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In recent months, intelligence services in Britain and the United States have publicly been campaigning against pressure to rein in their surveillance operations, notably pitting them against the American technology companies that dominate the Internet, like Google, Facebook and Apple.Robert Hannigan, the recently appointed director of GCHQ, Britain’s electronic intelligence agency, castigated Internet companies in November for providing the “command-and-control networks of choice for terrorists and criminals” and challenged them to find a better balance between privacy and security.Companies are stepping up efforts to strengthen encryption, saying they are responding to demands for more privacy from their users.

The request was approved through military channels three days later but not made public. Under the terms of the deal, the Israelis used US financing to pay for $3 million in tank rounds. No presidential approval or signoff by the secretary of state was required or sought, according to officials.

One senior US official said the decision to tighten oversight and require the pre-approval of higher-ranking officials for shipments was intended to make clear to Israel that there is no “blank check” from Washington in regards to the US-made weapons that the Israel Defense Forces (IDF) uses in Gaza.

Many of Gamma's product brochures have previously been published by the Wall Street Journal and Wikileaks, but the latest trove shows how the products are getting more sophisticated. In one document, engineers at Gamma tested a product called FinSpy, which inserts malware onto a user's machine, and found that it could not be blocked by most antivirus software. Documents also reveal that Gamma had been working to bypass encryption tools including a mobile phone encryption app, Silent Circle, and were able to bypass the protection given by hard-drive encryption products TrueCrypt and Microsoft's Bitlocker.

The documents also describe a "country-wide" surveillance product called FinFly ISP which promises customers the ability to intercept Internet traffic and masquerade as ordinary websites in order to install malware on a target's computer. The most recent date-stamp found in the documents is August 2, coincidung with the first tweet by a parody Twitter account, @GammaGroupPR, which first announced the hack and may be run by the hacker or hackers responsible for the leak. On Reddit, a user called PhineasFisher claimed responsibility for the leak. "Two years ago their software was found being widely used by governments in the middle east, especially Bahrain, to hack and spy on the computers and phones of journalists and dissidents," the user wrote. The name on the @GammaGroupPR Twitter account is also "Phineas Fisher." GammaGroup, the surveillance company whose documents were released, is no stranger to the spotlight. The security firm F-Secure first reported the purchase of FinFisher software by the Egyptian State Security agency in 2011. In 2012, Bloomberg News and The Citizen Lab showed how the company's malware was used to target activists in Bahrain. In 2013, the software company Mozilla sent a cease-and-desist letter to the company after a report by The Citizen Lab showed that a spyware-infected version of the Firefox browser manufactured by Gamma was being used to spy on Malaysian activists.

Even at face value, the reported settlement is minuscule compared to the harm caused by Bank of America companies. The on-paper cost of the deal is less than 7 percent of the value of the mortgage deals Bank of America and its subsidiaries Countrywide and Merrill Lynch made before the crisis that have since gone bad. (Bank of America bought Countrywide and Merrill Lynch at the height of the crisis.) Those three companies issued just shy of a trillion dollars in mortgage-backed securities in the run-up to the financial collapse, and $245 billion of those products have gone bad, according to Bloomberg. Bank of America had pushed for a much smaller settlement for months, arguing that it should not have to pay for the sins of the firms it bought at bargain-bin prices when the economy was reeling. But a court ruling last month regarding Countrywide’s most notorious mortgage swindle caused the bank to change its tune, according to the New York Times. Judge Jed Rakoff ordered the bank to pay about $1.3 billion for one tranch of defective mortgages sold under a program that Countrywide nicknamed “Hustle” because of its fraudulent nature. Having lost one court case over Countrywide’s notorious misdeeds, the Times says, Bank of America decided to stop resisting federal officials’ settlement demands.

After tax deductions, the settlement could easily shrink below the roughly $15 billion in profits the company has reported since 2011. And because the financial crisis sucked something like $14 trillion out of the economy and destroyed tens of trillions of dollars in wealth for homeowners, the DOJ can hardly claim to have delivered a proportional response. The department’s claims about the Bank of America settlement are likely to draw political scrutiny. A bipartisan bill from Sens. Elizabeth Warren (D-MA) and Tom Coburn (R-OK) would require government officials to state the full tax deductibility and true cost of corporate legal settlements in all public statements about them. That bill, inspired by the revelations that JP Morgan’s sweetheart deal with the DOJ didn’t come close to the portrait that Attorney General Eric Holder painted of it, was passed out of committee late last month.

