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Paul Merrell

The $9 Billion Witness: Meet JPMorgan Chase's Worst Nightmare | Rolling Stone - 0 views

  • Meet the woman JPMorgan Chase paid one of the largest fines in American history to keep from talking By Matt Taibbi | November 6, 2014
  • tried to stay quiet, she really did. But after eight years of keeping a heavy secret, the day came when Alayne Fleischmann couldn't take it anymore.  "It was like watching an old lady get mugged on the street," she says. "I thought, 'I can't sit by any longer.'"  Fleischmann is a tall, thin, quick-witted securities lawyer in her late thirties, with long blond hair, pale-blue eyes and an infectious sense of humor that has survived some very tough times. She's had to struggle to find work despite some striking skills and qualifications, a common symptom of a not-so-common condition called being a whistle-blower.
  • Fleischmann is the central witness in one of the biggest cases of white-collar crime in American history, possessing secrets that JPMorgan Chase CEO Jamie Dimon late last year paid $9 billion (not $13 billion as regularly reported – more on that later) to keep the public from hearing. Back in 2006, as a deal manager at the gigantic bank, Fleischmann first witnessed, then tried to stop, what she describes as "massive criminal securities fraud" in the bank's mortgage operations. Thanks to a confidentiality agreement, she's kept her mouth shut since then. "My closest family and friends don't know what I've been living with," she says. "Even my brother will only find out for the first time when he sees this interview." 
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  • This past year she watched as Holder's Justice Department struck a series of historic settlement deals with Chase, Citigroup and Bank of America. The root bargain in these deals was cash for secrecy. The banks paid big fines, without trials or even judges – only secret negotiations that typically ended with the public shown nothing but vague, quasi-official papers called "statements of facts," which were conveniently devoid of anything like actual facts. 
  • Six years after the crisis that cratered the global economy, it's not exactly news that the country's biggest banks stole on a grand scale. That's why the more important part of Fleischmann's story is in the pains Chase and the Justice Department took to silence her. She was blocked at every turn: by asleep-on-the-job regulators like the Securities and Exchange Commission, by a court system that allowed Chase to use its billions to bury her evidence, and, finally, by officials like outgoing Attorney General Eric Holder, the chief architect of the crazily elaborate government policy of surrender, secrecy and cover-up. "Every time I had a chance to talk, something always got in the way," Fleischmann says.
  • And now, with Holder about to leave office and his Justice Department reportedly wrapping up its final settlements, the state is effectively putting the finishing touches on what will amount to a sweeping, industrywide effort to bury the facts of a whole generation of Wall Street corruption. "I could be sued into bankruptcy," she says. "I could lose my license to practice law. I could lose everything. But if we don't start speaking up, then this really is all we're going to get: the biggest financial cover-up in history." 
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    Matt Taibbi is back at Rolling Stone, relaunching with a major blockbuster.
Paul Merrell

Lincoln Chafee Says He'll Push Hillary Clinton on Privacy, Hound Her on Iraq - US News - 0 views

