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Paul Merrell

Holder Defends Record of Not Prosecuting Financial Fraud - 0 views

theintercept.com/...ot-prosecuting-financial-fraud

banksters too-big-to-jail Holder DoJ Bernanke federal-reserve

shared by Paul Merrell on 20 Oct 15 - No Cached
  • Former attorney general Eric Holder was the honored guest at a Reporters Committee for Freedom of the Press reception on Wednesday (leading investigative reporter Murray Waas to reasonably wonder: How’s that again?). And while I was primarily interested in hearing whether Holder regretted whiffing on torture prosecutions during his tenure (see story: “Holder, Too Late, Calls for Transparency on DOJ Torture Investigation”), I also asked him about whiffing on financial fraud prosecutions. Specifically, I noted his failure to hold accountable the people responsible for the wide-scale financial fraud that led to the massive economic recession of 2007-2009. And I noted that after he stepped down from his post in April, he went back to his job at Covington & Burling, the gigantic D.C. law firm whose clients have included many of the big banks that Holder chose not to prosecute. (The reception was actually held at Covington & Burling’s swanky new building downtown. While it was being built — while Holder was still attorney general! — the firm actually kept an 11th-story corner office reserved for his return. He was making over $3 million a year from the firm before his sojourn at the Justice Department; his current salary has not been disclosed.)
  • Holder bristled at my suggestion that there might be a connection between his current employer and his conduct at Justice, saying that many top prosecutors at Justice had pursued cases as best they could. “We were simply unable to do it under the existing statutes that we had, and given the ways the decision-making worked at those institutions,” he said. However, Holder had all the statutory authority he needed to prosecute straightforward crimes such as robosigning fraud, perjury in front of Congress by Goldman Sachs executives, or for that matter, HSBC’s money laundering for Mexican drug cartels. He simply chose not to. (In response to another questioner, he denied that any of his decisions not to prosecute were based on the massive legal teams that were fielded against the government.) Moreover, he actively waved off offers of additional help such as the suggestion from Sen. Sherrod Brown, D-Ohio, that Congress give him more staff for his Residential Mortgage-Backed Securities Working Group, or extend the statute of limitations on some crimes. At Wednesday’s event, Holder continued: “It’s an easy thing for people who are not a part of the process” to “ask questions,” he said. “It pisses me off, on the other hand,” for people “not conversant” in the process to “somehow say that I did something that was inconsistent with my oath or that I’m not a person of integrity.” “I’m proud to be back at the firm,” he said. “It’s a great firm. And I’m proud of the work I did at the Justice Department.”
  • Holder’s comment was only the most recent in a series of pronouncements from formerly powerful government officials that they were in fact powerless — while talking tough once they no longer have the ability to do anything about it. See, for instance, my colleague David Dayen’s recent article, “Bernanke Talks Tough But Was Weak When It Mattered,” about former Federal Reserve chair Ben Bernanke saying that more Wall Street executives should have gone to jail for criminal misconduct that led to the financial crisis. As Fed chair, Beranke could have initiated criminal referrals to the Justice Department, but chose not to. As attorney general, Holder could have made pursuing financial fraud a top priority. And he did not.
Paul Merrell

Covington & Burling Gets Eric Holder Back After 6-Year Stopover - 0 views

firstlook.org/...rns-law-firm-lobbies-big-banks

banksters too-big-to-jail Holder revolving-door

shared by Paul Merrell on 07 Jul 15 - No Cached
  • After failing to criminally prosecute any of the financial firms responsible for the market collapse in 2008, former Attorney General Eric Holder is returning to Covington & Burling, a corporate law firm known for serving Wall Street clients. The move completes one of the more troubling trips through the revolving door for a cabinet secretary. Holder worked at Covington from 2001 right up to being sworn in as attorney general in Feburary 2009. And Covington literally kept an office empty for him, awaiting his return. The Covington & Burling client list has included four of the largest banks, including Bank of America, Citigroup, JPMorgan Chase and Wells Fargo. Lobbying records show that Wells Fargo is still a client of Covington. Covington recently represented Citigroup over a civil lawsuit relating to the bank’s role in Libor manipulation.
  • Covington was also deeply involved with a company known as MERS, which was later responsible for falsifying mortgage documents on an industrial scale. “Court records show that Covington, in the late 1990s, provided legal opinion letters needed to create MERS on behalf of Fannie Mae, Freddie Mac, Bank of America, JPMorgan Chase and several other large banks,” according to an investigation by Reuters. The Department of Justice under Holder not only failed to pursue criminal prosecutions of the banks responsible for the mortage meltdown, but in fact de-prioritized investigations of mortgage fraud, making it the “lowest-ranked criminal threat,” according to an inspector general report. For insiders, the Holder decision to return to Covington was never a mystery. Timothy Hester, the chairman of Covington, told the National Law Journal that Holder’s return to the firm had been “a project” of his ever since Holder left to the join the administration in 2009. When the firm moved to a new building last year, it kept an 11th-story corner office reserved for Holder.
  • Holder’s critics charge that he made a career out of institutionalizing “Too Big to Prosecute” rules within the department. In 1999, as a deputy attorney general, Holder authored a memo arguing that officials should consider the “collateral consequences” when prosecuting corporate crimes. In 2012, Holder’s enforcement chief, Lanny Breuer, admitted during a speech to the New York City Bar Association that the department may go easy on certain corporate criminals if they believe prosecutions may disrupt financial markets or cause layoffs. “In some cases, the health of an industry or the markets are a real factor,” Breuer said. Rather than face accountability for their failures, the incentive structure of modern Washington is designed to reward both men. Breuer left the department in 2013 to rejoin Covington. Holder is set to become among the highest-earning partners at the firm, with compensation in the seven or eight figures.
Paul Merrell