Donetsk and Lugansk have formed militias and taken the war to the enemy. They’ve engaged Obama’s proxy-army on the battlefield and pounded it into mincemeat. That’s why Obama deployed his propagandists to lie about the fictitious “Russian invasion”. The administration needs a diversion because the Novorussia forces (aka-the “pro Russia separatists”) are kicking the holy crap out of Obama’s legions. That’s why Washington and Kiev are in full panic-mode, because none of this was supposed to happen. Obama figured the army would put down the insurrection, crush the resistance, and move him one step closer to his goal of establishing NATO bases and missile defense systems on Russia’s western flank. Well, guess what? It’s not playing out that way and it probably never will. The Novorussia fighters are too tough, too smart and too motivated to be one-upped by Obama’s feckless troopers. (Check out this short video and you’ll see why the rebels are winning: Vineyard of the Saker)

Putin hasn’t sent tanks and artillery into Ukraine. He doesn’t need to. The militias are loaded with battle-hardened veterans who know how to fight and who are quite good at it. Just ask Poroshenko whose army has been taking it in the shorts for the last couple of weeks. Check out this blurb in Thursday’s Itar Tass: “Over the week of August 16-23, the self-defense fighters of the Donetsk and Luhansk People’s Republics seized 14 T-64 tanks, 25 infantry fighting vehicles, 18 armored personnel carriers, one armored reconnaissance and patrol vehicle, one Uragan multiple launch rocket system, two Gvozdika self-propelled artillery guns, four D-30 howitzers, four mortars, one ZU-23-2 air defense system and 33 vehicles.” (East Ukraine militias seize large amount of Ukrainian armor, Itar Tass) Get the picture? The Ukrainian army is getting beaten to a pulp, which means that Obama’s glorious “pivot strategy” just slammed into a brick wall.

Bottom line: Russia has not invaded Ukraine. The propagandists in the media are just trying to hide the fact that the Novorussia Army Forces (NAF; aka-the pro Russia separatists) are kicking ass and taking names. That’s what’s really going on. That’s why Obama and his gaggle of miscreant neocons are in a furor. It’s because they don’t know what to do next, so they’ve returned to their default position on every issue; lie like hell until they settle on a plan.

So, who do you believe; Kerry or the facts? And who are you going to believe this time; “Aluminum tubes” Gordie or Organization for Security and Co-operation in Europe (OSCE) monitor Andrey Kelin who said yesterday: “We have said that no Russian involvement has been spotted, there are no soldiers or equipment present.” “Accusations relating to convoys of armored personnel carriers have been heard during the past week and the week before that. All of them were proven false back then, and are being proven false again now.” (RT) Repeat: “No Russian involvement”. All the accusations “were proven false.” “False” as in fake, phony, propaganda, bunkum, lies which, by the way, appears to be Gordon’s area of expertise.

The NSA has also infiltrated the Internet communications of PKK leaders living in Europe. Turkish intelligence helped pave the way to the success by providing the email addresses used by the targets. The exchange of data went so far that the NSA even gave Turkey the location of the mobile phones of certain PKK leaders inside Turkey, providing updated information every six hours. During one military operation in Turkey in October 2005, the NSA delivered the location data every hour. In May 2007, then-Director of National Intelligence Mike McConnell signed a “memorandum” pledging deeper intelligence support for Turkey. A report prepared on the occasion of an April 2013 visit by a Turkish delegation to NSA headquarters at Fort Meade indicates that cooperation in targeting the PKK had “increased across the board” since then. That partnership has focused overwhelmingly on the PKK—NSA assets in Turkey collected more data on PKK last year than any other target except for Russia. It resulted in the creation of a joint working group called the Combined Intelligence Fusion Cell, a team of American and Turkish specialists working together on projects that included finding targets for possible Turkish airstrikes against suspected PKK members. All the data for one entire wave of attacks carried out in December 2007 originated from this intelligence cell, according to a diplomatic cable from the WikiLeaks archive.

