K. are close to identifying the British-accented terrorist who killed Foley. "We're not in a position to say exactly who this is, but I think we are close," British Ambassador to the U.S. Sir Peter Westmacott told NBC's "Meet the Press."

The U.K. will press European Union leaders to consider blocking Russian access to the SWIFT banking transaction system under an expansion of sanctions over the conflict in Ukraine, a British government official said. The Society for Worldwide Interbank Financial Telecommunication, known as SWIFT, is one of Russia’s main connections to the international financial system. Prime Minister David Cameron’s government plans to put the topic on the agenda for a meeting of EU leaders in Brussels today, according to the official, who asked not to be named because the discussions are private. “Blocking Russia from the SWIFT system would be a very serious escalation in sanctions against Russia and would most certainly result in equally tough retaliatory actions by Russia,” said Chris Weafer, a senior partner at Moscow-based consulting firm Macro Advisory. “An exclusion from SWIFT would not block major trade deals but would cause problems in cross-border banking and that would disrupt trade flows.”

On January 5, 2015 the United Nations announced that offensive operations by its forces, known as MONUSCO, along with Congolese army elements, are being prepared against the Democratic Forces For the Liberation of Rwanda (FDLR) based in the east of the Republic of Congo (DRC). This follows a Security Council statement of October 3, 2014 calling for the neutralization of the FDLR if they did not surrender, which itself followed a demand by the International Conference of the Great Lakes Region, and the South African Development Community made on July 2nd last year that the FDLR demobilise.

The Security Council “rejected any call for political dialogue” and went on to call the FDLR a group of war criminals. This rejection of dialogue based on a false characterization of the FDLR and on a false history of the events in Rwanda and central Africa for the past twenty years is itself a violation of Chapter 1, Article 1 of the UN Charter that states that the purposes of the United Nations are to “maintain peace and security …and to bring about by peaceful means…settlement of international disputes or situations which might lead to a breach of the peace.” It is also surprising since the UN’s own Mapping Exercise Report of 2010 which examined crimes against humanity and war crimes committed against Hutu refugees in the DRC between 1996 and 2003 described countless mass atrocities and massacres of those refugees by Rwandan, Burundian, Ugandan and allied forces, amounting to genocide against the Hutus. Those massacres have not stopped since 2003 as several proxy forces of the Rwandans and Ugandans, using various names, and claiming to be Congolese rebels, have continued attacks on Hutus in the DRC as well as on Congolese who got in the way of their objective of looting the resources of the region.

The FDLR is the only force trying to protect Hutu refugees in the DRC from being totally exterminated by the Rwandan and Ugandan forces, the same forces that attacked and pillaged Rwanda between 1990 and 1994 and that have slaughtered several million more Hutus and Congolese since. Because the FDLR is the only effective armed political opposition to the military dictatorship of Paul Kagame and his Rwandan Patriotic Front (RPF), it is a clear threat to the countries that have mining and resource interests in the DRC and who have been using Uganda and Rwanda as local enforcers to carry out their effective division of the country that makes it easier to control and exploit those resources. All the countries in the pan-African groups that called for the demobilisation of the FDLR have interests in the resources of the Congo region. All have an interest in continued war in the DRC, its continued division and weakness, and the destruction of any effective opposition to the forces assigned the role of carrying out that policy. This includes the DRC itself whose President, Joseph Kabila, is known to be a partner and agent of Kagame and rules the DRC not in the interests of the Congolese but in the interests of Kagame, Musuveni and their western masters.

Speaking on his television program "Con el Mazo Dando", National Assembly President Diosdado Cabello released new evidence on Wednesday regarding the thwarted "Blue Coup" attempt against the government of Nicolas Maduro on February 12.Coming in the wake of the arrest of Antonio Ledezma last Thursday on charges of sedition and conspiracy, these revelations could lend further support to allegations concerning both the Caracas Metropolitan Mayor's role in the coup as well as the advance knowledge and involvement of the opposition party COPEI.Ledezma Linked to Coup Plotters Via U.S. Phone NumberAccording to Cabello, Ledezma allegedly made three phone calls in December to a New York-based number belonging jointly to General Eduardo Báez Torrealba (alias "Máximo") and Carlos Manuel Osuna Saraco (alias "Guillermo"), the latter of whom is believed to be the "financier" of the coup plot.