The Blotch on Eric Holder's Record: Wall Street Accountability | The Nation - 0 views

www.thenation.com/...ord-wall-street-accountability

financial-collapse DoJ Holder too-big-to-jail banksters

shared by Paul Merrell on 25 Sep 14 - No Cached
  • Attorney General Eric Holder will announce Thursday he is stepping down from the post he has held for nearly six years—making him one of the longest-serving attorneys general in American history. Holder was the first African-American to hold the position and will surely be remembered as a trailblazer for civil rights.
  • But there is one area where Holder falls woefully short: prosecution of Wall Street firms and executives. He came into office just months after widespread fraud and malfeasance in the financial sector brought the American economy to its knees, and yet no executive has faced criminal prosecution. Beyond the crash, Holder established a disturbing pattern of allowing large financial institutions escape culpability. “His record is really badly blemished by his nearly overwhelming failure to hold corporate criminals accountable,” said Robert Weissman, president of Public Citizen. “Five years later, we can say he did almost nothing to hold the perpetrators of the crisis accountable.”
  • Advocates for financial accountability often point to the Savings and Loan crisis as a counter-example: despite much smaller-scale fraud, 1,000 bankers were convicted in federal prosecutions and many went to prison. Holder has tried to explain his lack of prosecutions relating to the 2008 collapse by claiming the cases were too hard to prove—but many experts disagree. The Sarbanes Oxley Act, for example, would provide a straightforward template: it makes it a crime for executives to sign inaccurate financial statements, and there is ample evidence that Wall Street CEOs were aware of the toxicity of the sub-prime mortgages sold by their firms.
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  • Late last year, Judge Jed Rakoff of the Federal District Court of Manhattan wrote an essay in The New York Review of Books bluntly titled, “The Financial Crisis: Why Have No High-Level Executives Been Prosecuted?” He suggested a doctrine of “willful blindness” at Holder’s Justice Department and said “the department’s claim that proving intent in the financial crisis is particularly difficult may strike some as doubtful.” A federal judge will generally not proclaim people guilty outside the courtroom, but Rakoff came close with that statement. The fact he wrote the essay at all stunned many observers. In recent years, the Justice Department has obtained some large-dollar settlements with Wall Street firms like JPMorgan Chase and Bank of America. But the headline-grabbing amounts end up being significantly less after factoring in tax accounting and credits for actions already being undertaken by the bank. There is also a lack of transparency around how these penalties are being paid to aggrieved consumers. Holder himself suggested in Senate testimony last year that some firms really are too big to jail:
  • “I am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if you do prosecute, if you do bring a criminal charge, it will have a negative impact on the national economy, perhaps even the world economy,” Holder said. He later walked that back in subsequent testimony, saying “Let me be very, very, very clear. Banks are not too big to jail.” But the data suggest otherwise.
  • Public Citizen did an analysis of these agreements at the Department of Justice and found that Holder made them a routine affair:
  • There isn’t much transparency over which bad actors are awarded deferred prosecution, and which are not, and advocates are alarmed by the precedent. “[Holder] ensconced the de facto ‘too-big-to-fail’ doctrine by which large financial institutions were effectively immunized form criminal prosecution simply by virtue of being so big,” said Weissman.
Paul Merrell

Holder says 'fatigue' may eventually lead him to step aside - The Hill's Blog Briefing ... - 0 views

thehill.com/...ntually-lead-him-to-step-aside

Obama Holder war on whistleblowers

shared by Paul Merrell on 15 Jun 13 - No Cached
  • Holder acknowledged the House Judiciary Committee’s investigation into whether he lied under oath during his May 15 testimony on the DOJ’s surveillance of reporters. At the time, Holder said he had never prosecuted or been involved in the potential prosecution of reporters. It was later revealed that he signed off on the Rosen affidavit. “The Department has not prosecuted, and as long as I’m attorney general, will not prosecute any reporter for doing his or her job,” Holder said Thursday.
  • Paul Merrell on 15 Jun 13
     
    "The Department has not prosecuted, and as long as I'm attorney general, will not prosecute any reporter for doing his or her job," Holder said Thursday.  Except Julian Assange, of course. 
Paul Merrell

Eric Holder: The Justice Department could strike deal with Edward Snowden - 0 views

www.yahoo.com/...could-strike-123393663066.html

surveillance state Snowden charges plea-deal Holder

shared by Paul Merrell on 07 Jul 15 - No Cached
  • Eric Holder: The Justice Department could strike deal with Edward SnowdenMichael IsikoffChief Investigative CorrespondentJuly 6, 2015Former U.S. Attorney General Eric Holder. (Photo: Olivier Douliery-Pool/Getty) Former Attorney General Eric Holder said today that a “possibility exists” for the Justice Department to cut a deal with former NSA contractor Edward Snowden that would allow him to return to the United States from Moscow. In an interview with Yahoo News, Holder said “we are in a different place as a result of the Snowden disclosures” and that “his actions spurred a necessary debate” that prompted President Obama and Congress to change policies on the bulk collection of phone records of American citizens. Asked if that meant the Justice Department might now be open to a plea bargain that allows Snowden to return from his self-imposed exile in Moscow, Holder replied: “I certainly think there could be a basis for a resolution that everybody could ultimately be satisfied with. I think the possibility exists.”
  • But his remarks to Yahoo News go further than any current or former Obama administration official in suggesting that Snowden’s disclosures had a positive impact and that the administration might be open to a negotiated plea that the self-described whistleblower could accept, according to his lawyer Ben Wizner.
  • It’s also not clear whether Holder’s comments signal a shift in Obama administration attitudes that could result in a resolution of the charges against Snowden. Melanie Newman, chief spokeswoman for Attorney General Loretta Lynch, Holder’s successor, immediately shot down the idea that the Justice Department was softening its stance on Snowden. “This is an ongoing case so I am not going to get into specific details but I can say our position regarding bringing Edward Snowden back to the United States to face charges has not changed,” she said in an email.
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  • Three sources familiar with informal discussions of Snowden’s case told Yahoo News that one top U.S. intelligence official, Robert Litt, the chief counsel to Director of National Intelligence James Clapper, recently privately floated the idea that the government might be open to a plea bargain in which Snowden returns to the United States, pleads guilty to one felony count and receives a prison sentence of three to five years in exchange for full cooperation with the government.
Paul Merrell