And then there's NATO's recent record. An ignominious defeat in Afghanistan. A "humanitarian" bombing that reduced once-stable Libya to a miserable failed state immersed in total anarchy and ravaged by rabid militias. Not exactly fabulous PR for NATO's future as a coalition assembly line with global "vocation", capable of pulling off expeditionary wars all around the world by creating the appearance of a military and political consensus unified by - what else - an Empire of Chaos doctrine: NATO's "strategic concept" approved at the 2010 Lisbon summit. (See US a kid in a NATO candy store, Asia Times Online, November 25, 2010.) Since those go-go "Bubba" Clinton years; through the "pre-emptive" Dubya era; and now under the R2P dementia of Obama's warring Medusas (Rice, Power, Hillary), the Pentagon dreams of NATO as global Robocop, dominating all the roles embodied by the UN and the EU in terms of security. This has absolutely nothing to do with the original collective defense of NATO signatories against possible territorial attacks. Oh, sorry; we forgot the attacks by those (non-existent) nuclear missiles deployed by evil Iran.

The Ukraine battleground at least has the merit of showing the alliance is naked. For the Full Spectrum Dominance Pentagon, what really matters above all is something that's been actually happening since the fall of the Soviet Union; unlimited NATO expansion to the westernmost borders of Russia. The real deal this September is not NATO. It's the SCO's summit. Expect the proverbial tectonic shifts of geopolitical plaques in the upcoming meeting of the Shanghai Cooperation Organization - a shift as far-reaching as when the Ottoman empire failed at the gates of Vienna in 1683. On the initiative of Russia and China, at the SCO summit, India, Pakistan, Iran and Mongolia will be invited to become permanent members. Once again, the battle lines are drawn. NATO vs SCO. NATO vs BRICS. NATO vs Global South. Therefore, NATO attacks!

Are we there yet? Pretty close, I’d say. The only way to preserve democracy is by keeping one hand firmly clasped around the windpipe of every rich bastard in the country. If you can’t keep your tycoons in check, you’d might as well throw in the towel and accept a life of indentured servitude now, because that’s where you’re headed anyway. Here’s a short rundown of the changes that took place in the ’70s by economist Lawrence Mishel:

Yup, under Bush, the 1% captured a disproportionate share of the income gains from the Bush boom of 2002-2007. They got 65 cents of every dollar created in that boom, up 20 cents from when Clinton was President. Under Obama, the 1% got 93 cents of every dollar created in that boom. That’s not only more than under Bush, up 28 cents. In the transition from Bush to Obama, inequality got worse, faster, than under the transition from Clinton to Bush. Obama accelerated the growth of inequality.” (Growth of Income Inequality Is Worse Under Obama than Bush, Matt Stoller, Naked Capitalism) 93 cents of every buck has gone to the 1 percenters under Obama. And you wonder why Wall Street loves this guy? It’s because he’s bent over backwards to make them richer, that’s why.

But as bad as Obama may be, the problem didn’t start with him. It goes back decades as the first chart indicates.

First, they target a Muslim: not due to any evidence of intent or capability to engage in terrorism, but rather for the “radical” political views he expresses. In most cases, the Muslim targeted by the FBI is a very young (late teens, early 20s), adrift, unemployed loner who has shown no signs of mastering basic life functions, let alone carrying out a serious terror attack, and has no known involvement with actual terrorist groups. They then find another Muslim who is highly motivated to help disrupt a “terror plot”: either because they’re being paid substantial sums of money by the FBI or because (as appears to be the case here) they are charged with some unrelated crime and are desperate to please the FBI in exchange for leniency (or both). The FBI then gives the informant a detailed attack plan, and sometimes even the money and other instruments to carry it out, and the informant then shares all of that with the target. Typically, the informant also induces, lures, cajoles, and persuades the target to agree to carry out the FBI-designed plot. In some instances where the target refuses to go along, they have their informant offer huge cash inducements to the impoverished target. Once they finally get the target to agree, the FBI swoops in at the last minute, arrests the target, issues a press release praising themselves for disrupting a dangerous attack (which it conceived of, funded, and recruited the operatives for), and the DOJ and federal judges send their target to prison for years or even decades (where they are kept in special GITMO-like units). Subservient U.S. courts uphold the charges by applying such a broad and permissive interpretation of “entrapment” that it could almost never be successfully invoked. As AP noted last night, “defense arguments have repeatedly failed with judges, and the stings have led to many convictions.”

