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Paul Merrell

After 13 years, 2 wars and trillions in military spending, terrorist attacks are rising... - 0 views

  • Last year saw the highest number of terrorist incidents since 2000, according to the latest Global Terrorism Index released by the Institute for Economics and Peace. Worldwide, the number of terrorist incidents increased from less than 1,500 in 2000 to nearly 10,000 in 2013. Sixty percent of attacks last year occurred in Iraq, Afghanistan, Pakistan, Nigeria and Syria.
  • The report suggests that U.S. foreign policy has played a big role in making the problem worse: "The rise in terrorist activity coincided with the US invasion of Iraq," it concludes. "This created large power vacuums in the country allowing different factions to surface and become violent." Indeed, among the five countries accounting for the bulk of attacks, the U.S. has prosecuted lengthy ground wars in two (Iraq and Afghanistan), a drone campaign in one (Pakistan), and airstrikes in a fourth (Syria).
  • The U.S. will invest somewhere between $4 and 6 trillion on the wars in Iraq and Afghanistan, with untold additional resources spent on anti-terrorism efforts elsewhere, according to the Harvard Kennedy School of Government. While we haven't suffered any major terrorist attacks on U.S. soil since 9/11, the Global Terrorism Index numbers cast considerable doubt on whether that money's been well-spent. And they give some credence to the notion that our ham-handed foreign policy is actually a destabilizing factor in world affairs.
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    After 13 years, 2 wars and trillions in military spending, terrorist attacks are rising sharply. So what is it we've been paying for, again?
Paul Merrell

Murky Special Ops Have Become Corporate Bonanza, Says Report - The Intercept - 0 views

  • The U.S. government is paying private contractors billions of dollars to support secretive military units with drones, surveillance technology, and “psychological operations,” according to new research. A detailed report, published last week by the London-based Remote Control Project, shines a light on the murky activities of the U.S. Special Operations Command by analyzing publicly available procurement contracts dated between 2009 and 2013. USSOCOM encompasses four commands – from the Army, Navy, Air Force, and Marine Corps – and plays a key role in orchestrating clandestine U.S. military missions overseas.
  • Researcher Crofton Black, who also works as an investigator for human rights group Reprieve, was able to dig through the troves of data and identify the beneficiaries of almost $13 billion worth of spending by USSOCOM over the five-year period. He found that more than 3,000 companies had provided services that included aiding remotely piloted drone operations in Afghanistan and the Philippines, helping to conduct surveillance of targets, interrogating prisoners, and launching apparent propaganda campaigns. “This report is distinctive in that it mines data from the generally classified world of U.S. special operations,” says Caroline Donnellan, manager of the Remote Control Project, a progressive thinktank focused on developments in military technology. “It reveals the extent to which remote control activity is expanding in all its facets, with corporations becoming more and more integrated into very sensitive elements of warfare. The report’s findings are of concern given the challenges remote warfare poses for effective investigation, transparency, accountability and oversight.”
  • According to the report, USSOCOM tendered a $1.5 billion contract that required support with “Psychological Operations related to intelligence and information operations.” Prospective contractors were told they would have to provide “military and civilian persuasive communications planning, produce commercial quality products for unlimited foreign public broadcast, and develop lines of persuasion, themes, and designs for multi-media products.” The contract suggested that aim of these “persuasion” operations was to “engage local populations and counter nefarious influences” in parts of Europe and Africa.
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  • A separate document related to the same contract noted that one purpose of the effort was to conduct “market research” of al-Qaida and its affiliates in Libya, Tunisia, Mali, Northern Nigeria, and Somalia. Four American companies eventually won the $1.5 billion contract: Tennessee-based Jacobs Technology and Virginia-based Booz Allen Hamilton, CACI-WGI, and SRA International. Notably, while some 3,000 contractors provided service in some capacity to USSOCOM, just eight of the contractors earned more than 50 percent of the $13 billion total identified in Black’s report. Those were: Lockheed Martin, L-3 Communications, Boeing, Harris Corporation, Jacobs Engineering Group, MA Federal, Raytheon, and ITT Corporation.
  • One of the largest single transactions ($77 million) was paid to a subsidiary of Alaska’s Shee Atika – a company that the report says provided “interrogation services” as well as translation assistance.
  • Last year, the then-commander of USSOCOM, Adm. William McRaven, told the House Armed Services Committee that U.S. special operations forces were engaged in “annual deployments to more than 100 countries.” But very little is known about the scope and purpose of those operations, given the extreme secrecy that often shrouds them. The report from the Remote Control Project, however, is a reminder of how public data can sometimes be used to obtain information about even the most shadowy government activities – in this case, offering a valuable glimpse into the burgeoning nature of the U.S. military’s special operations and, in particular, the supporting role played by private contractors. “The Special Operations Command is outsourcing many of its most sensitive information activities,” says Black. “Remote warfare is increasingly being shaped by the private sector.”
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    Contracting out "interrogation services?" Sheesh!
Paul Merrell