C.I.A. Officer Is Found Guilty in Leak Tied to Times Reporter - NYTimes.com - 0 views

www.nytimes.com/...is-convicted-of-espionage.html

tyranny chilling-speech Sterling criminal-convictions

shared by Paul Merrell on 28 Jan 15 - No Cached
  • Jeffrey A. Sterling, a former Central Intelligence Agency officer, was convicted of espionage Monday on charges that he told a reporter for The New York Times about a secret operation to disrupt Iran’s nuclear program.The conviction is a significant victory for the Obama administration, which has conducted an unprecedented crackdown on officials who speak to journalists about security matters without the administration’s approval. Prosecutors prevailed after a yearslong fight in which the reporter, James Risen, refused to identify his sources.
  • On the third day of deliberations, the jury in federal court in Alexandria, Va., convicted Mr. Sterling on nine felony counts. Mr. Sterling, who worked for the C.I.A. from 1993 to 2002 and now lives in O’Fallon, Mo., faces a maximum possible sentence of decades in prison, though the actual sentence is likely to be far shorter. Judge Leonie M. Brinkema of Federal District Court, who presided over the weeklong trial, allowed Mr. Sterling to remain free on bond and set sentencing for April 24.
  • The Justice Department had no direct proof that Mr. Sterling, who managed the Iranian operation, provided the information to Mr. Risen, but prosecutors stitched together a strong circumstantial case.
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  • The trial was part Washington spectacle, part cloak and dagger. Former Secretary of State Condoleezza Rice testified, as did C.I.A. operatives who gave only their first names and last initials, with their faces shielded behind seven-foot-high partitions. A scientist was referred to only by his code name, Merlin. His wife was Mrs. Merlin.Officials revealed their preferred strategies for persuading reporters not to run sensitive stories. Jurors learned that, at the C.I.A.’s office in New York, employees could easily walk out with classified documents and never be searched.
  • Mr. Sterling is the latest in a string of former officials and contractors the Obama administration has charged with discussing national security matters with reporters. Under all previous presidents combined, three people had faced such prosecutions. Under President Obama, there have been eight cases, and journalists have complained that the crackdown has discouraged officials from discussing even unclassified security matters.
  • While the administration has defended the crackdown, Mr. Holder said he believed it went too far at times when it targeted journalists. Under Mr. Holder, prosecutors seized phone records from The Associated Press, labeled one Fox News reporter a potential criminal co-conspirator for inquiring about classified information and tried to force another to testify before a grand jury.
  • Paul Merrell on 28 Jan 15
     
    "Mr. Holder said he believed it went too far at times when it targeted journalists." What Attorney-General Holder actually meant was that he believed it went too far at times when it targeted journalists *who work for major publishers."* Mr. Holder has allowed prosecutions of journalists who do not work for major publishing firms to proceed, e.g., Barrett Brown. 
Paul Merrell

Financial frauds had a friend in Holder | Al Jazeera America - 0 views

america.aljazeera.com/...sticefinancialcrisisfraud.html

banksters financial-collapse criminal-prosecution Holder

shared by Paul Merrell on 03 Oct 14 - No Cached
  • Eric Holder was U.S. attorney general at a time when the world desperately needed the nation’s chief law enforcement officer to hold accountable the elite bankers who oversaw the epidemic of fraud that drove the 2008 global financial crisis and triggered the Great Recession. After nearly six years in office, Holder announced on Sept. 25 that he plans to step down, without having brought to justice even one of the executives responsible for the crisis. His tenure represents the worst strategic failure against elite white-collar crime in the history of the Department of Justice (DOJ).  In both the U.S. savings and loan debacle of the late 1980s and the Enron-era accounting frauds of the early 2000s, there were more than 1,000 successful felony convictions in cases designated as major by the DOJ. In both those fraud epidemics, federal prosecutors prioritized the top executives of the corporations responsible. This context makes Holder’s failure to prosecute — much less convict — the elite bank frauds that caused this far larger crisis all the more damning.
  • In addition to the failure to prosecute the leaders of those massive frauds, Holder’s dismal record includes 1) failing to prosecute the elite bankers who led the largest (by several orders of magnitude) price-rigging cartel in history — the LIBOR scandal, in which the world’s largest banks conspired to rig the reported interest rates at which the banks were willing to lend to one another, which affected prices on over $300 trillion in transactions; 2) failing to prosecute the massive foreclosure frauds (robo-signing), in which bank employees perjured themselves by signing more than 100,000 false affidavits in order to deceive the authorities that they had a right to foreclose on homes; 3) failing to prosecute the bid-rigging cartels of bond issuances in order to raise the costs to U.S. cities, counties and states of borrowing money in order to increase banks’ illegal profits; 4) failing to prosecute money laundering by HSBC for the murderous Sinaloa and Norte del Valle drug cartels; 5)  failing to prosecute the senior bank officers of Standard Chartered who helped fund of terrorists and nations that support terrorism; and 6) failing to prosecute the controlling officers of Credit Suisse who for decades helped wealthy Americans unlawfully evade U.S. taxes and then obstructed investigations by the DOJ and Internal Revenue Service for many years.  
  • the CEOs knew that they could trade off a slightly larger fine in return for complete immunity for themselves and other officers who might otherwise be flipped by federal prosecutors to testify against more senior officers. The fines, of course, would be paid not by the CEOs but by the banks they ran. Indeed, one of the lesser-known aspects of the crisis is that the DOJ almost never sued a banker (as opposed to a bank) and virtually never sought to claw back bankers’ fraud proceeds. It is telling that, as even Holder admitted last week, “A corporation may enter a guilty plea and still see its stock price rise the next day.”
Gary Edwards

