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Paul Merrell

European Lawmakers Demand Answers on Phone Key Theft - The Intercept - 0 views

  • European officials are demanding answers and investigations into a joint U.S. and U.K. hack of the world’s largest manufacturer of mobile SIM cards, following a report published by The Intercept Thursday. The report, based on leaked documents provided by NSA whistleblower Edward Snowden, revealed the U.S. spy agency and its British counterpart Government Communications Headquarters, GCHQ, hacked the Franco-Dutch digital security giant Gemalto in a sophisticated heist of encrypted cell-phone keys. The European Parliament’s chief negotiator on the European Union’s data protection law, Jan Philipp Albrecht, said the hack was “obviously based on some illegal activities.” “Member states like the U.K. are frankly not respecting the [law of the] Netherlands and partner states,” Albrecht told the Wall Street Journal. Sophie in ’t Veld, an EU parliamentarian with D66, the Netherlands’ largest opposition party, added, “Year after year we have heard about cowboy practices of secret services, but governments did nothing and kept quiet […] In fact, those very same governments push for ever-more surveillance capabilities, while it remains unclear how effective these practices are.”
  • “If the average IT whizzkid breaks into a company system, he’ll end up behind bars,” In ’t Veld added in a tweet Friday. The EU itself is barred from undertaking such investigations, leaving individual countries responsible for looking into cases that impact their national security matters. “We even get letters from the U.K. government saying we shouldn’t deal with these issues because it’s their own issue of national security,” Albrecht said. Still, lawmakers in the Netherlands are seeking investigations. Gerard Schouw, a Dutch member of parliament, also with the D66 party, has called on Ronald Plasterk, the Dutch minister of the interior, to answer questions before parliament. On Tuesday, the Dutch parliament will debate Schouw’s request. Additionally, European legal experts tell The Intercept, public prosecutors in EU member states that are both party to the Cybercrime Convention, which prohibits computer hacking, and home to Gemalto subsidiaries could pursue investigations into the breach of the company’s systems.
  • According to secret documents from 2010 and 2011, a joint NSA-GCHQ unit penetrated Gemalto’s internal networks and infiltrated the private communications of its employees in order to steal encryption keys, embedded on tiny SIM cards, which are used to protect the privacy of cellphone communications across the world. Gemalto produces some 2 billion SIM cards a year. The company’s clients include AT&T, T-Mobile, Verizon, Sprint and some 450 wireless network providers. “[We] believe we have their entire network,” GCHQ boasted in a leaked slide, referring to the Gemalto heist.
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  • 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.”
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    Watch for massive class action product defect litigation to be filed against the phone companies.and mobile device manufacturers.  In most U.S. jurisdictions, proof that the vendors/manufacturers  knew of the product defect is not required, only proof of the defect. Also, this is a golden opportunity for anyone who wants to get out of a pricey cellphone contract, since providing a compromised cellphone is a material breach of warranty, whether explicit or implied..   
Paul Merrell

Investigation Finds World's Largest Coal Company Misled Public On Climate Change | ThinkProgress - 0 views

  • The world’s largest private coal company misled its investors and the public about the financial risks of climate change, New York state’s attorney general announced on Monday. In a press release, Attorney General Eric Schneiderman said Peabody Energy violated New York laws prohibiting “false and misleading conduct” in public statements about its business. Specifically, Schneiderman found that Peabody failed to tell its investors about how regulations to fight climate change could hurt the coal industry. Instead, Peabody insisted it had no idea how climate regulations would affect its business, and provided its investors with “incomplete and one-sided discussions” of the future of coal in a climate-concerned world, Schneiderman said.
  • “As a publicly traded company whose core business generates massive amounts of carbon emissions, Peabody Energy has a responsibility to be honest with its investors and the public about the risks posed by climate change, now and in the future,” Schneiderman said in a statement. “I believe that full and fair disclosures by Peabody and other fossil fuel companies will lead investors to think long and hard about the damage these companies are doing to our planet.” The state laws Peabody was found to have violated are the Martin Act and Executive Law, both of which “prohibit false and misleading conduct in connection with securities transactions,” the attorney general said. Peabody did not admit or deny those findings, but signed a document on Sunday agreeing to revise its shareholder disclosures with the Securities and Exchange Commission. Per that document, Peabody will have to correct its financial statements to be honest about how a global climate deal or other carbon regulation could hurt its business. The document can be found in full here.
  • Peabody’s violations will not result in financial punishment, as both laws only allow monetary penalties if shareholders need to be reimbursed for financial losses. It’s difficult to know what, if any, financial harm was passed on to shareholders due to Peabody’s misleading statements, since this particular situation was about the future risks of climate change. If in the future, however, investors find that Peabody’s misleading statements cost them money, they would likely have the option to sue. The settlement comes just a few days after the two-year investigation became public. On Friday, Scheiderman announced that his office had issued subpoenas to both Peabody and oil company ExxonMobil, both related to the fossil fuel giants’ public statements on climate change.
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  • Environmentalists and Democratic politicians have accused ExxonMobil of engaging in a cover-up to mislead the public about the risks of human-caused climate change in order to sell more of its carbon-intensive product. Exxon has vehemently denied the accusation. Either way, Schneiderman’s two investigations are sparking serious legal discussion about how honest fossil fuel companies must be when it comes to the carbon emissions they create — especially if honesty might mean knowingly lowering profits. Should coal companies be forced to admit that their coal is creating a climate risk? If so, should they be allowed to fund politicians who advocate against climate action? Are these corporate activities protected free speech? Bloomberg View columnist Matt Levine offered a nuanced discussion of those questions on Friday. And ultimately, he said, it may just come down to whether these companies lied to their own investors — even if the lie was in their investors’ financial interest. “If you lie to the public about the risks that fossil fuel use poses to life on earth, you are just exercising your right as a citizen,” Levine wrote. “But if you lie to your investors about the risks that fossil fuel regulation poses to your stock price, you are committing fraud and will get in bad trouble.”
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    "If you lie to the public about the risks that fossil fuel use poses to life on earth, you are just exercising your right as a citizen," Levine wrote. Correction. Corporations are not citizens; only human beings can achieve that status.  
Gary Edwards