US Corporations Used Personal Armies To Uproot, Terrorize Colombia - 0 views

  • Some of the numerous foreign corporations accused of serious human rights abuses in Colombia include fruit companies Dole, Del Monte, and Chiquita, agribusiness giant Cargill, and other representatives of the fossil fuel industry like Texaco (formerly Texas Petroleum Company) and Exxon Mobil. Heeding corporate orders, paramilitary groups murdered union and labor rights activists, tortured and terrorized countless indigenous and Afro-Colombian people, and devastated entire villages of subsistence farmers to make way for mining, fossil fuel extraction, or plantations that would bring massive profits to foreign corporations. The Colombian military — and, in at least one high-profile massacre, the U.S. military — sometimes lent a hand in these human rights crimes. “Every human rights person I work with in Colombia believes the peace process is a necessary precondition” to ending corporate exploitation of Colombia, Dan Kovalik, a human rights and labor rights lawyer who teaches at the University of Pittsburgh School of Law, told MintPress News.
  • In court, “Chiquita admitted to paying paramilitaries and giving them 3,000 Kalashnikov rifles between 1997 and 2004,” Kovalik said. Chiquita allied with the United Auto-Defense Forces of Colombia (AUC), one of the country’s most violent paramilitary groups, Steven Cohen noted in a report for ThinkProgress in 2014. The AUC, a group once designated as a terrorist group by the U.S. government, is responsible for thousands of deaths in Colombia. It turns out that Chiquita had been playing both sides of the conflict. Cohen reported: “By its own account, Chiquita made at least 100 payments — $1.7 million in total — to the AUC between 1997 and 2004. In the decade prior to that, the company had maintained a similar arrangement with the Revolutionary Armed Forces of Colombia (FARC), the nominally leftist rebel group chased out of the region by the combined (and coordinated) efforts of the AUC and Colombian military.”
  • “There’s been some recent reports that [Chiquita’s funding of paramilitaries] may have continued until very recently through a subsidiary,” Kovalik added. While these allegations remain unproven in court, they do suggest a staggering number of victims. Multiple lawsuits were consolidated in 2011, accusing Chiquita of being involved in the killings of as many as 4,000 Colombian nationals. While the evidence is clearest in the case of Chiquita, other international banana growers are suspect as well. “According to Salvatore Mancuso, a high-ranking paramilitarian in U.S. prison, Dole and Del Monte also worked with the paramilitaries,” Kovalik said. “All the banana companies have.” Mancuso is currently serving a 15-year sentence in a federal prison and has been spoken openly about the influence that corporations like Chiquita hold in Colombia.
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  • The influence of banana growers in Colombia pre-dates the ongoing civil war. In 1928, the Colombian government brutally shut down a strike by United Fruit Company banana pickers under threat from the U.S. government. Some estimates put the death toll from the military action as high as 2,000, including workers, women and children. United Fruit was once one of the most powerful corporations in the world, manipulating the governments and economies of multiple Latin American countries. Chiquita was a trademark of United Fruit until 1990, when the company renamed itself Chiquita Brands International in an effort to rehabilitate its image. (Chiquita was purchased by two Brazilian companies in 2015, and is now headquartered in Switzerland.)
  • “It should be noted under the peace agreement, at least the one that went down in October, Coca-Cola was one of the companies named [that will be] subjected to further investigation for paramilitary ties,” Kovalik said. Coca-Cola, or at least its Colombian bottlers, have also been linked to paramilitary groups and human rights abuses. The bottlers and the company’s Atlanta headquarters have faced multiple lawsuits over attacks on union organizers. A 2010 documentary, “The Coca-Cola Case,” focused on the soda giant’s role in turning Colombia into the “trade union murder capital of the world,” June Chua wrote in a review for Rabble.ca that year.
  • Colombia is rich with resources that foreign corporations are eager to exploit, particularly in the mining, agriculture, and biofuels industries. “Mining is probably the biggest threat now to indigenous people, Afro-Colombians and peasants, and will continue to be as the peace agreement goes forward,” Kovalik added. Justin Podur, an author and global political analyst, told MintPress that Colombian human rights activists frequently say that “displacement in Colombia is not a side effect of the war, it’s really the point of the war.” Whether by design or coincidence, decades of unrest created fertile ground for profit.
  • In one of the most shocking examples of fossil fuel companies supporting the death and displacement of Colombian people, Kovalik highlighted the “the Santo Domingo massacre, in which Occidental Petroleum were part of an operation to bomb the Santo Domingo community.”
  • In a 2005 article for Z Net on the massacre, Kovalik and Luis Galvis explained: “On December 13, 1998, in what has become one of the most notorious war crimes in Colombia, the hamlet of Santo Domingo was attacked by a U.S. cluster bomb from a Colombian Air Force helicopter. Seventeen civilians, including 7 children, were killed as a result of the bombing.” In 2002, the Los Angeles Times revealed that the bombing had actually been carried out at the behest of, and with the assistance of, the Houston-based oil company which had its headquarters in Los Angeles at the time. Times staff writer T. Christian Miller wrote: “Los Angeles-based Occidental Petroleum, which runs an oil complex 30 miles north of Santo Domingo, provided crucial assistance to the operation. It supplied, directly or through contractors, troop transportation, planning facilities and fuel to Colombian military aircraft, including the helicopter crew accused of dropping the bomb.”
  • And, earlier this year, Gilberto Torres, a Colombian union activist, sued BP in London. He alleges that in 2002, he was kidnapped and tortured for 42 days by paramilitaries who were following orders from the oil giant.
Paul Merrell