There are countless similar cases where the FBI triumphantly disrupts its own plots, causing people to be imprisoned as terrorists who would not and could not have acted on their own. Trevor Aaronson has comprehensively covered what amounts to the FBI’s own domestic terror network, and has reported that “nearly half [of all DOJ terrorism] prosecutions involved the use of informants, many of them incentivized by money (operatives can be paid as much as $100,000 per assignment) or the need to work off criminal or immigration violation.” He documents “49 [terrorism] defendants [who] participated in plots led by an agent provocateur—an FBI operative instigating terrorist action.” In 2012, Petra Bartosiewicz in The Nation reviewed the post-9/11 body of terrorism cases and concluded: Nearly every major post-9/11 terrorism-related prosecution has involved a sting operation, at the center of which is a government informant. In these cases, the informants — who work for money or are seeking leniency on criminal charges of their own — have crossed the line from merely observing potential criminal behavior to encouraging and assisting people to participate in plots that are largely scripted by the FBI itself. Under the FBI’s guiding hand, the informants provide the weapons, suggest the targets and even initiate the inflammatory political rhetoric that later elevates the charges to the level of terrorism.

In a December 2014 opinion in the Hassanshahi case, US District Judge Rudolph Contreras allowed the evidence, but also required that the government provide a "declaration summarizing the contours of the law enforcement database used by Homeland Security Investigations to discover Hassanshahi’s phone number, including any limitations on how and when the database may be used." To comply with the judge’s order, Robert Patterson, the assistant special agent in charge of the DEA, wrote in the Thursday filing: As noted, this database was a federal law enforcement database. It could be used to query a telephone number where federal law enforcement officials had a reasonable articulable suspicion that the telephone number at issue was related to an ongoing federal criminal investigation. The Iranian number was determined to meet this standard based on specific information indicating that the Iranian number was being used for the purpose of importing technological goods to Iran in violation of United States law. Previously, the government had not revealed exactly how it began its investigation of Hassanshahi, and only referred cryptically to "[DHS]-accessible law enforcement databases," in Akronowitz’ 2013 and  2014 affidavits.

Similarly, other privacy-minded legal experts questioned the government’s tactics in this new revelation. "We just don’t know about the scope of these things, and that’s what’s disturbing," Andrew Crocker, a legal fellow at the Electronic Frontier Foundation, told Ars. His colleague, Hanni Fakhoury, an EFF attorney who used to be a federal public defender, added that he was "not surprised." "Bulk surveillance technologies and the dangerous legal theories that are used to support them trickle down, and here's a prime example of that," he wrote by e-mail. "The DEA's mandate is of course important but not at the level of national security where as you know there are serious legal questions about the propriety of this collection of phone metadata. And if the DEA has a program like this, it wouldn't surprise me if other agencies do too for other sorts of records the government has claimed it can collect with a subpoena (like bank records)."

Patrick Toomey, an attorney with the American Civil Liberties Union, chimed in to say that this indeed was a clear example of government overreach. "This disclosure underscores how the government has expanded its use of bulk collection far beyond the NSA and the national-security context, to rely on mass surveillance in ordinary criminal investigations," he said by e-mail. "It’s now clear that multiple government agencies have tracked the calls that Americans make to their parents and relatives, friends, and business associates overseas, all without any suspicion of wrongdoing," Toomey continued. "The DEA program shows yet again how strained and untenable legal theories have been used to secretly justify the surveillance of millions of innocent Americans using laws that were never written for that purpose."