The Ultimate Net Monitoring Tool: NARUS - 0 views

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    Chilling stuff.  Note that Mark Klien is an important whistleblower whose testimony has helped expose the  Federal Government - NSA domestic dragnet that has violated the constitutional rights of hundreds of thousands of law abiding American citizens.  The question I have concerns cooperation between NSA NARUS spying and the IRS. We know that the IRS used key words such as "TEA PARTY", "PATRIOT", "Constitution", and "Tenth Amendment" to target American citizens.  Does the NSA NARUS target Americans in the same way?  Are there political enemy lists with background surveillance information now circulating through different government agencies based on this targeted and illegal spying? The first thing we need to do is protect whistle blowers who are risking it all to protect the constitutional rights of American citizens and save our country.   "The equipment that technician Mark Klein learned was installed in the National Security Agency's "secret room" inside AT&T's San Francisco switching office isn't some sinister Big Brother box designed solely to help governments eavesdrop on citizens' internet communications. Rather, it's a powerful commercial network-analysis product with all sorts of valuable uses for network operators. It just happens to be capable of doing things that make it one of the best internet spy tools around. "Anything that comes through (an internet protocol network), we can record," says Steve Bannerman, marketing vice president of Narus, a Mountain View, California, company. "We can reconstruct all of their e-mails along with attachments, see what web pages they clicked on, we can reconstruct their (voice over internet protocol) calls."" Narus' product, the Semantic Traffic Analyzer, is a software application that runs on standard IBM or Dell servers using the Linux operating system. It's renowned within certain circles for its ability to inspect traffic in real time on high-bandwidth pipes, identifying packets of interest as they r
Paul Merrell

30 Major U.S. Companies Spent More on Lobbying than Taxes - DailyFinance - 0 views

  • Thirty large American corporations spent more money on lobbying than they paid in federal taxes from 2008 to 2010, according to a report from the nonpartisan reform group Public Campaign. All of the companies were profitable at the time. In spite of this, and the massive federal budget deficit, 29 out of the 30 companies featured in the study managed through various legal tax-dodging measures to pay no federal income taxes at all from 2008 through 2010. The lone exception, FedEx (FDX), paid a three-year tax rate of 1%, nowhere near the 35% called for by the federal tax code. In fact, the report explains, the 29 companies that paid no tax actually received tax rebates over those three years, "ranging from $4 million for Corning (GLW) to nearly $5 billion for General Electric (GE)." The total value of the rebates received was nearly $11 billion; combined profits during the same period were $164 billion.
  • The amounts spent on lobbying ranged from $710,000 by Intergrys Energy Group to $84 million by General Electric. Others that spent heavily on lobbyists were PG&E (PCG), Verizon (VZ), Boeing (BA) and FedEx. It all added up to a total of almost half a billion dollars -- $476 million -- over three years. Or, as the report notes, "in other words, roughly $400,000 each day, including weekends." The same firms spent an additional $22 million on donations to federal campaigns. Logically enough, the two biggest contributors were defense contractors: Honeywell International (more than $5 million) and Boeing ($3.85 million). General Electric wasn't far behind ($3.64 million). For a complete list of the companies surveyed, as well as information on executive compensation, read the full report.
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

Democratic Pundits Downplay Serious Ethical Issues Raised by the Clinton Foundation - 0 views

  • The Associated Press story this week revealing that as secretary of state, Hillary Clinton frequently met with donors to the Clinton Foundation, set off a firestorm in the media. Many Democrats and sympathetic pundits are criticizing the article — and have made the sweeping claim that, contrary to many deeply reported investigations, there is no evidence that well-heeled backers of the foundation received favorable treatment from the State Department. While there are some legitimate criticisms of the AP story — its focus, for instance, on a Nobel Peace Prize winner meeting with Clinton distracts from the thesis of the piece — it is nonetheless a substantive investigation based on calendars that the State Department has fought to withhold from the public. The AP took the agency to court to obtain a partial release of the meeting logs. Other commentators took issue with a tweet promoting the AP piece, which they said might confuse readers because the AP story reflected private sector meetings, not overall meetings. But in challenging the overall credibility of the AP story, Clinton surrogates and allies are going well beyond a reasoned critique in an effort to downplay the serious ethical issues raised by Clinton Foundation activities.
  • The assertions above obscure the problems unearthed through years of investigative reporting on the foundation. Journalist David Sirota, who has reported extensively on the Clinton Foundation, rounded up a sample of the stories that provide a window into Clinton Foundation issues: The Washington Post found that two months after Secretary Clinton encouraged the Russian government to approve a $3.7 billion deal with Boeing, the aerospace company announced a $900,000 donation to the Clinton Foundation. The Wall Street Journal found that Clinton made an “unusual intervention” to announce a legal settlement with UBS, after which the Swiss bank increased its donations to, and involvement with, the Clinton Foundation. The New York Times reported that a Russian company assumed control of major uranium reserves in a deal that required State Department approval, as the chairman of the company involved in the transaction donated $2.35 million to the Clinton Foundation.
  • The Intercept has also reported on the Clinton Foundation and the conduct of the State Department under Clinton. Leaked government documents obtained by The Intercept revealed that the Moroccan government lobbied Clinton aggressively to influence her and other officials on the Moroccan military occupation of Western Sahara, which holds some of the world’s largest reserves of phosphate, a lucrative export for the kingdom. As part of its strategy for influence, the Moroccan government and companies controlled by the kingdom donated to the Bill Clinton presidential library, the Clinton Foundation, and hired individuals associated with the Clinton political network. Despite a statement by the Obama administration that suggested it would reverse the previous Bush administration support for the Moroccan government and would back a U.N.-negotiated settlement for the conflict in Western Sahara, Clinton announced there would be “no change” in policy — and has gone on to praise the Moroccan government’s human rights record. As recently as Monday, we learned that after being denied an official meeting with the State Department, Peabody Energy, the worlds largest coal company, used a consultant who donated heavily to the Clinton Foundation to back channel and attempt to set up a meeting with Clinton via her aide Huma Abedin. The consultant, Joyce Aboussie, wrote that “It should go without saying that the Peabody folks” reached out to her because of her “relationship with the Clinton’s [sic].” Peabody and Aboussie have declined to comment, and it is unclear if the meeting took place.
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  • There may be many other potential influence-peddling stories, but the State Department has not released all of the emails from Clinton’s private server and other meeting log documents, while redacting identifying information that could shed light on other stories. For example, Mother Jones and The Intercept have reported that Clinton used the State Department to promote fracking development across the globe, and in particular her agency acted to benefit particular companies such as a Chevron project in Bulgaria and ExxonMobil’s efforts in Poland. Both ExxonMobil and Chevron are major donors to the Clinton Foundation. The release of more meeting log documents and emails would certainly reveal a better picture of potential influence.
  • Earlier this year, in similar fashion to the questions raised about the Clinton Foundation, Democrats in Arizona raised influence peddling concerns regarding the reported $1 million donation from the Saudi Arabian government to the McCain Institute for International Leadership, a nonprofit group closely affiliated with Sen. John McCain, R-Ariz. As chairman of the Armed Services Committee, McCain oversees a range of issues concerning Saudi Arabia, including arms sales. But none of the pundits rushing to the defense of the Clinton Foundation defended McCain. In fact, the more Clinton’s allies have worked to defend big money donations to the Clinton Foundation, the more closely they resemble the right-wing principles they once denounced. In one telling argument in defense of the Clinton Foundation, Media Matters, another group run by David Brock, argued this week that there was “no evidence of ethics breaches” because there was no explicit quid pro quo cited by the AP. The Media Matters piece mocked press figures for focusing on the “optics” of corruption surrounding the foundation. Such a standard is quite a reversal for the group. In a piece published by Media Matters only two years ago, the organization criticized conservatives for focusing only on quid pro quo corruption — the legal standard used to decide the Citizens United and McCutcheon Supreme Court decisions — calling such a narrow focus a “new perspective of campaign finance” that dismisses “concerns about institutional corruption in politics.” The piece notes that ethics laws concerning the role of money in politics follow a standard, set forth since the Watergate scandal, in which even the appearance, or in other words, the “optics” of corruption, is cause for concern.
Paul Merrell

