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Paul Merrell

The revolving door between Google and the Department of Defense | PandoDaily - 0 views

  • As I continue to poke around under the hood of Google Federal — as the company’s DC operation is called — I’m surprised by the number of former spooks, high-level intelligence officials and revolving door military contractors running Google’s public sector division. Many of Google Federal’s top managers come from the biggest and baddest military and intel outfits: US Army, Air Force Intelligence, Central Intelligence Agency, National Geospatial-Intelligence Agency, Director of National Intelligence, USAID, SAIC, Lockheed… the list keeps going on and on.
Paul Merrell

Where Bank Regulators Go to Get Rich - Bloomberg - 0 views

  • Mary Schapiro, the former chairman of the Securities and Exchange Commission, must take us for fools. No need to worry about her and the so-called revolving door between government and Wall Street, she told the Wall Street Journal on April 2, after announcing she would be joining the Promontory Financial Group LLC as a managing director in its Washington office, in charge of its governance and markets practice. “In my case, there’s no revolving door,” she said. “I won’t ever be going back to government.”
  • About 100 of the 400 Promontory employees are former Washington regulators; some 5 percent, like Ludwig, come from the Office of the Comptroller of the Currency, which regulates all banks with federal bank charters, including Citigroup Inc., Bank of America Corp. and JPMorgan Chase & Co. Last year, the firm hired Julie Williams, the former chief counsel of the OCC. To keep things in the family, the agency hired as Williams’s replacement Amy Friend, a Promontory managing director.
Gary Edwards

The Washington-Wall Street Revolving Door Keeps Spinning - 0 views

  • President Obama may call bankers “fat cats” and stir the rabble against them with populist rhetoric when it serves his interest, but after the fiscal fiasco, he allowed the culprits to escape virtually scot-free. When he’s in New York he dines with them frequently and eagerly accepts their big contributions. Like his predecessors, his administration also has provided them with billions of taxpayer dollars – low-cost money that they used for high-yielding investments to make big profits. The largest banks are bigger than they were when he took office and earned more in the first two-and-a-half years of his term than they did during the entire eight years of the Bush administration. That’s confirmed by industry data. And get this. It turns out, according to The New York Times, that as President Obama’s inner circle has been shrinking, his “rare new best friend” is Robert Wolf. They play basketball, golf, and talk economics when Wolf is not raising money for the president’s campaign. Robert Wolf runs the U.S. branch of the giant Swiss bank UBS, which participated in schemes to help rich Americans evade their taxes. During hearings in 2009, Michigan’s Senator Carl Levin, chairman of the permanent subcommittee on investigations, described some of the tricks used by UBS: “Swiss bankers aided and abetted violations of U.S. tax law by traveling to this country with client code names, encrypted computers, counter- surveillance training, and all the rest of it, to enable U.S. residents to hide assets and money in Swiss accounts.
    • Gary Edwards
       
      First time i've heard about Robert "the Bankster" Wolf!  Didn't realize how complicit he was in perfecting Bankster tax evasion schemes.
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    Nice grab by Marbux.   The old maxim holds true and is more important today than ever before: "Don't listen to what they say.  Watch carefully what they do!" excerpt: We've already made our choice for the best headline of the year, so far: "Citigroup Replaces JPMorgan as White House Chief of Staff." When we saw it on the website Gawker.com we had to smile - but the smile didn't last long. There's simply too much truth in that headline; it says a lot about how Wall Street and Washington have colluded to create the winner-take-all economy that rewards the very few at the expense of everyone else. The story behind it is that Jack Lew is President Obama's new chief of staff - arguably the most powerful office in the White House that isn't shaped like an oval. He used to work for the giant banking conglomerate Citigroup. His predecessor as chief of staff is Bill Daley, who used to work at the giant banking conglomerate JPMorgan Chase, where he was maestro of the bank's global lobbying and chief liaison to the White House. Daley replaced Obama's first chief of staff, Rahm Emanuel, who once worked as a rainmaker for the investment bank now known as Wasserstein & Company, where in less than three years he was paid a reported eighteen and a half million dollars. The new guy, Jack Lew - said by those who know to be a skilled and principled public servant - ran hedge funds and private equity at Citigroup, which means he's a member of the Wall Street gang, too. His last job was as head of President Obama's Office of Management and Budget, where he replaced Peter Orzag, who now works as vice chairman for global banking at - hold on to your deposit slip - Citigroup. Still with us? It's startling the number of high-ranking Obama officials who have spun through the revolving door between the White House and the sacred halls of investment banking.
Paul Merrell

