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Paul Merrell

Half of Federal Agencies Still Use Outdated Freedom of Information Regulations - 0 views

  • Nearly half (50 out of 101) of all federal agencies have still not updated their Freedom of Information Act regulations to comply with Congress's 2007 FOIA amendments, and even more agencies (55 of 101) have FOIA regulations that predate and ignore President Obama's and Attorney General Holder's 2009 guidance for a "presumption of disclosure," according to the new National Security Archive FOIA Audit released today to mark Sunshine Week. Congress amended the Freedom of Information Act in 2007 to prohibit agencies from charging processing fees if they missed their response deadlines, to include new online journalists in the fee waiver category for the media, to order agencies to cooperate with the new FOIA ombudsman (the Office of Government Information Services, OGIS), and to require reports of specific data on their FOIA output, among other provisions co-authored by Senators Patrick Leahy (D-VT) and John Cornyn (R-TX). But half the government has yet to incorporate these changes in their regulations, according to the latest National Security Archive FOIA Audit. After President Obama's "Day One" commitments to open government, Attorney General Eric Holder issued new FOIA guidance on March 19, 2009, declaring that agencies should adopt a "presumption of disclosure," encourage discretionary releases if there was no foreseeable harm (even if technically covered by an exemption), proactively post the records of greatest public interest online, and remove "unnecessary bureaucratic hurdles" from the FOIA process. But five years later, the Archive found a majority of agencies have old regulations that simply ignore this guidance.
  • The Archive's FOIA Audit also highlights some good news this Sunshine Week: New plans from both the House of Representatives and White House have the potential to compel delinquent agencies to update their regulations. "Both Congress and the White House now recognize the problem of outdated FOIA regulations, and that is something to celebrate," said Archive director Tom Blanton. "But new regs should not follow the Justice Department's terrible lead, they must follow the best practices already identified by the FOIA ombuds office and FOIA experts." "If and when this important FOIA reform occurs, open government watchdogs must be vigilant to ensure that the agencies' updated regulations are progressive, rather than regressive, and embrace best practices to ensure that more documents are released to requesters, more quickly" said Nate Jones, the Archive's FOIA coordinator.
  • In 2011, the back-to-back Rosemary Award-winning Department of Justice proposed FOIA regulations that would have — among many other FOIA setbacks — allowed the Department to lie to FOIA requesters, eliminated online-only publications from receiving media fee status, and made it easier to destroy records. After intense pushback by openness advocates, the DOJ temporarily pulled these regulations, and Pustay claimed, "some people misinterpreted what we were trying to do, misconstrued some of the provisions, and didn't necessarily understand some of the fee guidelines." Pustay also claimed — to an incredulous Senate Judiciary Committee — that updating FOIA regulations to conform with the 2007 OPEN Government Act was merely optional and "not required." National Security Archive director Tom Blanton warned in his own 2013 Senate testimony that these terrible "vampire" regulations were not gone for good. This year, Pustay testified that the Department of Justice has indeed resubmitted its FOIA regulations for OMB approval; their content is unknown to the public.
