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Paul Merrell

Secret US cybersecurity report: encryption vital to protect private data | US news | Th... - 0 views

  • A secret US cybersecurity report warned that government and private computers were being left vulnerable to online attacks from Russia, China and criminal gangs because encryption technologies were not being implemented fast enough. The advice, in a newly uncovered five-year forecast written in 2009, contrasts with the pledge made by David Cameron this week to crack down on encryption use by technology companies.
  • In the wake of the Paris terror attacks, the prime minister said there should be no “safe spaces for terrorists to communicate” or that British authorites could not access. Cameron, who landed in the US on Thursday night, is expected to urge Barack Obama to apply more pressure to tech giants, such as Apple, Google and Facebook, which have been expanding encrypted messaging for their millions of users since the revelations of mass NSA surveillance by the whistleblower Edward Snowden.
  • Cameron said the companies “need to work with us. They need also to demonstrate, which they do, that they have a social responsibility to fight the battle against terrorism. We shouldn’t allow safe spaces for terrorists to communicate. That’s a huge challenge but that’s certainly the right principle”. But the document from the US National Intelligence Council, which reports directly to the US director of national intelligence, made clear that encryption was the “best defence” for computer users to protect private data. Part of the cache given to the Guardian by Snowden was published in 2009 and gives a five-year forecast on the “global cyber threat to the US information infrastructure”. It covers communications, commercial and financial networks, and government and critical infrastructure systems. It was shared with GCHQ and made available to the agency’s staff through its intranet.
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  • An unclassified table accompanying the report states that encryption is the “[b]est defense to protect data”, especially if made particularly strong through “multi-factor authentication” – similar to two-step verification used by Google and others for email – or biometrics. These measures remain all but impossible to crack, even for GCHQ and the NSA. The report warned: “Almost all current and potential adversaries – nations, criminal groups, terrorists, and individual hackers – now have the capability to exploit, and in some cases attack, unclassified access-controlled US and allied information systems.” It further noted that the “scale of detected compromises indicates organisations should assume that any controlled but unclassified networks of intelligence, operational or commercial value directly accessible from the internet are already potentially compromised by foreign adversaries”.
  • The report had some cause for optimism, especially in the light of Google and other US tech giants having in the months prior greatly increased their use of encryption efforts. “We assess with high confidence that security best practices applied to target networks would prevent the vast majority of intrusions,” it concluded. Official UK government security advice still recommends encryption among a range of other tools for effective network and information defence. However, end-to-end encryption – which means only the two people communicating with each other, and not the company carrying the message, can decode it – is problematic for intelligence agencies as it makes even warranted collection much more difficult.
  • The previous week, a day after the attack on the Charlie Hebdo office in Paris, the MI5 chief, Andrew Parker, called for new powers and warned that new technologies were making it harder to track extremists. In November, the head of GCHQ, Robert Hannigan, said US social media giants had become the “networks of choice” for terrorists. Chris Soghoian, principal senior policy analyst at the American Civil Liberties Union, said attempts by the British government to force US companies to weaken encryption faced many hurdles.
  • The Guardian, New York Times and ProPublica have previously reported the intelligence agencies’ broad efforts to undermine encryption and exploit rather than reveal vulnerabilities. This prompted Obama’s NSA review panel to warn that the agency’s conflicting missions caused problems, and so recommend that its cyber-security responsibilities be removed to prevent future issues.
  • The memo requested a renewal of the legal warrant allowing GCHQ to “modify” commercial software in violation of licensing agreements. The document cites examples of software the agency had hacked, including commonly used software to run web forums, and website administration tools. Such software are widely used by companies and individuals around the world. The document also said the agency had developed “capability against Cisco routers”, which would “allow us to re-route selected traffic across international links towards GCHQ’s passive collection systems”. GCHQ had also been working to “exploit” the anti-virus software Kaspersky, the document said. The report contained no information on the nature of the vulnerabilities found by the agency.
  • Michael Beckerman, president and CEO of the Internet Association, a lobby group that represents Facebook, Google, Reddit, Twitter, Yahoo and other tech companies, said: “Just as governments have a duty to protect to the public from threats, internet services have a duty to our users to ensure the security and privacy of their data. That’s why internet services have been increasing encryption security.”
Paul Merrell

Republicans Warn Iran -- and Obama -- That Deal Won't Last - Bloomberg View - 0 views