CBS News Reporter Says White House Screamed, Swore at Her Over Fast and Furious | The W... - 0 views

www.weeklystandard.com/...r-fast-and-furious_595011.html

Sharyl-Attkisson Laura-Ingram fast-and-furious Obammunism Eric-Holder-Corruption Impeachment

shared by Gary Edwards on 05 Oct 11 - No Cached
  • Gary Edwards on 05 Oct 11
     
    CBS News reproter Sharyl Attkisson on the Laura Ingram Show describes her efforts to get answers from the Obama Whitehouse about the notorious  Fast and Furious Justice Departments gun running fiasco. excerpt: The Fast and Furious scandal, in which the Justice Department knowingly gave Mexican criminal gangs thousands of guns, just keeps escalating. The latest development centers around whether or not Attorney General Eric Holder lied to Congress about having knowledge of the controversial gun trafficking operation. Recently released documents say Holder was briefed about the operation long before he told the Judiciary Committee he was first aware of what was going on. (Holder now claims he misunderstood the question was being asked.)
Paul Merrell

F.B.I. and Justice Dept. Said to Seek Charges for Petraeus - NYTimes.com - 0 views

www.nytimes.com/...former-gen-david-petraeus.html

Patraeus criminal-investigation DoJ Holder leaks

shared by Paul Merrell on 12 Jan 15 - No Cached
  • The F.B.I. and Justice Department prosecutors have recommended bringing felony charges against David H. Petraeus, contending that he provided classified information to a lover while he was director of the C.I.A., officials said, and leaving Attorney General Eric H. Holder Jr. to decide whether to seek an indictment that could send the pre-eminent military officer of his generation to prison.The Justice Department investigation stems from an affair Mr. Petraeus had with Paula Broadwell, an Army Reserve officer who was writing his biography, and focuses on whether he gave her access to his C.I.A. email account and other highly classified information.F.B.I. agents discovered classified documents on her computer after Mr. Petraeus resigned from the C.I.A. in 2012 when the affair became public.
  • Mr. Petraeus, a retired four-star general who served as commander of American forces in both Iraq and Afghanistan, has said he never provided classified information to Ms. Broadwell, and has indicated to the Justice Department that he has no interest in a plea deal that would spare him an embarrassing trial. A lawyer for Mr. Petraeus, Robert B. Barnett, said Friday he had no comment.
  • Mr. Holder was expected to decide by the end of last year whether to bring charges against Mr. Petraeus, but he has not indicated how he plans to proceed. The delay has frustrated some Justice Department and F.B.I. officials and investigators who have questioned whether Mr. Petraeus has received special treatment at a time Mr. Holder has led a crackdown on government officials who reveal secrets to journalists.The protracted process has also frustrated Mr. Petraeus’s friends and political allies, who say it is unfair to keep the matter hanging over his head. Senator John McCain, Republican of Arizona, wrote to Mr. Holder last month that the investigation had deprived the nation of wisdom from one of its most experienced leaders.“At this critical moment in our nation’s security,” he wrote, “Congress and the American people cannot afford to have his voice silenced or curtailed by the shadow of a long-running, unresolved investigation marked by leaks from anonymous sources.”
Paul Merrell

Elizabeth Warren Denounces Travesty of Government "Settlement" With Goldman Sachs - 0 views