New Law Introduced Into California Legislature Would Punish Companies That Boycott Israel - 0 views

  • A Republican California assemblyman introduced a bill into the state legislature on Monday that would forbid the state – whose campuses have been a focal point of BDS activity – from doing business with companies boycotting, sanctioning or divesting from Israel. Travis Allen, of Huntington Beach in southern California’s Orange County, introduced the bill – called the California- Israel Protection Act – to “require the State of California to divest from companies that boycott Israel.”
  • Any company that is intentionally inflicting economic harm upon California’s trading partners weaken our ability to conduct business and harm the vital economic interests of our state. Further, boycotts of countries often derive from ethnic, religious, racial, or nationality discrimination, which directly contradicts the values of California citizens.” The bill would also penalize companies boycotting products made in the settlements, east Jerusalem or the Golan Heights, since it would prohibit California from investing in any company that is “engaging in actions that are politically motivated and are intended to penalize, inflict economic harm on, or otherwise limit commercial relations with the State of Israel or companies based in the State of Israel or in territories controlled by the State of Israel.”
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    Dear Mr. Allen:  We have this thing called the First Amendment. It protects, among other things, the right of speech including to boycott. Government actions that punish speech are unconstitutional. Get it?
Gary Edwards

One Year of Silence on Hillary Clinton Uranium Deal - Breitbart - 0 views

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    "For more than a year, the mainstream media has failed to ask Hillary Clinton some very basic questions about a series of extremely troubling deals. Why? Last Spring, my book Clinton Cash was released and it initially set off a media maelstrom. It began on April 19, 2015, with a leaked copy of the book going to the New York Times. The copy was not sent by me or my publisher. If the Clintons leaked the book with the hope of having it prematurely dismissed, that proved to be a mistake. The paper called the book "the most anticipated and feared book" of the political season. The Times went on to note that the book was hardly a hysterical attack on the Clintons, but rather, "mainly in the voice of a neutral journalist" who "meticulously documents his sources, including tax records and government documents." Things got worse for the Clintons a few days later when two New York Times Pulitzer Prize-winning investigative reporters, Jo Becker and Mike McIntire, took two of the most explosive chapters in the book and did their own digging. What they found confirmed what I had reported. They ran a 3,000-word, front-page article in the paper confirming that: -Bill and Hillary Clinton had helped a Canadian financier named Frank Giustra and a small Canadian company obtain a lucrative uranium mining concession from the dictator in Kazakhstan; -The same Canadian company, renamed Uranium One, bought uranium concessions in the United States; -The Russian government came calling and sought to buy that Canadian company for a price that would mean big profits for the Canadian investors; -For the Russians to buy that Canadian company, it would require the approval of the Obama administration, including Hillary's State Department, because uranium is a strategically important commodity; -Nine shareholders in Uranium One just happened to provide more than $145 million in donations to the Clinton Foundation in the run-up to State Department approval; -Some o
Gary Edwards

'Clinton death list': 33 spine-tingling cases - 0 views

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    "(Editor's note: This list was originally published in August 2016 and has gone viral on the web. WND is running it again as American voters cast their ballots for the nation's next president on Election Day.) How many people do you personally know who have died mysteriously? How about in plane crashes or car wrecks? Bizarre suicides? People beaten to death or murdered in a hail of bullets? And what about violent freak accidents - like separate mountain biking and skiing collisions in Aspen, Colorado? Or barbells crushing a person's throat? Bill and Hillary Clinton attend a funeral Apparently, if you're Bill or Hillary Clinton, the answer to that question is at least 33 - and possibly many more. Talk-radio star Rush Limbaugh addressed the issue of the "Clinton body count" during an August show. "I swear, I could swear I saw these stories back in 1992, back in 1993, 1994," Limbaugh said. He cited a report from Rachel Alexander at Townhall.com titled, "Clinton body count or left-wing conspiracy? Three with ties to DNC mysteriously die." Limbaugh said he recalled Ted Koppel, then-anchor of ABC News' "Nightline," routinely having discussions on the issue following the July 20, 1993, death of White House Deputy Counsel Vince Foster. In fact, Limbaugh said, he appeared on Koppel's show. "One of the things I said was, 'Who knows what happened here? But let me ask you a question.' I said, 'Ted, how many people do you know in your life who've been murdered? Ted, how many people do you know in your life that have died under suspicious circumstances?' "Of course, the answer is zilch, zero, nada, none, very few," Limbaugh chuckled. "Ask the Clintons that question. And it's a significant number. It's a lot of people that they know who have died, who've been murdered. "And the same question here from Rachel Alexander. It's amazing the cycle that exists with the Clintons. [Citing Townhall]: 'What it
Gary Edwards

