Skip to main content

Home/ Socialism and the End of the American Dream/ Group items tagged cds

Rss Feed Group items tagged

Filter: All | Bookmarks | Topics Simple Middle
Gary Edwards

The Real Reason We Keep Bailing Out AIG : John Crney of Clusterstock/business-insider - 0 views

www.businessinsider.com/at-makes-aig-so-special-2009-3

financial-crisis cds aig goldman-sachs banksters

shared by Gary Edwards on 03 Mar 09 - Cached
  • Gary Edwards on 03 Mar 09
     
    How could one company be worth bailing out for $180 billion? That's how much the US has contributed to AIG so far. So what is it about an insurance company that makes AIG so central to the financial system that they can't be allowed to fail at any cost? Great comments on this issue. Basically, AIG credit default swaps were being used as gambling chips. Originally intended as a means of providing banks with "regulation arbitrage", the CDS artificially lowered risk by insuring sub-prime securities, which were themselves thought to be tax-payer guaranteed, coutesy of Fannie and Freddie. The CDS however were also offered to those who did not hold bonds or securitized notes! Non holders could purchase CDS as a means of gambling on the rise or fall of real estate values in the USA. This leveraging lead to near $500 Trillion in insured CDS, many of which were held by China and European banks.
Gary Edwards

ACTA Open Must Read Analysis: Why Markets Are Still Falling . . . The Shadow Financial ... - 0 views

www.siliconvalleywatcher.com/...analysis_why_ma.php

acta foremski cds credit-default-swaps finacial-crisis politics economy

shared by Gary Edwards on 24 Nov 08 - Cached
  • evidence suggests more credit default swaps are traded in London than in the United States according to the US Federal Reserve, so US action alone cannot address perceived problems.
  • As corporations, home owners and credit card holders go into default -- stop making payments -- many financial institutions are being hit twice on their balance sheet -- once by the bad loan and then by the associated CDS default or obligation.
  • CDS trading has expanded 100-fold since 2001 as financial institutions including insurance companies and hedge funds as well as investors have used the contracts to protect against bond losses and speculate on companies' ability to repay debt.
  • ...4 more annotations...
  • Chicago Mercantile Exchange
  • Lawmakers are also considering the introduction of new regulations to curb CDS abuse as engines of speculation, but many financial experts are also encouraging the creation of public exchanges for these shadow markets. An exchange would establish an arms length price. As that price was transparent and moved, the market would see that a credit was deteriorating. A centralised clearing market would help shine a clear light on these transactions and since every trade would be backed up by the members of the clearing house, chances of default would greatly be reduced.
  • Unlike most financial markets, credit default swaps are unregulated and at USD 54.6 trillion, they are one of the largest unregulated markets in the world.
  • In response to the coming derivatives and deleveraging Tsunami, which has already begun, the world GDP may have to shrink drastically -- some estimates suggest between 30% and 50% -- over the coming years of The Great Unwind. This is the severe recession the markets fear as they go into free fall.
  • Gary Edwards on 24 Nov 08
     
    Why are Markets still Falling? The Tsunami caused by Derivatives and Deleveraging The invisible elephant in the room causing continuous falls in global financial markets is the link to the privately traded Credit Default Swaps (CDS) and the financial uncertainty they have created whilst synchronised deleveraging takes place across the world. ... Credit default swaps are unregulated financial derivatives which act as debt insurance on risky assets like mortgages, corporate and government bonds. But unlike a normal insurance policy, financial institutions that sell credit default swaps are not required to have enough funds in reserve should those risky loans turn bad. Since the US Congress in 2000 declined to regulate these contracts as it does insurance, the companies that guarantee the assets are not required by law to keep enough capital on hand to pay them off in the event of a default.
Gary Edwards

Take A Break From The Snowden Drama For A Reminder Of What He's Revealed So Far - Forbes - 0 views

www.forbes.com/...er-of-what-hes-revealed-so-far

NSA-Patriot-Act-NDAA NSA-Whistleblower Edward-Snowden

shared by Gary Edwards on 26 Jun 13 - No Cached
  • Here’s a recap of Snowden’s leaked documents published so far, in my own highly subjective order of importance.
  • The publication of Snowden’s leaks began with a top secret order from the Foreign Intelligence Surveillance Court (FISC) sent to Verizon on behalf of the NSA, demanding the cell phone records of all of Verizon Business Network Services’ American customers for the three month period ending in July. The order, obtained by the Guardian, sought only the metadata of those millions of users’ calls–who called whom when and from what locations–but specifically requested Americans’ records, disregarding foreigners despite the NSA’s legal restrictions that it may only surveil non-U.S. persons. Senators Saxby Chambliss and Diane Feinstein defended the program and said it was in fact a three-month renewal of surveillance practices that had gone for seven years.
  • A leaked executive order from President Obama shows the administration asked intelligence agencies to draw up a list of potential offensive cyberattack targets around the world. The order, which suggests targeting “systems, processes and infrastructure” states that such offensive hacking operations “can offer unique and unconventional capabilities to advance U.S. national objectives around the world with little or no warning to the adversary or target and with potential effects ranging from subtle to severely damaging.” The order followed repeated accusations by the U.S. government that China has engaged in state-sponsored hacking operations, and was timed just a day before President Obama’s summit with Chinese President Xi Jinping.
  • ...6 more annotations...
  • Another leaked slide deck revealed a software tool called Boundless Informant, which the NSA appears to use for tracking the origin of data it collects. The leaked materials included a map produced by the program showing the frequency of data collection in countries around the world. While Iran, Pakistan and Jordan appeared to be the most surveilled countries according to the map, it also pointed to significant data collection from the United States.
  • In a congressional hearing, NSA director Keith Alexander argued that the kind of surveillance of Americans’ data revealed in that Verizon order was necessary to for archiving purposes, but was rarely accessed and only with strict oversight from Foreign Intelligence Surveillance Court judges. But another secret document published by the Guardian revealed the NSA’s own rules for when it makes broad exceptions to its foreign vs. U.S. persons distinction, accessing Americans’ data and holding onto it indefinitely. Those exceptions include anytime Americans’ data is judged to be “significant foreign intelligence” information or information about a crime that has been or is about to be committed, any data “involved in the unauthorized disclosure of national security information,” or necessary to “assess a communications security vulnerability.” Any encrypted data that the NSA wants to crack can also be held indefinitely, regardless of whether its American or foreign origin.
  • Documents leaked to the Guardian revealed a five-year-old British intelligence scheme to tap transatlantic fiberoptic cables to gather data. A program known as Tempora, created by the U.K.’s NSA equivalent Government Communications Headquarters (GCHQ) has for the last 18 months been able to store huge amounts of that raw data for up to 30 days. Much of the data is shared with the NSA, which had assigned 250 analysts to sift through it as of May of last year.
  • Another GCHQ project revealed to the Guardian through leaked documents intercepted the communications of delegates to the G20 summit of world leaders in London in 2009. The scheme included monitoring the attendees’ phone calls and emails by accessing their Blackberrys, and even setting up fake Internet cafes that used keylogging software to surveil them.
  • Snowden showed the Hong Kong newspaper the South China Morning Post documents that it said outlined extensive hacking of Chinese and Hong Kong targets by the NSA since 2009, with 61,000 targets globally and “hundreds” in China. Other SCMP stories based on Snowden’s revelations stated that the NSA had gained access to the Chinese fiberoptic network operator Pacnet as well as Chinese mobile phone carriers, and had gathered large quantities of Chinese SMS messages.
  • The Guardian’s Glenn Greenwald has said that Snowden provided him “thousands” of documents, of which “dozens” are newsworthy. And Snowden himself has said he’d like to expose his trove of leaks to the global media so that each country’s reporters can decide whether “U.S. network operations against their people should be published.” So regardless of where Snowden ends up, expect more of his revelations to follow.
  • Gary Edwards on 26 Jun 13
     