Nobel Peace Laureates to Human Rights Watch: Close Your Revolving Door to U.S. Governme... - 0 views

  • The following letter was sent today to Human Rights Watch's Kenneth Roth on behalf of Nobel Peace Prize Laureates Adolfo Pérez Esquivel and Mairead Maguire; former UN Assistant Secretary General Hans von Sponeck; current UN Special Rapporteur on Human Rights in the Palestinian Territories Richard Falk; and over 100 scholars.Dear Kenneth Roth,Human Rights Watch characterizes itself as “one of the world’s leading independent organizations dedicated to defending and protecting human rights.” However, HRW's close ties to the U.S. government call into question its independence.
  • The few examples above, limited to only recent history, might be forgiven as inconsistencies or oversights that could naturally occur in any large, busy organization. But HRW’s close relationships with the U.S. government suffuse such instances with the appearance of a conflict of interest.We therefore encourage you to institute immediate, concrete measures to strongly assert HRW's independence. Closing what seems to be a revolving door would be a reasonable first step: Bar those who have crafted or executed U.S. foreign policy from serving as HRW staff, advisors or board members. At a bare minimum, mandate lengthy “cooling-off” periods before and after any associate moves between HRW and that arm of the government.Your largest donor, investor George Soros, argued in 2010 that "to be more effective, I think the organization has to be seen as more international, less an American organization.” We concur. We urge you to implement the aforementioned proposal to ensure a reputation for genuine independence.
Paul Merrell

Why Aren't Big Bankers in Jail? - FAIR: Fairness & Accuracy In Reporting - 0 views

  • The man in charge of a bank that engaged in massive mortgage fraud chatted with a corporate media host (CNBC Squawk on the Street, 7/12/13) about the fact that virtually none of those who enriched themselves while eviscerating the life savings of many blameless people, derailing the US economy along the way, have faced criminal prosecution
  • Granted, Cramer is no one's idea of a serious interrogator of the financial system (FAIR Blog, 3/13/09). But much journalism on the question of criminal prosecution of industry leaders amounts to similar apologia. While there have been substantive inquiries into the wrongdoing of investment banks and auditors, those calling for jail time are often dismissed as irrational, driven by "blood lust" (Washington Post, 9/12/13), "anger" (Chicago Tribune, 11/30/13) or "vengeance" (Washington Post, 11/18/13).
  • What the soft-headed among us don't recognize, evidently, is that "blowing up your company isn't necessarily a crime," as the Christian Science Monitor (10/11/11) put it. "America doesn't criminalize bad business decisions," wrote the Washington Post (9/12/13). Or, from Businessweek (5/12/11): "In the American legal system, people who merely act badly or unwisely do not do time." But some have no trouble pointing to actual crimes in the crisis. "Issuing a mortgage that is known to be based on false information and then selling it in the secondary market is fraud and punishable by time in jail," economist Dean Baker (Beat the Press, 9/13/13) noted, citing the Financial Crisis Inquiry Commission. "Packaging loans into mortgage backed securities that an investment bank has good reason to believe are based on false information is also fraud and punishable by time in jail." Former federal bailout inspector Neil Barofsky agrees we're not talking about a perhaps lamentable but inactionable "culture." Asked by NPR (7/26/13) about the no-actual-crime "narrative," Barofsky answered: "No. I think that there was a tremendous amount of fraud."
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  • We're told such calls come from the margins: That no "financial industry types" have been jailed is "a recurring theme among Occupy Wall Street protesters and some Democratic politicians" (Christian Science Monitor, 10/11/11) or "the Occupy Wall Street crowd" (New York Times, 3/1/13). People who believe bankers should go to jail are deflecting blame—from the people: "The real scandal," explained the Washington Post's Charles Lane ("Banks Aren't the Bad Guys," 11/18/13), was "Americans' shared, erroneous belief in ever-rising housing prices and corresponding mania to profit from them." And maybe they need to move on: "This all happened a really long time ago. What-ever happened to the statute of limitations?" the Washington Post (11/19/13) asked itself in a recent Q&A.
  • Certainly the problem extends beyond the actions of a few bigwigs. But people who say jailing industry executives should be the sole response exist only in pundits' minds. William Black, who advocates prison for industry executives (Moyers & Company, 9/17/13), pointed to structural reasons for a lack of prosecutions, including regulatory agencies' abandonment of key functions since the 1980s' Savings & Loan scandal. "When the regulators ceased making criminal referrals—which had nothing to with an end of crime, obviously; it just had to do with a refusal to be involved in the prosecutorial effort anymore—they doomed us to a disaster where we would not succeed." Others say revolving-door relationships between banks and their government watchdogs contribute to settlements that are too generous to serve as deterrents (LittleSis, 10/23/13). Even the historic $13 billion JP Morgan settlement winds up being less than meets the eye, as much of the fine is tax-deductible, $4 billion of it is part of an earlier settlement and much of the rest will take the form of mortgage relief that will help the bank in the long run (Salon, 11/20/13).
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    Fairness & Accuracy in Reporting weighs in on mainstream media's reluctance to call for banksters to be issued horizontal striped suits, noting that the excuses used ignore that there are real victims and that real crimes were comitted. 
Gary Edwards