www.truth-out.org/...elizabeth-warren-denounces

banksters regulation Goldman Sachs Warren litigation penalties

shared by Paul Merrell on 25 Jan 16 - No Cached
  • Criticism of US government leniency on Wall Street legal transgressions is now being covered widely - even by trade publications such as the National Mortgage Professional Magazine. On January 18, the trade publication ran an article about Sen. Elizabeth Warren (D-Massachusetts) condemning the most recent US government settlement with a "too-big-to-fail" financial firm, in this case Goldman Sachs, for illegal abuse of the mortgage market: Sen. Warren used her Facebook page to denounce the agreement, noting that the settlement sum was “barely a fraction of the billions investors lost” while arguing that Goldman Sachs was not properly penalized for its actions. “That’s not justice – it’s a white flag of surrender,” she wrote. “It’s time to end this farce. These companies think they’re above the law – and too many government officials go along with them. A first step would be to pass the bipartisan Truth in Settlements Act to shine more light on these backroom deals. A second step would be to get government officials who have the backbone to fight back.” Warren’s comments were echoed by the nonprofit U.S. Public Interest Research Group (U.S. PIRG).
  • The publication, which is geared toward professionals in the mortgage industry, also tellingly noted, "In announcing the [$5.1 billion] settlement, Goldman Sachs made no admission of guilt or error, and no executive from the New York-based financial giant will face criminal or civil charges."  As we have noted in this space many times, the seemingly large financial penalties levied on Wall Street firms for illegal activity are not so large, in the context of those firms' budgets: The fines are generally less than the revenue that the firms generated by engaging in the often fraudulent practices in the first place. As The Huffington Post noted in a report on the recent settlement,  About $2.4 billion of the settlement is in the form of a government penalty. The bank has said that it securitized about $125 billion of home loans between 2005 and 2008, of which about $23 billion eventually soured. The penalty represents about 10 percent of investors’ losses. Goldman can deduct the rest of the settlement, about $2.7 billion, from its future tax bills, according to a person familiar with the accord. The bank said the settlement will reduce its fourth-quarter profit by about $1.5 billion. It reports earnings next week.
  • Goldman Sachs is being let off the hook for 90 percent of the investor losses for which it was primarily responsible. Furthermore, as is consistent with past settlements with Wall Street firms by the Department of Justice and other executive agencies, much of the fine is tax-deductible. As BuzzFlash has noted before, this rewards Wall Street financial companies by allowing them to factor in settlements with the government for illegal behavior as nothing more than the cost of doing business. Former Attorney General Eric Holder, who left office last year to resume a six-figure-salary partnership at the DC corporate law firm of Covington & Burling (which defends many of the firms that Holder was responsible for prosecuting as attorney general), infamously stated to a US Senate committee in March of 2013: I am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if we do prosecute - if we do bring a criminal charge - it will have a negative impact on the national economy, perhaps even the world economy.  Apparently, under current Attorney General Loretta Lynch, that legal exemption for too-big-to-fail financial firms and their executives has not changed.
Paul Merrell

DOJ confirms Holder OK'd search warrant for Fox News reporter's emails - Open Channel - 0 views

openchannel.nbcnews.com/...-for-fox-news-reporters-emails

liberties surveillance state journalism Obama Holder

shared by Paul Merrell on 27 May 13 - No Cached
  • The Justice Department pledged Friday to to review its policies relating to the seizure of information from journalists after acknowledging that a controversial search warrant for a  Fox News reporter’s private emails  was approved “at the highest levels” of the Justice Department, including “discussions” with Attorney General  Eric Holder.
  • The statement, confirming an NBC News account of Holder’s role, defended the secret warrant to obtain reporter James Rosen’s emails as a legitimate step to obtain evidence as part of an investigation of Stephen Kim. A former intelligence analyst, Kim has since been indicted under the Espionage Act for leaking classified information to Rosen about North Korea. He has denied the charges.
  • Nevertheless, said the official, who spoke on condition of anonymity, Holder “understands the concerns that have been raised by the media and has initiated a re-evaluation of existing department policies and procedures.” The official said the department must strike “the appropriate balance” between preventing leaks of classified information and “First Amendment rights,”adding that passage of a new media shield law “and appropriate updates to the department”s internal guidelines” will help achieve that.   The statement comes  amid a firestorm of criticism from news media groups over the Rosen search warrant and a secret subpoena for the phone records of AP reporters. It also comes one day after President Obama addressed the issue in a major speech on counter-terrorism policy, saying "I am troubled by the possibility that leak investigations may chill the investigative journalism that holds government accountable," Obama said. "Journalists should not be at legal risk for doing their jobs."
  • Paul Merrell on 27 May 13
     
    Re "President Obama addressed the issue in a major speech on counter-terrorism policy, saying "I am troubled by the possibility that leak investigations may chill the investigative journalism that holds government accountable," Obama said. "Journalists should not be at legal risk for doing their jobs." That's unless they're not working with a mainstream media company, of course. Witness continuing U.S. efforts to extradite and prosecute Wikileaks founder Julian Assange under the Espionage Act because of the massive leak of classified documents to Wikileaks for which Private Bradley Manning is being prosecuted.
Paul Merrell