Accidentally Released - and Incredibly Embarrassing - Documents Show How Goldman et al Engaged in 'Naked Short Selling' | Matt Taibbi | Rolling Stone - 0 views

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    Incredible.  Take your time reading this because we now have legal evidence of outrageous Bankster criminality.  Read carefully. excerpt: The lawsuit between Overstock and the banks concerned a phenomenon called naked short-selling, a kind of high-finance counterfeiting that, especially prior to the introduction of new regulations in 2008, short-sellers could use to artificially depress the value of the stocks they've bet against. The subject of naked short-selling is a) highly technical, and b) very controversial on Wall Street, with many pundits in the financial press for years treating the phenomenon as the stuff of myths and conspiracy theories. Now, however, through the magic of this unredacted document, the public will be able to see for itself what the banks' attitudes are not just toward the "mythical" practice of naked short selling (hint: they volubly confess to the activity, in writing), but toward regulations and laws in general. "Fuck the compliance area - procedures, schmecedures," chirps Peter Melz, former president of Merrill Lynch Professional Clearing Corp. (a.k.a. Merrill Pro), when a subordinate worries about the company failing to comply with the rules governing short sales. ...................... If this sounds complicated, just focus on this: naked short selling, in essence, is selling stock you do not have. If you don't have to actually locate and borrow stock before you short it, you're creating an artificial supply of stock shares. ................ The process of how banks circumvented federal clearing regulations is highly technical and incredibly difficult to follow. These companies were using obscure loopholes in regulations that allowed them to short companies by trading in shadows, or echoes, of real shares in their stock. They manipulated rules to avoid having to disclose these "failed" trades to regulators. The import of this is that it made it cheaper and easier to bet down the value of a stock
Gary Edwards

Bain Capital's Staples vs Obama's Bankrupt Solyndra - 0 views

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    Good article describing the success of Romney's Bain Capital. Does not mention that Obama is outsourcing NASA!!!! And to the Russians no less. Otherwise, great background info on Bain and Romney's role as innovative founder. Bain became the model for an entire industry. excerpt: Mr. Romney has attacked Mr. Obama's Solyndra investment in particular, but he hasn't linked it consistently to the President's failed model of government-led investing or contrasted it with the successful culture Mr. Romney built at Bain. Enlarge Image Associated Press What Bain did is what all successful organizations do: Seek to deliver products and services that are better, faster, cheaper. In some instances that means fewer employees, even if Mr. Obama still can't or won't grasp the concept that we live in a competitive world. How many readers of this editorial have jobs today because the founders of their companies figured out how to spend more money on a slower manufacturing process to create goods of lower quality? *** Overall, Bain capitalism means more successes than failures, and many more jobs. In March of this year, the managing directors of Bain Capital wrote to their investors and reported that, over the firm's 28 years, companies backed by Bain have grown their revenues more than twice as fast "as both the S&P and the U.S. economy." The managers went on to note that after Bain invested, companies have grown their revenues by more than $105 billion globally, including $80 billion in the United States. Bain-backed companies, they added, have opened more than 5,000 stores and facilities during their ownership. Mr. Romney may have thought that debating Bain was a distraction from focusing on the failed Obama economy. But with Mr. Obama using Bain as his main argument against Mr. Romney's record as a job creator, the Republican has no choice but to fight back or he'll lose the election. Americans will choose Bain capitalism over Solyndra crony capitalism,
Paul Merrell

Glenn Greenwald: The NSA Can "Literally Watch Every Keystroke You Make" - 0 views

  • On Sunday, the German publication Der Spiegel revealed new details about secretive hacking—a secretive hacking unit inside the NSA called the Office of Tailored Access Operations, or TAO. The unit was created in 1997 to hack into global communications traffic. Still with us, Jameel Jaffer, deputy legal director of the ACLU, director of the ACLU’s Center for Democracy, and Glenn Greenwald, the journalist who first broke the story about Edward Snowden. Glenn, can you just talk about the revelations in Der Spiegel?
  • And one of the ways that they’re doing it is that they intercept products in transit, such as if you order a laptop or other forms of Internet routers or servers and the like, they intercept it in transit, open the box, implant the malware, factory-seal it and then send it back to the user. They also exploit weaknesses in Google and YouTube and Yahoo and other services, as well, in order to implant these devices. It’s unclear to what extent, if at all, the companies even know about it, let alone cooperate in it. But what is clear is that they’ve been able to compromise the physical machines themselves, so that it makes no difference what precautions you take in terms of safeguarding the sanctity of your online activity.
  • But we’ve actually been working, ourselves, on certain stories that should be published soon regarding similar interdiction efforts. And one of the things that I think is so amazing about this, Amy, is that the U.S. government has spent the last three or four years shrilly, vehemently warning the world that Chinese technology companies are unsafe to purchase products from, because they claim the Chinese government interdicts these products and installs surveillance, backdoors and other forms of malware onto the machinery so that when you get them, immediately your privacy is compromised. And they’ve actually driven Chinese firms out of the U.S. market and elsewhere with these kinds of accusations. Congress has convened committees to issue reports making these kind of accusations about Chinese companies. And yet, at the same time, the NSA is doing exactly that which they accuse these Chinese companies of doing. And there’s a real question, which is: Are these warnings designed to steer people away from purchasing Chinese products into the arms of the American industry so that the NSA’s ability to implant these devices becomes even greater, since now everybody is buying American products out of fear that they can no longer buy Chinese products because this will happen to them?
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  • And the final thing I want to say is, you know, all this talk about amnesty for Edward Snowden, and it’s so important that the rule of law be applied to him, it’s really quite amazing. Here’s Michael Hayden. He oversaw the illegal warrantless eavesdropping program implemented under the Bush administration. He oversaw torture and rendition as the head of the CIA. James Clapper lied to the face of Congress. These are felonies at least as bad, and I would say much worse, than anything Edward Snowden is accused of doing, and yet they’re not prosecuted. They’re free to appear on television programs. The United States government in Washington constantly gives amnesty to its highest officials, even when they commit the most egregious crimes. And yet the idea of amnesty for a whistleblower is considered radical and extreme. And that’s why a hardened felon like Michael Hayden is free to walk around on the street and is treated on American media outlets as though he’s some learned, wisdom-drenched elder statesman, rather than what he is, which is a chronic criminal.
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    Greenwald asks a very good question about the U.S. government accusing the Chinese government of cyber-espionage and the government's finding that Chinese-manufactured ware pose a security risk. Was that intended to drive people to purchase hardware that comes equipped with NSA backdoors? The flip side, of course, is whether the world should be beating feet to purchase their hardware from the Chinese in order to escape the NSA backdoors. Then there is the question of how those backdoors might have made their way into the hardware devices without the acquiescence of their manufacturers, who surely would have realized that their businesses might take enormous financial hits if knowledge of the backdoors became public? Bribing key staff? The manufacturers named in the Der Spiegel article surely are going to face some hard questions and they may face some very unhappy shareholders if their stock prices take a dive. It would be fun to see a shareholder's derivative class action against one of these companies for having acquiesced to NSA implantation of backdoors, leading to the disclosure and the fall in stock price. Caption the case as Wall Street, Inc. v. National Security Agency, dba Seagate Technology, PLC, then watch the feathers and blood fly.  "Seagate is the company the world trusts to store our lives - our files and photos, our libraries and histories, our science and progress."   Yes, and your stockholders trusted you not to endanger their investment by adding NSA backdoors in your products.
Paul Merrell