Minsk -2: A Rotting Corpse | nsnbc international - 0 views

  • The Minsk-2 ceasefire agreement is dead but no one wants to bury the rotting corpse. Since it was signed in February of this year the Donbas governments and Russia have bent over backward to comply with the terms of that agreement hoping against hope that the Kiev junta would do the same. They hoped in vain.
  • Poroshenko and his fascist allies instead have refused to change the constitution to accommodate the concerns of the Donbas republics, have tried to suppress the Communist Party and other parties in opposition, have refused to withdraw heavy weaponry from the line of contact, have maintained increasingly heavy artillery attacks on the civilian populations and areas and cut off routes for essential foodstuffs, medical aid and technical equipment. Rather than enjoying a ceasefire, the peoples of the Donbas are under a state of siege. Poroshenko openly calls for a military solution to the crisis and has increased the draft in the west. The NATO alliance continues to pour in its forces disguised as “advisers” and “mercenaries” and puts additional pressure on Russia with multiple military exercises from the Baltic to Bulgaria, where more tanks have been recently dispatched to “send Russia a message.” The reality of the situation was stated on the 18th of August when President Putin stated, “It was the Donbas militias that suggested withdrawing all military equipment with calibre under 100mm. Unfortunately, the opposite side didn’t do that. On the contrary, according to the available data, it is concentrating its units there, including those reinforced with military hardware.” He continued to pay lip service to the Minsk-2 agreement, stating, “As for the Minsk-2 agreement, I believe there is no alternative for resolving the situation and that peace will prevail in the long run… “ and continued with “Our task is to minimize the losses with which we will come to this peace.”
  • There can be no doubt that the Minsk-2 agreements do provide the framework for a peaceful settlement of the impasse but there is also no doubt that the Kiev and NATO forces have no intention of abiding by its terms and are preparing for another offensive. Putin also stated, “I hope that it will not come to direct large scale clashes.” Yet, the people of the Donbas would be surprised to be told that the thousands of shells raining down on them from the Kiev junta’s artillery in order to provoke those clashes do not count. Bu what is the purpose of this state of siege? Since the Donbas forces have proved their strength and resilience the Kiev regime has little hope of achieving the total destruction of those forces and imposing its will on the Donbas. Kiev and NATO also know that Russia does not want to be drawn into a direct clash with NATO that could lead to a general war. In consequence the Kiev-NATO axis have decided to engage in operations that have direct political repercussions designed to disrupt the Russian-Donbas alliance or to paralyze it and try to enlist new allies. At the same time they have decided to make the war more costly for the Donbas and Russia both in military and economic terms, and to try to bring about a gradual exhaustion of their physical and moral resistance. We see this strategy being played out with the constant increase of economic warfare against Russia, which is clearly the ultimate target, the increasing use of propaganda including the planting in the media of the most absurd stories about Russia and its government, the use, once again of the OSCE observes as intelligence agents for NATO as happened in the Yugoslav war, and, in the political sphere, attempts by the United States and Britain to humiliate Russia with the politically motivated attempt to set up a tribunal regarding the downing of flight MH17.
Paul Merrell

'Empire of Chaos' in the House - RT Op-Edge - 0 views

  • And yet, Air Force One, we got a problem. High-level US financial sources assure this correspondent the trip is all about Obama shoring up the new King’s support for their financial/economic war on Russia as the House of Saud is starting to have second thoughts. The Saudi role in this war has been to come up with the oil price shock – which is hurting not only Russia but also Iran and Venezuela, among others. Besides, the US puppet theoretically in charge in Ukraine, Petro Poroshenko, has just visited Saudi Arabia. Russia is not Iran – with all due respect to Iran. If the House of Saud really believes they are talking to the head of a superpower rather than a ventriloquist’s puppet – which is Obama’s role – they are effectively doomed. Nothing Obama says means a thing. The real ‘Masters of the Universe’ who run the ‘Empire of Chaos’ want the House of Saud to do most of their dirty work against Russia; and in a later stage they will take care of the “towel heads” - as the saying goes in Washington - over their development of nuclear missiles with Pakistan. And especially because the Saudi-launched oil price war is bound to destroy the US oil industry - against US national interests.
  • The House of Saud has absolutely nothing to gain from this undeclared financial/economic war on Russia. The Saudis have already “lost” Yemen and Iraq. Bahrain is held by mercenary troops containing the alienation of the Shia majority. They are freaking out with the possibility of ultimate “enemy” Iran reaching a nuclear deal with His Master’s Voice. They are desperate that “Assad won’t go”. They want every Muslim Brotherhood in sight – or the vicinity – jailed or beheaded. They fear any Arab Spring-style stirrings as worse than the plague. And then there’s the fake Caliphate of ISIS/ISIL/Daesh threatening to go all the way to Mecca and Medina. The House of Saud is effectively surrounded.
  • Meanwhile, as the tempest approaches, all is smiles – amid a silent family bloodbath. The powerful Sudairi clan has exacted their “revenge” as King Abdullah’s corpse was still warm. King Salman, almost 80, and with Alzheimer’s about to turn him into mush, took no time to appoint his nephew Mohammed bin Naif as deputy crown prince. And just in case nepotism was not evident enough, he also appointed his son Prince Mohammed bin Salman as defense minister. Mohammed bin Naif is a Pentagon/CIA darling; the House of Saud’s head of counterterrorism.
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  • But playing the ‘Empire of Chaos’ game – financial/economic war on Russia - is a game-changer, as in playing with fire. US/EU sanctions, attacks on the oil price and the ruble by giant derivative players as agents, are something way above the Saudi pay grade. The House of Saud swore that they didn’t change their production quota during 2014. But there was an excess supply – and it was brought into the market to help cause the oil price crash, alongside the manipulation by derivatives speculators. Scores of oil analysts still can’t figure out why the House of Saud went after Russia; all reasons are political, not economical (Russian support for Syria and Iran, the Americans agreeing with the strategy, etc.). The fact is Moscow did perceive it as a declaration of economic war by Saudi Arabia. Petroleum Intelligence Weekly, cautiously, has already hinted it may get much worse, as in “potential for disruption in Mideast Gulf monarchies.” Beware of an Emperor bearing gifts – or mourning a late King. The ‘Empire of Chaos’ is essentially asking the House of Saud to keep going kamikaze all the way against Russia. Sooner or later someone in Riyadh will realize this is the roadmap to House suicide.
Gary Edwards