Guest Post: The Linchpin Lie: How Global Collapse Will Be Sold To The Masses | Zero Hedge - 0 views

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    Stunning guest post at Zero Hedge that attempts to explain it all - Why things happen and who is behind the curtain pulling the strings.  And what are they trying to do?  Excellent piece exposing the Globalists and how they work.  The question of why war and debt is so important to the Globalist one world - new world order viewpoint is also explained. excerpt: "In our modern world there exist certain institutions of power.  Not government committees, alphabet agencies, corporate lobbies, or even standard military organizations; no, these are the mere "middle-men" of power.  The errand boys.  The well paid hitmen of the global mafia.  They are not the strategists or the decision makers.  Instead, I speak of institutions which introduce the newest paradigms.  Who write the propaganda.  Who issue the orders from on high.  I speak of the hubs of elitism which have initiated nearly every policy mechanism of our government for the past several decades.  I am talking about the Council On Foreign Relations, the Tavistock Institute, the Heritage Foundation (a socialist organization posing as conservative), the Bilderberg Group, as well as the corporate foils that they use to enact globalization, such as Monsanto, Goldman Sachs, JP Morgan, the Carlyle Group, etc. Many of these organizations and corporations operate a revolving door within the U.S. government.  Monsanto has champions, like Donald Rumsfeld who was on the board of directors of its Searle Pharmaceuticals branch, who later went on to help the company force numerous dangerous products including Aspartame through the FDA.  Goldman Sachs and JP Morgan have a veritable merry-go-round of corrupt banking agents which are appointed to important White House and Treasury positions on a regular basis REGARDLESS of which party happens to be in office.  Most prominent politicians are all members of the Council on Foreign Relations, an organization which has openly admitted on multiple occasions that thei
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."
Paul Merrell

Rally your friends to support the #USAFreedomAct! - Take Action - Google - 0 views

  • The House of Representatives has passed the USA Freedom Act, which represents a significant down payment on broader government surveillance reform. We need as many people as possible speaking up to make sure that the Senate says YES to the USA Freedom Act.
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    I suppose it was too much to hope that Google would do the right thing as called for by nearly all civil liberties organizations and call for sunsetting the Patriot Act. But Google's revolving door with NSA speaks and sides with NSA. Bad Google. Truly evil.   
Paul Merrell

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

  • After failing to criminally prosecute any of the financial firms responsible for the market collapse in 2008, former Attorney General Eric Holder is returning to Covington & Burling, a corporate law firm known for serving Wall Street clients. The move completes one of the more troubling trips through the revolving door for a cabinet secretary. Holder worked at Covington from 2001 right up to being sworn in as attorney general in Feburary 2009. And Covington literally kept an office empty for him, awaiting his return. The Covington & Burling client list has included four of the largest banks, including Bank of America, Citigroup, JPMorgan Chase and Wells Fargo. Lobbying records show that Wells Fargo is still a client of Covington. Covington recently represented Citigroup over a civil lawsuit relating to the bank’s role in Libor manipulation.
  • Covington was also deeply involved with a company known as MERS, which was later responsible for falsifying mortgage documents on an industrial scale. “Court records show that Covington, in the late 1990s, provided legal opinion letters needed to create MERS on behalf of Fannie Mae, Freddie Mac, Bank of America, JPMorgan Chase and several other large banks,” according to an investigation by Reuters. The Department of Justice under Holder not only failed to pursue criminal prosecutions of the banks responsible for the mortage meltdown, but in fact de-prioritized investigations of mortgage fraud, making it the “lowest-ranked criminal threat,” according to an inspector general report. For insiders, the Holder decision to return to Covington was never a mystery. Timothy Hester, the chairman of Covington, told the National Law Journal that Holder’s return to the firm had been “a project” of his ever since Holder left to the join the administration in 2009. When the firm moved to a new building last year, it kept an 11th-story corner office reserved for Holder.
  • Holder’s critics charge that he made a career out of institutionalizing “Too Big to Prosecute” rules within the department. In 1999, as a deputy attorney general, Holder authored a memo arguing that officials should consider the “collateral consequences” when prosecuting corporate crimes. In 2012, Holder’s enforcement chief, Lanny Breuer, admitted during a speech to the New York City Bar Association that the department may go easy on certain corporate criminals if they believe prosecutions may disrupt financial markets or cause layoffs. “In some cases, the health of an industry or the markets are a real factor,” Breuer said. Rather than face accountability for their failures, the incentive structure of modern Washington is designed to reward both men. Breuer left the department in 2013 to rejoin Covington. Holder is set to become among the highest-earning partners at the firm, with compensation in the seven or eight figures.
Paul Merrell

