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Britain's surveillance agency GCHQ, with aid from the US National Security Agency, intercepted and stored the webcam images of millions of internet users not suspected of wrongdoing, secret documents reveal.GCHQ files dating between 2008 and 2010 explicitly state that a surveillance program codenamed Optic Nerve collected still images of Yahoo webcam chats in bulk and saved them to agency databases, regardless of whether individual users were an intelligence target or not.In one six-month period in 2008 alone, the agency collected webcam imagery – including substantial quantities of sexually explicit communications – from more than 1.8 million Yahoo user accounts globally.Yahoo reacted furiously to the webcam interception when approached by the Guardian. The company denied any prior knowledge of the program, accusing the agencies of "a whole new level of violation of our users' privacy".

GCHQ does not have the technical means to make sure no images of UK or US citizens are collected and stored by the system, and there are no restrictions under UK law to prevent Americans' images being accessed by British analysts without an individual warrant.The documents also chronicle GCHQ's sustained struggle to keep the large store of sexually explicit imagery collected by Optic Nerve away from the eyes of its staff, though there is little discussion about the privacy implications of storing this material in the first place.

"Face detection has the potential to aid selection of useful images for 'mugshots' or even for face recognition by assessing the angle of the face," it reads. "The best images are ones where the person is facing the camera with their face upright."The agency did make efforts to limit analysts' ability to see webcam images, restricting bulk searches to metadata only.However, analysts were shown the faces of people with similar usernames to surveillance targets, potentially dragging in large numbers of innocent people. One document tells agency staff they were allowed to display "webcam images associated with similar Yahoo identifiers to your known target".Optic Nerve was based on collecting information from GCHQ's huge network of internet cable taps, which was then processed and fed into systems provided by the NSA. Webcam information was fed into NSA's XKeyscore search tool, and NSA research was used to build the tool which identified Yahoo's webcam traffic.

The National Security Agency has secretly broken into the main communications links that connect Yahoo and Google data centers around the world, according to documents obtained from former NSA contractor Edward Snowden and interviews with knowledgeable officials. By tapping those links, the agency has positioned itself to collect at will from hundreds of millions of user accounts, many of them belonging to Americans. The NSA does not keep everything it collects, but it keeps a lot.

According to a top-secret accounting dated Jan. 9, 2013, the NSA’s acquisitions directorate sends millions of records every day from internal Yahoo and Google networks to data warehouses at the agency’s headquarters at Fort Meade, Md. In the preceding 30 days, the report said, field collectors had processed and sent back 181,280,466 new records — including “metadata,” which would indicate who sent or received e-mails and when, as well as content such as text, audio and video.The NSA’s principal tool to exploit the data links is a project called MUSCULAR, operated jointly with the agency’s British counterpart, the Government Communications Headquarters . From undisclosed interception points, the NSA and the GCHQ are copying entire data flows across fiber-optic cables that carry information among the data centers of the Silicon Valley giants.

The infiltration is especially striking because the NSA, under a separate program known as PRISM, has front-door access to Google and Yahoo user accounts through a court-approved process. The MUSCULAR project appears to be an unusually aggressive use of NSA tradecraft against flagship American companies. The agency is built for high-tech spying, with a wide range of digital tools, but it has not been known to use them routinely against U.S. companies.

Yahoo Chief Information Security Officer Alex Stamos announced today at Black Hat 2014 that starting in the fall of this year, the purple-hued company will begin giving users the option of seamlessly wrapping their e-mails in PGP encryption. According to Kashmir Hill at Forbes, the encryption capability will be offered through a modified version of the same End-to-End browser plug-in that Google uses for PGP in Gmail. The announcement was tweeted by Yan Zhu, who has reportedly been hired by Yahoo to adapt End-to-End for use with Yahoo Mail. Zhu formerly worked as an engineer at the Electronic Frontier Foundation, an organization that has consistently been outspoken in its call for the widespread use of encryption throughout the Web and the Internet in general.