E.U. Official Pushes U.S. to Explain Its Surveillance - NYTimes.com - 0 views

www.nytimes.com/...-explain-its-surveillance.html

NSA EU Obama

shared by Paul Merrell on 13 Jun 13 - No Cached
  • BRUSSELS — Amid a growing outcry over American snooping on foreigners that threatens to cloud European-U.S. trade talks and President Barack Obama’s visit to Berlin, the European Union’s top justice official has demanded in unusually sharp terms that the United States reveal what its intelligence is doing with personal information of Europeans gathered under the Prism surveillance program revealed last week.
  • Viviane Reding, the Union’s combative commissioner of justice, told Attorney General Eric Holder in a letter sent on Monday evening that individual citizens of European countries had the right to know whether their personal information had been part of intelligence gathering “on a large scale.” In the letter, seen Tuesday by the International Herald Tribune, she also asked what avenues were available to Europeans to find out whether they had been spied on, and whether they would be treated similarly to U.S. citizens in such cases. “Given the gravity of the situation and the serious concerns expressed in public opinion on this side of the Atlantic, you will understand that I will expect swift and concrete answers,” Mrs. Reding wrote.
  • Speaking for a continent where snooping carries ghastly echoes of fascist or communist regimes, Mrs. Reding challenged Mr. Holder to answer a list of detailed questions by Friday, when they are expected to speak face-to-face in Dublin at a ministerial meeting scheduled before the Prism spy operation came to light. In Berlin, where Mr. Obama will speak next week before the Brandenburg Gate, privacy is a highly sensitive political issue and the Prism revelations have stirred a furor. “You can be sure that this will be one of the things the chancellor addresses when President Obama is in Germany,” said Steffen Seibert, spokesman for Angela Merkel, who grew up in the former Communist East.
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  • Mrs. Reding — who has irked U.S. authorities in the past by threatening companies like Google for overstepping E.U. privacy standards — suggested Mr. Holder’s responses could shape the outcome of important trans-Atlantic initiatives like trade talks. Europe has been a frequent critic of the United States in recent years for jeopardizing individual liberties by filtering vast volumes of information on European bank transfers and in airline passenger records to fight terror plots. Mrs. Reding’s letter is another sign that the growth of government surveillance that began under the Bush administration after Sept. 11, 2001, and has expanded under the Obama administration, continues to touch raw nerves far beyond the United States.
  • The revelations have prompted members of the European Parliament, a directly elected body of representatives from across the Union that meets in Brussels and Strasbourg, to demand that data protection be included in upcoming U.S.-European talks on a long sought trade pact. Any “trade pact will have to fully ensure the highest standards of data privacy for all citizens,” and an ongoing reform of Europe’s data protection law “must guarantee these standards for E.U. citizens when using U.S.-based Internet companies,” Hannes Swoboda, an Austrian member of the parliament who is president of the Socialists & Democrats group, said in a statement on Tuesday. “It is no good the E.U. having strict regulation on data protection if those standards are not guaranteed when using U.S.-based Internet companies,” he said.
  • The talks are expected to be conducted by Mrs. Reding's colleague, Karel De Gucht, the E.U. trade commissioner — but the Parliament would have a final say over any such deal under its right, in force since 2009, to veto treaties with third countries. In the strongest demonstration against U.S. policy, the Parliament in 2010 blocked an agreement allowing U.S. authorities access to European banking data from a cooperative responsible for routing trillions of dollars daily among banks, brokerage houses, stock exchanges and other institutions.
  • In a thinly veiled warning to Mr. Holder about the trade pact, Ms. Reding said relations between the United States and Europe could be undermined by concerns about privacy, which many in Europe regard as an inviolable right. In her letter, Mrs. Reding said she “is accountable before the European Parliament, which is likely to assess the overall trans-Atlantic relationship also in the light of your responses.” In nine detailed questions, Ms. Reding asked Mr. Holder how much data-sifting the United States is conducting, whether those activities target individuals, and whether the surveillance involves issues beyond national security. Mrs. Reding also pushed Mr. Holder to tell her “what avenues” are available to citizens of countries in the European Union to obtain information about whether their personal information has been examined under the Prism program and other programs, and whether Europeans have similar access to that information as Americans.
  • For Mrs. Reding, the chance to push back against Washington is a welcome opportunity. Two years ago, she was forced to soften her initial proposals for data privacy rules in order to accommodate U.S. intelligence gathering. That followed intense pressure on the European Commission, the E.U.’s governing body, from the Obama administration.
  • Paul Merrell on 13 Jun 13
     
    Article includes more detail on individual EU nations' objections, Germany, Ireland, and Italy.  
Paul Merrell

U.S. accuses China of cyber spying on American companies | Reuters - 0 views

www.reuters.com/...sa-china-idUSBREA4I09420140519

surveillance state cyberwar China DoJ Holder

shared by Paul Merrell on 20 May 14 - No Cached
  • The United States on Monday charged five Chinese military officers and accused them of hacking into American nuclear, metal and solar companies to steal trade secrets, ratcheting up tensions between the two world powers over cyber espionage. China immediately denied the charges, saying in a strongly worded Foreign Ministry statement the U.S. grand jury indictment was "made up" and would damage trust between the two nations.Officials in Washington have argued for years that cyber espionage is a top national security concern. The indictment was the first criminal hacking charge that the United States has filed against specific foreign officials, and follows a steady increase in public criticism and private confrontation, including at a summit last year between U.S. President Barack Obama and Chinese President Xi Jinping.
  • Federal prosecutors said the suspects targeted companies including Alcoa Inc, Allegheny Technologies Inc, United States Steel Corp, Toshiba Corp unit Westinghouse Electric Co, the U.S. subsidiaries of SolarWorld AG, and a steel workers' union.
  • According to the indictment, Chinese state-owned companies "hired" Unit 61398 of the People's Liberation Army "to provide information technology services" including assembling a database of corporate intelligence. The Chinese companies were not named.The Shanghai-based Unit 61398 was identified last year by cybersecurity firm Mandiant as the source of a large number of espionage operations. All five defendants worked with 61398, according to the indictment.
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  • U.S. officials have maintained that they do not steal secrets to give an advantage to U.S. companies, but in China, Lewis said, the line between military and business prowess is unclear.Unit 61398 has hundreds of active spies and is just one of dozens of such bodies in China, said Jen Weedon, an analyst at Mandiant, now owned by global network security company FireEye Inc. She said the group is not among the most sophisticated.
  • Washington announced the charges as new claims emerged last week about the scope of overseas spying by the United States. Documents leaked by Snowden showed the agency intercepted and modified equipment made by Cisco Systems Inc that was headed overseas.Cisco responded by asking Obama to curtail U.S. surveillance programs, underscoring the vulnerability of multinationals to a whipsaw of competing government interests.
  • Skeptics said U.S. authorities would not be able to arrest those indicted because Beijing would not hand them over. Still, the move would prevent the individuals from traveling to the United States or other countries that have an extradition agreement with the United States.
  • In an indictment filed in the Western District of Pennsylvania, prosecutors said the officers hacked into computers starting in 2006, often by infecting machines with tainted "spear phishing" emails to employees that purport to be from colleagues.Prosecutors alleged that one hacker, for example, stole cost and pricing information in 2012 from an Oregon-based solar panel production unit of SolarWorld. The company was losing market share at the time to Chinese competitors who were systematically pricing exports below production costs, according to the indictment.Another officer is accused of stealing technical and design specifications about pipes for nuclear plants from Westinghouse Electric as the company was negotiating with a Chinese company to build four power plants in China, prosecutors said.
  • Paul Merrell on 20 May 14
     