  • A group of 47 Republican senators has written an open letter to Iran's leaders warning them that any nuclear deal they sign with President Barack Obama's administration won’t last after Obama leaves office. Organized by freshman Senator Tom Cotton and signed by the chamber's entire party leadership as well as potential 2016 presidential contenders Marco Rubio, Ted Cruz and Rand Paul, the letter is meant not just to discourage the Iranian regime from signing a deal but also to pressure the White House into giving Congress some authority over the process. “It has come to our attention while observing your nuclear negotiations with our government that you may not fully understand our constitutional system … Anything not approved by Congress is a mere executive agreement,” the senators wrote. “The next president could revoke such an executive agreement with the stroke of a pen and future Congresses could modify the terms of the agreement at any time.”
  • Arms-control advocates and supporters of the negotiations argue that the next president and the next Congress will have a hard time changing or canceling any Iran deal -- -- which is reportedly near done -- especially if it is working reasonably well. Many inside the Republican caucus, however, hope that by pointing out the long-term fragility of a deal with no congressional approval -- something Supreme Leader Ayatollah Ali Khamenei has also noted -- the Iranian regime might be convinced to think twice. "Iran's ayatollahs need to know before agreeing to any nuclear deal that … any unilateral executive agreement is one they accept at their own peril,” Cotton told me. The issue has already become part of the 2016 GOP campaign. Former Florida Governor Jeb Bush came out against the negotiations in a speech at the Chicago Council last month. Former Texas Governor Rick Perry released a video criticizing the negotiations and calling for Congressional oversight. “An arms control agreement that excludes our Congress, damages our security and endangers our allies has to be reconsidered by any future president,” Perry said. Republicans also have a new argument to make in asserting their role in the diplomatic process: Vice President Joe Biden similarly insisted -- in a letter to then-Secretary of State Colin Powell -- on congressional approval for the Moscow Treaty on strategic nuclear weapons with Russia in 2002, when he was head of the Senate Foreign Relations Committee.
  • The new letter is the latest piece of an effort by Senators in both parties to ensure that Congress will have some say if and when a deal is signed. Senators Bob Corker, Lindsey Graham, Tim Kaine and the embattled Bob Menendez have a bill pending that would mandate a Congressional review of the Iran deal, but Republicans and Democrats have been bickering over how to proceed in the face of a threatened presidential veto. Still, Senators from both parties are united in an insistence that, at some point, the administration will need their buy-in for any nuclear deal with Iran to succeed. There’s no sign yet that Obama believes this -- or, if he does, that he plans to engage Congress in any meaningful way.
Paul Merrell

Senator Corker Pushes Obama for Congressional Vote on Iran Deal - NYTimes.com - 0 views

  • The chairman of the Senate Foreign Relations Committee urged President Obama on Thursday not to seek a United Nations endorsement of the emerging nuclear agreement with Iran without first giving Congress a chance to vote on it.The warning was the latest twist in an increasingly tense standoff between the White House and congressional Republicans over the potential deal, which would impose limits on Iran’s nuclear program in return for lifting economic sanctions.“There are now reports that your administration is contemplating taking an agreement, or aspects of it, to the United Nations Security Council for a vote,” Senator Bob Corker, Republican of Tennessee, wrote in a letter to Mr. Obama, which was made public by his office.
  • “Enabling the United Nations to consider an agreement or portions of it” without allowing Congress to vote on the agreement would be “a direct affront to the American people and seeks to undermine Congress’s appropriate role,” Mr. Corker added.
  • The Obama administration does not plan to seek congressional approval for the potential accord, which is expected to last about 15 years.Secretary of State John Kerry acknowledged in testimony to Mr. Corker’s committee on Wednesday that without a congressional vote, the deal would not be “legally binding” on the succession of United States presidents who would be charged with carrying it out. But he said he was confident that future presidents would uphold an agreement as long as Iran fulfilled its obligations under the accord.
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  • But the ongoing consultations in New York among Security Council members have added a new element to the debate between the White House and skeptical lawmakers.
  • Mr. Corker has drafted legislation that would require the White House to submit the Iran agreement to Congress for a vote. Mr. Corker has been trying to build enough bipartisan support for the measure that lawmakers could override a veto. But his efforts have been hampered by a recent open letter to the Iranian leadership signed by 47 Republican senators. The letter, which Mr. Corker did not sign, sharpened partisan divisions by warning that any Iran agreement that was not approved by Congress could be modified by lawmakers or even revoked by a future president.Asked for comment on Mr. Corker’s letter, Bernadette Meehan, a spokeswoman for the National Security Council, said that Congress would not be excluded from considering the accord because it would eventually be asked to vote on lifting sanctions once it had become clear that Iran had been in compliance “for a considerable period of time.”
  • Such a vote, however, might not occur for years. In the meantime, Mr. Obama plans to use his executive authority to suspend punishing economic sanctions.
Paul Merrell