    Nice tight summary
Gary Edwards

Why Are We So Afraid To Fix Banks The Right Way?* | Clusterstock Henry Blodgett - 0 views

clusterstock.alleyinsider.com/...aid-to-fix-banks-the-right-way

finacial-crisis

shared by Gary Edwards on 21 Jan 09 - Cached
  • a debt-equity swap
  • LIF said: Jan. 19, 3:17 PM MY PLAN 1. Mandate a 12-1 leverage cap for all financial institutions to take effect within 180 days. This 12-1 leverage cap has to be calculated using real market prices, not mark-to-model prices. 2. Temporary ban on capital raising by banks – water can’t dilute poison. You eliminate the poison first then add more water. 3. Force banks, etc to reach this 12-1 leverage cap by selling their toxic assets within 180 days via a US Govt Auction. The US Govt will be the Auctioneer but will NOT bid for assets 4. Any bank that is unable to sell sufficient assets to bring it under the 12-1 leverage cap will automatically nationalized by the US Govt at a price of $1. All shareholdrers and bond holders forfeit their assets. This will provide an incentive to the banks/financial institutions to sell these assets. 5. The US Govt will now hold all the toxic assets to maturity - this will prevent private market bidders from low-bidding in (3) above. Private market bidders in essence are being told, you buy the assets during the auction or you will not have another opportunity to buy the assets, as the US Govt will sieze them at an effective rate of ZERO and then hold them to maturity. 6. Any bank that falls under nationalization will also have its CEO, Board of Directors and members of the Management committee for the past 5-10 years disgorge all compensation earned during the past 5-10 years. 7. Create standardized CDS products that traded on an electronic exchange. All non-standard CDS products should be liquidated in the OTC market or swapped into standardized CDS products prior to the commencement of the new CDS exchange. The exchange will commence within180 days. 8. New Mortgage Financing Rules: 20-30% minimum govt mandated down payments. Strict Debt to Income limits, etc. These rules must be codified into federal law. 9. New Credit Card/Auto Finance rules: strict rules on the amount of credit card/Auto finance debt available to consumers.
  • Gary Edwards on 21 Jan 09
     
    You don't have to subsidize banks and their stakeholders at taxpayer expense to avoid another Lehman.  You just have to fix the banks the right way. What's the right way? * Temporarily seize the banks * Write their assets down to nuclear-winter levels (or, if desired, put them in a big bad bank, as Sheila Bair wants to do.) * Convert enough of their debt to equity to put them in a strong capital position. That's it.  No taxpayer money.  No citizen outrage.  No comical "Yes, we're lending" assurances when what the banks are really doing is, sensibly, hoarding everything. We could do this to Citigroup and Bank of America tomorrow afternoon, and on Wednesday morning, two of our biggest banks would be rock solid (they could also still be publicly traded, under the same ticker symbols, with different shareholders). 
Gary Edwards

So Why Hasn't the Credit Default Swaps Casino Been Shut Down? « naked capita... - 0 views

www.nakedcapitalism.com/...aps-casino-been-shut-down.html

obammunism financial-crisis CDS credit-default-swaps naked-capitalism banksters

shared by Gary Edwards on 01 Mar 10 - Cached
  • And if anyone had any doubts that the CDS market is officially backstopped, look no further than the Bear Stearns and AIG rescues. To put not too find a point on it, the industry understands full well who is the ultimate bagholder: United States commercial banks, those with insured deposits, held $13 trillion in notional value of credit derivatives at the end of the third quarter last year, according to the Office of the Comptroller of the Currency. The biggest players in this world are JPMorgan Chase, Citibank, Bank of America and Goldman Sachs. All of those firms fall squarely into the category of institutions that are too politically connected to fail. Because of the implicit taxpayer backing that accompanies such lofty status, derivatives become exceedingly dangerous, said Robert Arvanitis, chief executive of Risk Finance Advisors, a corporate advisory firm specializing in insurance. “If companies were not implicitly backed by the taxpayers, then managements would get very reluctant to go out after that next billion of notional on swaps,” he said. “They’d look over their shoulder and say, ‘This is getting dangerous.’” Morgenson is positively tame compared to Munchau. I’m quoting him more liberally, because the tone of his remarks are remarkably pointed for him and the FT generally. Notice that he explicitly, and repeatedly, says the use of naked credit default swaps looks an awful lot like a crime:
  • held $13 trillion in notional value of credit derivatives at the end of the third quarter last year,
  • Gary Edwards on 01 Mar 10
     
    And if anyone had any doubts that the CDS market is officially backstopped, look no further than the Bear Stearns and AIG rescues. To put not too find a point on it, the industry understands full well who is the ultimate bagholder: United States commercial banks, those with insured deposits, held $13 trillion in notional value of credit derivatives at the end of the third quarter last year, according to the Office of the Comptroller of the Currency. The biggest players in this world are JPMorgan Chase, Citibank, Bank of America and Goldman Sachs. All of those firms fall squarely into the category of institutions that are too politically connected to fail. Because of the implicit taxpayer backing that accompanies such lofty status, derivatives become exceedingly dangerous, said Robert Arvanitis, chief executive of Risk Finance Advisors, a corporate advisory firm specializing in insurance. "If companies were not implicitly backed by the taxpayers, then managements would get very reluctant to go out after that next billion of notional on swaps," he said. "They'd look over their shoulder and say, 'This is getting dangerous.'" Morgenson is positively tame compared to Munchau. I'm quoting him more liberally, because the tone of his remarks are remarkably pointed for him and the FT generally. Notice that he explicitly, and repeatedly, says the use of naked credit default swaps looks an awful lot like a crime:
Paul Merrell