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According to the report published in the journal Estuarine, Coastal and Shelf Science, saving the reef will take a huge amount of work and money. Poor water quality was seen as the major threat as well as global warming which is causing significant coral bleaching. Chief researcher of the report, John Brodie, told the Guardian, “The current spending is totally inadequate ... You either do it properly or you give up on the reef. It’s that bad.”

Yahoo reports that it is on the verge of releasing 1,500 pages of documents related to a long court battle over its participation in the PRISM program, a National Security Agency program revealed last summer as part of the Snowden leaks. A leaked top-secret slide about PRISM shows that Yahoo was one of the first participants, having begun contributing to the database in March of 2008. It did so under severe duress. Company executives believed the government's demand for data was "unconstitutional and overbroad" and fought it in court.

"Our challenge, and a later appeal in the case, did not succeed," explained Yahoo General Counsel Ron Bell in a blog post published today. "The Foreign Intelligence Surveillance Court (FISC)... ordered us to give the U.S. Government the user data it sought in the matter." After it lost, Yahoo was threatened with $250,000 per day fines if it didn't comply with the program. Not only that, but the government got permission to share the ruling with other companies in order to put pressure on them as well, according to a just-published story by The Washington Post.

While NSA boss Keith Alexander issued a misleading denial of this morning's report of how the NSA has infiltrated Yahoo and Google's networks by hacking into their private network connections between datacenters, the NSA has now come out with its official statement which is yet another typical non-denial denial. They deny things that weren't quite said while refusing to address the actual point:

Note what is missing from all of this. They do not deny hacking into the data center connection lines outside of the US. They do not deny getting access to all that data, especially on non-US persons. As for the claim that they're protecting the privacy of US persons, previous statements from Robert Litt, the general counsel for the Office of the Director of National Intelligence, have already made it clear that if they collect info on Americans, they're going to use this loophole to search them: "If we're validly targeting foreigners and we happen to collect communications of Americans, we don't have to close our eyes to that," Litt said. "I'm not aware of other situations where once we have lawfully collected information, we have to go back and get a warrant to look at the information we've already collected."

So, for all the claims that this kind of information will be "minimized," it certainly looks like they've already admitted they don't do that. Meanwhile, that Guardian article that has the NSA's response also has responses from the 3 other players in this drama. There's the UK's GCHQ, who apparently has partnered with the NSA in breaking into Google and Yahoo. It didn't want to say a damn thing: "We are aware of the story but we don't have any comment."

Research firm Forensic Asia calculates that HSBC has overstated the value of the assets on its balance sheet by more than £50bnHSBC could have overstated its assets by more than £50bn and ultimately need a capital injection of close to £70bn before the end of this decade, according to an incendiary report published by a Hong Kong-based research firm . Forensic Asia on Tuesday began its coverage of Britain’s largest banking group with a ‘sell’ recommendation, warning the lender had between $63.6bn (£38.7bn) and $92.3bn of “questionable assets” on its balance sheet, ranging from loan loss reserves and accrued interest to deferred tax assets, defined benefit pension schemes and opaque Level 3 assets. The broker’s note is written by two of its senior analysts, Thomas Monaco and Andrew Haskins . Mr Monaco is a former senior bank examiner at the Federal Reserve Bank of New York and previously worked as a fund manager at FrontPoint Partners, the hedge fund that spotted the US subprime bubble. As well as this, he has also spent a decade as a banks analyst at various leading investment banks. Mr Haskins previously worked at HSBC for 15 years, mainly as a telecoms analyst, and also co-ran Japanese bank Mitsubishi UFJ’s Hong Kong-based research team.