Schneiderman Is Said to Face Pressure to Back Bank Deal - NYTimes.com - 0 views

  • Terms of the possible settlement under consideration center on foreclosure improprieties like so-called robo-signing and submitting apparently forged documents to the courts to speed up the process of removing troubled borrowers from homes.
  • An initial term sheet outlining a possible settlement emerged in March, with institutions including Bank of America, Citigroup, JPMorgan Chase and Wells Fargo being asked to pay about $20 billion that would go toward loan modifications and possibly counseling for homeowners
  • In exchange, the attorneys general participating in the deal would have agreed to sign broad releases preventing them from bringing further litigation on matters relating to the improper bank practice
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    • Gary Edwards
       
      You've got to be kidding me!  $20 Billion and these crooks get to illegally foreclose on mortgages they can't document or prove they own?  They've stolen trillions of dollars, sunk the worlds economy, and maybe ended the greatest experiment in self government / individual liberty in mankind's 4,000 year history.  And the tab is only $20 Billion?  The Banksters steal that much in while putting on their pants in the morning.
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    By GRETCHEN MORGENSON Published: August 21, 2011 Eric T. Schneiderman, the attorney general of New York, has come under increasing pressure from the Obama administration to drop his opposition to a wide-ranging state settlement with banks over dubious foreclosure practices, according to people briefed on discussions about the deal. Eric T. Schneiderman has objected to elements of the settlement for months.  In recent weeks, Shaun Donovan, the secretary of Housing and Urban Development, and high-level Justice Department officials have been waging an intensifying campaign to try to persuade the attorney general to support the settlement, said the people briefed on the talks. Mr. Schneiderman and top prosecutors in some other states have objected to the proposed settlement with major banks, saying it would restrict their ability to investigate and prosecute wrongdoing in a variety of areas, including the bundling of loans in mortgage securities. But Mr. Donovan and others in the administration have been contacting not only Mr. Schneiderman but his allies, including consumer groups and advocates for borrowers, seeking help to secure the attorney general's participation in the deal, these people said. One recipient described the calls from Mr. Donovan, but asked not to be identified for fear of retaliation.
Gary Edwards

Who Gave Warren Buffett The Authority To Discuss Billionaire Guilt? - 1 views

  • Stop coddling the super-rich he says.
    • Gary Edwards
       
      Disclosure here:  I actually met Buffett back in the 70's while workign at the Millyard Restaurant in Manchester NH.  Buffett purchased the old Amoskeag Mills "Berkshire Hathaway" shirt manufacturing building just across the Merrimack River.  Nice guy, very friendly, polite and considerate.  Of course, that was years before he made it big investing in the worldwide, McDonald's led USA franchise explosion of the late 80"s.  For sure he made a great call predicting that President Reagan would succeed in ending the Cold War, collapsing the walls, and unleashing the capitalist forces of both free and merchantilist trade.  And that the USA Franchise system was extremely well prepared to launch worldwide as soon as the barriers fell.  He made billions off this call.  Knowing Paul Volker does pay off.
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    What is it with billionaires these days? Buffett suggesting we need to tax him more? Stop coddling the super-rich he says.  In other words, he's saying "I've done such a fine job with my money, now I want to give more to a government that hasn't."  Mr. Buffett, has someone changed your suppositions? It seems counter intuitive to your "invest in great management" philosophy.  Shouldn't you really be telling the government to cut costs? Just like you demanded of your Netjets, Clayton Homes, and Helzberg Diamond Shops executives.
Paul Merrell

Clinton Foundation's Deep Financial Ties to Ukrainian Oligarch Revealed | Global Research - 0 views

  • Fortunately, I did decide to take a look and pretty soon my jaw absolutely hit the floor. Although the Wall Street Journal didn’t play up the connection, I was stunned to see that of all the oligarchs connected to foreign governments who donated to the Clinton Foundation while she was Secretary of State, Ukraine was at the very top. I thought this to be strange, but as I read on I just couldn’t believe how connected the main donor was to the current regime in power. Considering this is the main geopolitical hotspot on earth right now, many, many questions need to be asked.
  • Let’s also recall some of the more shady aspects of the new government in Ukraine by taking a look back at the post, Made in the USA – How the Ukrainian Government is Giving Away Citizenships so Foreigners Can Run the Country [17]. Here are a few excerpts:
  • Claims that the new government in Ukraine is nothing more than a Western puppet Parliament have been swirling around consistently since February. Nevertheless, I think it’s very significant that the takeover is now overt, undeniable and completely out in the open. Nothing proves this fact more clearly than the recent and sudden granting of citizenship to three foreigners so that they can take top posts in the government. At the top of the list is American, Natalie Jaresko, who runs private equity fund Horizon Capital. She will now be Ukraine’s Finance Minister, and I highly doubt she will be forced to pay the IRS Expatriation Tax [18] (one set of laws for the rich and powerful, another set of laws for the peasants). For Economy Minister, a Lithuanian investment banker, Aivaras Abromavicius, will take the reins. Health Minister will be Alexander Kvitashvili of Georgia. Now read the following from the WSJ [14]:
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  • The Clinton Foundation swore off donations from foreign governments when Hillary Clinton was secretary of state. That didn’t stop the foundation from raising millions of dollars from foreigners with connections to their home governments, a review of foundation disclosures shows. Some donors have direct ties to foreign governments. One is a member of the Saudi royal family. Another is a Ukrainian oligarch and former parliamentarian. Others are individuals with close connections to foreign governments that stem from their business activities. Their professed policy interests range from human rights to U.S.-Cuba relations. All told, more than a dozen foreign individuals and their foundations and companies were large donors to the Clinton Foundation in the years after Mrs. Clinton became secretary of state in 2009, collectively giving between $34 million and $68 million, foundation records show. Some donors also provided funding directly to charitable projects sponsored by the foundation, valued by the organization at $60 million.
  • Former President Bill Clinton promised the Obama administration the foundation wouldn’t accept most foreign-government donations while his wife was secretary of state. The agreement didn’t place limits on donations from foreign individuals or corporations. Between 2009 and 2013, including when Mrs. Clinton was secretary of state, the Clinton Foundation received at least $8.6 million from the Victor Pinchuk Foundation, according to that foundation, which is based in Kiev, Ukraine. It was created by Mr. Pinchuk, whose fortune stems from a pipe-making company. He served two terms as an elected member of the Ukrainian Parliament and is a proponent of closer ties between Ukraine and the European Union. In 2008, Mr. Pinchuk made a five-year, $29 million commitment to the Clinton Global Initiative, a wing of the foundation that coordinates charitable projects and funding for them but doesn’t handle the money. The pledge was to fund a program to train future Ukrainian leaders and professionals “to modernize Ukraine,” according to the Clinton Foundation. Several alumni are current members of the Ukrainian Parliament. Actual donations so far amount to only $1.8 million, a Pinchuk foundation spokesman said, citing the impact of the 2008 financial crisis. During Mrs. Clinton’s time at the State Department, Mr. Schoen, the pollster, registered as a lobbyist for Mr. Pinchuk, federal records show. Mr. Schoen said he and Mr. Pinchuk met several times with Clinton aides including Melanne Verveer, a Ukrainian-American and then a State Department ambassador-at-large for global women’s issues. The purpose, Mr. Schoen said, was to encourage the U.S. to pressure Ukraine’s then-President Viktor Yanukovych to free his jailed predecessor, Yulia Tymoshenko.
  • Mr. Schoen said his lobbying was unrelated to the donations. “We were not seeking to use any leverage or any connections or anything of the sort relating to the foundation,” he said. Please Schoen, don’t piss on my leg and tell me it’s raining.
Paul Merrell