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  • The House of Representatives recently unanimously passed the bipartisan Freedom of Information Act Implementation Act (H.R. 1211), which includes a provision compelling agencies to update their FOIA regulations. The House bill — which now awaits Senate approval — would require each agency to update its FOIA regulations "not later than 180 days after the enactment of this Act." The White House is also addressing the problem of outdated FOIA regulations, albeit in a different manner. In its latest Open Government Partnership National Action Plan, the White House has committed (on paper, at least) to creating one "core FOIA regulation and common set of practices [that] would make it easier for requesters to understand and navigate the FOIA process and easier for the Government to keep regulations up to date." Transparency watchdogs went on alert this week after the Department of Justice's Director of Information Policy Melanie Pustay announced during her Senate testimony on March 11, 2014 that, "My office is leading that project" to create the White House-backed common regulation which, she estimated will be, "a one or two year project." Despite Pustay's pledge that she would accept input from OGIS and the requester community, her Department's history of crafting FOIA regulations has been anything but stellar.
  • As the Department of Justice and other agencies have demonstrated, new regulations do not necessarily make good regulations. As such, the National Security Archive has recommended that any updated FOIA regulations must: mandate that FOIA officers embrace direct communications with requesters; require agencies to receive requests by e-mail and post all responses and documents online; direct agencies to update their FOIA processing software so documents can be posted to any online repository, including the government-sponsored FOIAonline; encourage agencies to join FOIAonline to make their FOIA processing more cost-effective and efficient; stream-line inter and intra-agency "referral" black holes — and keep requesters abreast of where their requests are if the agency does have to refer them; include language encouraging use of the OGIS, which can help requesters and agencies mediate disputes to avoid animosity and costly litigation; end the practice of using fees to discourage FOIA requesters. The Office of Government Information Services — which reviews and comments on agency regulations as they are proposed — has also compiled a list of best practices for agencies to consider while crafting regulations. These include: "let the Freedom of Information Act itself" — and its presumption for disclosure — "be your guide;" bring attorneys, FOIA processors, records managers and IT pros to the table; include your plan for records management and preservation; and alert requesters of their option to contact OGIS for mediation and dispute resolution services.
  • A useful compilation of current agency FOIA regulation language — already on the books — put together by the Center of Effective Government also includes helpful guidelines on preventing the destruction of requested records; narrowly interpreting claims of confidential business information; and clarifying fee waivers and procedures. FOIA experts are currently working to craft model, pro-transparency, CFR-ready language that agencies — or the drafters of government-wide common regulations — can use to bring agencies' Freedom of Information Act regulations up to standard. Watch this space, and then watch the Code of Federal Regulations (CFR). "As the staffer who waded through every single federal agencies' FOIA website and CFR chapter to locate their — sometimes hidden — regulations, I learned FOIA officials often say they view their FOIA requesters as customers," said Archive researcher Lauren Harper, "I think easy to find, updated model FOIA regulations are the best way for agencies to demonstrate they truly value their customer service, and the spirit of the FOIA."
  • The National Security Archive has conducted thirteen FOIA audits since 2002. Modeled after the California Sunshine Survey and subsequent state "FOI Audits," the Archive's FOIA Audits use open-government laws to test whether or not agencies are obeying those same laws. Recommendations from previous Archive FOIA Audits have led directly to laws and executive orders which have: set explicit customer service guidelines, mandated FOIA backlog reduction, assigned individualized FOIA tracking numbers, forced agencies to report the average number of days needed to process requests, and revealed the (often embarrassing) ages of the oldest pending FOIA requests. The surveys include:
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    Article includes tables indicating which agencies are out of compliance with which FOIA directives. 
Gary Edwards