In the report, the analysts apply what they describe as a “moderate stress test” to the balance sheets of HSBC’s major subsidiaries. From this analysis they conclude that even using a low-end estimate, the assets of the bank’s Hong Kong division, for instance, are overstated by about $15bn, while those of its UK subsidiary could be overvalued by $17bn. Taking the analysis further, the report sets out the impact of incoming Basel III capital rules and says HSBC could be required at a minimum to raise close to $60bn in new capital by 2019 and potentially as much as $111bn. “In our view, HSBC has not made the necessary adjustments, during the quantitative easing reprieve. Rather, it has allowed legacy problems to linger as new ones in emerging markets gather pace. The result has been extreme earnings overstatement, causing HSBC to become one of the largest practitioners of capital forebearance globally. This charade appears to be ending, given how few earnings levers remain besides selling off core elements of the franchise and the stringencies of Basel III compliance,” wrote Forensic Asia.

The broker adds: “While having stated capital ratios well above peer averages is all well and good, HSBC’s stated capital ratios would appear to be nothing more than a mirage if our analysis is correct.” Even under current capital rules, Forensic Asia estimates that its valuations of HSBC’s group and subsidiary balance sheets suggests the bank has a current capital shortfall of $45.1bn. The report adds the workings do not include probable litigation costs linked to various claims on the bank, which they see coming in at no less than $10bn. HSBC, Britain’s biggest bank by market capitalisation and total assets, is also reckoned to be the UK’s best capitalised major lender, with a tier 1 ratio of 12.8pc, well above the minimum required by the Prudential (Frankfurt: PRU.F - news) Regulation Authority

A recent article written by this writer for Global Research posted last Saturday – “The Benghazi Scandal Is Obama’s Watergate But Worse” – was written in an effort to seek and uncover the truth. Accurate reporting on major world events is a challenge in today’s world where propaganda and disinformation are mainstream media norms and where virtually all major players in American politics simply lie through their teeth every time they open their mouths in constant effort to look good and cover up the truth. The American public knows this pathetic and sobering fact that deception has come to rule in the world of both politics and the media. People today neither believe their newscasters nor their political leaders. That is why examining the content of the tidal wave of assertions and opinions spewing forth from politicians and pundits in the aftermath of the latest Benghazi revelations must be taken with a grain of salt. Again, truth in today’s world is hard to come by. But as an investigative reporter, presenting a brief overview of recent comments and statements for any informed citizen to process and digest seems a worthwhile and important enterprise.

A timeline of recently unfolding events: On 10/12/12 exactly one month after the Benghazi incident, the legal conservative group Judicial Watch filed a Freedom of Information Act request seeking documents related to the Benghazi attack on September 11th, 2012 that killed the US Ambassador to Libya Christopher Stevens and three other Americans. Obama, who had campaigned on a promise of transparency in the criminal wake of the Bush regime, has proven to be anything but open and transparent. Having to sue the US government for access to the records, on April 18th, 2014, a full year and a half later, the Obama administration’s stonewalling ultimately failed and Judicial Watch successfully got hold of 41 State Department Benghazi related documents. Emails between high level White House officials discussing damage control strategies in the immediate aftermath of the Benghazi assault were released last week. Jubilant Republicans are now calling one of those emails their “smoking gun,” believing it is so incriminating that it will do in their would-be opponent Hillary Clinton from potentially competing in the 2016 presidential election.

The newly declassified email written by Obama’s then Deputy Strategic Communications Adviser Ben Rhodes specifically directed then UN Ambassador Susan Rice in preparation for her Sunday morning talk show appearances on September 16th, 2012 to explain the administration’s take on what it knew of the Benghazi murders. Rhodes advised Rice to attribute the Benghazi uprising as “rooted in an Internet video, and not a failure of policy,” pushing talking points designed to bolster Obama’s presidential image as a cool-as-a-cucumber-under-fire kind of wise and benevolent leader and statesman. The major emphasis of the email instructed Rice to blame the bogus anti-Moslem video as inciting a spontaneous protest like in other countries in the region that apparently grew violently out of control, of course all the while knowing that that was a boldface lie. This crucial piece of evidence proves that President Obama and Secretary of State Hillary Clinton both knew that the video did not cause the attack but that they chose to willfully deceive the American public in order to protect their own political careers and hence was born the infamously never ending Benghazi cover-up. Obama and Hillary withheld this damning email evidence even from the House Oversight Committee led by Congressman Darrel Issa (R-CA) requesting all documents pertaining to Benghazi more than a year ago. With the presidential election less than two months away at the time of the attack, Obama and Hillary were determined at all cost to keep hidden from Americans the real truth of criminal Benghazi activity they were guilty of engaging in during the months leading up to the attack. Last Thursday an angry Issa subpoenaed current Secretary of State John Kerry to appear before the committee on May 21st to further explain why those critical State Department records recently given to Judicial Watch were not among the 3200 documents originally handed over to his committee well over a year ago.