Tomgram: Nick Turse, A Secret War in 135 Countries | TomDispatch - 0 views

www.tomdispatch.com/..._a_secret_war_in_135_countries

war & peace U.S.-foreign-policy Special-Forces stats

shared by Paul Merrell on 24 Sep 15 - No Cached
  • You can find them in dusty, sunbaked badlands, moist tropical forests, and the salty spray of third-world littorals. Standing in judgement, buffeted by the rotor wash of a helicopter or sweltering beneath the relentless desert sun, they instruct, yell, and cajole as skinnier men playact under their watchful eyes. In many places, more than their particular brand of camouflage, better boots, and designer gear sets them apart. Their days are scented by stale sweat and gunpowder; their nights are spent in rustic locales or third-world bars. These men -- and they are mostly men -- belong to an exclusive military fraternity that traces its heritage back to the birth of the nation. Typically, they’ve spent the better part of a decade as more conventional soldiers, sailors, marines, or airmen before making the cut. They’ve probably been deployed overseas four to 10 times. The officers are generally approaching their mid-thirties; the enlisted men, their late twenties. They’ve had more schooling than most in the military. They’re likely to be married with a couple of kids. And day after day, they carry out shadowy missions over much of the planet: sometimes covert raids, more often hush-hush training exercises from Chad to Uganda, Bahrain to Saudi Arabia, Albania to Romania, Bangladesh to Sri Lanka, Belize to Uruguay. They belong to the Special Operations forces (SOF), America’s most elite troops -- Army Green Berets and Navy SEALs, among others -- and odds are, if you throw a dart at a world map or stop a spinning globe with your index finger and don’t hit water, they’ve been there sometime in 2015.
  • This year, U.S. Special Operations forces have already deployed to 135 nations, according to Ken McGraw, a spokesman for Special Operations Command (SOCOM).  That’s roughly 70% of the countries on the planet.  Every day, in fact, America’s most elite troops are carrying out missions in 80 to 90 nations, practicing night raids or sometimes conducting them for real, engaging in sniper training or sometimes actually gunning down enemies from afar. As part of a global engagement strategy of endless hush-hush operations conducted on every continent but Antarctica, they have now eclipsed the number and range of special ops missions undertaken at the height of the conflicts in Iraq and Afghanistan.   In the waning days of the Bush administration, Special Operations forces (SOF) were reportedly deployed in only about 60 nations around the world.  By 2010, according to the Washington Post, that number had swelled to 75.  Three years later, it had jumped to 134 nations, “slipping” to 133 last year, before reaching a new record of 135 this summer.  This 80% increase over the last five years is indicative of SOCOM’s exponential expansion which first shifted into high gear following the 9/11 attacks.
  • Special Operations Command’s funding, for example, has more than tripled from about $3 billion in 2001 to nearly $10 billion in 2014 “constant dollars,” according to the Government Accountability Office (GAO).  And this doesn’t include funding from the various service branches, which SOCOM estimates at around another $8 billion annually, or other undisclosed sums that the GAO was unable to track.  The average number of Special Operations forces deployed overseas has nearly tripled during these same years, while SOCOM more than doubled its personnel from about 33,000 in 2001 to nearly 70,000 now.
Gary Edwards

Dan Ferris - The real story on financial regulation you need to see - 0 views

www.thedailycrux.com/...eml

Michael-Lewis Dan-Ferris obammunism government-regulation

shared by Gary Edwards on 17 Mar 10 - Cached
  • Like everyone else, Lewis ignored the fact that the CDS market is private only because the Commodity Futures Modernization Act made it that way. It was regulated underground. Without the CFMA, a transparent public futures market in CDSs could have formed and was, in fact, being discussed before the law put the kibosh on it. Everybody and his brother would have seen prices on CDSs for Lehman Brothers and AIG rising during the summer of 2008, harbingers of impending doom, way ahead of the ratings agencies. What's more, banks sold prime mortgage loans and bought "triple-A-rated" collateralized debt obligations (CDOs) only because the Basel II Capital Accords established lower capital requirements for triple-A-rated securities than for prime mortgage loans. When capital requirements drop, you suddenly have more money you can spend on other things. Basel II made the ratings agencies instantly more powerful and important to a bank's competitive position than the behavior of its own underwriters. Throw in the Community Reinvestment Act, two ill-managed massive entities making markets in mortgages (Fannie and Freddie), and the Federal Reserve – a government-created private banking cartel – and you have a government-led financial disaster. There's plenty of blame to go around, I know. But how anyone could miss the massive role of the misguided, heavy-handed regulation is beyond me. Everyone who ought to know better – from hedge-fund managers to our elected representatives – says we need more regulation, not less. Isn't that curious? The solution is never less regulation, and the fault is never too much regulation. If I were more paranoid, I'd cry conspiracy.
  • delivering an oligopoly to JPMorganChase, Bank of America, and Citigroup.
  • The only reason the industry isn't paying for its failures is the government interfered and staged the biggest bailout in history! The government creates a problem, and the solution is somehow always... more government.
  • Gary Edwards on 17 Mar 10
     
    Like everyone else, Lewis ignored the fact that the CDS market is private only because the Commodity Futures Modernization Act made it that way. It was regulated underground. Without the CFMA, a transparent public futures market in CDSs could have formed and was, in fact, being discussed before the law put the kibosh on it. Everybody and his brother would have seen prices on CDSs for Lehman Brothers and AIG rising during the summer of 2008, harbingers of impending doom, way ahead of the ratings agencies. What's more, banks sold prime mortgage loans and bought "triple-A-rated" collateralized debt obligations (CDOs) only because the Basel II Capital Accords established lower capital requirements for triple-A-rated securities than for prime mortgage loans. When capital requirements drop, you suddenly have more money you can spend on other things. Basel II made the ratings agencies instantly more powerful and important to a bank's competitive position than the behavior of its own underwriters. Throw in the Community Reinvestment Act, two ill-managed massive entities making markets in mortgages (Fannie and Freddie), and the Federal Reserve - a government-created private banking cartel - and you have a government-led financial disaster. There's plenty of blame to go around, I know. But how anyone could miss the massive role of the misguided, heavy-handed regulation is beyond me. Everyone who ought to know better - from hedge-fund managers to our elected representatives - says we need more regulation, not less. Isn't that curious? The solution is never less regulation, and the fault is never too much regulation. If I were more paranoid, I'd cry conspiracy.
Gary Edwards

oftwominds-Charles Hugh Smith: Has Derivatives Deleveraging Fueled the Stock Rally? - 0 views