Israel Spied on Iran Nuclear Talks With U.S. - WSJ - 0 views

  • Soon after the U.S. and other major powers entered negotiations last year to curtail Iran’s nuclear program, senior White House officials learned Israel was spying on the closed-door talks. The spying operation was part of a broader campaign by Israeli Prime Minister Benjamin Netanyahu’s government to penetrate the negotiations and then help build a case against the emerging terms of the deal, current and former U.S. officials said. In addition to eavesdropping, Israel acquired information from confidential U.S. briefings, informants and diplomatic contacts in Europe, the officials said.
  • The espionage didn’t upset the White House as much as Israel’s sharing of inside information with U.S. lawmakers and others to drain support from a high-stakes deal intended to limit Iran’s nuclear program, current and former officials said. “It is one thing for the U.S. and Israel to spy on each other. It is another thing for Israel to steal U.S. secrets and play them back to U.S. legislators to undermine U.S. diplomacy,” said a senior U.S. official briefed on the matter.
  • The U.S. and Israel, longtime allies who routinely swap information on security threats, sometimes operate behind the scenes like spy-versus-spy rivals. The White House has largely tolerated Israeli snooping on U.S. policy makers—a posture Israel takes when the tables are turned. The White House discovered the operation, in fact, when U.S. intelligence agencies spying on Israel intercepted communications among Israeli officials that carried details the U.S. believed could have come only from access to the confidential talks, officials briefed on the matter said. Israeli officials denied spying directly on U.S. negotiators and said they received their information through other means, including close surveillance of Iranian leaders receiving the latest U.S. and European offers. European officials, particularly the French, also have been more transparent with Israel about the closed-door discussions than the Americans, Israeli and U.S. officials said.
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  • Mr. Netanyahu and Israeli Ambassador Ron Dermer early this year saw a rapidly closing window to increase pressure on Mr. Obama before a key deadline at the end of March, Israeli officials said. Using levers of political influence unique to Israel, Messrs. Netanyahu and Dermer calculated that a lobbying campaign in Congress before an announcement was made would improve the chances of killing or reshaping any deal. They knew the intervention would damage relations with the White House, Israeli officials said, but decided that was an acceptable cost. The campaign may not have worked as well as hoped, Israeli officials now say, because it ended up alienating many congressional Democrats whose support Israel was counting on to block a deal. Obama administration officials, departing from their usual description of the unbreakable bond between the U.S. and Israel, have voiced sharp criticism of Messrs. Netanyahu and Dermer to describe how the relationship has changed.
  • “People feel personally sold out,” a senior administration official said. “That’s where the Israelis really better be careful because a lot of these people will not only be around for this administration but possibly the next one as well.” This account of the Israeli campaign is based on interviews with more than a dozen current and former U.S. and Israeli diplomats, intelligence officials, policy makers and lawmakers. Weakened ties Distrust between Mr. Netanyahu and Mr. Obama had been growing for years but worsened when Mr. Obama launched secret talks with Iran in 2012. The president didn’t tell Mr. Netanyahu because of concerns about leaks, helping set the stage for the current standoff, according to current and former U.S. and Israeli officials. U.S. officials said Israel has long topped the list of countries that aggressively spy on the U.S., along with China, Russia and France. The U.S. expends more counterintelligence resources fending off Israeli spy operations than any other close ally, U.S. officials said.
  • A senior official in the prime minister’s office said Monday: “These allegations are utterly false. The state of Israel does not conduct espionage against the United States or Israel’s other allies. The false allegations are clearly intended to undermine the strong ties between the United States and Israel and the security and intelligence relationship we share.” Current and former Israeli officials said their intelligence agencies scaled back their targeting of U.S. officials after the jailing nearly 30 years ago of American Jonathan Pollard for passing secrets to Israel. While U.S. officials may not be direct targets, current and former officials said, Israeli intelligence agencies sweep up communications between U.S. officials and parties targeted by the Israelis, including Iran. Americans shouldn’t be surprised, said a person familiar with the Israeli practice, since U.S. intelligence agencies helped the Israelis build a system to listen in on high-level Iranian communications.
  • As secret talks with Iran progressed into 2013, U.S. intelligence agencies monitored Israel’s communications to see if the country knew of the negotiations. Mr. Obama didn’t tell Mr. Netanyahu until September 2013. Israeli officials, who said they had already learned about the talks through their own channels, told their U.S. counterparts they were upset about being excluded. “ ‘Did the administration really believe we wouldn’t find out?’ ” Israeli officials said, according to a former U.S. official.
  • The episode cemented Mr. Netanyahu’s concern that Mr. Obama was bent on clinching a deal with Iran whether or not it served Israel’s best interests, Israeli officials said. Obama administration officials said the president was committed to preventing Iran from developing nuclear weapons. Mr. Dermer started lobbying U.S. lawmakers just before the U.S. and other powers signed an interim agreement with Iran in November 2013. Mr. Netanyahu and Mr. Dermer went to Congress after seeing they had little influence on the White House. Before the interim deal was made public, Mr. Dermer gave lawmakers Israel’s analysis: The U.S. offer would dramatically undermine economic sanctions on Iran, according to congressional officials who took part. After learning about the briefings, the White House dispatched senior officials to counter Mr. Dermer. The officials told lawmakers that Israel’s analysis exaggerated the sanctions relief by as much as 10 times, meeting participants said.