The European data protection activists behind the Europe v Facebook (evf) campaign group, that has long been a thorn in Facebook’s side in Europe, have filed new complaints under regional data protection law targeting Facebook, Apple, Microsoft, Skype and Yahoo for their alleged collaboration with the NSA’s Prism data collection program. The student activist organisation is targeting the European subsidiaries of these five U.S. companies, arguing that their corporate structure means they fall fully under European privacy laws despite being U.S. headquartered companies. And yet, being as they are U.S. companies, they are required to comply with U.S. surveillance laws — putting them in the “tricky” situation of having to comply with potentially conflicting legal requirements. It’s that legal conflict evf is now probing.

Evf takes the view that the law needs clarifying — and it using these new data protection complaints as the vehicle to obtain clarification from the various regional data protection agencies. Facebook and Apple; Microsoft and Skype; and Yahoo have subsidiaries in Ireland, Luxembourg and Germany respectively. ”We want a clear statement by the authorities if a European company may simply give foreign intelligence agencies access to its customer data. If this turns out to be legal, then we might have to change the laws,” noted evf speaker, Max Schrems, in a statement. The key question, as evf sees it, is whether “mass transfer” of personal data from to a foreign intelligence agency is legal under European law.  ”Many journalists have asked us in recent weeks if PRISM is legal from a EU perspective. We have looked at that a little closer. The result was – after consulting with legal experts – that it is very likely illegal under EU data protection laws, because of the corporate structure of the companies,” added Schrems. Google and YouTube have not been included in this first round of evf complaints being as they have a different corporate structure that does not include European subsidiaries. However it notes they do have datacenters in European countries, which will give evf a route to filing Prism-related data protection complaints against both at a later date.

Writing in a press notice announcing its new action, evf added: If a European subsidiary sends user data to the American parent company, this is considered an “export” of personal data. Under EU law, an export of data is only allowed if the European subsidiary can ensure an “adequate level or protection” in the foreign country. After the recent disclosures on the “PRISM” program such trust in an “adequate level of protection” by the involved companies can hardly be upheld. There can in no way be an adequate level of protection if they cooperate with the NSA on the other end of the line. Right now an export of data to the US must be seen as illegal if the involved companies cannot disprove the reports on the PRISM program. According to evf, the subsidiaries being targeted by these complaints have “the burden of proof” — to either “credibly assure” that the Prism program is a hoax, or “explain how mass access by a foreign intelligence agency interplays with EU data protection laws”. Evf cites a 2006 case precedent involving payment processor SWIFT which had forwarded transaction details to U.S. authorities. In that case it says a group of EU data protection authorities decided that such a mass data transfer is illegal under EU law, leading to SWIFT to move European data to a server in Switzerland. The case also led to an agreement between the U.S. and the EU on the use of payment data to combat crime.

A new analysis of the National Security Agency’s covert eavesdropping operations suggests the private American company that supplies the likes of Google and Yahoo with fiber optic cables might have allowed the NSA to infiltrate those networks. Reporters at the New York Times wrote this week that Level 3 Communications — the Colorado-based internet company that manages online traffic for much of North America, Latin America and Europe — is likely responsible for letting the NSA and its British counterpart silently collect troves of sensitive data from the biggest firms on the web.