charleshughsmith.blogspot.com/...tives-deleveraging-fueled.html

Banksters Greece default Charles-Hugh-smith Global-Crisis financial-crisis

shared by Gary Edwards on 10 Feb 12 - No Cached
  • Gary Edwards on 10 Feb 12
     
    Charles takes a look at the sudden rise in the stock market, and comes up with a surprising conclusion; these are signs that the collapse of Greece is imminent.  His explanation of  options and derivatives (CDS) is delightful and easy to understand.  But the consequences of what the wizards of smart have done here is staggering.  Read this and you'll know the facts driving the frantic but clever manuevers behind the scenes. And what does Cahrles recommend for Greece?  Do us all a favor and do EXACTLY what the tax payers in Iceland did - shut the idiots down.  Do not allow the politicians to bail out their Bankser buddies with your money.  Do not take on more debt.  Defaut now, fully, totally and without compromise.  Capitalism works.  Maybe not for Banksters and their lady boi politicians.  But it works for the taxpaying citizens who had no idea what kind of a hole the criminal masterminds were digging for them.... excerpt: Greece, please do the world a favor and openly default--right now, today. Declare a default and pay nothing. Force the shadow banking system to recognize a default and bring down the entire rotten heap of worm-eaten corruption.  At that point, there will be no reason to buy equities.
Paul Merrell

Has the NSA Wiretapping Violated Attorney-Client Privilege? | The Nation - 0 views

www.thenation.com/...ated-attorney-client-privilege

surveillance state NSA-targets attorney-client-privilege must-read

shared by Paul Merrell on 05 Feb 14 - No Cached
  • The first time Adis Medunjanin tried to call Robert C. Gottlieb in mid-2009, Gottlieb was out of the office. Medunjanin was agitated. He had to speak to an attorney. Gottlieb’s assistant told him Gottlieb would be back soon. When Medunjanin spoke to the lawyer a little later, he was told he might need legal representation. He thought he might be under investigation. Over the next six months and in forty-two phone calls, Medunjanin sought legal advice from Gottlieb. When he was arrested in January 2010 on charges that he tried to bomb the New York subway, it was Gottlieb who defended him, receiving security clearance to review government documents pertinent to the case in the process. Gottlieb was preparing Medunjanin’s defense when a federal officer in charge of information distribution e-mailed him that there was new classified information he needed to review at the US Eastern District Court in Brooklyn. “I went over to the Brooklyn Federal courthouse, went up to the secured room, gained entry with the secret security codes, opened the file cabinet that is also secure and in the second drawer was a CD,” Gottlieb told me. On that CD were recordings of every single one of his forty-two phone calls with Medunjanin before he was taken into custody and indicted on January 7, 2010.
  • Such calls are normally sacrosanct under the principle of attorney-client privilege, the ability to speak confidentially with your lawyer. But a leak to The Guardian last summer of National Security Agency (NSA) procedures that are supposed to protect privileged calls showed that some attorney-client privileged calls are not subject to internal rules that detail the instances when a wiretap should be turned off. A later version of the procedures declassified by the NSA last August contains the same language. These “minimization” procedures, as they are known, are the rules and regulations for wiretaps under the Foreign Intelligence Surveillance Act (FISA). They tell NSA agents when they can listen, and when they have to turn the tap off, when they can record and when they should not be recording. There are rules for which kinds of communications can be monitored—for example, domestic communications are off limits, although communications from agents of foreign powers and suspected terrorists don’t count as domestic—and there is a section that provides for the protection of attorney-client calls.
  • Section four of the declassified 2011 guidelines is the part of that document that governs wiretapping attorney-client calls. At first glance, it seems quite clear: when the agent realizes that he or she is monitoring an attorney-client communication, “monitoring of that communication will cease and the communication will be identified as an attorney-client communication in a log maintained for that purpose.” But given a second reading, section four doesn’t apply to all attorney-client calls. It provides only for the minimization (and protection) of the calls of “a person who is known to be under criminal indictment in the United States”—someone who has already been charged under US law. This is because indicted persons have a Sixth Amendment right to counsel. People who aren’t indicted don’t have this right, and so their calls are not minimized. When I asked an NSA press officer, Vanee’ M. Vines, how attorney-client privilege was protected, she referred me to the Department of Justice. I left several messages, but the DOJ never contacted me back.
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.
  • ...1 more annotation...
  • 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.
Gary Edwards

How Bank Regulation Helped Destroy AIG - 0 views

www.businessinsider.com/tion-helped-destroy-aig-2009-3

financial-crisis government-regulation banksters

shared by Gary Edwards on 02 Mar 09 - Cached
    • Gary Edwards
      Gary Edwards on 02 Mar 09
       
      Great comment! I've never heard it phrased this way before, but i think it hits the mark: the mark-to-market" risk that CDS were designed to take away, were simply moved from the banks/traders books to that of AIG.
  • The problem AIG an the other insurers face is that they got the analysis so wrong that many of those CDS payments are coming due now and the mark to market that they took away from the traders, is now on their book! Result = AIG insolvent.
  • Gary Edwards on 02 Mar 09
     
    in many ways the last round of regulatory reform helped cause the disaster in AIG. How could AIG's destruction have been caused by banking regulation? Most people wil probably be surprised by the very idea. After all, they've been told that what really happened to AIG involved unregulated credit default swaps, insurance contracts on bonds that AIG sold across the world. They suspect AIG might have been caused by too little regulation. In fact, much of AIG's problem was caused by credit default swaps and regulation. After Hank Greenberg was ousted from AIG, the company began to get heavily involved in the credit default swap market. That market was growing in large part because of banking regulation.
Paul Merrell

Obama aide says we can't defeat ISIS without resolving Palestinian issue - 0 views

mondoweiss.net/...without-resolving-palestinian

war & peace Israel Palestine Obama-Administration ISIL

shared by Paul Merrell on 15 Dec 15 - No Cached
  • President Obama’s new ISIS czar said yesterday that resolving the Israel Palestine conflict is necessary to defeating Islamist extremists. Rob Malley, senior advisor to Obama “for the Counter-ISIL Campaign in Iraq and Syria” and White House Coordinator for the Middle East and North Africa, said at a New York conference that the conflict enables ISIS in two ways. Extremists “refer constantly” to the situation of Palestinians. So they would lose a recruiting tool if the matter were resolved. And the failure to resolve the conflict makes it “very difficult” to get “the kind of open cooperation that we really need to get changes on the ground”– because Saudi Arabia and other states can’t work openly with Israel as matters stand. Malley said that resolving the conflict was not a “magic wand” to ending problems in the Middle East, but asked if ISIS’s next stop was going to be Gaza or the West Bank, he went on: I don’t know where the next stop will be but I think there’s a more basic point, which is that the absence of a resolution is fueling extremism. If you want to go to Gaza that’s self-evident. Whether ISIS is going to have a foothold there.. that’s a separate question. But I think it stands to reason that resolving this conflict would at least help, it wouldn’t resolve– but it would be a major contribution to stemming the rise of extremism, and to allow the kind of cooperation that is needed [to take on] what should be a common challenge, which is the challenge of ISIS, and of other extremist organizations.
  • Paul Merrell on 15 Dec 15
     