Reset The Net - Privacy Pack - 0 views

  • This June 5th, I pledge to take strong steps to protect my freedom from government mass surveillance. I expect the services I use to do the same.
  • Fight for the Future and Center for Rights will contact you about future campaigns. Privacy Policy
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    I wound up joining this campaign at the urging of the ACLU after checking the Privacy Policy. The Reset the Net campaign seems to be endorsed by a lot of change-oriented groups, from the ACLU to Greenpeac to the Pirate Party. A fair number of groups with a Progressive agenda, but certainly not limited to them. The right answer to that situation is to urge other groups to endorse, not to avoid the campaign. Single-issue coalition-building is all about focusing on an area of agreement rather than worrying about who you are rubbing elbows with.  I have been looking for a a bipartisan group that's tackling government surveillance issues via mass actions but has no corporate sponsors. This might be the one. The reason: Corporate types like Google have no incentive to really butt heads with the government voyeurs. They are themselves engaged in massive surveillance of their users and certainly will not carry the battle for digital privacy over to the private sector. But this *is* a battle over digital privacy and legally defining user privacy rights in the private sector is just as important as cutting back on government surveillance. As we have learned through the Snowden disclosures, what the private internet companies have, the NSA can and does get.  The big internet services successfully pushed in the U.S. for authorization to publish more numbers about how many times they pass private data to the government, but went no farther. They wanted to be able to say they did something, but there's a revolving door of staffers between NSA and the big internet companies and the internet service companies' data is an open book to the NSA.   The big internet services are not champions of their users' privacy. If they were, they would be featuring end-to-end encryption with encryption keys unique to each user and unknown to the companies.  Like some startups in Europe are doing. E.g., the Wuala.com filesync service in Switzerland (first 5 GB of storage free). Compare tha
Paul Merrell

New Disclosures Highlight Ashton Carter's Ties to Investors - 0 views

  • Ashton Carter, President Obama’s nominee for Secretary of Defense, received $20,000 last year from one of the top consulting firms offering political intelligence to investors. And his wife’s investments in the defense industry may at times require him to stay on the sidelines while he serves at the Pentagon. Those are among the tidbits revealed in new disclosure reports posted online by the Office of Government Ethics. Last week, the Project On Government Oversight wrote that Carter, “[w]hile working in the private sector...has held plum positions on government advisory boards that called for reforms with potential ramifications for his defense industry clients and other companies that receive [Department of Defense] dollars.” Like many members of Washington’s policy establishment, he has straddled the public and private sectors, keeping a foot in both worlds with the potential to gain inside information on, and influence over, government policy. Carter’s latest ethics disclosures show another way for former government officials to cash in: giving speeches sponsored by companies in the investment world. The new disclosures detail Carter’s consulting and speaking engagements since he stepped down as Deputy Secretary of Defense in late 2013.
  • Several years ago, while serving as the Pentagon’s chief weapons buyer, he spoke to investors about mergers in the defense industry. “He told the assemblage that the Pentagon would frown on mergers among the five giant military contractors—the so-called primes: Lockheed Martin, General Dynamics, Raytheon, Northrop-Grumman and Boeing,” according to a 2011 article by New York Times business columnist Joe Nocera. “However, he added, the Defense Department was going to encourage mergers among smaller military contractors. And, he said, ‘we will be attentive’ to innovative smaller companies that provide services (as opposed to weapons systems) to the Pentagon.” “For the last few months, beginning with a secret meeting last October, Defense Department officials have been making the rounds of analysts and investors,” Nocera wrote. “Their main message, to put it bluntly, is that even in an era of tighter budgets, the Pentagon is going to make sure the military industry remains profitable. ‘Taxpayers and shareholders are aligned,’ Mr. Carter intoned” in his remarks.
  • Carter, his wife, the Gerson Lehrman Group, and a Pentagon spokesperson did not respond to POGO’s requests for comment, but we will update this post with any comments they provide. Carter’s confirmation hearing is set to take place in early February, according to Politico.
Paul Merrell