Why Haven't Bankers Been Punished? Just Read These Insider SEC Emails - ProPublica - 0 views

  • n the late summer of 2009, lawyers at the Securities and Exchange Commission were preparing to bring charges in what they expected would be their first big crackdown coming out of the financial crisis. The investigators had been looking into Goldman Sachs’ mortgage-securities business, and were preparing to take on the bank over a complex deal, known as Abacus, that it had arranged with a hedge fund. They believed that Goldman had committed securities violations in developing Abacus, and were ready to charge the firm. James Kidney, a longtime SEC lawyer, was assigned to take the completed investigation and bring the case to trial. Right away, something seemed amiss. He thought that the staff had assembled enough evidence to support charging individuals. At the very least, he felt, the agency should continue to investigate more senior executives at Goldman and John Paulson & Co., the hedge fund run by John Paulson that made about a billion dollars from the Abacus deal. In his view, the SEC staff was more worried about the effect the case would have on Wall Street executives, a fear that deepened when he read an email from Reid Muoio, the head of the SEC’s team looking into complex mortgage securities. Muoio, who had worked at the agency for years, told colleagues that he had seen the “devasting [sic] impact our little ol’ civil actions reap on real people more often than I care to remember. It is the least favorite part of the job. Most of our civil defendants are good people who have done one bad thing.” This attitude agitated Kidney, and he felt that it held his agency back from pursuing the people who made the decisions that led to the financial collapse.
  • While the SEC, as well as federal prosecutors, eventually wrenched billions of dollars from the big banks, a vexing question remains: Why did no top bankers go to prison? Some have pointed out that statutes weren’t strong enough in some areas and resources were scarce, and while there is truth in those arguments, subtler reasons were also at play. During a year spent researching for a book on this subject, I’ve come across case after case in which regulators were reluctant to use the laws and resources available to them. Members of the public don’t have a full sense of the issue because they rarely get to see how such decisions are made inside government agencies. Kidney was on the inside at a crucial moment. Now retired after decades of service to the SEC, Kidney recently provided me with a cache of internal documents and emails about the Abacus investigation. The agency holds the case up as a success, and in some ways it was: Goldman had to pay a $550 million fine, and a low-ranking trader was found liable for violating securities laws. But the documents provided by Kidney show that SEC officials considered and rejected a much broader case against Goldman and John Paulson & Co. Kidney has criticized the SEC publicly in the past, and the agency’s handling of the Abacus case has been previously described, most thoroughly in a piece by Susan Beck, in The American Lawyer, but the documents provided by Kidney offer new details about how the SEC handled its case against Goldman. The SEC declined to comment on the emails or the Abacus investigation, citing its policies not to comment on individual probes. In a recent interview with me, Muoio stood by the agency’s investigation and its case. “Results matter. It was a clear win against a company and culpable individual. We put it to a jury and won,” he said.
  • Kidney, for his part, came to believe that the big banks had “captured” his agency — that is, that the SEC, which is charged with keeping financial institutions in line, had become overly cautious to the point of cowardice.
Paul Merrell

Louis Freeh's Latest Investigation: Billionaire Businessman Accused of Bribing African ... - 0 views