    The Israel-firsters will be pushing back against this one. But 'twill be interesting if this stands as Administration policy.
Paul Merrell

FinCEN Files: Bernie Sanders and Elizabeth Warren join watchdog groups in calling for b... - 1 views

www.icij.org/...in-calling-for-banking-reforms

banksters money-laundering FinCEN-files banking-reform

shared by Paul Merrell on 22 Sep 20 - No Cached
  • Prominent U.S. senators Bernie Sanders and Elizabeth Warren have joined watchdog groups and banking regulators in calling for a crackdown on dirty money and banks that profit from it in the wake of the FinCEN Files investigation. Sanders and Warren, former candidates for the 2020 Democratic presidential nomination who both inspired strong support on the left, called for tougher consequences for banks and their executives who move money linked to crime and corruption.
  • Sanders’ messages came less than a day after the International Consortium of Investigative Journalists’ release of FinCEN Files, a global investigation revealing how leading banks allowed trillions of dollars in tainted money to flow freely through the financial system. Based on more than 2,100 secret reports filed by banks to the U.S. Department of Treasury and obtained by BuzzFeed News, the investigation included more than 400 journalists in 88 countries around the world. Warren also called for a crackdown on banks that are complicit in the spread of dirty money, highlighting policy proposals that would strengthen the ability of law enforcement to combat white collar crime. Warren called for the creation of a new unit in the U.S. Treasury Department to investigate financial crimes linked to the flow of dirty money. She also pushed for the passage of the Ending Too Big to Jail Act, a law she proposed in 2018 that would make it easier to hold Wall Street executives criminally accountable when the banks they lead engage in illegal activity.
  • Elizabeth Rosenberg, a former sanctions official for the U.S. Treasury Department, said the revelations exposed the national security threats posed by banks’ laxity. “The FinCEN Files illustrate the alarming truth that an enormous amount of illicit money is sloshing around our financial system, and that U.S. banks play host and facilitator to rogues and criminals that represent some of America’s most insidious national security threats,” Rosenberg told the Wall Street Journal. Rosenberg urged the passage of stronger transparency laws that crack down on the use of anonymous companies, which are often used for money laundering.
  • ...1 more annotation...
  • Legislation that would end shell companies by creating a national registry of the real, flesh-and-blood owners of all U.S. companies enjoys overwhelming support in both parties, but remains stalled in the U.S. Senate due to a packed schedule and partisan dysfunction, ICIJ reported in August.
Paul Merrell

World's Largest Barrier Reef to Disappear in 5 Years | News | teleSUR English - 0 views

www.telesurtv.net/...-in-5-Years-20160519-0001.html

ocean-environment Great-Barrier-Reef

shared by Paul Merrell on 01 Jun 16 - No Cached
  • .ng-hide:not(.ng-hide-animate){display:none !important}.shr-debug{font-weight:bolder;cursor:pointer;color:#008000}.shareaholic-canvas{clear:both}.shareaholic-ui button,.shareaholic-ui .shareaholic-ui-button{border:0;box-shadow:none;text-shadow:none;font-size:12px;padding:6px 10px !important;border-radius:3px;background:transparent;display:inline-block;margin:2px;border:1px solid transparent;line-height:16px;color:#555;cursor:pointer;height:initial;text-transform:initial;}.shareaholic-ui button:hover,.shareaholic-ui .shareaholic-ui-button:hover{color:#000;font-weight:inherit}.shareaholic-ui button.button-primary,.shareaholic-ui .shareaholic-ui-button.button-primary{background-color:#52a8e8;background-image:-webkit-linear-gradient(top,#52a8e8,#377ad0);border:1px solid #3f81ae;border-color:#3f81ae #2e68a1 #1f5496;box-shadow:inset 0 1px 0 0 #72baeb,0 1px 2px 0 #c3c3c3;color:#fff;font-weight:bold;text-shadow:0 -1px 1px #3275bb;-webkit-appearance:none}.shareaholic-ui button.ui-disabled,.shareaholic-ui .shareaholic-ui-button.ui-disabled{background-color:#ccc;background-image:none;border-color:#bbb;box-shadow:none;color:#999;cursor:default;opacity:.5;text-shadow:none}.shareaholic-ui button.icon-only,.shareaholic-ui .shareaholic-ui-button.icon-only{padding:0;}.shareaholic-ui button.icon-only.icon-16,.shareaholic-ui .shareaholic-ui-button.icon-only.icon-16{padding:4px;}.shareaholic-ui button.icon-only.icon-16 i,.shareaholic-ui .shareaholic-ui-button.icon-only.icon-16 i{height:16px;width:16px}.shareaholic-ui button.icon-only.icon-24,.shareaholic-ui .shareaholic-ui-button.icon-only.icon-24{padding:0;}.shareaholic-ui button.icon-only.icon-24 i,.shareaholic-ui .shareaholic-ui-button.icon-only.icon-24 i{height:24px;width:24px}.s
  • 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.”
Paul Merrell

The Power of War Propaganda on Iran, and How It Works « Antiwar.com Blog - 0 views

antiwar.com/...ganda-on-iran-and-how-it-works

wars of aggression Iranian nukes propaganda

shared by Paul Merrell on 05 Aug 12 - No Cached
  • A new poll finds 80% of Americans think Iran has a nuclear weapons program and that it is a threat to the US and its NATO allies. The poll, commissioned by The Israel Project, asked likely voters and found “72% of Democrats, 81% of independents and 89% of Republicans were convinced the Iranians were building nuclear weapons.” This is a monumental success of war propaganda. And these results are largely consistent with other recent polls: one produced back in February by the Council on Foreign Relations and the Program on International Policy Attitudes found “An overwhelming majority of U.S. citizens believe that Iran is pursuing nuclear weapons and poses a serious threat to U.S. national security.”
  • Contrast these beliefs with the facts: The consensus in the whole of the intelligence community in the US (and Israel) is that Iran has no nuclear weapons program and has yet to demonstrate any intention of starting one anytime soon. But false beliefs persist even when there has been ample reassurances from elite sources in politics, the military, and the news media that Iran has no weapons program. A matter of months ago, the Obama administration marched out their minions, from Defense Secretary Leon Panetta to Director of National Intelligence James Clapper to Chairman of the Joint Chiefs of Staff Gen. Martin Dempsey, all of whom reiterated the fact that Iran has no nuclear weapons program, despite constant rhetoric to the contrary.
  • In February the New York Times ran a front page story entitled “U.S. Agencies See No Move by Iran to Build a Bomb.” It reported: “Recent assessments by American spy agencies are broadly consistent with a 2007 intelligence finding that concluded that Iran had abandoned its nuclear weapons program years earlier. The officials said that assessment was largely reaffirmed in a 2010 National Intelligence Estimate, and that it remains the consensus view of America’s 16 intelligence agencies.” Again in March, they reported “top administration officials have said that Iran still has not decided to pursue a weapon, reflecting the intelligence community’s secret analysis.” Another in the Los Angeles Times was similarly headlined, “U.S. does not believe Iran is trying to build nuclear bomb.”
  • Paul Merrell on 05 Aug 12
     