Catalog Reveals NSA Has Back Doors for Numerous Devices - SPIEGEL ONLINE - 0 views

  • When it comes to modern firewalls for corporate computer networks, the world's second largest network equipment manufacturer doesn't skimp on praising its own work. According to Juniper Networks' online PR copy, the company's products are "ideal" for protecting large companies and computing centers from unwanted access from outside. They claim the performance of the company's special computers is "unmatched" and their firewalls are the "best-in-class." Despite these assurances, though, there is one attacker none of these products can fend off -- the United States' National Security Agency.
  • Specialists at the intelligence organization succeeded years ago in penetrating the company's digital firewalls. A document viewed by SPIEGEL resembling a product catalog reveals that an NSA division called ANT has burrowed its way into nearly all the security architecture made by the major players in the industry -- including American global market leader Cisco and its Chinese competitor Huawei, but also producers of mass-market goods, such as US computer-maker Dell.
  • The specialists at ANT, which presumably stands for Advanced or Access Network Technology, could be described as master carpenters for the NSA's department for Tailored Access Operations (TAO). In cases where TAO's usual hacking and data-skimming methods don't suffice, ANT workers step in with their special tools, penetrating networking equipment, monitoring mobile phones and computers and diverting or even modifying data. Such "implants," as they are referred to in NSA parlance, have played a considerable role in the intelligence agency's ability to establish a global covert network that operates alongside the Internet. Some of the equipment available is quite inexpensive. A rigged monitor cable that allows "TAO personnel to see what is displayed on the targeted monitor," for example, is available for just $30. But an "active GSM base station" -- a tool that makes it possible to mimic a mobile phone tower and thus monitor cell phones -- costs a full $40,000. Computer bugging devices disguised as normal USB plugs, capable of sending and receiving data via radio undetected, are available in packs of 50 for over $1 million.
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  • These NSA agents, who specialize in secret back doors, are able to keep an eye on all levels of our digital lives -- from computing centers to individual computers, and from laptops to mobile phones. For nearly every lock, ANT seems to have a key in its toolbox. And no matter what walls companies erect, the NSA's specialists seem already to have gotten past them. This, at least, is the impression gained from flipping through the 50-page document. The list reads like a mail-order catalog, one from which other NSA employees can order technologies from the ANT division for tapping their targets' data. The catalog even lists the prices for these electronic break-in tools, with costs ranging from free to $250,000. In the case of Juniper, the name of this particular digital lock pick is "FEEDTROUGH." This malware burrows into Juniper firewalls and makes it possible to smuggle other NSA programs into mainframe computers. Thanks to FEEDTROUGH, these implants can, by design, even survive "across reboots and software upgrades." In this way, US government spies can secure themselves a permanent presence in computer networks. The catalog states that FEEDTROUGH "has been deployed on many target platforms."
  • The ANT division doesn't just manufacture surveillance hardware. It also develops software for special tasks. The ANT developers have a clear preference for planting their malicious code in so-called BIOS, software located on a computer's motherboard that is the first thing to load when a computer is turned on. This has a number of valuable advantages: an infected PC or server appears to be functioning normally, so the infection remains invisible to virus protection and other security programs. And even if the hard drive of an infected computer has been completely erased and a new operating system is installed, the ANT malware can continue to function and ensures that new spyware can once again be loaded onto what is presumed to be a clean computer. The ANT developers call this "Persistence" and believe this approach has provided them with the possibility of permanent access. Another program attacks the firmware in hard drives manufactured by Western Digital, Seagate, Maxtor and Samsung, all of which, with the exception of the latter, are American companies. Here, too, it appears the US intelligence agency is compromising the technology and products of American companies.
  • Other ANT programs target Internet routers meant for professional use or hardware firewalls intended to protect company networks from online attacks. Many digital attack weapons are "remotely installable" -- in other words, over the Internet. Others require a direct attack on an end-user device -- an "interdiction," as it is known in NSA jargon -- in order to install malware or bugging equipment. There is no information in the documents seen by SPIEGEL to suggest that the companies whose products are mentioned in the catalog provided any support to the NSA or even had any knowledge of the intelligence solutions. "Cisco does not work with any government to modify our equipment, nor to implement any so-called security 'back doors' in our products," the company said in a statement. Contacted by SPIEGEL reporters, officials at Western Digital, Juniper Networks and Huawei also said they had no knowledge of any such modifications. Meanwhile, Dell officials said the company "respects and complies with the laws of all countries in which it operates." Many of the items in the software solutions catalog date from 2008, and some of the target server systems that are listed are no longer on the market today. At the same time, it's not as if the hackers within the ANT division have been sleeping on the job. They have continued to develop their arsenal. Some pages in the 2008 catalog, for example, list new systems for which no tools yet exist. However, the authors promise they are already hard at work developing new tools and that they will be "pursued for a future release."
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    Oh, great. My router and all of my hard drives have NSA backdoors in them. And my BIOS on the Linux box may be infected with a backdoor. What are the odds that NSA has not developed similar capability for the UEFI on our two newer Windows boxes? 
Paul Merrell

BofA Said to Split Regulators Over Moving Merrill Derivatives to Bank Unit - Bloomberg - 0 views