Nearly one month later, an article published this Monday by Nicole Perlroth and John Markoff at the Times says those interception points could have been approved by Level 3, who owns the cable infrastructure that the majority of America’s web traffic travels through. “People knowledgeable about Google and Yahoo’s infrastructure say they believe that government spies bypassed the big Internet companies and hit them at a weak spot — the fiber-optic cables that connect data centers around the world that are owned by companies like Verizon Communications, the BT Group, the Vodafone Group and Level 3 Communications,” Perlroth and Markoff wrote. “In particular, fingers have been pointed at Level 3, the world’s largest so-called Internet backbone provider, whose cables are used by Google and Yahoo.”

In a financial report made by the company and obtained by the paper, however, Level 3 is revealed to have much more of a relationship with the government then one that just involves the occasional compliance order. According to that report, the company announced, “We are party to an agreement with the US Departments of Homeland Security, Justice and Defense addressing the US government’s national security and law enforcement concerns. This agreement imposes significant requirements on us related to information storage and management; traffic management; physical, logical and network security arrangements; personnel screening and training and other matters.”

In an interesting bit of timing, just as the Washington Post was breaking the news that the NSA had infiltrated Google and Yahoo's cloud data by hacking into the (stupidly) unencrypted data links between data centers, it turned out that NSA boss Keith Alexander was on stage at a Bloomberg Government Cybersecurity conference. He was asked about the report, and he tried to tap dance around it by claiming the NSA doesn't have access to Yahoo and Google's servers. The Guardian has a brief summary: Alexander, asked about the Post report, denied it. “Not to my knowledge, that’s never happened,” the NSA director said, before reiterating an earlier denial Prism gave the NSA direct access to the servers of its internet service provider partners. “Everything we do with those companies that work with us, they are compelled to work with us,” Alexander said. “These are specific requirements that come from a court order. This is not the NSA breaking into any databases. It would be illegal for us to do that. So I don’t know what the report is, but I can tell you factually: we do not have access to Google servers, Yahoo servers, dot-dot-dot. We go through a court order.” But, of course, in typical Alexander fashion, he's choosing his words carefully -- and thankfully people can more easily see through it at this point, since they're getting so used to it. The report didn't say they were accessing those companies' servers or databases, but rather hacking into the network connection between their data centers. That's like a report breaking of the NSA hijacking armored cars with cash, and Alexander claiming "we didn't break into the bank." Nice try.

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.

The first (and thus far only) roll-back of post-9/11 surveillance authorities was implemented over the weekend: The National Security Agency shuttered its program for collecting and holding the metadata of Americans’ phone calls under Section 215 of the Patriot Act. While bulk collection under Section 215 has ended, the government can obtain access to this information under the procedures specified in the USA Freedom Act. Indeed, some experts have argued that the Agency likely has access to more metadata because its earlier dragnet didn’t cover cell phones or Internet calling. In addition, the metadata of calls made by an individual in the United States to someone overseas and vice versa can still be collected in bulk — this takes place abroad under Executive Order 12333. No doubt the NSA wishes that this was the end of the surveillance reform story and the Paris attacks initially gave them an opening. John Brennan, the Director of the CIA, implied that the attacks were somehow related to “hand wringing” about spying and Sen. Tom Cotton (R-Ark.) introduced a bill to delay the shut down of the 215 program. Opponents of encryption were quick to say: “I told you so.”

But the facts that have emerged thus far tell a different story. It appears that much of the planning took place IRL (that’s “in real life” for those of you who don’t have teenagers). The attackers, several of whom were on law enforcement’s radar, communicated openly over the Internet. If France ever has a 9/11 Commission-type inquiry, it could well conclude that the Paris attacks were a failure of the intelligence agencies rather than a failure of intelligence authorities. Despite the passage of the USA Freedom Act, US surveillance authorities have remained largely intact. Section 702 of the FISA Amendments Act — which is the basis of programs like PRISM and the NSA’s Upstream collection of information from Internet cables — sunsets in the summer of 2017. While it’s difficult to predict the political environment that far out, meaningful reform of Section 702 faces significant obstacles. Unlike the Section 215 program, which was clearly aimed at Americans, Section 702 is supposedly targeted at foreigners and only picks up information about Americans “incidentally.” The NSA has refused to provide an estimate of how many Americans’ information it collects under Section 702, despite repeated requests from lawmakers and most recently a large cohort of advocates. The Section 215 program was held illegal by two federal courts (here and here), but civil attempts to challenge Section 702 have run into standing barriers. Finally, while two review panels concluded that the Section 215 program provided little counterterrorism benefit (here and here), they found that the Section 702 program had been useful.

