Third, in early October, the British government used anti-terrorism laws passed in 2001 to seize the assets of Kaupthing Singer & Friedlander, which immediately precipitated the collapse of its parent, the Kaupthing Bank. No one is claiming that Iceland's banks have been models of prudence in the last few years, but considerable shock has been expressed that laws supposedly directed against terrorists were in fact used against a friendly state. At one point Mr Brown said, "We are freezing the assets of Icelandic companies in the UK where we can." He was incorrect, since such companies - which were quite separate entities - had had no legal obligation to cover the liabilities of Icelandic banks.

Mr Brown needs to be warned that everyone, even prime ministers, must obey the law. Governments must respect human rights, including rights to property. No doubt a high proportion of the British public despises bankers and Iceland, and couldn't care tuppence for the property rights of bank shareholders and Icelanders. But judicial decisions are determined by the law, not opinion polls. If Mr Brown and his associates remain unchecked, the rule of law is more greatly at risk in Britain today than at any time since the 17th century.