  • Bank of America Corp. (BAC), hit by a credit downgrade last month, has moved derivatives from its Merrill Lynch unit to a subsidiary flush with insured deposits, according to people with direct knowledge of the situation. The Federal Reserve and Federal Deposit Insurance Corp. disagree over the transfers, which are being requested by counterparties, said the people, who asked to remain anonymous because they weren’t authorized to speak publicly. The Fed has signaled that it favors moving the derivatives to give relief to the bank holding company, while the FDIC, which would have to pay off depositors in the event of a bank failure, is objecting, said the people. The bank doesn’t believe regulatory approval is needed, said people with knowledge of its position.
  • Three years after taxpayers rescued some of the biggest U.S. lenders, regulators are grappling with how to protect FDIC- insured bank accounts from risks generated by investment-banking operations. Bank of America, which got a $45 billion bailout during the financial crisis, had $1.04 trillion in deposits as of midyear, ranking it second among U.S. firms. “The concern is that there is always an enormous temptation to dump the losers on the insured institution,” said William Black, professor of economics and law at the University of Missouri-Kansas City and a former bank regulator. “We should have fairly tight restrictions on that.”
  • Moody’s Investors Service downgraded Bank of America’s long-term credit ratings Sept. 21, cutting both the holding company and the retail bank two notches apiece. The holding company fell to Baa1, the third-lowest investment-grade rank, from A2, while the retail bank declined to A2 from Aa3.
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  • The Moody’s downgrade spurred some of Merrill’s partners to ask that contracts be moved to the retail unit, which has a higher credit rating, according to people familiar with the transactions. Transferring derivatives also can help the parent company minimize the collateral it must post on contracts and the potential costs to terminate trades after Moody’s decision, said a person familiar with the matter. Bank of America estimated in an August regulatory filing that a two-level downgrade by all ratings companies would have required that it post $3.3 billion in additional collateral and termination payments, based on over-the-counter derivatives and other trading agreements as of June 30. The figure doesn’t include possible collateral payments due to “variable interest entities,” which the firm is evaluating, it said in the filing.
  • Derivatives are financial instruments used to hedge risks or for speculation. They’re derived from stocks, bonds, loans, currencies and commodities, or linked to specific events such as changes in the weather or interest rates. Dodd-Frank Rules Keeping such deals separate from FDIC-insured savings has been a cornerstone of U.S. regulation for decades, including last year’s Dodd-Frank overhaul of Wall Street regulation. The legislation gave the FDIC, which liquidates failing banks, expanded powers to dismantle large financial institutions in danger of failing. The agency can borrow from the Treasury Department to finance the biggest lenders’ operations to stem bank runs. It’s required to recoup taxpayer money used during the resolution process through fees on the largest firms.
  • Bank of America’s holding company -- the parent of both the retail bank and the Merrill Lynch securities unit -- held almost $75 trillion of derivatives at the end of June, according to data compiled by the OCC. About $53 trillion, or 71 percent, were within Bank of America NA, according to the data, which represent the notional values of the trades. That compares with JPMorgan’s deposit-taking entity, JPMorgan Chase Bank NA, which contained 99 percent of the New York-based firm’s $79 trillion of notional derivatives, the OCC data show.
  • Moving derivatives contracts between units of a bank holding company is limited under Section 23A of the Federal Reserve Act, which is designed to prevent a lender’s affiliates from benefiting from its federal subsidy and to protect the bank from excessive risk originating at the non-bank affiliate, said Saule T. Omarova, a law professor at the University of North Carolina at Chapel Hill School of Law. “Congress doesn’t want a bank’s FDIC insurance and access to the Fed discount window to somehow benefit an affiliate, so they created a firewall,” Omarova said. The discount window has been open to banks as the lender of last resort since 1914. As a general rule, as long as transactions involve high- quality assets and don’t exceed certain quantitative limitations, they should be allowed under the Federal Reserve Act, Omarova said.
  • In 2009, the Fed granted Section 23A exemptions to the banking arms of Ally Financial Inc., HSBC Holdings Plc, Fifth Third Bancorp, ING Groep NV, General Electric Co., Northern Trust Corp., CIT Group Inc., Morgan Stanley and Goldman Sachs Group Inc., among others, according to letters posted on the Fed’s website. The central bank terminated exemptions last year for retail-banking units of JPMorgan, Citigroup, Barclays Plc, Royal Bank of Scotland Plc and Deutsche Bank AG. The Fed also ended an exemption for Bank of America in March 2010 and in September of that year approved a new one. Section 23A “is among the most important tools that U.S. bank regulators have to protect the safety and soundness of U.S. banks,” Scott Alvarez, the Fed’s general counsel, told Congress in March 2008.
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    So according to Bloomberg, JPMorgan's commercial bank was the recipient of 99 percent of JPMorgan's $79 trillion (face value of derivatives) in bad bets. So adding JPMorgan's $78 trillion or so to the $75 trillion in bad bets Bank of America unloaded on its FDIC insured subsidiary, we arrive at $153 trillion in bad bets moved by two investment banks alone under the FDIC umbrella. Meanwhile, FDIC has authority under Dodd-Frank to liquidate these insolvent banks but doesn't, despite several successful lawsuits to recover the value of toxic derivatives that they sold to smaller banks that failed (which implies that FDIC could tell JPMorgan and BoA's investment banksters that they've got to pay off the toxic assets they transferred to their commercial banks, rather than diluting the insurance for normal depositors. Problem: the two big investment banks don't have sufficient assets to absorb those losses, so the too-politically-connected-to-fail factor kicks in. Note that I have not done any legal research in regard to these issues and am basing these observations on what has been stated about legal requirements in various media articles.
Paul Merrell