  • When the next round of negotiations with Iran started in Switzerland last year, U.S. counterintelligence agents told members of the U.S. negotiating team that Israel would likely try to penetrate their communications, a senior Obama administration official said. The U.S. routinely shares information with its European counterparts and others to coordinate negotiating positions. While U.S. intelligence officials believe secured U.S. communications are relatively safe from the Israelis, they say European communications are vulnerable. Mr. Netanyahu and his top advisers received confidential updates on the Geneva talks from Undersecretary of State for Political Affairs Wendy Sherman and other U.S. officials, who knew at the time that Israeli intelligence was working to fill in any gaps. The White House eventually curtailed the briefings, U.S. officials said, withholding sensitive information for fear of leaks. Current and former Israeli officials said their intelligence agencies can get much of the information they seek by targeting Iranians and others in the region who are communicating with countries in the talks. In November, the Israelis learned the contents of a proposed deal offered by the U.S. but ultimately rejected by Iran, U.S. and Israeli officials said. Israeli officials told their U.S. counterparts the terms offered insufficient protections.
  • U.S. officials urged the Israelis to give the negotiations a chance. But Mr. Netanyahu’s top advisers concluded the emerging deal was unacceptable. The White House was making too many concessions, Israeli officials said, while the Iranians were holding firm. Obama administration officials reject that view, saying Israel was making impossible demands that Iran would never accept. “The president has made clear time and again that no deal is better than a bad deal,” a senior administration official said. In January, Mr. Netanyahu told the White House his government intended to oppose the Iran deal but didn’t explain how, U.S. and Israeli officials said. On Jan. 21, House Speaker John Boehner (R., Ohio) announced Mr. Netanyahu would address a joint meeting of Congress. That same day, Mr. Dermer and other Israeli officials visited Capitol Hill to brief lawmakers and aides, seeking a bipartisan coalition large enough to block or amend any deal. Most Republicans were already prepared to challenge the White House on the negotiations, so Mr. Dermer focused on Democrats. “This deal is bad,” he said in one briefing, according to participants.
  • A spokesman for the Israeli embassy in Washington, Aaron Sagui, said Mr. Dermer didn’t launch a special campaign on Jan 21. Mr. Dermer, the spokesperson said, has “consistently briefed both Republican and Democrats, senators and congressmen, on Israel’s concerns regarding the Iran negotiations for over a year.” Mr. Dermer and other Israeli officials over the following weeks gave lawmakers and their aides information the White House was trying to keep secret, including how the emerging deal could allow Iran to operate around 6,500 centrifuges, devices used to process nuclear material, said congressional officials who attended the briefings. The Israeli officials told lawmakers that Iran would also be permitted to deploy advanced IR-4 centrifuges that could process fuel on a larger scale, meeting participants and administration officials said. Israeli officials said such fuel, which under the emerging deal would be intended for energy plants, could be used to one day build nuclear bombs. The information in the briefings, Israeli officials said, was widely known among the countries participating in the negotiations. When asked in February during one briefing where Israel got its inside information, the Israeli officials said their sources included the French and British governments, as well as their own intelligence, according to people there.
  • “Ambassador Dermer never shared confidential intelligence information with members of Congress,” Mr. Sagui said. “His briefings did not include specific details from the negotiations, including the length of the agreement or the number of centrifuges Iran would be able to keep.” Current and former U.S. officials confirmed that the number and type of centrifuges cited in the briefings were part of the discussions. But they said the briefings were misleading because Israeli officials didn’t disclose concessions asked of Iran. Those included giving up stockpiles of nuclear material, as well as modifying the advanced centrifuges to slow output, these officials said. The administration didn’t brief lawmakers on the centrifuge numbers and other details at the time because the information was classified and the details were still in flux, current and former U.S. officials said. Unexpected reaction The congressional briefings and Mr. Netanyahu’s decision to address a joint meeting of Congress on the emerging deal sparked a backlash among many Democratic lawmakers, congressional aides said.
  • On Feb. 3, Mr. Dermer huddled with Sen. Joe Manchin, a West Virginia Democrat, who said he told Mr. Dermer it was a breach of protocol for Mr. Netanyahu to accept an invitation from Mr. Boehner without going through the White House. Mr. Manchin said he told Mr. Dermer he would attend the prime minister’s speech to Congress, but he was noncommittal about supporting any move by Congress to block a deal. Mr. Dermer spent the following day doing damage control with Sen. Kirsten Gillibrand, a New York Democrat, congressional aides said. Two days later, Mr. Dermer met with Sen. Dianne Feinstein of California, the top Democrat on the SenateIntelligence Committee, at her Washington, D.C., home. He pressed for her support because he knew that she, too, was angry about Mr. Netanyahu’s planned appearance. Ms. Feinstein said afterward she would oppose legislation allowing Congress to vote down an agreement.
  • Congressional aides and Israeli officials now say Israel’s coalition in Congress is short the votes needed to pass legislation that could overcome a presidential veto, although that could change. In response, Israeli officials said, Mr. Netanyahu was pursuing other ways to pressure the White House. This week, Mr. Netanyahu sent a delegation to France, which has been more closely aligned with Israel on the nuclear talks and which could throw obstacles in Mr. Obama’s way before a deal is signed. The Obama administration, meanwhile, is stepping up its outreach to Paris to blunt the Israeli push. “If you’re wondering whether something serious has shifted here, the answer is yes,” a senior U.S. official said. “These things leave scars.”
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    Obama is moving preemptively to blunt Israel's influence in Congress on the Iran negotiation.
Paul Merrell