    Yesterday I watched the DoJ press conference announcing charges. This article does not capture its spirit. AG Ben Holder faced stiff questions directed by attending reporters. One of the first questions went something like this: "Is it true that the U.S. has extradition treaty with China and these defendants will never be actually prosecuted, and if so, what's the real reason for the charges?" Others raised the hypocrisy of the U.S. move in light of what the NSA has been doing. Holder ducked the tough questions  The press conference was a farce and too many of the reporters realized it. Recall that Obama was days away from traveling to China with the announced purpose of chastising its leader for waging cyberesionage against the U.S. when the first Edward Snowden pulled the moral high ground from beneath Obama's feet. This stunt looks more like it was designed to lesson the government pain by promoting Obama's "everyone does it" meme.   Also not mentioned in this article, at the press confernence the five defendants were identified as generals in the Chinese Army. Might we see China respond by charging a few former and present NSA generals with cyber-espionage? Fun and games on the Beltway. 
Paul Merrell

Eric Holder Refuses To Answer When Asked If Obama Admin Is Spying On Congress Wake Up A... - 0 views

www.youtube.com/watch

security state NSA digital surveillance Holder

shared by Paul Merrell on 11 Jun 13 - No Cached
  • Paul Merrell on 11 Jun 13
     
    Eric Holder refuses to answer under oath in a public Congressional hearing whether Congressional communications are being surveilled. 
Gary Edwards

What the hell just happened? 'Tyranny By Executive Order' | by Constitutional Attorney ... - 0 views

www.redflagnews.com/...l-attorney-michael-connelly-jd

Tyranny-by-Executive-Order

shared by Gary Edwards on 18 Aug 13 - No Cached
  • Gary Edwards on 18 Aug 13
     
    "What the hell just happened? That is the question that many Americans should be asking themselves following the news conference where Obama unveiled his plan for destroying the Bill of Rights to the U.S. Constitution. At first glance it appeared to be a case of Obama shamelessly using the deaths of innocents, and some live children as a backdrop, to push for the passage of radical gun control measures by Congress. Most of these have no chance of passing, yet, Obama's signing of Executive orders initiating 23 so called Executive actions on gun control seemed like an afterthought. Unfortunately, that is the real story, but it is generally being overlooked. The fact is that with a few strokes of his pen Obama set up the mechanisms he will personally use to not only destroy the Second Amendment to the Constitution, but also the First, Fourth, and Fifth Amendments. It will not matter what Congress does, Obama can and will act on his own, using these Executive actions, and will be violating both the Constitution and his oath of office when he does it. Here are the sections of the Executive Order that he will use: "1. Issue a Presidential Memorandum to require federal agencies to make relevant data available to the federal background-check system." What exactly is relevant data? Does it include our medical records obtained through Obamacare, our tax returns, our political affiliations, our military background, and our credit history? I suggest that all of the above, even if it violates our fourth Amendment right to privacy will now be relevant data for determining if we are allowed to purchase a firearm. "2. Address unnecessary legal barriers, particularly relating to the Health Insurance Portability and Accountability Act, that may prevent states from making information available to the background-check system." This should be read in conjunction with section 16 of the order that says: "16. Clarify that the Affordable Care Act does not prohibit doctors
Gary Edwards

Preventing The Greatest Heist In History | Whitney Tilson - 0 views

clusterstock.alleyinsider.com/...-the-greatest-heist-in-history

financial-crisis rtc banksters

shared by Gary Edwards on 21 Jan 09 - Cached
  • Gary Edwards on 21 Jan 09
     
    There is another option to the "New RTC", however, which involves debt holders taking a share of the losses.  If steps are not taken to ensure that this happens, the greatest heist in history will have occurred: at least $1 trillion will be transferred from taxpayers to debt holders of failed financial institutions.  This must not be allowed to happen.
Gary Edwards

The Greatest Heist In History - 0 views

www.businessinsider.com/...-the-greatest-heist-in-history

financial-crisis obama-socialism whitney-tilson conservatorship banksters

shared by Gary Edwards on 23 Mar 09 - Cached
  • Gary Edwards on 23 Mar 09
     
    The new Obama administration needs to understand that greatest heist in history is underway - at least $1 trillion is being transferred from taxpayers to debt holders of failed financial institutions - and take steps to stop it before taxpayers suffer further unnecessary losses. Whitney Tilson explains the financial crisis and makes his recommendation. Rather than sticking it to the taxpayers, these insolvent banks should be put into conservatorship: "..... So what's a better solution? I'm not arguing that BofA (or Citi or WaMu or Fannie or Freddie or AIG or Bear) should have been allowed to go bankrupt - we all saw the chaos that ensued when Lehman went bankrupt. Rather, if a company blows up (and can't find a buyer), the following things should happen: 1) The government seizes it and puts it into conservatorship (as Fannie, Freddie, IndyMac and AIG effectively were, to one degree or another); 2) Equity is wiped out (again, as with Fannie, Freddie, IndyMac and AIG); 3) However, unlike Fannie, Freddie, IndyMac and AIG (and certainly Citi and BofA), everything in the capital structure except maybe the senior debt is at risk and absorbs losses as they are realized; the government would only provide a backstop above a certain level. This is what happened in the RTC bailout; 4) Over time, in conservatorship, while the businesses continue to operate (no mass layoffs, distressed sales, etc.), the government disposes of the companies in a variety of ways (just as the RTC did via runoff, selling the entire company or piece-by-piece, etc.), depending on the circumstances (as it's doing with AIG and IndyMac, for example - these are good examples, except that the debt holders were protected). ......"
Gary Edwards