N.S.A. Spied on Allies, Aid Groups and Businesses - NYTimes.com - 0 views

  • Secret documents reveal more than 1,000 targets of American and British surveillance in recent years, including the office of an Israeli prime minister, heads of international aid organizations, foreign energy companies and a European Union official involved in antitrust battles with American technology businesses.
  • While the names of some political and diplomatic leaders have previously emerged as targets, the newly disclosed intelligence documents provide a much fuller portrait of the spies’ sweeping interests in more than 60 countries. Britain’s Government Communications Headquarters, working closely with the National Security Agency, monitored the communications of senior European Union officials, foreign leaders including African heads of state and sometimes their family members, directors of United Nations and other relief programs, and officials overseeing oil and finance ministries, according to the documents. In addition to Israel, some targets involved close allies like France and Germany, where tensions have already erupted over recent revelations about spying by the N.S.A.
  • Details of the surveillance are described in documents from the N.S.A. and Britain’s eavesdropping agency, known as GCHQ, dating from 2008 to 2011. The target lists appear in a set of GCHQ reports that sometimes identify which agency requested the surveillance, but more often do not. The documents were leaked by the former N.S.A. contractor Edward J. Snowden and shared by The New York Times, The Guardian and Der Spiegel. The reports are spare, technical bulletins produced as the spies, typically working out of British intelligence sites, systematically tapped one international communications link after another, focusing especially on satellite transmissions. The value of each link is gauged, in part, by the number of surveillance targets found to be using it for emails, text messages or phone calls. More than 1,000 targets, which also include people suspected of being terrorists or militants, are in the reports. It is unclear what the eavesdroppers gleaned. The documents include a few fragmentary transcripts of conversations and messages, but otherwise contain only hints that further information was available elsewhere, possibly in a larger database.
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  • Ms. Hansen, the spokeswoman for the European Commission, said that it was already engaged in talks with the United States that were “needed to restore trust and confidence in the trans-Atlantic relationship.” She added that “the commission will raise these new allegations with U.S. and U.K. authorities.”
  • Also appearing on the surveillance lists is Joaquín Almunia, vice president of the European Commission, which, among other powers, has oversight of antitrust issues in Europe. The commission has broad authority over local and foreign companies, and it has punished a number of American companies, including Microsoft and Intel, with heavy fines for hampering fair competition. The reports say that spies intercepted Mr. Almunia’s communications in 2008 and 2009. Mr. Almunia, a Spaniard, assumed direct authority over the commission’s antitrust office in 2010. He has been involved in a three-year standoff with Google over how the company runs its search engine. Competitors of the online giant had complained that it was prioritizing its own search results and using content like travel reviews and ratings from other websites without permission. While pushing for a settlement with Google, Mr. Almunia has warned that the company could face large fines if it does not cooperate.
  • Some condemned the surveillance on Friday as unjustified and improper. “This is not the type of behavior that we expect from strategic partners,” Pia Ahrenkilde Hansen, a spokeswoman for the European Commission, said on the latest revelations of American and British spying in Europe. Some of the surveillance relates to issues that are being scrutinized by President Obama and a panel he appointed in Washington that on Wednesday recommended tighter limits on the N.S.A., particularly on spying of foreign leaders, especially allies.
  • “We do not use our foreign intelligence capabilities to steal the trade secrets of foreign companies on behalf of — or give intelligence we collect to — U.S. companies to enhance their international competitiveness or increase their bottom line,” said Vanee Vines, an N.S.A. spokeswoman. But she added that some economic spying was justified by national security needs. “The intelligence community’s efforts to understand economic systems and policies, and monitor anomalous economic activities, are critical to providing policy makers with the information they need to make informed decisions that are in the best interest of our national security,” Ms. Vines said.
  • The surveillance reports show American and British spies’ deep appetite for information. The French companies Total, the oil and gas giant, and Thales, an electronics, logistics and transportation outfit, appear as targets, as do a French ambassador, an “Estonian Skype security team” and the German Embassy in Rwanda.
  • Multiple United Nations Missions in Geneva are listed as targets, including Unicef and the United Nations Institute for Disarmament Research. So is Médecins du Monde, a medical relief organization that goes into war-ravaged areas. Leigh Daynes, an executive director of the organization in Britain, responded to news about the surveillance by saying: “There is absolutely no reason for our operations to be secretly monitored.” More obvious intelligence targets are also listed, though in smaller numbers, including people identified as “Israeli grey arms dealer,” “Taleban ministry of refugee affairs” and “various entities in Beijing.” Some of those included are described as possible members of Al Qaeda, and as suspected extremists or jihadists.
  • While few if any American citizens appear to be named in the documents, they make clear that some of the intercepted communications either began or ended in the United States and that N.S.A. facilities carried out interceptions around the world in collaboration with their British partners. Some of the interceptions appear to have been made at the Sugar Grove, W.Va., listening post run by the N.S.A. and code-named Timberline, and some are explicitly tied to N.S.A. target lists in the reports.
  • Strengthening the likelihood that full transcripts were taken during the intercepts is the case of Mohamed Ibn Chambas, an official of the Economic Community of West African States, known as Ecowas, a regional initiative of 15 countries that promotes economic and industrial activity. Whether intentionally or through some oversight, when Mr. Chambas’s communications were intercepted in August 2009, dozens of his complete text messages were copied into one of the reports.
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    No mention of any "terrorist" targets. Could it be that Snowden and Greenwald are right, that the surveillance is not about terrorism at all? Surely our nation's leaders would not lie to us about that. Right. The Politics of Fear.
Paul Merrell

U.S. surveillance architecture includes collection of revealing Internet, phone metadata - The Washington Post - 0 views

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

Merkel, other European leaders raise concerns on U.S. surveillance - The Washington Post - 0 views

  • European leaders, describing themselves as stunned by revelations of an extensive U.S. surveillance program that included their citizens, moved Monday to demand more information from the U.S. government and said they would discuss ways to bolster their already stringent privacy laws. And in Britain, where intelligence agencies have long had robust cooperation with their American counterparts, a top official tried Monday to limit potential uproar, telling Parliament that the partnership had not been used to circumvent British laws.
  • The discontent from Europe pointed to the breadth of fallout from the affair and to the potential for fresh strains between the United States and allies wary of American intrusiveness. German Chancellor Angela Merkel vowed to raise the issue when she meets in Berlin with President Obama next week, a spokesman said, and other German officials said they were concerned by the apparent monitoring of their citizens. Top officials of the 27-nation European Union also said they would press the U.S. government on the matter at bilateral meetings this week.
  • The PRISM surveillance program, portions of which were described in recent days by The Washington Post and the Guardian newspaper in Britain, makes clear that U.S. intelligence services now have the power to vacuum up data about telecommunications traffic across the world. An apparent snapshot from an NSA Boundless Informant database published on the Guardian’s Web site indicated that in March 2013, foreign intelligence gathering was primarily focused on the Middle East. For that month, more pieces of intelligence were gathered in Germany than anywhere else in Europe.In Germany, where memories of East German Stasi surveillance remain fresh, privacy has powerful defenders. Individual German states have pursued cases against Facebook and Google in recent years, complaining that the companies did not do enough to give users power over their own information. The breadth and ambitions of the U.S. intelligence program far exceed any issues raised previously with private firms.
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  • When Merkel meets Obama, “you can safely assume that this is an issue that the chancellor will bring up,” Merkel’s spokesman, Steffen Seibert, told reporters on Monday. Merkel grew up in the East German system, where the government collected vast amounts of information about its citizens.
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    One of the biggest dangers to the NSA program that I see just over the horizon is that the E.U. has regulatory powers over Google and the other cloud companies involved in the scandal. If the European Commission decides that these companies can not be trusted to protect user's data, it has more than enough legal authority to whop some serious hurt on the companies. 
Paul Merrell