  • Louis Freeh, the former FBI director whose wife was deeded half of a $3 million beachside penthouse by a businessman–just nine days after Freeh cleared that same businessman of wrongdoing–is onto a new job: Helping exonerate a billionaire businessman accused of bribing an African government. As I reported here the other day, Freeh has made piles of money since leaving government service by hiring himself out to conduct allegedly independent corporate and political investigations.  These investigations are clearly a growth business, because now Freeh’s firm is helping coordinate the defense of an Israeli billionaire who is being investigated on three continents in regard to bribes he allegedly paid to win a mining stake in one of the world’s poorest countries.
  • The case involves Israeli billionaire Beny Steinmetz, who controls BSGR, a holding company that in 2008 obtained a huge stake in a gigantic iron mine in the West African nation of Guinea. BSGR reportedly paid nothing for its rights to Simandou and two years later flipped 51% of its stake to a Brazilian mining giant for $2.5 billion – twice the size of Guinea’s annual budget. The deal was consummated two weeks before the death of Lansana Conté, a homicidal dictator who had ruled since a 1984 coup. An investigation by the current government of Guinea found that a shell company controlled by BSGR paid at least $2.4 million to Mamadie Touré, a wife of the former dictator, in return for her help in acquiring the rights to the mine for BSGR. Earlier this year the government annulled BSGR’s stake in the mine, saying the firm had obtained it through corruption. Police in France and Switzerland raided offices linked to Steinmetz, and in the United States, there is an ongoing court case in the Southern District of New York about the Simandou affair as well as a huge Foreign Corrupt Practices Act investigation led by the Justice Department. The Justice Department could indict Steinmetz if it’s shown that he played a direct role in paying bribes. (See this fantastic New Yorker account if you want the full story. Also see the great work by Global Witness.)
Paul Merrell

New G20 Rules: Cyprus-style Bail-ins to Hit Depositors AND Pensioners | nsnbc internati... - 0 views

  • On the weekend of November 16th, the G20 leaders whisked into Brisbane, posed for their photo ops, approved some proposals, made a show of roundly disapproving of Russian President Vladimir Putin, and whisked out again.
  • It was all so fast, they may not have known what they were endorsing when they rubber-stamped the Financial Stability Board’s “Adequacy of Loss-Absorbing Capacity of Global Systemically Important Banks in Resolution,” which completely changes the rules of banking. Russell Napier, writing in ZeroHedge, called it “the day money died.” In any case, it may have been the day deposits died as money. Unlike coins and paper bills, which cannot be written down or given a “haircut,” says Napier, deposits are now “just part of commercial banks’ capital structure.” That means they can be “bailed in” or confiscated to save the megabanks from derivative bets gone wrong.
  • Rather than reining in the massive and risky derivatives casino, the new rules prioritize the payment of banks’ derivatives obligations to each other, ahead of everyone else. That includes not only depositors, public and private, but the pension funds that are the target market for the latest bail-in play, called “bail-inable” bonds. “Bail in” has been sold as avoiding future government bailouts and eliminating too big to fail (TBTF). But it actually institutionalizes TBTF, since the big banks are kept in business by expropriating the funds of their creditors. It is a neat solution for bankers and politicians, who don’t want to have to deal with another messy banking crisis and are happy to see it disposed of by statute. But a bail-in could have worse consequences than a bailout for the public. If your taxes go up, you will probably still be able to pay the bills. If your bank account or pension gets wiped out, you could wind up in the street or sharing food with your pets.
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  • In theory, US deposits under $250,000 are protected by federal deposit insurance; but deposit insurance funds in both the US and Europe are woefully underfunded, particularly when derivative claims are factored in. The problem is graphically illustrated in a chart from a March 2013 ZeroHedge post. OCC Chart (Image, upper left).
  •  
    With commercial banks overloaded by investment bank derivative debt, a bank is the very last place one should park their money. See http://tinyurl.com/3oj7vbs and http://tinyurl.com/3ovf6ze FDIC insurance is now of value only to senior debtors, not to deposit account holders.
Paul Merrell

Brazil's Epic Scandal Takes Down a Banker - Bloomberg Business - 0 views

  • Brazilians have become inured to seeing politicians and businessmen marched off to prison for corruption. But the mug shot of banker André Esteves—unshaven and frowning—that flashed across TV screens in early December was a shock. Part of a cadre of mavericks who got astonishingly rich from Brazil’s transformation into one of the world’s top 10 economies in the 2000s, Esteves helped turn Grupo BTG Pactual into Latin America’s biggest standalone investment bank. Supremely confident, Esteves—who was a billionaire by his mid-30s—liked to quip that the initials in his company’s name stood for “Better than Goldman.”Around dawn on Nov. 25, Esteves’s fortunes soured in an instant. Police showed up at his apartment, which faces Rio de Janeiro’s legendary Ipanema beach, and hauled him away on allegations of obstructing a federal investigation into a massive pay-to-play scheme centered on Brazil’s state-run oil giant, Petrobras. Now Esteves, 47, resides in a cell block with concrete beds and communal toilets at Bangu, a high-security prison in Rio better known for housing drug traffickers and murderers.
  • Having its founder, chief executive officer, and chairman behind bars has pushed BTG Pactual to the brink of insolvency as clients pull their money out. Within days of his arrest, Esteves had relinquished his controlling stake in the firm, and his partners had begun a wholesale selloff of assets. To avert disaster, Brazil’s central bank helped engineer a $1.6 billion rescue line from the country’s privately funded deposit guarantee fund. Still, the bank’s shares have lost half their value since Esteves’s arrest. On Dec. 7, prosecutors formally accused the banker of obstruction of justice. Antônio Carlos de Almeida Castro, Esteves’s lawyer, says his client has done nothing wrong.The metastatic graft scandal that sent Esteves to jail threatens more than the survival of BTG. So many legislators are implicated, Congress has been unable to pass legislation to contain an exploding budget deficit. President Dilma Rousseff has grown so unpopular that lawmakers are maneuvering to impeach her for allegedly cooking the government’s books. Meanwhile, the economy is sliding into what Goldman Sachs calls a full-blown depression.
  • BTG’s collapse won’t cause Brazil’s capital markets to seize up as Lehman Brothers’ failure did in the U.S. in 2008. Yet having one of the country’s most prominent financiers behind bars is a body blow to the confidence of investors at a time when Brazil needs their cash. “It very much gives you the impression that the corruption scheme is so widespread that it induces a kind of counterparty risk,” says Monica de Bolle, a former International Monetary Fund economist. “You enter into transactions with people in Brazil without knowing whether or not they might be implicated in something.” The result: “Nothing gets done. There’s no business,” she says.
Paul Merrell