GOP immigration plan devised by Communist Party - 0 views

  • Republican support
  • But why would Republicans get behind such a plan? Some astute political observers advise that when politicians appear to be promoting agendas against their own interest, follow the money.
  • t’s no surprise that the Republicans supporting this thing are the ones with ties to the Chamber of Commerce, not ordinary voters.”
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  • But even if big business benefits, the cheap labor advantages are only temporary. Once illegal aliens are fully legalized, businesses will be required to provide just as much in pay and benefits as they pay American workers.
  • In the meantime, however, it is widely assumed those workers will take jobs from American citizens, depress wages and increase unemployment. Moreover, in many key swing states, projected amnesties will swamp the rolls of the unemployed (see table)
  • So, illegal aliens would be granted legal status immediately, but five years down the road, if the fence still isn’t built and e-verify still isn’t being used, then their legal status would be revoked. Given that the Department of Homeland Security is already allegedly ignoring border security –with immigration and customs agents suing their own agency for failing to enforce the law – many voters place little confidence in political promises of future enforcement.
  • In the meantime, Senate and House opponents have been painstakingly highlighting what they consider to be glaring flaws in these proposals: Every single border security provision in the Senate bill, including the hire of 20,000 Border Patrol agents, denying amnesty to criminals, building fences and installing surveillance devices, can be waived by the Homeland Security secretary. Both the House and Senate proposals emphasize the path to citizenship – the centerpiece of communist efforts – while making border security both vague and secondary. Both bills provide a $5,000 incentive for companies to hire the newly legalized illegal aliens instead of Americans, since the aliens would not be subject to the Obamacare coverage mandate.
  • Although politicians and the media have settled on the claim that there are 11 million illegal aliens, the actual number may well be closer to 20 million to 30 million. There were 10 million in 1996, a mere 10 years after Reagan’s amnesty, and it is doubtful only one million more have been added in the ensuing 17 years. Since 1990, Border agents have apprehended on average more than 1 million illegal aliens per year, almost all from Mexico.
  • When the Reagan amnesty became law, the intention was to naturalize only 1.2 million people, but the actual figure turned out to be 2.7 million. Statistics on illegal immigration have longed tended to be underestimated, sometimes vastly so.
  • Thus, current proposals provide a path to citizenship for as many as 20 to 30 million illegal aliens here now, plus relatives who will be brought in through chain migration and at least 75 percent of those who will come in the future – virtually endless amnesty – while efforts to secure the border are almost certain to be insufficient.
  • With polls showing more than two-thirds of Americans don’t believe “immigration laws would be enforced in the future if illegal aliens were given amnesty,” it is clear that passage of the current Republican-backed bill may indeed fulfill the agenda of its communist originators – the creation of a permanent Democrat voting majority, guaranteeing permanent control of the United States government by leftist progressives.
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    Wow.  Documentation up the ying yang .......... "The U.S. Senate's "Gang of Eight" immigration-reform plan, as well as a strikingly similar plan now being backed by Rep. Paul Ryan, R-Wis., and a bi-partisan House "Gang," both offer the "roadmap to citizenship" originally conceived and carefully developed by members of the Communist Party USA working within the Democratic Party and the radical left activist network for the purpose of using amnestied illegals to build a "permanent progressive majority." That is the inescapable conclusion readers will draw after reading the forthcoming book by acclaimed researcher and blogger Trevor Loudon, titled "The Enemies Within: Communists, Socialists and Progressives in the U.S. Congress." Although not yet published, Loudon agreed to allow WND readers to preview one chapter, titled "Latino Immigrants: Tools to Ensure a 'Governing Coalition' for the Left." Ads by Google Marriage Visa Lawyer $195 Get Your Fiance/Spouse to the USA. Free Consultation. (888) 902-9285 EasyFianceVisa.com/SpousalVisa Canadian Rockies By Train Experience the Rockies By Train. Luxury Mountain Travel By Rail TravelAlberta.us/Train In the book, Loudon exhaustively documents the Left's longtime agenda regarding illegal aliens and how its activists have gone about implementing it. He provides irrefutable proof that the entire immigration-reform movement was the brainchild of American communists and that their goal has long been to establish unchallengeable political supremacy. According to Loudon, the Communist Party USA has influenced U.S. policy toward illegals since at least the 1960s. He traces the history, showing how communists and communist-founded organizations slowly built the movement from the ground up. While other groups certainly joined the effort, the communists were always at the center. For example, he tells the story of CPUSA member Bert Corona, the "Communist Father of the 'Immigrants Rights' move
Gary Edwards