One Click Politics - 0 views

  • Senate Joint Resolution 19 is a proposed Constitutional Amendment to overturn Citizens United, but it doesn’t address corporate constitutional rights at all. Please send a message to the authors of SJR19 -- let them know that Corporate Personhood MUST be included in the language of the amendment... What You Can Do: Help movetoamend accomplish these goals by contributing your power of voice. Take action now by sending a message to Congress telling them why these issues are important to you.
  • Formed in September 2009, Move to Amend is a coalition of hundreds of organizations and hundreds of thousands of individuals committed to social and economic justice, ending corporate rule, and building a vibrant democracy that is genuinely accountable to the people, not corporate interests.
  • Senate Joint Resolution 19 is a proposed Constitutional Amendment to overturn Citizens United, but it doesn’t address corporate constitutional rights at all. Please send a message to the authors of SJR19 -- let them know that Corporate Personhood MUST be included in the language of the amendment... What You Can Do: Help movetoamend accomplish these goals by contributing your power of voice. Take action now by sending a message to Congress telling them why these issues are important to you.
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    I have never forwarded action alerts to others by email. The typical action alert winds up sharing your email address with at least one other organization. The next thing you know you're getting donor solicitations from both the Republican and Democratic party central national coordinating committees. It's not just that I'm a political independent; it's an ongoing task to unsubscribe from unwanted mailing lists. Today I got an action alert from Move to Amend, only the second I have received from the organization. This group does not share your email address with anyone. If you choose to participate in this action alert, which is nearing 1 million messages sent, there is a send button near the bottom of the page to participate. That takes you to a page where you can read the message that will be sent. Move to Amend is a non-partisan organization that has been working toward a constitutional amendment for around 4 years that would clear the way for Congress to regulate campaign contributions, in light of Supreme Court decisions declaring that corporations have a First Amendment right to make campaign contributions in any amount they desire. But their amendment would also abolish constitutional rights for all fictional legal "persons" other than human beings and government at the local, state, and national levels. Move to Amend has been going about the process the right way and to date has scored supporting resolutions in 16 state legislatures and hundreds of community governments. That's enough to get oligarchs worried. So there's a bill gathering steam in the U.S. Senate, SJR 19, that's a watered-down version. It grants Congress and the states power to regulate campaign contributions, but it does not speak to the problem of granting human constitutional rights to entities that have existence only in the eyes of the law. The Senate bill is here: http://goo.gl/Nkvfkg Our nation's Founders unmistakably did not contemplate that corporations would have constitution
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

Verizon's New, Encrypted Calling App Plays Nice With the NSA - Businessweek - 0 views

  • Verizon is the latest big company to enter the post-Snowden market for secure communication, and it's doing so with an encryption standard that comes with a way for law enforcement to access ostensibly secure phone conversations.Verizon Voice Cypher, the product introduced on Thursday with the encryption company Cellcrypt, offers business and government customers end-to-end encryption for voice calls on iOS, Android, or BlackBerry devices equipped with a special app. The encryption software provides secure communications for people speaking on devices with the app, regardless of their wireless carrier, and it can also connect to an organization's secure phone system. Cellcrypt and Verizon both say that law enforcement agencies will be able to access communications that take place over Voice Cypher, so long as they're able to prove that there's a legitimate law enforcement reason for doing so. Seth Polansky, Cellcrypt's vice president for North America, disputes the idea that building technology to allow wiretapping is a security risk. "It's only creating a weakness for government agencies," he says. "Just because a government access option exists, it doesn't mean other companies can access it." 
  • Phone carriers like Verizon are required by U.S. law to build networks that can be wiretapped. But the legislation known as the Communications Assistance for Law Enforcement Act requires phone carriers to decrypt communications for the government only if they have designed their technology to make it possible to do so. If Verizon and Cellcrypt had structured their encryption so that neither company had the information necessary to decrypt the calls, they would not have been breaking the law.
  • Other companies have designed their encryption in this way, including AT&T, which offers encrypted phone service for business customers. Apple and Android recently began protecting content stored on users's phones in a way that would keep the tech companies from being able to comply with requests from law enforcement. The move drew public criticism from FBI Director James Comey, and some security experts expect that a renewed effort to stir passage of legislation banning such encryption will accompany Silicon Valley's increased interest in developing these services. Verizon believes major demand for its new encryption service will come from governmental agencies conveying sensitive but unclassified information over the phone, says Tim Petsky, a senior product manager for Verizon Wireless. Corporate customers who are concerned about corporate espionage are also itching for answers. "You read about breaches in security almost every week in the press," says Petsky. "Enterprise customers have been asking about ways to secure their communications and up until this point, we didn't have a solution." 
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  • There has been increased interest in encryption from individual consumers, too, largely thanks to the NSA revelations leaked by Edward Snowden. Yahoo and Google began offering end-to-end encrypted e-mail services this year. Silent Circle, a startup catering to consumer and enterprise clients, has been developing end-to-end voice encryption for phones calls. Verizon's service, with a monthly price of $45 per device, isn't targeting individual buyers and won't be offered to average consumers in the near future.But Verizon's partner, Cellcrypt, looks upon selling to large organizations as the first step toward bringing down the price before eventually offering a consumer-level encryption service. "At the end of the day, we'd love to have this be a line item on your Verizon bill," says Polansky.
  • Many people in the security industry believe that a designed access point creates a vulnerability for criminals or spies to exploit. Last year reports surfaced that the FBI was pushing legislation that would require many forms of Internet communication to be wiretap-ready. A group of prominent security experts responded strongly: "Requiring software vendors to build intercept functionality into their products is unwise and will be ineffective, with the result being serious consequences (PDF) for the economic well-being and national security of the United States," they wrote in a report issued in May. 
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