FBI Informant "Threatened" After Offering Details Linking Clinton Foundation To Russian... - 0 views

  • While the mainstream media has largely ignored it, the scandal surrounding Russian efforts to acquire 20% of America's uranium reserves, a deal which was ultimately approved by the Obama administration, and more specifically the Committee on Foreign Investment in the United States (CFIUS) which included Hillary Clinton and Eric Holder, is becoming more problematic for Democrats by the hour.  As The Hill pointed out earlier this morning, the latest development in this sordid tale revolves around a man that the FBI used as an informant back in 2009 and beyond to build a case against a Russian perpetrator who ultimately admitted to bribery, extortion and money laundering.  The informant, who is so far only known as "Confidential Source 1," says that when he attempted to come forward last year with information that linked the Clinton Foundation directly to the scandal he was promptly silenced by the FBI and the Obama administration.
  • Working as a confidential witness, the businessman made kickback payments to the Russians with the approval of his FBI handlers and gathered other evidence, the records show.   Sources told The Hill the informant's work was crucial to the government's ability to crack a multimillion dollar racketeering scheme by Russian nuclear officials on U.S. soil that involved bribery, kickbacks, money laundering and extortion. In the end, the main Russian executive sent to the U.S. to expand Russian President Vladimir Putin's nuclear business, an executive of an American trucking firm and a Russian financier from New Jersey pled guilty to various crimes in a case that started in 2009 and ended in late 2015.   Toensing added her client has had contact from multiple congressional committees seeking information about what he witnessed inside the Russian nuclear industry and has been unable to provide that information because of the NDA.   “He can’t disclose anything that he came upon in the course of his work,” she said.   The information the client possesses includes specific allegations that Russian executives made to him about how they facilitated the Obama administration's 2010 approval of the Uranium One deal and sent millions of dollars in Russian nuclear funds to the U.S. to an entity assisting Bill Clinton's foundation. At the time, Hillary Clinton was serving as secretary of State on the government panel that approved the deal, the lawyer said.
  • In the midst of the new discoveries revealed yesterday about the Uranium One case (see: FBI Uncovered Russian Bribery Plot Before Obama Approved Uranium One Deal, Netting Clintons Millions), "Confidential Source 1" has once again hired an attorney, Victoria Toensing, a former Reagan Justice Department official and former chief counsel of the Senate Intelligence Committee, to get his story out. Sitting down with The Hill earlier, Toensing said that the last time her client tried to speak out "both his reputation and liberty" were "threatened" by the Obama administration in a effort to force his silence.  “All of the information about this corruption has not come out,” she said in an interview Tuesday. “And so my client, the same part of my client that made him go into the FBI in the first place, says, 'This is wrong. What should I do about it?'”   Toensing said she also possesses memos that recount how the Justice Department last year threatened her client when he attempted to file a lawsuit that could have drawn attention to the Russian corruption during the 2016 presidential race as well as helped him recover some of the money Russians stole from him through kickbacks during the FBI probe.   The undercover client witnessed “a lot of bribery going on around the U.S.” but was asked by the FBI to sign a nondisclosure agreement (NDA) that prevents him from revealing what he knows to Congress, Toensing explained.   When he tried to bring some of the allegations to light in the lawsuit last year, “the Obama Justice Department threatened him with loss of freedom. They said they would bring a criminal case against him for violating an NDA,” she added.
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  • As we pointed out last summer when Peter Schweizer first released his feature documentary Clinton Cash, the Uranium One deal at the center of this scandal is believed to have netted the Clintons and their Clinton Foundation millions of dollars in donations and 'speaking fees' from Uranium One shareholders and other Russian entities. Russian Purchase of US Uranium Assets in Return for $145mm in Contributions to the Clinton Foundation - Bill and Hillary Clinton assisted a Canadian financier, Frank Giustra, and his company, Uranium One, in the acquisition of uranium mining concessions in Kazakhstan and the United States.  Subsequently, the Russian government sought to purchase Uranium One but required approval from the Obama administration given the strategic importance of the uranium assets.  In the run-up to the approval of the deal by the State Department, nine shareholders of Uranium One just happened to make $145mm in donations to the Clinton Foundation.  Moreover, the New Yorker confirmed that Bill Clinton received $500,000 in speaking fees from a Russian investment bank, with ties to the Kremlin, around the same time.  Needless to say, the State Department approved the deal giving Russia ownership of 20% of U.S. uranium assets 
Gary Edwards

Mice and Men: The Failures of Closing our MidEast Embassies | We Meant Well - Peter Van... - 0 views