There is, nonetheless, some pressure to narrow the reach of Section 702. The recent decision by the European Court of Justice in the safe harbor case suggests that data flows between Europe and the US may be restricted unless the PRISM program is modified to protect the information of Europeans (see here, here, and here for discussion of the decision and reform options). Pressure from Internet companies whose business is suffering — estimates run to the tune of $35 to 180 billion — as a result of disclosures about NSA spying may also nudge lawmakers towards reform. One of the courts currently considering criminal cases which rely on evidence derived from Section 702 surveillance may hold the program unconstitutional either on the basis of the Fourth Amendment or Article III for the reasons set out in this Brennan Center report. A federal district court in Colorado recently rejected such a challenge, although as explained in Steve’s post, the decision did not seriously explore the issues. Further litigation in the European courts too could have an impact on the debate.

Despite the Trump administration’s “maximum pressure” campaign targeting the Iranian economy, Iran’s crude oil and oil product revenues jumped a surprising 60 percent from March 21 to July 23. In addition, figures provided by Iran’s Central Bank show that Iran’s revenues from oil sales soared by 84.2 percent over that same period, setting a new record. The increased revenues seem to have resulted from a jump in oil prices this year as well as Iran’s high oil export volume during part of that period. Notably, the increased revenues were reported despite the United States’ announcement in May that it would sanction those purchasing Iranian oil starting in early November, with the ultimate goal of reducing Iranian oil sales to zero in order to place pressure on the Iranian government

Further dashing U.S. hopes of crushing Iranian oil exports have been recent announcements from Iran’s top two customers, China and India, that they would continue to import Iranian crude despite the looming threat of U.S. sanctions. India, along with some other countries, has sought “waivers” from Washington that would allow them to continue to import Iranian oil and avoid retaliation from the U.S. for a certain period of time. In addition, the European Union, which had previously joined the U.S. in targeting Iranian oil exports in 2012, has shown its unwillingness to follow Washington’s lead this time around, openly vowing to rebel against the U.S. sanctions regimen and increasing the likelihood that Europe will continue to buy some Iranian oil despite U.S. threats.

Another indication that efforts to curb Iranian oil exports are backfiring for the Trump administration is the jump in oil prices that has resulted from concerns about the U.S. sanctions on Iran’s oil exports. The increase in oil prices is likely to be felt domestically in the U.S., the world’s largest consumer of oil, potentially posing a political risk to Trump and his fellow Republicans ahead of the November 6 midterm elections.  In addition, further oil price increases could trigger a slowdown in domestic or global economic growth, which could further complicate the U.S.’ Iran policy and Trump’s domestic political situation.

The American Civil Liberties Union (ACLU) has filed a motion to reveal the secret court opinions with “novel or significant interpretations” of surveillance law, in a renewed push for government transparency. The motion, filed Wednesday by the ACLU and Yale Law School’s Media Freedom and Information Access Clinic, asks the Foreign Intelligence Surveillance Act (FISA) Court, which rules on intelligence gathering activities in secret, to release 23 classified decisions it made between 9/11 and the passage of the USA Freedom Act in June 2015. As ACLU National Security Project staff attorney Patrick Toomey explains, the opinions are part of a “much larger collection of hidden rulings on all sorts of government surveillance activities that affect the privacy rights of Americans.” Among them is the court order that the government used to direct Yahoo to secretly scanits users’ emails for “a specific set of characters.” Toomey writes: These court rulings are essential for the public to understand how federal laws are being construed and implemented. They also show how constitutional protections for personal privacy and expressive activities are being enforced by the courts. In other words, access to these opinions is necessary for the public to properly oversee their government.