Reprising this role in Bosnia, Salman was appointed by his full brother and close political ally King Fahd to direct the Saudi High Commission for Relief of Bosnia and Herzegovina (SHC) upon its founding in 1992. Through the SHC, Salman gathered donations from the royal family for Balkan relief, supervising the commission until its until its recent closure in 2011. By 2001, the organization had collected around $600 million — nominally for relief and religious purposes, but money that allegedly also went to facilitating arms shipments, despite a U.N. arms embargo on Bosnia and other Yugoslav successor states from 1991 to 1996. And what kind of supervision did Salman exercise over this international commission? In 2001, NATO forces raided the SHC’s Sarajevo offices, discovering a treasure trove of terrorist materials: before-and-after photographs of al Qaeda attacks, instructions on how to fake U.S. State Department badges, and maps marked to highlight government buildings across Washington. The Sarajevo raid was not the first piece of evidence that the SHC’s work went far beyond humanitarian aid. Between 1992 and 1995, European officials tracked roughly $120 million in donations from Salman’s personal bank accounts and from the SHC to a Vienna-based Bosnian aid organization named the Third World Relief Agency (TWRA). Although the organization claimed to be focused on providing humanitarian relief, Western intelligence agencies estimated that the TWRA actually spent a majority of its funds arming fighters aligned with the Bosnian government.

A defector from al Qaeda called to testify before the United Nations, and who gave a deposition for lawyers representing the families of 9/11 victims, alleged that both Salman’s SHC and the TWRA provided essential support to al Qaeda in Bosnia, including to his 107-man combat unit. In a deposition related to the 9/11 case, he stated that the SHC “participated extensively in supporting al Qaida operations in Bosnia” and that the TWRA “financed, and otherwise supported” the terrorist group’s fighters. The SHC’s connection to terrorist groups has long been scrutinized by U.S. intelligence officials as well. The U.S. government’s Joint Task Force Guantanamo once included the Saudi High Commission on its list of suspected “terrorist and terrorist support entities.” The Defense Intelligence Agency also once accused the Saudi High Commission of shipping both aid and weapons to Mohamed Farrah Aidid, the al Qaeda-linked Somali warlord depicted as a villain in the movie Black Hawk Down. Somalia was subject to a United Nations arms embargo starting in January 1992. *** The board of trustees for the Prince Salman Youth Center, which Salman himself chairs, today includes Saleh Abdullah Kamel, a Saudi billionaire whose name showed up on a purported list of al Qaeda’s earliest supporters known as the “golden chain.” (The Wall Street Journal reported that Kamel “denies supporting terror.”) But as the United States sought to shut down Saudi charities with ties to terrorism in the aftermath of the 9/11 attacks, Kamel and Salman both condemned the effort as an anti-Islamic witch hunt.

In 1995, US aid worker William Jefferson is killed in Bosnia. One of the likely suspects, Ahmed Zuhair Handala, is linked to the SHC. He also is let go, despite evidence linking him to massacres of civilians in Bosnia. [Schindler, 2007, pp. 263-264] In 1997, a Croatian apartment building is bombed, and Handala and two other SHC employees are suspected of the bombing. They escape, but Handala will be captured after 9/11 and sent to Guantanamo prison. [Schindler, 2007, pp. 266] In 1997, SHC employee Saber Lahmar is arrested for plotting to blow up the US embassy in Saravejo. He is convicted, but pardoned and released by the Bosnian government two years later. He will be arrested again in 2002 for involvement in an al-Qaeda plot in Bosnia and sent to Guantanamo prison (see January 18, 2002). By 1996, NSA wiretaps reveal that Prince Salman is funding Islamic militants using charity fronts (Between 1994 and July 1996).

History Commons adds important details: By 1994, if not earlier, the NSA is collecting electronic intercepts of conversations between Saudi Arabian royal family members. Journalist Seymour Hersh will later write, “according to an official with knowledge of their contents, the intercepts show that the Saudi government, working through Prince Salman [bin Abdul Aziz], contributed millions to charities that, in turn, relayed the money to fundamentalists. ‘We knew that Salman was supporting all of the causes,’ the official told me.” By July 1996 or soon after, US intelligence “had more than enough raw intelligence to conclude… bin Laden [was] receiving money from prominent Saudis.” [Hersh, 2004, pp. 324, 329-330] One such alleged charity front linked to Salman is the Saudi High Commission in Bosnia (see 1996 and After). Prince Salman has long been the governor of Riyadh province. At the time, he is considered to be about fourth in line to be king of Saudi Arabia. His son Prince Ahmed bin Salman will later be accused of having connections with al-Qaeda leader Abu Zubaida (see Early April 2002). [PBS, 10/4/2004] It appears this surveillance of Saudi royals will come to an end in early 2001 (see (February-March 2001)).