Is NSA Surveillance Mastermind Keith Alexander Selling US Secrets to Wall Street? | VIC... - 0 views

  • Perhaps you already assume that there's some kind of twisted marriage between Wall Street megabanks and the US global surveillance regime. Why wouldn't there be? But not even a total cynic could have anticipated spymaster Keith Alexander cashing in this hard, this fast. As Bloomberg recently reported, the former National Security Agency chief, who resigned in March at the age of 62, quickly offered his cyber-security expertise at the eye-popping price of $1 million per month to an assortment of shady business lobbies. And now at least one member of Congress is probing this most delightfully dystopian of arrangements, raising the possibility that Alexander will be shamed out of the practice, if nothing else. “Disclosing or misusing classified information for profit is, as Mr. Alexander well knows, a felony. I question how Mr. Alexander can provide any of the services he is offering unless he discloses or misuses classified information, including extremely sensitive sources and methods,” Florida Democratic Rep. Alan Grayson wrote one of the business groups, the Security Industries and Financial Markets Association (SIFMA), which holds it down for Wall Street in Washington. “Without the classified information that he acquired in his former position, he literally would have nothing to offer to you.”
  • In an interview Monday, Grayson was even more strident in his criticism. "Frankly, what the general is doing is beginning to resemble an extortion racket," he told me. "This is a man who basically lied for a living, and he continues to do that." To be clear, what's uniquely outrageous about Alexander, who has apparently lowered his asking price to $600,000, is not that he is a former US official dangling his alleged expertise and the allure of privileged access to government officials before Wall Street. Former Secretary of State Hillary Clinton, who served under Barack Obama and is the odds-on favorite to succeed him, does this all the time, usually at a rate of about $250,000 a pop. (Indeed, one might argue that the very fact she has managed to do so while enjoying a stellar national reputation is what signaled to Alexander he might as well dive headlong through the revolving door.) But the former NSA head presumably knows things about sophisticated intelligence-gathering practices that very, very few people on Earth have been privy to—information that could be useful in the private sector, which has a tendency to collude with the military in ways that made former President and World War II General Dwight Eisenhower very sad.
  • "What could he possibly have that's worth $1 million a month other than classified information?" wonders Melanie Sloan, founder of Citizens for Responsibility and Ethics in Washington (CREW), a good government group. "That's more than former presidents make." Indeed, even former President Bill Clinton, whose corruption since leaving office is by now the stuff of legend, doesn't have the gall to ask for that much per gig. There's a sort of "fuck it!" attitude to what Alexander is doing, seemingly kicking sand in the face of everyone angry at his surveillance regime by getting paid to reflect on the experience of assembling it. More ominously, there's the prospect that Alexander, whether deliberately or otherwise, may have left behind vulnerabilities while running the NSA so as to put himself in prime position to effectively hold the banks hostage now. Certainly, there have been reports suggesting the agency was aware of some vulnerabilities it either could or did not address.   "What is especially troubling is he might actually be worth it," says former North Carolina Democratic Congressman Brad Miller, who worked extensively on financial regulation and Wall Street reform in Congress. "He's obviously not a computer geek. Some of the things that might have seemed paranoid a few years ago now seem more than plausible given what we've already learned the NSA has been doing."
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  • In an email, former New York Times reporter and Goldman Sachs regulatory guru Stephen Labaton—who is currently president of communications and influence powerhouse RLM Finsbury and apparently fielding the General's media inquiries—dismissed Grayson's critique and Miller's concerns. "The letter is ludicrous," he wrote me, before adding about Miller, "The congressman’s kidding, right? Will he [Alexander] next be tied to the Kennedy assassination?" But as Marcy Wheeler points out, given that the former NSA boss has spent the last year hyping the incredible risk of catastrophic cyber-attack, as well as the alleged damage done by Edward Snowden (an assessment his successor does not seem to share), it's fair to ask if his consultancy is essentially a scam. That the victims are, for now, Wall Street bankers—some of the least sympathetic human beings around—is a sweet bit of irony. But it doesn't change the bigger picture: In this age of total surveillance and unchecked financial power, the frontiers of corruption never seem to stop expanding.
Paul Merrell