  • Lincoln Chafee, the former Rhode Island governor and senator, says the Democratic Party needs a presidential candidate who will champion Americans’ constitutional rights and scorn unnecessary wars – and that he may be the right person for the job. Chafee unexpectedly launched a presidential exploratory committee Thursday and tells U.S. News he intends to make civil liberties a major part of his likely campaign, with an anti-mass surveillance message similar to those trumpeted by Republican candidates Sens. Rand Paul and Ted Cruz. The National Security Agency’s dragnet collection of phone records violates Americans’ Fourth Amendment rights, Chafee says, offering a sharp contrast to the difficult-to-discern and vague positions of other prospective Democratic candidates. “The words of the Fourth Amendment are very clear: You need a warrant. That’s strict language, and ‘no warrants shall issue, but upon probable cause,’” he says. “It’s not complicated.”
  • If he jumps into the race, Chafee says he will seek to pressure front-runner Hillary Clinton – expected to announce her candidacy on Sunday – to bend toward pro-civil liberties positions, though he says he wants to be fair and credits Clinton for previously opposing immunity for companies who allegedly complied with government surveillance. Chafee, from a prominent political family, was a liberal Republican in the U.S. Senate from 1999 to 2007. He was elected Rhode Island governor in 2010 as an independent and became a Democrat in 2013. He did not seek a second term and left office in January. As a senator, Chafee voted for the USA Patriot Act in 2001 (as did Clinton) and to renew expiring provisions of the act in 2006. He says he, like Patriot Act author Rep. Jim Sensenbrenner, R-Wis., was shocked to learn from whistleblower Edward Snowden that the executive branch interpreted the law as allowing the bulk collection of U.S. phone records. “I don't believe it granted any power to tap phones or any other surveillance without a warrant. That’s a definite stretch,” he says.
  • Chafee says he plans to announce a position on pardoning Snowden in the near future and says he’s also considering his position on marijuana legalization. Most Americans favor legalization, polls show, but few mainstream politicians do. “That’s another issue that will evolve during the campaign,” he says.
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  • One issue about which Chafee has firmly made up his mind is the 2003 U.S. invasion of Iraq. He voted against the invasion in 2002, while Clinton voted in favor – a move she later described as a mistake. Her vote helped Barack Obama rally progressives to his side and against Clinton in 2008, and Chafee says it still should make her an unacceptable pick. “It’s not a dead issue because we live with the effects of that vote today," he says. "The turmoil in the Middle East and North Africa is all because of that mistake we made in authorizing President Bush in 2002 to invade Iraq. Even though it was a long time ago, we live with the damage today.”
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    Hillary: wrong on war in Iraq. Wrong on war in Libya. Appointed neocons in the State Department who brought us war in Ukraine. Too trigger happy to be trusted to lead the nation. 
Paul Merrell

Documents Reveal Canada's Secret Hacking Tactics - The Intercept - 0 views

  • Canada’s electronic surveillance agency has secretly developed an arsenal of cyberweapons capable of stealing data and destroying adversaries’ infrastructure, according to newly revealed classified documents. Communications Security Establishment, or CSE, has also covertly hacked into computers across the world to gather intelligence, breaking into networks in Europe, Mexico, the Middle East and North Africa, the documents show. The revelations, reported Monday by CBC News in collaboration with The Intercept, shine a light for the first time on how Canada has adopted aggressive tactics to attack, sabotage and infiltrate targeted computer systems. The latest disclosures come as the Canadian government debates whether to hand over more powers to its spies to disrupt threats as part of the controversial anti-terrorism law, Bill C-51.
  • Christopher Parsons, a surveillance expert at the University of Toronto’s Citizen Lab, told CBC News that the new revelations showed that Canada’s computer networks had already been “turned into a battlefield without any Canadian being asked: Should it be done? How should it be done?” According to documents obtained by The Intercept from National Security Agency whistleblower Edward Snowden, CSE has a wide range of powerful tools to perform “computer network exploitation” and “computer network attack” operations. These involve hacking into networks to either gather intelligence or to damage adversaries’ infrastructure, potentially including electricity, transportation or banking systems. The most well-known example of a state-sponsored “attack” operation involved the use of Stuxnet, a computer worm that was reportedly developed by the United States and Israel to sabotage Iranian nuclear facilities. One document from CSE, dated from 2011, outlines the range of methods the Canadian agency has at its disposal as part of a “cyber activity spectrum” to both defend against hacking attacks and to perpetrate them. CSE says in the document that it can “disable adversary infrastructure,” “control adversary infrastructure,” or “destroy adversary infrastructure” using the attack techniques. It can also insert malware “implants” on computers to steal data.
  • According to one top-secret NSA briefing paper, dated from 2013, Canada is considered an important player in global hacking operations. Under the heading “NSA and CSEC cooperate closely in the following areas,” the paper notes that the agencies work together on “active computer network access and exploitation on a variety of foreign intelligence targets, including CT [counter terrorism], Middle East, North Africa, Europe, and Mexico.” (The NSA had not responded to a request for comment at time of publication. The agency has previously told The Intercept that it “works with foreign partners to address a wide array of serious threats, including terrorist plots, the proliferation of weapons of mass destruction, and foreign aggression.”) Notably, CSE has gone beyond just adopting a range of tools to hack computers. According to the Snowden documents, it has a range of “deception techniques” in its toolbox. These include “false flag” operations to “create unrest,” and using so-called “effects” operations to “alter adversary perception.” A false-flag operation usually means carrying out an attack, but making it look like it was performed by another group — in this case, likely another government or hacker. Effects operations can involve sending out propaganda across social media or disrupting communications services. The newly revealed documents also reveal that CSE says it can plant a “honeypot” as part of its deception tactics, possibly a reference to some sort of bait posted online that lures in targets so that they can be hacked or monitored.
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  • The apparent involvement of CSE in using the deception tactics suggests it is operating in the same area as a secretive British unit known as JTRIG, a division of the country’s eavesdropping agency, Government Communications Headquarters, or GCHQ. Last year, The Intercept published documents from Snowden showing that the JTRIG unit uses a range of effects operations to manipulate information online, such as by rigging the outcome of online polls, sending out fake messages on Facebook across entire countries, and posting negative information about targets online to damage their reputations.
Paul Merrell