Although the USA Freedom Act requires the release of novel FISA court opinions on surveillance law, the government maintains that the rule does not apply retroactively—thereby protecting the panel from publishing many of its post-9/11 opinions, which helped create an “unprecedented buildup” of secret surveillance laws. Even after National Security Agency (NSA) whistleblower Edward Snowden revealed the scope of mass surveillance in 2013, sparking widespread outcry, dozens of rulings on spying operations remain hidden from the public eye, which stymies efforts to keep the government accountable, civil liberties advocates say. “These rulings are necessary to inform the public about the scope of the government’s surveillance powers today,” the ACLU’s motion states.

Toomey writes that the rulings helped influence a number of novel spying activities, including: The government’s use of malware, which it calls “Network Investigative Techniques” The government’s efforts to compel technology companies to weaken or circumvent their own encryption protocols The government’s efforts to compel technology companies to disclose their source code so that it can identify vulnerabilities The government’s use of “cybersignatures” to search through internet communications for evidence of computer intrusions The government’s use of stingray cell-phone tracking devices under the Foreign Intelligence Surveillance Act (FISA) The government’s warrantless surveillance of Americans under FISA Section 702—a controversial authority scheduled to expire in December 2017 The bulk collection of financial records by the CIA and FBI under Section 215 of the Patriot Act Without these rulings being made public, “it simply isn’t possible to understand the government’s claimed authority to conduct surveillance,” Toomey writes. As he told The Intercept on Wednesday, “The people of this country can’t hold the government accountable for its surveillance activities unless they know what our laws allow. These secret court opinions define the limits of the government’s spying powers. Their disclosure is essential for meaningful public oversight in our democracy.”

The bull market just celebrated its seventh anniversary. But the gains in recent years – as well as its recent sputter – may be explained by just one thing: monetary policy. The factors behind that and previous bubbles can be illuminated using simple visual analysis of a chart. The S&P 500 (^GSPC) doubled in value from November 2008 to October 2014, coinciding with the Federal Reserve Bank’s “quantitative easing” asset purchasing program. After three rounds of “QE,” where the Fed poured billions of dollars into the bond market monthly, the Fed’s balance sheet went from $2.1 trillion to $4.5 trillion. This isn’t just a spurious correlation, according to economist Brian Barnier, principal at ValueBridge Advisors and founder of FedDashboard.com. What’s more, he says previous bull runs in the market lasting several years can also be explained by single factors each time.

Barnier first compiled data on the total value of publicly-traded U.S. stocks since 1950. He then divided it by another economic factor, graphing the ratio for each one. If the chart showed horizontal lines stretching over long periods of time, that meant both the numerator (stock values) and the denominator (the other factor) were moving at the same rate. “That's the beauty of the visual analysis,” he said. “All we have to do is find straight, stable lines and we know we've got something good.”

Scouring hundreds of different factors, Barnier ultimately whittled it down to just four factors: GDP data five years into the future, household and nonprofit liabilities, open market paper, and the Fed’s assets. At different stretches of time, just one of those was the single biggest driver of the market and was confirmed with regression analyses.

Top-secret documents reveal that the National Security Agency is dramatically expanding its ability to covertly hack into computers on a mass scale by using automated systems that reduce the level of human oversight in the process. The classified files – provided previously by NSA whistleblower Edward Snowden – contain new details about groundbreaking surveillance technology the agency has developed to infect potentially millions of computers worldwide with malware “implants.” The clandestine initiative enables the NSA to break into targeted computers and to siphon out data from foreign Internet and phone networks. The covert infrastructure that supports the hacking efforts operates from the agency’s headquarters in Fort Meade, Maryland, and from eavesdropping bases in the United Kingdom and Japan. GCHQ, the British intelligence agency, appears to have played an integral role in helping to develop the implants tactic.