ODNI Will Revise Declassification Fee Policy - 0 views

  • n response to criticism of the hefty fees that could be charged to public requesters in its new Mandatory Declassification Review (MDR) rule, the Office of the Director of National Intelligence has agreed to modify the rule. The revised rule will adopt the more flexible and forgiving approach used in ODNI’s Freedom of Information Act (FOIA) program. “We will pull back the MDR rule and swap out the fee structure there for the fee structure in the FOIA policy,” said Jennifer Hudson, director of the ODNI Information Management Division. This represents a substantial change. In comments on the rule submitted yesterday by the Federation of American Scientists, we recommended such a change. We noted that the MDR fee schedule was inconsistent in several respects with existing law and policy and, in particular, that it differed from the cost recovery procedures in ODNI’s FOIA program: *     The MDR rule would charge 50 cents per page for photocopying, but ODNI charges only 10 cents per page for responses to FOIA requests. *     The MDR rule would have made requesters responsible “for paying all fees,” but ODNI always waives costs of $10 or lower under FOIA. *     The MDR rule did not provide for discretionary fee waivers for public interest or other reasons, but the FOIA policy does.
  • Now all of these discrepancies will be eliminated. Perhaps most significantly, “We will also make sure that there is room [in the MDR process] for discretion in charging fees,” Ms. Hudson said in an email message. “I’m sure you know from looking at our FOIA reports that we have exercised our discretion to not charge fees quite a bit in the past.” She noted, however, that “The search/review charges are identical” under the proposed MDR rule and under FOIA. “FOIA just breaks [the charges] down into 15 minute increments where the MDR rule is by the hour. The end result is the same.” “At the end of the day, I don’t think it will make as much of a difference as people think,” she said.
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    Gee, I'm starting to feel prescient. 
Paul Merrell

Bulk Collection Under Section 215 Has Ended… What's Next? | Just Security - 0 views