Information Warfare: Automated Propaganda and Social Media Bots | Global Research - 0 views

  • NATO has announced that it is launching an “information war” against Russia. The UK publicly announced a battalion of keyboard warriors to spread disinformation. It’s well-documented that the West has long used false propaganda to sway public opinion. Western military and intelligence services manipulate social media to counter criticism of Western policies. Such manipulation includes flooding social media with comments supporting the government and large corporations, using armies of sock puppets, i.e. fake social media identities. See this, this, this, this and this. In 2013, the American Congress repealed the formal ban against the deployment of propaganda against U.S. citizens living on American soil. So there’s even less to constrain propaganda than before.
  • Information warfare for propaganda purposes also includes: The Pentagon, Federal Reserve and other government entities using software to track discussion of political issues … to try to nip dissent in the bud before it goes viral “Controlling, infiltrating, manipulating and warping” online discourse Use of artificial intelligence programs to try to predict how people will react to propaganda
  • Some of the propaganda is spread by software programs. We pointed out 6 years ago that people were writing scripts to censor hard-hitting information from social media. One of America’s top cyber-propagandists – former high-level military information officer Joel Harding – wrote in December: I was in a discussion today about information being used in social media as a possible weapon.  The people I was talking with have a tool which scrapes social media sites, gauges their sentiment and gives the user the opportunity to automatically generate a persuasive response. Their tool is called a “Social Networking Influence Engine”. *** The implications seem to be profound for the information environment. *** The people who own this tool are in the civilian world and don’t even remotely touch the defense sector, so getting approval from the US Department of State might not even occur to them.
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  • How Can This Real? Gizmodo reported in 2010: Software developer Nigel Leck got tired rehashing the same 140-character arguments against climate change deniers, so he programmed a bot that does the work for him. With citations! Leck’s bot, @AI_AGW, doesn’t just respond to arguments directed at Leck himself, it goes out and picks fights. Every five minutes it trawls Twitter for terms and phrases that commonly crop up in Tweets that refute human-caused climate change. It then searches its database of hundreds to find a counter-argument best suited for that tweet—usually a quick statement and a link to a scientific source. As can be the case with these sorts of things, many of the deniers don’t know they’ve been targeted by a robot and engage AI_AGW in debate. The bot will continue to fire back canned responses that best fit the interlocutor’s line of debate—Leck says this goes on for days, in some cases—and the bot’s been outfitted with a number of responses on the topic of religion, where the arguments unsurprisingly often end up. Technology has come a long way in the past 5 years. So if a lone programmer could do this 5 years ago, imagine what he could do now. And the big players have a lot more resources at their disposal than a lone climate activist/software developer does.  For example, a government expert told the Washington Post that the government “quite literally can watch your ideas form as you type” (and see this).  So if the lone programmer is doing it, it’s not unreasonable to assume that the big boys are widely doing it.
  • How Effective Are Automated Comments? Unfortunately, this is more effective than you might assume … Specifically, scientists have shown that name-calling and swearing breaks down people’s ability to think rationally … and intentionally sowing discord and posting junk comments to push down insightful comments  are common propaganda techniques. Indeed, an automated program need not even be that sophisticated … it can copy a couple of words from the main post or a comment, and then spew back one or more radioactive labels such as “terrorist”, “commie”, “Russia-lover”, “wimp”, “fascist”, “loser”, “traitor”, “conspiratard”, etc. Given that Harding and his compadres consider anyone who questions any U.S. policies as an enemy of the state  – as does the Obama administration (and see this) – many honest, patriotic writers and commenters may be targeted for automated propaganda comments.
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