    Manufacturing consent for war with Iran 
Paul Merrell

Vienna Convention on Diplomatic Relations - Wikipedia, the free encyclopedia - 0 views

en.wikipedia.org/...ention_on_Diplomatic_Relations

surveillance state NSA targets-diplomats law international

shared by Paul Merrell on 22 Nov 13 - No Cached
  • The Vienna Convention on Diplomatic Relations of 1961 is an international treaty that defines a framework for diplomatic relations between independent countries. It specifies the privileges of a diplomatic mission that enable diplomats to perform their function without fear of coercion or harassment by the host country. This forms the legal basis for diplomatic immunity.
  • The treaty is an extensive document, containing 53 articles. Following is a basic overview of its key provisions.[2]
  • Article 22. The premises of a diplomatic mission, such as an embassy, are inviolate and must not be entered by the host country except by permission of the head of the mission. Furthermore, the host country must protect the mission from intrusion or damage. The host country must never search the premises, nor seize its documents or property. Article 30 extends this provision to the private residence of the diplomats. Article 27. The host country must permit and protect free communication between the diplomats of the mission and their home country. A diplomatic bag must never be opened even on suspicion of abuse. A diplomatic courier must never be arrested or detained.
  • ...2 more annotations...
  • Article 37. The family members of a diplomat that are living in the host country enjoy most of the same protections as the diplomats themselves.
  • Original text related to this article Diplomatic Relations Protocols The Vienna Convention on Diplomatic Relations 50th Anniversary Website Created by the 2011 VCDR 50th Anniversary Project Introductory note by Eileen Denza, procedural history note and audiovisual material on the Vienna Convention on Diplomatic Relations in the Historic Archives of the United Nations Audiovisual Library of International Law Lecture by Eileen Denza entitled Diplomatic and Consular Law – Topical Issues in the Lecture Series of the United Nations Audiovisual Library of International Law Lecture by John Dugard entitled Diplomatic Protection in the Lecture Series of the United Nations Audiovisual Library of International Law
  • Paul Merrell on 22 Nov 13
     
    Remember the NSA's electronic surveillance of foreign embassies and diplomats around the world and of U.N. missions and diplomats? The Vienna Convention on Diplomatic Relations is the governing international law. I've just completed reading the entire treaty but will highlight portions from its Wikipedia entry instead.  Disputes involving the treaty are decided by the International Court of Justice.  The treaty itself goes into far more detail, but suffice it to say that the NSA's electronic surveillance of diplomats and their staff is beyond doubt in direct conflict with both the letter and the spirit of the treaty. The inviolability privacy of diplomats and staff communications with each other and with their government is an obligation of the host nation. The U.S. committed a serious breach of the treaty by intercepting communications in this circumstance. 
Paul Merrell

FBI Admits It Controlled Tor Servers Behind Mass Malware Attack | Threat Level | Wired.com - 0 views

www.wired.com/...freedom-hosting-fbi

surveillance state FBI Tor NSA

shared by Paul Merrell on 05 Oct 13 - No Cached
  • It wasn’t ever seriously in doubt, but the FBI yesterday acknowledged that it secretly took control of Freedom Hosting last July, days before the servers of the largest provider of ultra-anonymous hosting were found to be serving custom malware designed to identify visitors. Freedom Hosting’s operator, Eric Eoin Marques, had rented the servers from an unnamed commercial hosting provider in France, and paid for them from a bank account in Las Vegas. It’s not clear how the FBI took over the servers in late July, but the bureau was temporarily thwarted when Marques somehow regained access and changed the passwords, briefly locking out the FBI until it gained back control. The new details emerged in local press reports from a Thursday bail hearing in Dublin, Ireland, where Marques, 28, is fighting extradition to America on charges that Freedom Hosting facilitated child pornography on a massive scale. He was denied bail today for the second time since his arrest in July. Freedom Hosting was a provider of turnkey “Tor hidden service” sites — special sites, with addresses ending in .onion, that hide their geographic location behind layers of routing, and can be reached only over the Tor anonymity network. Tor hidden services are used by sites that need to evade surveillance or protect users’ privacy to an extraordinary degree – including human rights groups and journalists. But they also appeal to serious criminal elements, child-pornography traders among them.
  • The apparent FBI-malware attack was first noticed on August 4, when all of the hidden service sites hosted by Freedom Hosting began displaying a “Down for Maintenance” message. That included at least some lawful websites, such as the secure email provider TorMail. Some visitors looking at the source code of the maintenance page realized that it included a hidden iframe tag that loaded a mysterious clump of Javascript code from a Verizon Business internet address. By midday, the code was being circulated and dissected all over the net. Mozilla confirmed the code exploited a critical memory management vulnerability in Firefox that was publicly reported on June 25, and is fixed in the latest version of the browser. Though many older revisions of Firefox were vulnerable to that bug, the malware only targeted Firefox 17 ESR, the version of Firefox that forms the basis of the Tor Browser Bundle – the easiest, most user-friendly package for using the Tor anonymity network. That made it clear early on that the attack was focused specifically on de-anonymizing Tor users. Tor Browser Bundle users who installed or manually updated after June 26 were safe from the exploit, according to the Tor Project’s security advisory on the hack.
  • On August 4, all the sites hosted by Freedom Hosting — some with no connection to child porn — began serving an error message with hidden code embedded in the page. Security researchers dissected the code and found it exploited a security hole in Firefox to identify users of the Tor Browser Bundle, reporting back to a mysterious server in Northern Virginia. The FBI was the obvious suspect, but declined to comment on the incident. The FBI also didn’t respond to inquiries from WIRED today. But FBI Supervisory Special Agent J. Brooke Donahue was more forthcoming when he appeared in the Irish court yesterday to bolster the case for keeping Marques behind bars, according to local press reports. Among the many arguments Donahue and an Irish police inspector offered was that Marques might reestablish contact with co-conspirators, and further complicate the FBI probe. In addition to the wrestling match over Freedom Hosting’s servers, Marques allegedly dove for his laptop when the police raided him, in an effort to shut it down.
  • ...2 more annotations...
  • Perhaps the strongest evidence that the attack was a law enforcement or intelligence operation was the limited functionality of the malware. The heart of the malicious Javascript was a tiny Windows executable hidden in a variable named “Magneto.” A traditional virus would use that executable to download and install a full-featured backdoor, so the hacker could come in later and steal passwords, enlist the computer in a DDoS botnet, and generally do all the other nasty things that happen to a hacked Windows box. But the Magneto code didn’t download anything. It looked up the victim’s MAC address — a unique hardware identifier for the computer’s network or Wi-Fi card — and the victim’s Windows hostname. Then it sent it to a server in Northern Virginia server, bypassing Tor, to expose the user’s real IP address, coding the transmission as a standard HTTP web request.
  • The official IP allocation records maintained by the American Registry for Internet Numbers show the two Magneto-related IP addresses were part of a ghost block of eight addresses that have no organization listed. Those addresses trace no further than the Verizon Business data center in Ashburn, Virginia, 20 miles northwest of the Capital Beltway. The code’s behavior, and the command-and-control server’s Virginia placement, is also consistent with what’s known about the FBI’s “computer and internet protocol address verifier,” or CIPAV, the law enforcement spyware first reported by WIRED in 2007. Court documents and FBI files released under the FOIA have described the CIPAV as software the FBI can deliver through a browser exploit to gather information from the target’s machine and send it to an FBI server in Virginia. The FBI has been using the CIPAV since 2002 against hackers, online sexual predators, extortionists, and others, primarily to identify suspects who are disguising their location using proxy servers or anonymity services, like Tor. Prior to the Freedom Hosting attack, the code had been used sparingly, which kept it from leaking out and being analyzed.
  • Paul Merrell on 05 Oct 13
     