The Lawless President - 0 views

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    Excellent read!  Peter Ferrara walks us through the latest Obama assault on the Constitution, this time his refusal to enforce laws he disagrees with.  Surprisingly, this now includes the employer mandate portion of ObamaCare!!!  Why he has to do this however is a stunning story. Bottom line:  The latest jobs report has the economy producing 195,000 new jobs in the past quarter.  The problem is, 100% of these new jobs are part-time.  Thanks to ObamaCare.   "The duties of the President of the United States are spelled out in Article II, Section 3 of the Constitution, which states, inter alia, that the President "shall take Care that the laws be faithfully executed." As Stanford Law Professor and former federal judge Michael McConnell explained in yesterday's Wall Street Journal, "This is a duty, not a discretionary power. While the president does have substantial discretion about how to enforce a law, he has no discretion about whether to do so." Section 1513(d) of the Unaffordable Care Act (aka "Obamacare") states unequivocally, "The amendments made by this section shall apply to months beginning after December 31, 2013." In other words, the provisions of Obamacare become fully effective in 2014, as a matter of duly enacted federal law. But over the long Fourth of July weekend, in a "Never Mind" moment, the Obama Administration announced, through a Deputy Assistant Secretary of the Treasury, that contrary to federal law, the employer mandate of Obamacare shall not become fully effective in months beginning after December 31, 2013, but only in months beginning after December 31, 2014. Making the announcement through such a low level Administration official to me says that Obama has contempt for the American people, and for the rule of law. Barack Obama: Lawbreaker But it does not matter who announces it. The President is the one responsible. And the announcement constitutes the assumption of authoritarian powers by President Obama. McCo
Gary Edwards

Google News - 0 views

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    "http://www.pjtv.com/s/GEZDSMRS" The only video anyone needs to watch concerning the George Zimmerman - Trayvon Martin Circus. Awesome presentation by Bill Whittle sets straight the facts, including photos and evidence from the scene of the fight. Incredibly, the Obama - Holder "race hustling poverty pimp" show is trying to blame white-on-black racial violence and the "Stand your ground" laws as the problem. Funny but George Zimmerman is about as "white" as Obama is. If Obama, whose mother was white, attacked a black man, would that be considered "white-on-black"? How is it any different with Zimmerman, whose father is white, and mother Latino? And the "Stand your ground" law was never a factor in this case. Zimmerman's defense was 100% based on basic self defense. Nor did the prosecution bring up "Stand your ground" or otherwise reference the law. So how is that an issue with race hustling poverty pimps? Well, the pimps out to destroy the Second Amendment rights of 310 million Americans. In spite of the fact that guns are the weapon of choice that millions of black families, living in the urban lawlessness of socialist American cities, use to defend themselves and their families. Wherever the gun control nazis succeed, the black-on-black crime rates soar. Bill Whittle continues to be my favorite commentator.
Paul Merrell

The NSA Reveals That It Does 20 Million Database Queries Per Month | Techdirt - 0 views

  • As we noted earlier today, the NSA's two key "defenses" of the thousands of abuses and violations of the law that recently came out thanks to a leaked document are that there wasn't "intent" to abuse the system (we had no idea that made illegal things legal...) and, second, that it was such a small percentage of the activity that it's really no big deal. Glenn Greenwald quickly noted that the NSA is actually saying "we collect billion of emails and calls every day, so what's a few thousand privacy violations?" hoping that everyone focuses on the second half of the sentence. But the key point is actually the first half of that sentence. In fact, as we noted in that last post, the NSA's top compliance guy actually revealed a startling fact in his attempt to push the meaningless "ratio" of violations to queries: The official, John DeLong, the N.S.A. director of compliance, said that the number of mistakes by the agency was extremely low compared with its overall activities. The report showed about 100 errors by analysts in making queries of databases of already-collected communications data; by comparison, he said, the agency performs about 20 million such queries each month.
  • Again, the ratio is a meaningless number. You're not declared innocent of murder because you didn't happen to murder someone every other day of your life. But, perhaps more important in this is the revelation of the 20 million queries every single month. Or, approximately 600,000 queries every day. How about 25,000 queries every hour? Or 417 queries every minute? Seven queries every single second. Holy crap, that's a lot of queries. Remember, too, that the NSA has insisted that it doesn't datamine its data collection, which is clearly hogwash. That many queries means they're trolling through that database all the time. Remember how the NSA was trying to play down how often it did queries by saying that only 300 phone numbers had been used to "initiate" a query? Yeah, well, once again, it would appear that the NSA was not being fully forthcoming about these sorts of things. Shocking, I know, but I'd imagine they'd claim it was the "least untruthful" answer they could come up with after having a good week or so to answer the question.
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    Edward Snowden already told us that the query "audits" were only seldom-experienced spot checks. The ratio of problems found to the number of queries is totally meaningless. 
Paul Merrell