How Israel helps eavesdrop on US citizens | The Electronic Intifada - 0 views

  • It is well-known that the two largest American telecom companies AT&T and Verizon collaborated with the US government to allow illegal eavesdropping on their customers. The known uses to which information obtained this way has been put include building the government’s massive secret “watch lists,” and “no-fly lists” and even, Bamford suggests, to deny Small Business Administration loans to citizens or reject their children’s applications to military colleges. What is less well-known is that AT&T and Verizon handed “the bugging of their entire networks — carrying billions of American communications every day” to two companies founded in Israel. Verint and Narus, as they are called, are “superintrusive — conducting mass surveillance on both international and domestic communications 24/7,” and sifting traffic at “key Internet gateways” around the US.
  • Virtually all US voice and data communications and much from the rest of the world can be remotely accessed by these companies in Israel, which Bamford describes as “the eavesdropping capital of the world.” Although there is no way to prove cooperation, Bamford writes that “the greatest potential beneficiaries of this marriage between the Israeli eavesdroppers and America’s increasingly centralized telecom grid are Israel’s intelligence agencies.” Israel’s spy agencies have long had a revolving-door relationship with Verint and Narus and other Israeli military-security firms. The relationship is particularly close between the firms and Israel’s own version of the NSA, called “Unit 8200.”
  • Israeli companies seeking a share of massively expanded US intelligence budgets formed similarly incestuous relationships with some in the American intelligence establishment: Ken Minihan, a former director of the NSA, served on Verint’s “security committee” and the former Federal Bureau of Investigation (FBI) official responsible for liaison with the telecom industry became head of the Verint unit that sold eavesdropping equipment to the FBI and NSA.
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  • FISA — the Foreign Intelligence Surveillance Act of 1978 — required the government to seek court warrants for wiretaps where at least one target was in the US. In 2005, it was revealed that the Bush administration had been flagrantly violating this law. Last July, Congress passed a bill legalizing this activity and giving retroactive immunity to the telecom companies that had assisted.
  • Israel has a well-established record of compromising American national security. The most notorious case was that of convicted spy Jonathan Pollard. Although the full details of his crimes are still secret, he is thought to have passed critical information about US intelligence-gathering methods to Israel, which then traded those secrets to US adversaries. In 2005, Larry Franklin, a Defense Department analyst, pleaded guilty to spying for Israel. Most recently, Ben-Ami Kadish, a retired US army engineer, was indicted in April for allegedly passing classified documents about US nuclear weapons to Israel from 1979 to 1985. Two former officials of AIPAC, the pro-Israel lobbying group, are still awaiting trial on charges that they passed classified information between Franklin and the Israeli government.
  • Nor have particular Israeli firms established a record of trustworthiness that would justify such complacency. Jacob “Kobi” Alexander, the former Israeli intelligence officer who founded Verint, fled the US to Israel in 2006 just before he and other top executives of a subsidiary were indicted for fraud that allegedly cost US taxpayers and company shareholders $138 million. Alexander eventually adopted a fake identity and hid in the southern African country of Namibia where he is now fighting extradition
  • Israeli companies do not assist the US only to spy on its own citizens, of course. Another Israeli firm, Natural Speech Communication (NSC), among whose directors is former Mossad chief Shabtai Shavit, makes software that the US uses to electronically analyze and key-word search recorded conversations in “Levantine Arabic,” the dialects “spoken by Israeli Arabs, Jordanians, Lebanese and Palestinians.” Mexico and Australia are among other countries known to use Israeli technologies and firms to eavesdrop on their citizens.
Paul Merrell