In a two week period spanning from the 25th of December to the 10th of January, Lieutenant Henry Salazar Moncada, who has been arrested and formally charged for his role in the coup attempt, also made three separate phone calls to the same U.S. number."The evidence is notorious. The proof is extremely clear [...] It's a coup, and as President Nicolas Maduro said, there are very few opposition leaders who didn't know anything [about the coup]," announced the President of the National Assembly.Antonio Ledezma was one of three signatories of a public statement by leaders of the Venezuelan opposition calling for the ouster of President Nicolas Maduro as part of a "national transition", which was released just 24 hours prior to the coup attempt.The other signatories were multi-millionaire former legislator Maria Corina Machado, whose various NGOs have received millions in funding from the U.S. government, and Voluntad Popular leader Leopoldo Lopez, who currently awaits trial for his role in leading violent opposition protests last year that took the lives of 43 people.

Ledezma has also been linked to extreme right-wing opposition figures such as Lorent Gómez Saleh, who was extradited from Colombia and charged with allegedly conspiring with paramilitaries to launch terrorist attacks as part of a campaign of so-called "resistance" against the Venezuelan government.COPEI Leaders Discuss Links to Military Officials "Preparing How to Do the Transition"On his program on Wednesday night, Cabello also presented a recording of an alleged phone call between the first COPEI vice-president for Lara State Jose Cassany, and another top party official by the name of Antonio Sotillo in which the two christian democrats appear to discuss preparations for a coup.In a conversation recorded on January 3 of this year, Cassany informs Sotillo that he is friends with a businessman who has a relationship "with the civil and military worlds, active military [officials], including generals."He added that these military officials were "preparing how to do the transition," which is the name given by the opposition to their demand for the ouster of President Nicolas Maduro.

Forcibly taking down websites deemed to be supportive of terrorism, or criminalizing speech deemed to “advocate” terrorism, is a major trend in both Europe and the West generally. Last month in Brussels, the European Union’s counter-terrorism coordinator issued a memo proclaiming that “Europe is facing an unprecedented, diverse and serious terrorist threat,” and argued that increased state control over the Internet is crucial to combating it. The memo noted that “the EU and its Member States have developed several initiatives related to countering radicalisation and terrorism on the Internet,” yet argued that more must be done. It argued that the focus should be on “working with the main players in the Internet industry [a]s the best way to limit the circulation of terrorist material online.” It specifically hailed the tactics of the U.K. Counter-Terrorism Internet Referral Unit (CTIRU), which has succeeded in causing the removal of large amounts of material it deems “extremist”:

In addition to recommending the dissemination of “counter-narratives” by governments, the memo also urged EU member states to “examine the legal and technical possibilities to remove illegal content.” Exploiting terrorism fears to control speech has been a common practice in the West since 9/11, but it is becoming increasingly popular even in countries that have experienced exceedingly few attacks. A new extremist bill advocated by the right-wing Harper government in Canada (also supported by Liberal Party leader Justin Trudeau even as he recognizes its dangers) would create new crimes for “advocating terrorism”; specifically: “every person who, by communicating statements, knowingly advocates or promotes the commission of terrorism offences in general” would be a guilty and can be sent to prison for five years for each offense. In justifying the new proposal, the Canadian government admits that “under the current criminal law, it is [already] a crime to counsel or actively encourage others to commit a specific terrorism offence.” This new proposal is about criminalizing ideas and opinions. In the government’s words, it “prohibits the intentional advocacy or promotion of terrorism, knowing or reckless as to whether it would result in terrorism.”

If someone argues that continuous Western violence and interference in the Muslim world for decades justifies violence being returned to the West, or even advocates that governments arm various insurgents considered by some to be “terrorists,” such speech could easily be viewed as constituting a crime. To calm concerns, Canadian authorities point out that “the proposed new offence is similar to one recently enacted by Australia, that prohibits advocating a terrorist act or the commission of a terrorism offence-all while being reckless as to whether another person will engage in this kind of activity.” Indeed, Australia enacted a new law late last year that indisputably targets political speech and ideas, as well as criminalizing journalism considered threatening by the government. Punishing people for their speech deemed extremist or dangerous has been a vibrant practice in both the U.K. and U.S. for some time now, as I detailed (coincidentally) just a couple days before free speech marches broke out in the West after the Charlie Hebdo attacks. Those criminalization-of-speech attacks overwhelmingly target Muslims, and have resulted in the punishment of such classic free speech activities as posting anti-war commentary on Facebook, tweeting links to “extremist” videos, translating and posting “radicalizing” videos to the Internet, writing scholarly articles in defense of Palestinian groups and expressing harsh criticism of Israel, and even including a Hezbollah channel in a cable package.