Post 9/11 security boom spells jobs and controversy | Al Jazeera America - 0 views

  • And in the years since the September 11 attacks, the security market is booming. The government spends nearly six times what it did in 2001 in the fight against terrorism, fueling a growing security apparatus that has added thousands of private contractors to its payrolls, with new levels of funding for both legacy security firms and new-fangled start-ups. Homeland security funding totaled more than half a trillion dollars over the past decade, providing new jobs for those with specialized skills.
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    And growing right along with it is the government security/industrial establishment that will lobby Congress incessantly to continue the politics of fear and to grow its government spending. Bad politics is a lot like the regulation of toxic substances. Better to delay the introduction of new synthetic substances into the market than to try to get them off the market on public health or environmental grounds once they've become profitable. In 1966, the Mrak Commission identified 166 marketed pesticides that caused cancer or cell mutations in animal studies. Lots of them are still on the market, largely because they are so profitable that industry is willing to spend the money to lobby down their regulation. Meanwhile, some 10,000 new synthetic substances come onto the market each year without adequate testing. Bad politics are like that. Better to nip the problem in the bud than wait until an entire industry has been built around the government spending based on the bad politics. The politics of fear is particularly bad because it has already turned the U.S. into an Orwellian surveillance state and it's getting worse by the day.    
Paul Merrell