    Taking down the entire Freedom Hosting service because some content was kiddie porn is reminiscent of the U.S. government's proxy take-down of Mega-Upload in New Zealand. Such actions that disable legitimate users or deny access to their data are in my opinion violative of the 1st and 4th Amendments.  It suppresses the Freedom of Speech and seizes more than the 4th Amendment allows.  That our own government would use malware for surveillance purposes under any circumstance is just plain chilling.
Paul Merrell

Germany is the Tell-Tale Heart of America's Drone War - 0 views

firstlook.org/...ramstein

war & peace drone attacks Ramstein CIA

shared by Paul Merrell on 24 Apr 15 - No Cached
  • This is a joint investigation with the German news magazine Der Spiegel.
  • A TOP-SECRET U.S. intelligence document obtained by The Intercept confirms that the sprawling U.S. military base in Ramstein, Germany serves as the high-tech heart of America’s drone program. Ramstein is the site of a satellite relay station that enables drone operators in the American Southwest to communicate with their remote aircraft in Yemen, Somalia, Afghanistan and other targeted countries. The top-secret slide deck, dated July 2012, provides the most detailed blueprint seen to date of the technical architecture used to conduct strikes with Predator and Reaper drones. Amid fierce European criticism of America’s targeted killing program, U.S. and German government officials have long downplayed Ramstein’s role in lethal U.S. drone operations and have issued carefully phrased evasions when confronted with direct questions about the base. But the slides show that the facilities at Ramstein perform an essential function in lethal drone strikes conducted by the CIA and the U.S. military in the Middle East, Afghanistan and Africa.
  • The slides were provided by a source with knowledge of the U.S. government’s drone program who declined to be identified because of fears of retribution. According to the source, Ramstein’s importance to the U.S. drone war is difficult to overstate. “Ramstein carries the signal to tell the drone what to do and it returns the display of what the drone sees. Without Ramstein, drones could not function, at least not as they do now,” the source said. The new evidence places German Chancellor Angela Merkel in an awkward position given Germany’s close diplomatic alliance with the United States. The German government has granted the U.S. the right to use the property, but only under the condition that the Americans do nothing there that violates German law.
  • ...1 more annotation...
  • The U.S. government maintains that its drone strikes against al Qaeda and its “associated forces” are legal, even outside of declared war zones. But German legal officials have suggested that such operations are only justifiable in actual war zones. Moreover, Germany has the right to prosecute “criminal offenses against international law … even when the offense was committed abroad and bears no relation to Germany,” according to Germany’s Code of Crimes against International Law, which passed in 2002. This means that American personnel stationed at Ramstein could, in theory, be vulnerable to German prosecution if they provide drone pilots with data used in attacks. While the German government has been reluctant to pursue such prosecutions, it may come under increasing pressure to do so. “It is simply murder,” says Björn Schiffbauer of the Institute for International Law at the University of Cologne. Legal experts interviewed by Der Spiegel claimed that U.S. personnel could be charged as war criminals by German prosecutors.
Paul Merrell

U.S. surveillance architecture includes collection of revealing Internet, phone metadat... - 0 views