The NSA began rapidly escalating its hacking efforts a decade ago. In 2004, according to secret internal records, the agency was managing a small network of only 100 to 150 implants. But over the next six to eight years, as an elite unit called Tailored Access Operations (TAO) recruited new hackers and developed new malware tools, the number of implants soared to tens of thousands. To penetrate foreign computer networks and monitor communications that it did not have access to through other means, the NSA wanted to go beyond the limits of traditional signals intelligence, or SIGINT, the agency’s term for the interception of electronic communications. Instead, it sought to broaden “active” surveillance methods – tactics designed to directly infiltrate a target’s computers or network devices. In the documents, the agency describes such techniques as “a more aggressive approach to SIGINT” and says that the TAO unit’s mission is to “aggressively scale” these operations. But the NSA recognized that managing a massive network of implants is too big a job for humans alone.

“One of the greatest challenges for active SIGINT/attack is scale,” explains the top-secret presentation from 2009. “Human ‘drivers’ limit ability for large-scale exploitation (humans tend to operate within their own environment, not taking into account the bigger picture).” The agency’s solution was TURBINE. Developed as part of TAO unit, it is described in the leaked documents as an “intelligent command and control capability” that enables “industrial-scale exploitation.”

The White House has acknowledged for the first time that strict standards President Obama imposed last year to prevent civilian deaths from U.S. drone strikes will not apply to U.S. military operations in Syria and Iraq. A White House statement to Yahoo News confirming the looser policy came in response to questions about reports that as many as a dozen civilians, including women and young children, were killed when a Tomahawk missile struck the village of Kafr Daryan in Syria's Idlib province on the morning of Sept. 23.

At the same time, however, Hayden said that a much-publicized White House policy that President Obama announced last year barring U.S. drone strikes unless there is a “near certainty” there will be no civilian casualties — "the highest standard we can meet," he said at the time — does not cover the current U.S. airstrikes in Syria and Iraq. The “near certainty” standard was intended to apply “only when we take direct action ‘outside areas of active hostilities,’ as we noted at the time,” Hayden said in an email. “That description — outside areas of active hostilities — simply does not fit what we are seeing on the ground in Iraq and Syria right now.”

Hayden added that U.S. military operations against the Islamic State (also known as ISIS or ISIL) in Syria, "like all U.S. military operations, are being conducted consistently with the laws of armed conflict, proportionality and distinction." The laws of armed conflict prohibit the deliberate targeting of civilian areas and require armed forces to take precautions to prevent inadvertent civilian deaths as much as possible. But one former Obama administration official said the new White House statement raises questions about how the U.S. intends to proceed in the conflict in Syria and Iraq, and under what legal authorities.

Tech giants including Apple, Facebook and Google called for substantial reforms to the US government's surveillance programmes Thursday in a letter to the Senate judiciary committee.In the wake of more revelations about the lengths to which the National Security Agency has gone to intercept data, the companies have called for more transparency and "substantial enhancements to privacy protections and appropriate oversight and accountability mechanisms for those programs."The letter, also signed by AOL, Microsoft and Yahoo, follows the release of more documents obtained by former NSA contractor Edward Snowden that reveal the US authorities were secretly tapping in to the tech firm's main communications links.The letter "applauds" the USA Freedom Act, a bill sponsored by Democrat senator Patrick Leahy and Republican congressman James Sensenbrenner that would end the bulk collection of data from millions of Americans and set up a privacy advocate to monitor the Fisa court, which oversees the NSA's US activities.

In a recent report the Information Technology and Innovation Foundation (ITIF) said the US tech firms could end up losing out on tens of billions of dollars in the cloud-based computing space in the wake of Snowden's revelations. Cloud computing is a rapidly growing area and revelations that the US authorities have been scooping up the personal data of millions of users, particularly outside the US, could cost them business."On the low end, US cloud computing providers might lose $21.5bn over the next three years," ITIF concluded. On the high end the report put the figure at $35bn.