Report on the Free Flow of Information Act - 0 views

  • 113th Congress Report SENATE 1st Session 113-118 ====================================================================== FREE FLOW OF INFORMATION ACT OF 2013 _______ November 6, 2013.--Ordered to be printed _______ Mr. Leahy, from the Committee on the Judiciary, submitted the following R E P O R T together with ADDITIONAL AND MINORITY VIEWS [To accompany S. 987]
  • Senator Cornyn offered an amendment (ALB13708) that would ensure that all persons or entities that are protected under the Free Press Clause of the First Amendment are covered by the bill's privilege. The Committee rejected the amendment by a roll call vote. The vote record is as follows: Tally: 4 Yeas, 13 Nays, 1 Pass Yeas (4): Cornyn (R-TX), Lee (R-UT), Cruz (R-TX), Flake (R- AZ) Nays (13): Leahy (D-VT), Feinstein (D-CA), Schumer (D-NY), Durbin (D-IL), Whitehouse (D-RI), Klobuchar (D-MN), Franken (D- MN), Coons (D-DE), Blumenthal (D-CT), Hirono (D-HI), Grassley (R-IA), Hatch (R-UT), Graham (R-SC) Pass (1): Feinstein (D-CA)
  • ADDITIONAL MINORITY VIEWS FROM SENATORS CORNYN, SESSIONS, LEE, AND CRUZ On December 15, 1791, the United States of America ratified the Bill of Rights--the first ten amendments to the U.S. Constitution. The first among them states: ``Congress shall make no law . . . abridging the freedom . . . of the press[.]'' United States Constitution, amend. I. The freedom of the press does not discriminate amongst groups or individuals--it applies to all Americans. As the Supreme Court has long recognized, it was not intended to be limited to an organized industry or professional journalistic elite. See Branzburg v. Hayes, 408 U.S. 665, 704 (1972) (the ``liberty of the press is the right of the lonely pamphleteer who uses carbon paper or a mimeograph just as much as of the large metropolitan publisher who utilizes the latest photocomposition methods. Freedom of the press is a fundamental personal right[.]''); Lovell v. Griffin, 303 U.S. 444, 452 (1938) (``The liberty of the press is not confined to newspapers and periodicals. It necessarily embraces pamphlets and leaflets. . . . The press in its historic connotation comprehends every sort of publication which affords a vehicle of information and opinion.''). The Founders recognized that selectively extending the freedom of the press would require the government to decide who was a journalist worthy of protection and who was not, a form of licensure that was no freedom at all. As Justice White observed in Branzburg, administering a privilege for reporters necessitates defining ``those categories of newsmen who qualified for the privilege.'' 408 U.S. at 704 That inevitably does violence to ``the traditional doctrine that liberty of the press is the right of the lonely pamphleteer who uses carbon paper or a mimeograph just as much as of the large metropolitan publisher who utilizes the latest photocomposition methods.'' Id.
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  • The First Amendment was adopted to prevent--not further-- the federal government licensing of media. See Lovell, 303 U.S. at 451 (striking an ordinance ``that . . . strikes at the very foundation of the freedom of the press by subjecting it to license and censorship. The struggle for the freedom of the press was primarily directed against the power of the licensor.''). But federal government licensing is exactly what the Free Flow of Information Act would create. The bill identifies favored forms of media--``legitimate'' press--by granting them a special privilege. That selective grant of privilege is inimical to the First Amendment, which promises all citizens the ``freedom of the press.'' See Branzburg, 408 U.S. at 704 (``Freedom of the press is a fundamental personal right[.]'') (emphasis added). It also threatens the viability of any other form of press. The specially privileged press will gain easier access to news. That will tip the scales against its competitors and make it beholden to the government for that competitive advantage. A law enacted to protect the press from the state will, in fact, make that press dependent upon the federal government--anything but free.
  • Proponents of this bill suggest that, because the Constitution does not provide a reporter's privilege, Congress's provision of a limited privilege cannot raise any constitutional concerns. Those proponents misunderstand--and thus run afoul of--the First Amendment. The First Amendment was adopted to prevent press licensure. While it does not create a ``reporter's privilege'' on its own, it abhors the selective grant of privilege to one medium over another. The American Revolution was stoked by renegade pamphleteers and town criers who used unlicensed presses to overthrow tyranny. Today, ``any person with a phone line can become a town crier with a voice that resonates farther than it could from any soapbox. Through the use of Web pages, mail exploders, and newsgroups, the same individual can become a pamphleteer.'' Reno v. Am. Civil Liberties Union, 521 U.S. 844, 870 (1997). If today's town crier or pamphleteer must meet a test set by the federal government to avail themselves of liberty, we have gone less far from tyranny than any of us want to admit. This bill runs afoul of the First Amendment to the United States Constitution and amounts to de facto licensing. It would weaken the newly-illegitimate press, render the specially privileged press supplicant to the federal government and ultimately undermine liberty. This legislation also raises a number of serious national security concerns, as discussed in the minority views authored by Senator Sessions. For these reasons, we oppose this bill. John Cornyn. Jeff Sessions. Michael S. Lee. Ted Cruz.
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    The Senate Committee on the Judiciary reports with a do-pass recommendation a bill to grant a "covered journalist" a limited testimonial privilege against revealing news sources. But the attempt to grant such a shield to mainstream media reporters not only runs afoul of the First Amendment as indicated by the quoted minority view, but also a denial of equal protection of the law for non-mainstream media investigators and lowly citizens. The core problem is the Supreme Court has invariably held that members of the press have no greater protection under the first amendment than the lowly pamphleteer, hence the denial of Equal Protection of the law in this legislation.  The legislation is in direct response to government surveillance of the press and reporters being required by the courts to reveal their sources of classified information. 
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

'Israel will attack Iran if you sign the deal, French MP told Fabius' | The Times of Israel - 0 views