Author Roland Jacquard will later claim that in 1996, al-Qaeda revives its militant network in Bosnia in the wake of the Bosnian war and uses the Saudi High Commission (SHC) as its main charity front to do so. [Jacquard, 2002, pp. 69] This charity was founded in 1993 by Saudi Prince Salman bin Abdul-Aziz and is so closely linked to and funded by the Saudi government that a US judge will later render it immune to a 9/11-related lawsuit after concluding that it is an organ of the Saudi government. [New York Law Journal, 9/28/2005] In 1994, British aid worker Paul Goodall is killed in Bosnia execution-style by multiple shots to the back of the head. A SHC employee, Abdul Hadi al-Gahtani, is arrested for the murder and admits the gun used was his, but the Bosnian government lets him go without a trial. Al-Gahtani will later be killed fighting with al-Qaeda and the Taliban in Afghanistan. [Schindler, 2007, pp. 143-144; Schindler is a professor at the U.S. Army War College] In 1995, the Bosnian Ministry of Finance raids SHC’s offices and discovers documents that show SHC is “clearly a front for radical and terrorism-related activities.” [Burr and Collins, 2006, pp. 145]

In November 2002, Prince Salman patronized a fundraising gala for three Saudi charities under investigation by Washington: the International Islamic Relief Organization, al-Haramain Foundation, and the World Assembly of Muslim Youth. Since 9/11, all three organizations have had branches shuttered or sanctioned over allegations of financially supporting terrorism. That same month, Salman cited his experience on the boards of charitable societies, asserting that “it is not the responsibility of the kingdom” if others exploit Saudi donations for terrorism. *** The new king has also embraced Saudi cleric Saleh al-Maghamsi, an Islamic supremacist who declared in 2012 that Osama bin Laden had more “sanctity and honor in the eyes of Allah,” simply for being a Muslim, than “Jews, Christians, Zoroastrians, apostates, and atheists,” whom he described by nature as “infidels.” That didn’t put an end to Salman’s ties to Maghamsi, however. The new Saudi king recently served as head of the supervisory board for a Medina research center directed by Maghamsi. A year after Maghamsi’s offensive comments, Salman sponsored and attended a large cultural festival organized by the preacher. Maghamsi also advises two of Salman’s sons ….

A 1996 CIA report mentions, “We continue to have evidence that even high ranking members of the collecting or monitoring agencies in Saudi Arabia, Kuwait, and Pakistan – such as the Saudi High Commission – are involved in illicit activities, including support for terrorists” (see January 1996). Jacquard claims that most of the leadership of the SHC supports bin Laden. The SHC, while participating in some legitimate charitable functions, uses its cover to ship illicit goods, drugs, and weapons in and out of Bosnia. In May 1997, a French military report concludes: ”(T)he Saudi High Commission, under cover of humanitarian aid, is helping to foster the lasting Islamization of Bosnia by acting on the youth of the country. The successful conclusion of this plan would provide Islamic fundamentalism with a perfectly positioned platform in Europe and would provide cover for members of the bin Laden organization.” [Jacquard, 2002, pp. 69-71] However, the US will take no action until shortly after 9/11, when it will lead a raid on the SHC’s Bosnia offices. Incriminating documents will be found, including information on how to counterfeit US State Department ID badges, and handwritten notes about meetings with bin Laden. Evidence of a planned attack using crop duster planes is found as well. [Schindler, 2007, pp. 129, 284]

While Gemalto was indeed another casualty in Western governments’ sweeping effort to gather as much global intelligence advantage as possible, the leaked documents make clear that the company was specifically targeted. According to the materials published Thursday, GCHQ used a specific codename — DAPINO GAMMA — to refer to the operations against Gemalto. The spies also actively penetrated the email and social media accounts of Gemalto employees across the world in an effort to steal the company’s encryption keys. Evidence of the Gemalto breach rattled the digital security community. “Almost everyone in the world carries cell phones and this is an unprecedented mass attack on the privacy of citizens worldwide,” said Greg Nojeim, senior counsel at the Center for Democracy & Technology, a non-profit that advocates for digital privacy and free online expression. “While there is certainly value in targeted surveillance of cell phone communications, this coordinated subversion of the trusted technical security infrastructure of cell phones means the US and British governments now have easy access to our mobile communications.”