Web's Reach Binds N.S.A. and Silicon Valley Leaders - NYTimes.com - 0 views

  • When Max Kelly, the chief security officer for Facebook, left the social media company in 2010, he did not go to Google, Twitter or a similar Silicon Valley concern. Instead the man who was responsible for protecting the personal information of Facebook’s more than one billion users from outside attacks went to work for another giant institution that manages and analyzes large pools of data: the National Security Agency. Mr. Kelly’s move to the spy agency, which has not previously been reported, underscores the increasingly deep connections between Silicon Valley and the agency and the degree to which they are now in the same business. Both hunt for ways to collect, analyze and exploit large pools of data about millions of Americans. The only difference is that the N.S.A. does it for intelligence, and Silicon Valley does it to make money.
  • Yet technology experts and former intelligence officials say the convergence between Silicon Valley and the N.S.A. and the rise of data mining — both as an industry and as a crucial intelligence tool — have created a more complex reality. Silicon Valley has what the spy agency wants: vast amounts of private data and the most sophisticated software available to analyze it. The agency in turn is one of Silicon Valley’s largest customers for what is known as data analytics, one of the valley’s fastest-growing markets. To get their hands on the latest software technology to manipulate and take advantage of large volumes of data, United States intelligence agencies invest in Silicon Valley start-ups, award classified contracts and recruit technology experts like Mr. Kelly. “We are all in these Big Data business models,” said Ray Wang, a technology analyst and chief executive of Constellation Research, based in San Francisco. “There are a lot of connections now because the data scientists and the folks who are building these systems have a lot of common interests.” Although Silicon Valley has sold equipment to the N.S.A. and other intelligence agencies for a generation, the interests of the two began to converge in new ways in the last few years as advances in computer storage technology drastically reduced the costs of storing enormous amounts of data — at the same time that the value of the data for use in consumer marketing began to rise. “These worlds overlap,” said Philipp S. Krüger, chief executive of Explorist, an Internet start-up in New York. The sums the N.S.A. spends in Silicon Valley are classified, as is the agency’s total budget, which independent analysts say is $8 billion to $10 billion a year.
  • Despite the companies’ assertions that they cooperate with the agency only when legally compelled, current and former industry officials say the companies sometimes secretly put together teams of in-house experts to find ways to cooperate more completely with the N.S.A. and to make their customers’ information more accessible to the agency. The companies do so, the officials say, because they want to control the process themselves. They are also under subtle but powerful pressure from the N.S.A. to make access easier.
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  • Skype, the Internet-based calling service, began its own secret program, Project Chess, to explore the legal and technical issues in making Skype calls readily available to intelligence agencies and law enforcement officials, according to people briefed on the program who asked not to be named to avoid trouble with the intelligence agencies. Project Chess, which has never been previously disclosed, was small, limited to fewer than a dozen people inside Skype, and was developed as the company had sometimes contentious talks with the government over legal issues, said one of the people briefed on the project. The project began about five years ago, before most of the company was sold by its parent, eBay, to outside investors in 2009. Microsoft acquired Skype in an $8.5 billion deal that was completed in October 2011. A Skype executive denied last year in a blog post that recent changes in the way Skype operated were made at the behest of Microsoft to make snooping easier for law enforcement. It appears, however, that Skype figured out how to cooperate with the intelligence community before Microsoft took over the company, according to documents leaked by Edward J. Snowden, a former contractor for the N.S.A. One of the documents about the Prism program made public by Mr. Snowden says Skype joined Prism on Feb. 6, 2011. Microsoft executives are no longer willing to affirm statements, made by Skype several years ago, that Skype calls could not be wiretapped. Frank X. Shaw, a Microsoft spokesman, declined to comment.
Paul Merrell

Timothy Geithner Named President of NYC Private Equity Firm | TIME.com - 0 views

  • The former U.S. treasury secretary who is most closely aligned with the financial bailout is heading to Wall Street to helm a private-equity firm. Timothy Geithner will join New York-based Warburg Pincus in March as the president and managing director, a departure from the typical hands-off positions public figures’ transitions following government roles, the Wall Street Journal reports. Geithner, who has been attributed with navigating the financial crisis of 2008 and 2009 but was criticized for being too easy on Wall Street banks, will focus on the firm’s investment strategy and investor relations.
Paul Merrell

Julian Assange: Google Has Revolving Doors with State Dept   :  Information C... - 0 views

  • Video Assange maintains Google is in bed with the state department and also reveals the false allegations the US military made against WikiLeaks, which surfaced during the Chelsea Manning trial. Assange talks about Guardian gaffs, Glenn Greenwald, FinFisher spyware and the NSA’s rampant antics. The interview reveals 'an extremely alarming phenomenon': how more and more security-cleared Americans are joining the ranks of the 'state within a state' – 6 million to date.
Paul Merrell