British spies have been granted the authority to secretly eavesdrop on legally privileged attorney-client communications, according to newly released documents. On Thursday, a series of previously classified policies confirmed for the first time that the U.K.’s top surveillance agency Government Communications Headquarters (pictured above) has advised its employees: “You may in principle target the communications of lawyers.” The U.K.’s other major security and intelligence agencies—MI5 and MI6—have adopted similar policies, the documents show. The guidelines also appear to permit surveillance of journalists and others deemed to work in “sensitive professions” handling confidential information.

Though last month’s unilateral bombing of Syria by the U.S., U.K. and France came and went, the threat of foreign military intervention targeting the Syrian government remains, particularly given Syria’s success in defeating the foreign-funded terrorist proxies that have prolonged the Syrian conflict for seven long years. While Israel seems to have taken it upon itself to militarily intervene in Syria to prevent the Syrian government from continuing to reclaim its lost territory, the other major powers that have long sought the end of Syrian President Bashar al-Assad have seemed to step back from intervening in Syria, unless another chemical weapons attack were to take place and be blamed on Assad. For that reason, a recent article, published in early May by Russian news agency RIA Novosti, should raise concern, as it exposes alleged plans for another gas-attack provocation in Syria. According to the report, preparations for a staged chemical weapons attack began late last month as civilians were relocated to a territory near Jafra oil field in Eastern Syria, where they will participate in a staged filming of a chemical-weapons attack scene. According to South Front, a U.S. military garrison was recently established in this area. The report, based on the testimony of an anonymous member of the Syrian security services, claimed that an attack was being planned by U.S. security services and would employ “prohibited substances” against a group of civilians. The source also noted that the operation itself was being led by a former Daesh (ISIS) militant, Mishan Idris Hamash. Though this may seem unusual, the U.S. and its proxy force in Eastern Syria, the Syrian Democratic Forces (SDF), have been known to collaborate with former Daesh forces, including militias composed of former Daesh fighters under the SDF banner. If this report is true, it would not be the first time that such warnings were made public prior to chemical weapons attacks in Syria that were ultimately blamed on the Syrian government. For instance, in late March, the Russian Ministry of Defense had warned that a chemical weapons “provocation” was being planned in Eastern Ghouta by rebel groups in the area as part of a last-ditch attempt to prevent being run out of the Damascus suburb by the Syrian Arab Army. Just a few weeks later, a chemical weapons attack in Douma – widely believed to have been staged – took place and, prior to any investigation, prompted the U.S., U.K. and France to bomb the Syrian government, which they blamed for the attack.

In addition, once Eastern Ghouta had returned to Syrian government control, several chemical weapon laboratories under rebel control were uncovered, revealing that the Syrian rebels are in possession of chemical weapons while chemical weapons stockpiles of the Syrian government were destroyed under international supervision in 2013.

Confiscating the customer deposits in Cyprus banks, it seems, was not a one-off, desperate idea of a few Eurozone “troika” officials scrambling to salvage their balance sheets. A joint paper by the US Federal Deposit Insurance Corporation and the Bank of England dated December 10, 2012, shows that these plans have been long in the making; that they originated with the G20 Financial Stability Board in Basel, Switzerland (discussed earlier here); and that the result will be to deliver clear title to the banks of depositor funds.  

One might wonder why the posting of collateral by a derivative counterparty, at some percentage of full exposure, makes the creditor “secured,” while the depositor who puts up 100 cents on the dollar is “unsecured.” But moving on – Smith writes: Lehman had only two itty bitty banking subsidiaries, and to my knowledge, was not gathering retail deposits. But as readers may recall, Bank of America moved most of its derivatives from its Merrill Lynch operation [to] its depositary in late 2011. Its “depositary” is the arm of the bank that takes deposits; and at B of A, that means lots and lots of deposits. The deposits are now subject to being wiped out by a major derivatives loss. How bad could that be? Smith quotes Bloomberg:

The 15-page FDIC-BOE document is called “Resolving Globally Active, Systemically Important, Financial Institutions.”  It begins by explaining that the 2008 banking crisis has made it clear that some other way besides taxpayer bailouts is needed to maintain “financial stability.” Evidently anticipating that the next financial collapse will be on a grander scale than either the taxpayers or Congress is willing to underwrite, the authors state: An efficient path for returning the sound operations of the G-SIFI to the private sector would be provided by exchanging or converting a sufficient amount of the unsecured debt from the original creditors of the failed company [meaning the depositors] into equity [or stock]. In the U.S., the new equity would become capital in one or more newly formed operating entities. In the U.K., the same approach could be used, or the equity could be used to recapitalize the failing financial company itself—thus, the highest layer of surviving bailed-in creditors would become the owners of the resolved firm. In either country, the new equity holders would take on the corresponding risk of being shareholders in a financial institution.

The National Security Agency and the Federal Bureau of Investigation access the central servers of nine U.S. Internet companies, extracting audio and video chats, photographs, e-mails, documents and connection logs, the Washington Post and the U.K.-based Guardian reported late yesterday, citing documents they obtained.

Confiscating the customer deposits in Cyprus banks, it seems, was not a one-off, desperate idea of a few Eurozone “troika” officials scrambling to salvage their balance sheets. A joint paper by the US Federal Deposit Insurance Corporation and the Bank of England dated December 10, 2012, shows that these plans have been long in the making; that they originated with the G20 Financial Stability Board in Basel, Switzerland (discussed earlier here); and that the result will be to deliver clear title to the banks of depositor funds.  

Although few depositors realize it, legally the bank owns the depositor’s funds as soon as they are put in the bank. Our money becomes the bank’s, and we become unsecured creditors holding IOUs or promises to pay. (See here and here.) But until now the bank has been obligated to pay the money back on demand in the form of cash. Under the FDIC-BOE plan, our IOUs will be converted into “bank equity.”  The bank will get the money and we will get stock in the bank. With any luck we may be able to sell the stock to someone else, but when and at what price? Most people keep a deposit account so they can have ready cash to pay the bills.

No exception is indicated for “insured deposits” in the U.S., meaning those under $250,000, the deposits we thought were protected by FDIC insurance. This can hardly be an oversight, since it is the FDIC that is issuing the directive. The FDIC is an insurance company funded by premiums paid by private banks.  The directive is called a “resolution process,” defined elsewhere as a plan that “would be triggered in the event of the failure of an insurer . . . .”

Rory Cullinan runs the world’s worst bank from a fifth-floor office overlooking Liverpool Street station in London. His 400-person outfit doesn’t lend money or trade securities. Instead, it sells blown-out mortgages, busted loans and entire companies amassed by Royal Bank of Scotland Group before it collapsed in the global financial crash of 2008. On a Friday afternoon, Cullinan is savoring a new feeling in his life as a toxic-asset disposal specialist: hope that the worst is finally over. After four years of marathon dealmaking, Cullinan’s Non-Core Division has whacked a 258-billion-pound ($390 billion) financial junk pile down to 57 billion pounds and eased pressure on RBS’s balance sheet. That has been chief executive Stephen Hester’s top priority since the government saved RBS from insolvency beginning in late 2008 with a 45-billion-pound lifeline — the biggest bank bailout in history.

The RBS mess has pitted Chancellor of the Exchequer George Osborne, who continues to stand behind Hester’s turnaround plan, against Bank of England Governor Mervyn King, who says it is not working. King told the Parliamentary Commission on Banking Standards that the government should fully nationalize RBS, then split it up and re-privatize the “good” pieces of the bank to recoup what it can of the bailout.“We should simply accept the reality today that it is worth less than we thought and should find a way to get an RBS that can be useful to the U.K. economy,” said King, 65, who will retire June 30.

Hester has told investors and analysts that getting a grip on RBS has proven a far tougher task than he expected because the euro zone’s sovereign-debt crisis and two recessions in Britain have undermined the bank’s bedrock lending business. Hester has also been hit with misdeeds that took root before he arrived at the bank.In February, RBS agreed to pay a $612 million penalty to regulators and law enforcement officials in the United States and Britain to settle allegations that 21 of its traders had manipulated the London interbank offered rate, or Libor, from 2006 to 2010. Barclays paid a $453 million penalty in July to settle its Libor case, and UBS was fined $1.5 billion in December.