U.S. Debt - How Much China Owns - 0 views

usgovinfo.about.com/...uch-US-Debt-Does-China-Own.htm

Banksters USA-debt debt-crisis China-USA-debt

shared by Gary Edwards on 09 Aug 11 - No Cached
  • Gary Edwards on 09 Aug 11
     
    So who owns all that U.S. debt? About 32 cents for every dollar of U.S. debt, or $4.6 trillion, is owned by the federal government in trust funds, for Social Security and other programs such as retirement accounts, according to the U.S. Department of Treasury. China and U.S. Debt The largest portion of U.S. debt, 68 cents for every dollar or about $10 trillion, is owned by individual investors, corporations, state and local governments and, yes, even foreign governments such as China that hold Treasury bills, notes and bonds. Foreign governments hold about 46 percent of all U.S. debt held by the public, more than $4.5 trillion. The largest foreign holder of U.S. debt is China, which owns more about $1.2 trillion in bills, notes and bonds, according to the Treasury. In total, China owns about 8 percent of publicly held U.S. debt. Of all the holders of U.S. debt China is the third-largest, behind only the Social Security Trust Fund's holdings of nearly $3 trillion and the Federal Reserve's nearly $2 trillion holdings in Treasury investments, purchased as part of its quantitative easing program to boost the economy.   The truth is the bulk of the $14.3 trillion U.S. debt - $9.8 trillion in all - is owned by the American people and its government.
Paul Merrell

DoD Cut Security Clearances by 15% in Last Two Years - 0 views

fas.org/...dod-clearances-cut

Dark-State security-clearances

shared by Paul Merrell on 27 Mar 15 - No Cached
  • In a significant retrenchment of the national security bureaucracy, the Department of Defense has reduced the number of employees and contractors who hold security clearances in the past two years by more than 700,000 persons, a cut of 15% in the total security-cleared population in DoD. The previously undisclosed reductions were reported in data provided by DoD to the Office of the Director of National Intelligence. This is the first documented drop in the overall number of security clearances since FY 2010, when the systematic collection of statistical data on clearances began, and it is probably the first major decline in the number of cleared personnel since 9/11. Most of the new reductions involved persons who had been investigated and deemed “eligible” (or “cleared”) for access to classified information but who did not have or need such access in fact. But a sizable 117,000 persons who were “in access” (i.e. who actually did have access to classified information) were also dropped from the clearance rolls between FY 2013 and FY 2015, according to the new statistics. A 2014 report from the Office of Management and Budget recommended reductions in the cleared population since the “growth in the number of clearance-holders increases costs and exposes classified national security information, often at very sensitive levels, to an increasingly large population.” A cut in clearances may also lead indirectly to reduced production of classified information.
  • In the first quarter of FY 2015, following the new reductions, there were 3.9 million DoD personnel (employees and contractors) with security clearances, down from 4.6 million in FY 2013, for a drop of 15.3%. The total number of clearance holders government-wide is about 0.5 million higher than the DoD figure. The new data were disclosed last week in the latest quarterly report on implementation of the Insider Threat Program. The data also indicated that the backlog of Top Secret/SCI clearance holders whose periodic reinvestigations were overdue (or “out of scope”) had been reduced by 63,000. However, there are still 356,000 TS/SCI clearance holders that remain “out of scope” and in need of an updated reinvestigation, according to the DoD data.
  • Paul Merrell on 27 Mar 15
     
    The Dark State responds to Edward Snowden and Chelsea Manning's disclosures. 
Paul Merrell

Russia liquidates nearly all its holdings of US debt & invests money in gold - RT Busin... - 0 views

www.rt.com/...1615-russia-liquidates-us-debt

war & peace economic-warfare de-dollarization

shared by Paul Merrell on 21 Oct 18 - No Cached
  • The Central Bank of Russia has continued getting rid of US Treasury bonds in August. The share of Russian investments in American debt is getting close to zero. Russian investments in US securities as of August have fallen to just $14 billion. Back in 2011, Russia was one of the largest holders of US debt with a $180 billion investment.The reason is not only about politics and US sanctions against Russia, a broker at Otkritie bank Timur Nigmatullin told RIA Novosti. The US Federal Reserve is hiking interest rates, which makes American bonds cheaper, he said. “Russia has almost dropped out of the list of holders of US government debt, being the 54th largest holder.”
  • “A further sale of US Treasury bonds by Russia will most likely be compensated by buying gold and opening short-term deposits at banks,” he said. The share of precious metals in the country's foreign reserves has reached a record 18 percent, closely approaching the share of dollar investments.The largest investors in US debt, China and Japan, have also cut their holdings. Chinese holdings of US sovereign debt dropped to $1.165 trillion in August, from $1.171 trillion in July, marking the third consecutive month of declines. Japan has slashed its holdings of US securities to $1.029 trillion in August, the lowest since October 2011.
  • India and Turkey have followed Russia's lead. Turkey has dropped out of the top-30 list of holders of American debt, while India has been liquidating its investment for five consecutive months to $140 billion in August.
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