We noted our disappointment yesterday with the decision by the three British bankers—called The NatWest 3 by British tabloids—to plead guilty to one count each of wire fraud. The rubber hose and brass knuckles style of regulating business through the criminal justice system scored another undeserved victory, and unfortunately this will no doubt vindicate the zealous prosecution of Enron’s failure in the minds of many.

Houston attorneyTom Kirkendall, who writes the brilliant Houston’s Clear Thinkers blog, notes that the threat of long jail sentences and a jury pool that is virulently anti-Enron probably made the guilty plea inevitable. The defendants were facing years of jail in a foreign land—Texas!—and the convictions of Ken Lay and Jeff Skilling were not exactly re-assuring about the likely fairness of a trial.

“Given those choices, my sense is that the NatWest Three’s choice was a rational and reasonable decision. It’s simply not a choice that they should have been forced to make,” Kirkendall writes.

Somebody was guilty because they were guilty [Houston’s Clear Thinkers]

We won’t pretend we’re a not at least a little disappointed by the guilty pleas offered in a federal court in Houston by three British bankers yesterday. The bankers—Giles Darby, David Bermingham and Gary Mulgrew—pled guilty to one charge of wire fraud each and are expected to be sentenced to 37-months in jail.

Those who have cheered on the criminalization of Enron’s collapse will no doubt wear vindicated smiles when they talk about the guilty pleas. But their glee will be misplaced is they regard the guilty plea as a confirmation of wrong-doing. Plea bargains have become quite common in white-collar criminal cases not because prosecutors select only the guiltiest of defendants but because the threat of enormous jail sentences make fighting charges too risky.

A judge yesterday set the trial dates for the NatWest 3, the three British bankers charged with looting Enron. Although David Bermingham, Giles Darbyand and Gary Mulgrew have complained about rulings requiring them to stay in the US while they await trial, their attorneys rejected an earlier date, claiming they needed more time to prepare the defense.

The three did get some good news yesterday. A magistrate rejected prosecutors’ requests that they be placed under house arrest and even indicated that their Martha Stewart-style ankle bracelets may be removed. A bail hearing in the next few days will decide that issue.

Nat West Three facing year-long wait for trial[Independent]

As if getting extradited by your mother country wasn’t bad enough, the NatWest three were reportedly served with subpoenas in an Enron shareholder class action suit less than 24 hours after they arrived in the US.

David Bermingham, who obviously hasn’t exactly adjusted to his new life in the land of litigators, told the Toronto Star, “We had been in the country less than 24 hours when lawyers for whoever, the ambulance-chasing lawyers, came out with their subpoenas.”

David, your deposition just got a bit uglier.

Enron investors call NatWest Three in civil lawsuit [The Guardian]

Earlier this week, we pointed out that our British friends were talking about the indictment of the NatWest 3 as if it had something to do with the Iraq war. Psychologically, the two had become linked, demonstrating that America was out of control and that the UK had some how become subservient to our rampages.

That sounded a little paranoid. Even far-fetched. So we were glad to see confirmation in the Scotsman that this really is the way some Mud Islanders think about things. It’s all here—an irrational America, an acquiescent UK, the Middle East, the jailed bankers. Somehow all connected in the murky mind of writer Stephen Jardine.

The Middle East lies at the heart of the tension. Traditionally, Britain follows its own agenda in the area but as chaos continues in Iraq, in policy terms we’re now increasingly tied to America’s coat tails throughout the region. And even here at home, no-one is safe from harm. What Uncle Sam wants, he gets.

This week I’ve been in Texas interviewing the Scots businessman caught up in the collapse of America’s biggest corporation. Gary Mulgrew and two colleagues allegedly took part in illegal transactions linked to Enron while they worked in Britain for the NatWest Bank.

Any crime was substantially committed here but that didn’t stop America applying for extradition. Even though the United States hasn’t yet ratified the treaty, the British Government happily handed the NatWest Three over on the basis of the charges made, but no evidence.