  • 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.
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  • The US intelligence community’s broadest surveillance authorities are enshrined in Executive Order 12333, which primarily covers the interception of electronic communications overseas. The Order authorizes the collection, retention, and dissemination of “foreign intelligence” information, which includes information “relating to the capabilities, intentions or activities of foreign powers, organizations or persons.” In other words, so long as they are operating outside the US, intelligence agencies are authorized to collect information about any foreign person — and, of course, any Americans with whom they communicate. The NSA has conceded that EO 12333 is the basis of most of its surveillance. While public information about these programs is limited, a few highlights give a sense of the breadth of EO 12333 operations: The NSA gathers information about every cell phone call made to, from, and within the Bahamas, Mexico, Kenya, the Philippines, and Afghanistan, and possibly other countries. A joint US-UK program tapped into the cables connecting internal Yahoo and Google networks to gather e-mail address books and contact lists from their customers. Another US-UK collaboration collected images from video chats among Yahoo users and possibly other webcam services. The NSA collects both the content and metadata of hundreds of millions of text messages from around the world. By tapping into the cables that connect global networks, the NSA has created a database of the location of hundreds of millions of mobile phones outside the US.
  • Given its scope, EO 12333 is clearly critical to those seeking serious surveillance reform. The path to reform is, however, less clear. There is no sunset provision that requires action by Congress and creates an opportunity for exposing privacy risks. Even in the unlikely event that Congress was inclined to intervene, it would have to address questions about the extent of its constitutional authority to regulate overseas surveillance. To the best of my knowledge, there is no litigation challenging EO 12333 and the government doesn’t give notice to criminal defendants when it uses evidence derived from surveillance under the order, so the likelihood of a court ruling is slim. The Privacy and Civil Liberties Oversight Board is currently reviewing two programs under EO 12333, but it is anticipated that much of its report will be classified (although it has promised a less detailed unclassified version as well). While the short-term outlook for additional surveillance reform is challenging, from a longer-term perspective, the distinctions that our law makes between Americans and non-Americans and between domestic and foreign collection cannot stand indefinitely. If the Fourth Amendment is to meaningfully protect Americans’ privacy, the courts and Congress must come to grips with this reality.
Paul Merrell

Special Investigation: How America's Biggest Bank Paid Its Fine for the 2008 Mortgage C... - 0 views

  • ou know the old joke: How do you make a killing on Wall Street and never risk a loss? Easy—use other people’s money. Jamie Dimon and his underlings at JPMorgan Chase have perfected this dark art at America’s largest bank, which boasts a balance sheet one-eighth the size of the entire US economy.1 After JPMorgan’s deceitful activities in the housing market helped trigger the 2008 financial crash that cost millions of Americans their jobs, homes, and life savings, punishment was in order. Among a vast array of misconduct, JPMorgan engaged in the routine use of “robo-signing,” which allowed bank employees to automatically sign hundreds, even thousands, of foreclosure documents per day without verifying their contents. But in the United States, white-collar criminals rarely go to prison; instead, they negotiate settlements. Thus, on February 9, 2012, US Attorney General Eric Holder announced the National Mortgage Settlement, which fined JPMorgan Chase and four other mega-banks a total of $25 billion.2 JPMorgan’s share of the settlement was $5.3 billion, but only $1.1 billion had to be paid in cash; the other $4.2 billion was to come in the form of financial relief for homeowners in danger of losing their homes to foreclosure. The settlement called for JPMorgan to reduce the amounts owed, modify the loan terms, and take other steps to help distressed Americans keep their homes. A separate 2013 settlement against the bank for deceiving mortgage investors included another $4 billion in consumer relief.3 A Nation investigation can now reveal how JPMorgan met part of its $8.2 billion settlement burden: by using other people’s money.4 Here’s how the alleged scam worked. JPMorgan moved to forgive the mortgages of tens of thousands of homeowners; the feds, in turn, credited these canceled loans against the penalties due under the 2012 and 2013 settlements. But here’s the rub: In many instances, JPMorgan was forgiving loans on properties it no longer owned.5 The alleged fraud is described in internal JPMorgan documents, public records, testimony from homeowners and investors burned in the scam, and other evidence presented in a blockbuster lawsuit against JPMorgan, now being heard in US District Court in New York City.6 JPMorgan no longer owned the properties because it had sold the mortgages years earlier to 21 third-party investors, including three companies owned by Larry Schneider. Those companies are the plaintiffs in the lawsuit; Schneider is also aiding the federal government in a related case against the bank. In a bizarre twist, a company associated with the Church of Scientology facilitated the apparent scheme. Nationwide Title Clearing, a document-processing company with close ties to the church, produced and filed the documents that JPMorgan needed to claim ownership and cancel the loans.
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