Lobbyists for Spies Appointed To Oversee Spying - The Intercept - 0 views

  • Who’s keeping watch of the National Security Agency? In Congress, the answer in more and more cases is that the job is going to former lobbyists for NSA contractors and other intelligence community insiders. A wave of recent appointments has placed intelligence industry insiders into key Congressional roles overseeing intelligence gathering. The influx of insiders is particularly alarming because lawmakers in Washington are set to take up a series of sensitive surveillance and intelligence issues this year, from reform of the Patriot Act to far-reaching “information sharing” legislation.
  • Who’s keeping watch of the National Security Agency? In Congress, the answer in more and more cases is that the job is going to former lobbyists for NSA contractors and other intelligence community insiders. A wave of recent appointments has placed intelligence industry insiders into key Congressional roles overseeing intelligence gathering. The influx of insiders is particularly alarming because lawmakers in Washington are set to take up a series of sensitive surveillance and intelligence issues this year, from reform of the Patriot Act to far-reaching “information sharing” legislation. After the first revelations of domestic surveillance by NSA whistleblower Edward Snowden, President Obama defended the spying programs by claiming they were “subject to congressional oversight and congressional reauthorization and congressional debate.” But as Rep. Alan Grayson, D-Fla., and other members of Congress have pointed out, there is essentially a “two-tiered” system for oversight, with lawmakers and staff on specialized committees, such as the House and Senate committees on Intelligence and Homeland Security, controlling the flow of information and routinely excluding other Congress members, even those who have asked for specific information relating to pending legislation.
  • The Intercept reviewed the new gatekeepers in Congress, the leading staffers on the committees overseeing intelligence and surveillance matters, and found a large number of lobbyists and consultants passing through the revolving door between the intelligence community and the watchdogs who purportedly oversee the intelligence community. We reached out to each of them earlier this week and have yet to hear back:
Paul Merrell

SEC Chair Got Waiver to Oversee Wall Street Law Firm - 0 views

  • Mary Jo White, the head of the Securities and Exchange Commission (SEC), was granted a waiver last year allowing her to vote on agency issues affecting a major corporate law firm that was also a former client of hers. White was permitted to handle SEC business affecting Simpson Thacher & Bartlett LLP, a firm that has represented some of the biggest names on Wall Street. The waiver was issued in February 2014 but remained undisclosed while various matters involving Simpson Thacher played out before the Commission. The Project On Government Oversight found the waiver posted online last week by the Office of Government Ethics (OGE).
  • At a time when Members of Congress are sounding the alarm about the over-representation of Wall Street veterans in government positions, White’s waiver shows how the government must grapple with tough choices when it recruits industry representatives through the revolving door. Should White and other officials be allowed to handle agency business that affects former employers or clients, despite the potential conflict of interest? Or should they be forced to remain on the sidelines, limiting their work as public servants?
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    It isn't just a potential conflict of interest. It is an actual conflict of interest. By Bar Disciplinary Rule in every state, lawyers owe a duty of loyalty to their clients that ends only when the client or the lawyer dies. Congress, in its infinite wisdom, carved out an exception for federal government lawyers, who duty of loyalty to the government is now legally truncated two years after government service ends and is now subject to a vast number of exceptions even to that diminished period of loyalty. But since White was in private practice when she represented the law firm involved, her duty of loyalty is never-ending. She can lawfully act adversely to the former client only if that former client grants its informed consent in writing. 
Paul Merrell

US Troops 'May' Be Needed in Iraq, Says Hagel | News | teleSUR - 0 views

  • The United States already has 4500 troops in Iraq, but outgoing defense secretary Chuck Hagel says more may be needed.
  • U.S. ground forces may again be deployed to Iraq, outgoing Defense Secretary Chuck Hagel hinted on Friday. “I think it may require a forward deployment of some of our troops,” he told CNN. Hagel stated troops wouldn't operate as frontline fighters, but instead support Iraqi government forces in spotting Islamic State group targets and gathering intelligence. He also stated he is unsure whether such a deployment is yet needed. “I would say we're not there yet. Whether we get there or not, I don't know,” he said. Despite a pledge by President Barack Obama that there would be “no boots on the ground” in the fight against the Islamic State group, around 4500 U.S. troops are already in Iraq. The administration says the troops are primarily providing training to Iraqi government forces, and will not directly face the Islamic State group.
  • However, Hagel himself has acknowledged las year, “This is a long-term effort.” “It’s difficult. There will be setbacks. There will be victories,” he said ahead of a visit to Baghdad in December. The surprise visit was the first time Hagel has been to Iraq since he became defense secretary in February, 2013.
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  • It also followed the announcement of Hagel's sudden resignation in November. Obama has tapped Ashton Carter as the next defense secretary. “Carter has been through the revolving door between industry, the military and academia — advising Goldman Sachs and other investment firms on military technology along the way,” nuclear disarmament campaigner Alice Slater said when Carter's nomination was announced. Slater warned that Carter has advocated for an expanded U.S. military presence in Asia, and was “instrumental in establishing the policy that led to the new demonization of Russia which we see today.” “Carter also advised Obama on expanding the U.S. empire to Asia in the so-called Asia pivot, which resulted in new bases in the Pacific, expanded missile shields with Japan and South Korea, and actually stationing troops in Australia,” she stated.
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    I wonder why Obama doesn't simply move the Pentagon and all military bases located in the U.S. to Iraq? 
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