www.washingtonpost.com/...2-b05f-3ea3f0e7bb5a_print.html

surveillance state NSA must-read pen-register

shared by Paul Merrell on 19 Jun 13 - No Cached
  • On March 12, 2004, acting attorney general James B. Comey and the Justice Department’s top leadership reached the brink of resignation over electronic surveillance orders that they believed to be illegal. President George W. Bush backed down, halting secret foreign-intelligence-gathering operations that had crossed into domestic terrain. That morning marked the beginning of the end of STELLARWIND, the cover name for a set of four surveillance programs that brought Americans and American territory within the domain of the National Security Agency for the first time in decades. It was also a prelude to new legal structures that allowed Bush and then President Obama to reproduce each of those programs and expand their reach.What exactly STELLARWIND did has never been disclosed in an unclassified form. Which parts of it did Comey approve? Which did he shut down? What became of the programs when the crisis passed and Comey, now Obama’s expected nominee for FBI director, returned to private life?Authoritative new answers to those questions, drawing upon a classified NSA history of STELLARWIND and interviews with high-ranking intelligence officials, offer the clearest map yet of the Bush-era programs and the NSA’s contemporary U.S. operations.STELLARWIND was succeeded by four major lines of intelligence collection in the territorial United States, together capable of spanning the full range of modern telecommunications, according to the interviews and documents.
  • Two of the four collection programs, one each for telephony and the Internet, process trillions of “metadata” records for storage and analysis in systems called MAINWAY and MARINA, respectively. Metadata includes highly revealing information about the times, places, devices and participants in electronic communication, but not its contents. The bulk collection of telephone call records from Verizon Business Services, disclosed this month by the British newspaper the Guardian, is one source of raw intelligence for MAINWAY.The other two types of collection, which operate on a much smaller scale, are aimed at content. One of them intercepts telephone calls and routes the spoken words to a system called ­NUCLEON.For Internet content, the most important source collection is the PRISM project reported on June 6 by The Washington Post and the Guardian. It draws from data held by Google, Yahoo, Microsoft and other Silicon Valley giants, collectively the richest depositories of personal information in history.
  • The debate has focused on two of the four U.S.-based collection programs: PRISM, for Internet content, and the comprehensive collection of telephone call records, foreign and domestic, that the Guardian revealed by posting a classified order from the Foreign Intelligence Surveillance Court to Verizon Business Services.The Post has learned that similar orders have been renewed every three months for other large U.S. phone companies, including Bell South and AT&T, since May 24, 2006. On that day, the surveillance court made a fundamental shift in its approach to Section 215 of the Patriot Act, which permits the FBI to compel production of “business records” that are relevant to a particular terrorism investigation and to share those in some circumstances with the NSA. Henceforth, the court ruled, it would define the relevant business records as the entirety of a telephone company’s call database.The Bush administration, by then, had been taking “bulk metadata” from the phone companies under voluntary agreements for more than four years. The volume of information overwhelmed the MAINWAY database, according to a classified report from the NSA inspector general in 2009. The agency spent $146 million in supplemental counterterrorism funds to buy new hardware and contract support — and to make unspecified payments to the phone companies for “collaborative partnerships.”When the New York Times revealed the warrantless surveillance of voice calls, in December 2005, the telephone companies got nervous. One of them, unnamed in the report, approached the NSA with a request. Rather than volunteer the data, at a price, the “provider preferred to be compelled to do so by a court order,” the report said. Other companies followed suit. The surveillance court order that recast the meaning of business records “essentially gave NSA the same authority to collect bulk telephony metadata from business records that it had” under Bush’s asserted authority alone.
  • ...3 more annotations...
  • Telephone metadata was not the issue that sparked a rebellion at the Justice Department, first by Jack Goldsmith of the Office of Legal Counsel and then by Comey, who was acting attorney general because John D. Ashcroft was in intensive care with acute gallstone pancreatitis. It was Internet metadata.At Bush’s direction, in orders prepared by David Addington, the counsel to Vice President Richard B. Cheney, the NSA had been siphoning e-mail metadata and technical records of Skype calls from data links owned by AT&T, Sprint and MCI, which later merged with Verizon.For reasons unspecified in the report, Goldsmith and Comey became convinced that Bush had no lawful authority to do that.MARINA and the collection tools that feed it are probably the least known of the NSA’s domestic operations, even among experts who follow the subject closely. Yet they probably capture information about more American citizens than any other, because the volume of e-mail, chats and other Internet communications far exceeds the volume of standard telephone calls.The NSA calls Internet metadata “digital network information.” Sophisticated analysis of those records can reveal unknown associates of known terrorism suspects. Depending on the methods applied, it can also expose medical conditions, political or religious affiliations, confidential business negotiations and extramarital affairs.What permits the former and prevents the latter is a complex set of policies that the public is not permitted to see.
  • In the urgent aftermath of Sept. 11, 2001, with more attacks thought to be imminent, analysts wanted to use “contact chaining” techniques to build what the NSA describes as network graphs of people who represented potential threats.The legal challenge for the NSA was that its practice of collecting high volumes of data from digital links did not seem to meet even the relatively low requirements of Bush’s authorization, which allowed collection of Internet metadata “for communications with at least one communicant outside the United States or for which no communicant was known to be a citizen of the United States,” the NSA inspector general’s report said.Lawyers for the agency came up with an interpretation that said the NSA did not “acquire” the communications, a term with formal meaning in surveillance law, until analysts ran searches against it. The NSA could “obtain” metadata in bulk, they argued, without meeting the required standards for acquisition.Goldsmith and Comey did not buy that argument, and a high-ranking U.S. intelligence official said the NSA does not rely on it today.As soon as surveillance data “touches us, we’ve got it, whatever verbs you choose to use,” the official said in an interview. “We’re not saying there’s a magic formula that lets us have it without having it.”
  • When Comey finally ordered a stop to the program, Bush signed an order renewing it anyway. Comey, Goldsmith, FBI Director Robert S. Mueller III and most of the senior Bush appointees in the Justice Department began drafting letters of resignation.Then-NSA Director Michael V. Hayden was not among them. According to the inspector general’s classified report, Cheney’s lawyer, Addington, placed a phone call and “General Hayden had to decide whether NSA would execute the Authorization without the Attorney General’s signature.” He decided to go along.The following morning, when Mueller told Bush that he and Comey intended to resign, the president reversed himself.Three months later, on July 15, the secret surveillance court allowed the NSA to resume bulk collection under the court’s own authority. The opinion, which remains highly classified, was based on a provision of electronic surveillance law, known as “pen register, trap and trace,” that was written to allow law enforcement officers to obtain the phone numbers of incoming and outgoing calls from a single telephone line.
  • Paul Merrell on 19 Jun 13
     
    Note particularly the mention that the FISA Court decision to throw the doors open for government snooping was based on "pen register, trap and trace" law. As suspected, now we are into territory dealt with by the Supreme Court in the pre-internet days of 1979 In Smith v. Maryland, 442 U.S. 735 (1979), More about that next, in a bookmark also tagged with "pen-register".
Paul Merrell

Banks Rig Treasury Market ... And EVERY OTHER Market As Well Washington's Blog - 0 views

www.washingtonsblog.com/...very-other-market-as-well.html

banksters Treasury-securities market-rigging litigation drivatives CDS energy-markets commodities gold silver interest-rates fraud must-read

shared by Paul Merrell on 20 Sep 15 - No Cached
  • Bloomberg reports today: The same analytical technique that uncovered cheating in currency markets and the Libor rates benchmark [details below] — resulting in about $20 billion of fines — suggests the dealers who control the U.S. Treasury market rigged bond auctions for years, according to a lawsuit. *** The plaintiffs built their case against the 22 primary dealers who serve as the backbone of Treasury trading — including Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley — using data from Rosa Abrantes-Metz, an adjunct associate professor at New York University who has provided expert testimony in rigging cases. Her conclusion: More than two-thirds of a certain type of Treasury auction appear to have been rigged. She found issues with other auctions, too.
  • Paul Merrell on 20 Sep 15
     
    Washington's Blog contributes an epic expose of bankster fraud, with links galore. A must-read.
1 - 20 of 31 Next ›
Showing 20▼ items per page