  • What do you call it when you follow the same strategy for twelve years not only without success, but with negative results? What if time shows that that strategy actually helps the enemy you seek to defeat? Failure.
  • Failing to Learn America’s global war of terror can this week be declared officially a failure, total and complete. After twelve years of invasions, drones, torture, spying and gulags, the U.S. closed its embassies and consulates across (only) the Muslim world. Not for a day, but in most cases heading toward a week, with terror warnings on file lasting through the month. The U.S. evacuated all non-essential diplomatic and military personnel from Yemen; dependents are already gone from most other MidEast posts. Only our fortress embassies in Kabul and Baghdad ironically were considered safe enough to reopen a day or two ago. The cause of all this? Apparently a message from al Qaeda leader Ayman al Zawahiri to his second in command in Yemen telling him to “do something.”
  • Failure to Understand All this might be read in one of three ways: – The simplest explanation is that the threat is indeed real. Twelves years of war has simply pushed the terror threat around, spilled mercury-like, from country to country. A Whack-a-Mole war. – U.S. officials, perhaps still reeling from Edward Snowden’s NSA disclosures, chose to exaggerate a threat, in essence creating a strawman that could then be defeated. In favor of this argument are the many “leaks” noted above, essentially disclosing raw intel, specific conversations that would clearly reveal to the al Qaeda people concerned how and when they were monitored. Usually try to avoid that in the spy biz. The Frankenbomber stuff is pure 2001 scare tactic recycled. The idea that al Qaeda sought to seize infrastructure is a certain falsehood , as the whole point of guerrilla war is never to seize things, which would create a concentrated, open, stationary target that plays right into the Big Hardware advantage the U.S. holds. Just does not make sense, and supports the idea that this is all made-up for some U.S. domestic purpose. – However, the third way of looking at this is that the U.S. has failed to walk away from the climate of fear and paranoia that has distorted foreign and domestic policy since 9/12, Chicken Littles if you will. What if the U.S. really believed that al Qaeda was planning to take over Yemen this week in spite of the odd inconsistencies? What if “chatter” was enough to provoke the last Superpower into a super-sized public cower?
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  • Failure to Not Act The why in this case may not matter, when the what is so controlling.
  • That sadly predictable resort to violence by the U.S. shows that we have fundamentally failed to understand that in a guerrilla war one cannot shoot one’s way out.
  • You win by offering a better idea to people than the other side, while at the same time luring the other side into acts of violence and political repression that make them lose the support of those same people.
  • This is asymmetrical warfare 101 stuff.
  • –In the populations al Qaeda seeks to influence, claiming they “humbled and scared” the US twelve years after 9/11 simply by ramping up their chatter seems an effective al Qaeda strategy.
  • As with the British thrashing about as their empire collapsed, the world’s greatest military defeated by natives with old rifles, so now goes the U.S., by its own hand.
  • “We continue to pay in blood because we can’t learn how to do something besides fight.”
Paul Merrell

Pepe Escobar - The real November surprise -- Puppet Masters -- Sott.net - 0 views

  • "As bad as it is the folks above the President make the decisions. They may have decided on Trump. These things do not happen by accident." Thus spoke a high-level US business mover and shaker with secure transit in rarified Masters of the Universe-related circles, amidst the utter political chaos provoked by head of the FBI James Comey's latest bombshell. It's virtually established by now that US Attorney General Loretta Lynch told Comey not to release his letter to Congress. But Comey did it anyway. If he had not, and a scandal would - inevitably - spring up after the US presidential election, Lynch would be perfectly positioned to deny she knew anything, and Comey would be on the firing line. Lynch is a certified Clinton machine asset. In 1999 then-President Bill Clinton appointed her to run the Brooklyn US Attorney's office. She left in 2002, taking the private practice revolving door. She was back to the Brooklyn office in 2010, urged by Obama. Five years later she became the 83rd US Attorney General, replacing the dodgy Eric Holder. A plausible case has been made that Comey took his fateful decision based on a serious internal revolt at the FBI - led by key people he trusts — as well as being egged-on by his wife. Yet one of the key questions that refuse to go away is why the FBI waited until 11 days before the US presidential election to supposedly "find" an email trove on certified sexting pervert Anthony Weiner's laptop.
  •      "As bad as it is the folks above the President make the decisions. They may have decided on Trump. These things do not happen by accident." Thus spoke a high-level US business mover and shaker with secure transit in rarified Masters of the Universe-related circles, amidst the utter political chaos provoked by head of the FBI James Comey's latest bombshell. It's virtually established by now that US Attorney General Loretta Lynch told Comey not to release his letter to Congress. But Comey did it anyway. If he had not, and a scandal would - inevitably - spring up after the US presidential election, Lynch would be perfectly positioned to deny she knew anything, and Comey would be on the firing line. Lynch is a certified Clinton machine asset. In 1999 then-President Bill Clinton appointed her to run the Brooklyn US Attorney's office. She left in 2002, taking the private practice revolving door. She was back to the Brooklyn office in 2010, urged by Obama. Five years later she became the 83rd US Attorney General, replacing the dodgy Eric Holder. A plausible case has been made that Comey took his fateful decision based on a serious internal revolt at the FBI - led by key people he trusts — as well as being egged-on by his wife. Yet one of the key questions that refuse to go away is why the FBI waited until 11 days before the US presidential election to supposedly "find" an email trove on certified sexting pervert Anthony Weiner's laptop.
  • The business source, although unsympathetic to the Clinton machine, especially in foreign policy, is a realpolitik practitioner, not a conspiracy theorist. He is adamant that, "the FBI reversal could not have happened without orders above the President. If the Masters [of the Universe] have changed their mind, then they will destroy Hillary." He adds, "they can make a deal with Donald just like anyone else; Donald wins; the Masters win; the people think that their voice has been heard. And then there will be some sort of (controlled) change." What's paramount in the whole soap opera is that faith in the US political system — as corrupt as it may be — must endure. That mirrors the faith in the US dollar; if confidence in the US dollar fails, the US as a hegemonic financial power is no more. The source is equally adamant that, "it is almost unprecedented to see a cover-up as extensive as Hillary's. A secret meeting between Bill Clinton and the Attorney General; the FBI ignoring all evidence and initially clearing Hillary to near rebellion of the whole of the FBI, attested to by Rudolf Giuliani whose reputation as a federal prosecutor is unquestioned; the Clinton "pay for play" foundation. The Masters are troubled that this is getting out of hand." The record shows that "the Masters do not usually have to go to such lengths to protect their own. They did manage to save Bill Clinton from the Monica Lewinsky perjury and keep him in the presidency. The Masters were not attacked in this case. They even got away with the 1987 cash settlement crash and the theft surrounding the Lehman debacle. In all these cases there were no overarching challenges to their control, as we see now open to the public by Trump. They antagonized and insulted the wrong man."
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