For Gemalto, evidence that their vaunted security systems and the privacy of customers had been compromised by the world’s top spy agencies made an immediate financial impact. The company’s shares took a dive on the Paris bourse Friday, falling $500 million. In the U.S., Gemalto’s shares fell as much 10 percent Friday morning. They had recovered somewhat — down 4 percent — by the close of trading on the Euronext stock exchange. Analysts at Dutch financial services company Rabobank speculated in a research note that Gemalto could be forced to recall “a large number” of SIM cards. The French daily L’Express noted today that Gemalto board member Alex Mandl was a founding trustee of the CIA-funded venture capital firm In-Q-Tel. Mandl resigned from In-Q-Tel’s board in 2002, when he was appointed CEO of Gemplus, which later merged with another company to become Gemalto. But the CIA connection still dogged Mandl, with the French press regularly insinuating that American spies could infiltrate the company. In 2003, a group of French lawmakers tried unsuccessfully to create a commission to investigate Gemplus’s ties to the CIA and its implications for the security of SIM cards. Mandl, an Austrian-American businessman who was once a top executive at AT&T, has denied that he had any relationship with the CIA beyond In-Q-Tel. In 2002, he said he did not even have a security clearance.

AT&T, T-Mobile and Verizon could not be reached for comment Friday. Sprint declined to comment. Vodafone, the world’s second largest telecom provider by subscribers and a customer of Gemalto, said in a statement, “[W]e have no further details of these allegations which are industrywide in nature and are not focused on any one mobile operator. We will support industry bodies and Gemalto in their investigations.” Deutsche Telekom AG, a German company, said it has changed encryption algorithms in its Gemalto SIM cards. “We currently have no knowledge that this additional protection mechanism has been compromised,” the company said in a statement. “However, we cannot rule out this completely.”

Update: Asked about the SIM card heist, White House press secretary Josh Earnest said he did not expect the news would hurt relations with the tech industry: “It’s hard for me to imagine that there are a lot of technology executives that are out there that are in a position of saying that they hope that people who wish harm to this country will be able to use their technology to do so. So, I do think in fact that there are opportunities for the private sector and the federal government to coordinate and to cooperate on these efforts, both to keep the country safe, but also to protect our civil liberties.”

A senior Democratic leadership aide told BuzzFeed News that the emergence of a group like the Progressive Coalition For American Jobs would bring “some modicum of balance” to the public discussion of the trade negotiations. “I do think it’s helpful to have an outside space for this to happen and for progressives to have a more balanced conversation about this,” the aide said. That’s not how everyone feels, however. With the emergence of the Progressive Coalition For American Jobs, some progressives got the feeling Obama’s allies were trying to flip the script. “It’s insulting,” said Candice Johnson, spokesperson for the Communications Workers of America, one of the many unions organized against TPP. “You put progressive in your name and that’s going to convince people?” She called the group “fake,” noting that it includes none of the biggest names in progressive politics in its coalition. Johnson wasn’t alone in that characterization. “As far as I know, the only thing ‘progressive’ about this so called ‘Progressive Coalition for American Jobs’ is the first word of the group’s name,” said Becky Bond, president of CREDO, the San Francisco-based progressive activist known to tangle publicly with the White House.

“At this point, 270 strategies is well known for its AstroTurf efforts to slap a progressive label on the endeavors of Wall Street Wing Democrats and their corporate masters, but this is an earth-shattering new low,” Neil Sroka, spokesperson for Democracy For America, the progressive group formed from the remnants of Howard Dean’s 2004 presidential bid, told BuzzFeed News in an email. “You can be a progressive committed to fighting for working families or you can be for this massive job-killing trade deal written by 500 corporate reps, but you can’t be both.”