  • French member of parliament telephoned French Foreign Minister Laurent Fabius in Geneva at the weekend to warn him that Prime Minister Benjamin Netanyahu would attack Iran’s nuclear facilities if the P5+1 nations did not stiffen their terms on a deal with Iran, Israel’s Channel 2 News reported Sunday
  • “I know [Netanyahu],” the French MP, Meyer Habib, reportedly told Fabius, and predicted that the Israeli prime minister would resort to the use of force if the deal was approved in its form at the time. “If you don’t toughen your positions, Netanyahu will attack Iran,” the report quoted Habib as saying. “I know this. I know him. You have to toughen your positions in order to prevent war.” France’s Fabius is widely reported to have scuppered the finalizing of the emerging deal late Saturday, leading to the halting of the negotiations with Iran, and an agreement to reconvene on November 20. Explaining his concerns to reporters in Geneva, Fabius said Tehran was resisting demands that it suspend work on its plutonium-producing reactor at Arak and downgrade its stockpile of higher-enriched uranium. Habib, the deputy president of the Jewish umbrella organization in France, was elected to the National Assembly in Paris in June, to represent the district of southern Europe, which includes French nationals residing in Israel.
  • The TV report on Sunday said Jerusalem believed that Netanyahu’s angry public criticism of the emerging deal, and his phone conversations with world leaders — including Presidents Barack Obama, Vladimir Putin, and Francois Hollande, Chancellor Angela Merkel and Prime Minister David Cameron — had played a crucial role in stalling the deal, but that Israel was well aware that an agreement would be reached very soon. Netanyahu himself said Sunday that he was aware of the “strong desire” for a deal on the part of the P5+1 negotiators, and had asked the various leaders in his calls, “What’s the hurry?” The report, quoting sources in Jerusalem, said Netanyahu and ministers close to him were castigating the United States for its “radical eagerness” in seeking a deal, and saying that Washington appeared fearful of confrontation with Iran. “This is no way to run a negotiation,” the sources were quoted as saying. The Americans “are giving up all of their pressure points, and the Iranians recognize the Americans’ weakness.”
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  • At Sunday’s cabinet meeting, Netanyahu expressed outrage that under the terms of the emerging deal, “not a single centrifuge would be dismantled, not one.” Israel believes the imminent deal will leave Iran with uranium enrichment capabilities, and thus enable it to become a nuclear breakout state at a time of its choosing. Secretary of State John Kerry hit back at Netanyahu on Sunday, declaring, “I’m not sure that the prime minister, who I have great respect for, knows exactly what the amount or the terms are going to be because we haven’t arrived at them all yet. That’s what we’re negotiating.”
  • After the talks broke up in Geneva after midnight Saturday, Kerry complained about critics who were “jumping to conclusions” about the terms of the accord on the basis of “rumors or other parcels of information that somebody pretends to know.” Netanyahu on Friday publicly pleaded with Kerry not to rush to sign what he called a “very, very bad deal.”
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    Let's remember that Netanyahu made identical go-it-alone threats to attack Iran during the run-up to the U.S. 2012 presidential election to bring pressure on Obama to send U.S. military forces in to bomb Iranian nuclear facilities. All the while, the Israeli Defense Force top brass were telling the press that Israel doesn't have the military power to go it alone against Iran. I doubt that Netanyahu's message mattered much to the French. Netanyahu has a credibility problem on that issue. So Netanyahu tried to play the stick role while the House of Saud offered the carrot of weapons purchases from the French and the like. Some stick. 
Paul Merrell

Iran Deal in Geneva: Hold the Cheers | Global Research - 0 views

  • Fars News published the full text of the deal. It’s provisions are as follows:
  •  
    Stephen Lindman unwinds the mainstream media/U.S. political spin on the Iran/P5+1 interim agreement, summarizing and linking the actual text. As suspected, Iran got way more from the deal and gave up less than reported by mainstream media. My analysis: The spin is mainly based on provisions that are largely meaningless to Iran because it had and has no nuclear weapon ambitions. I now have a strong sniff that the P5+1 negotiation is aimed at removing Israel's excuse (Iranian nuclear weapon threat) for pushing the U.S. and NATO to commence war against Iran and that is the real reason for the War Party's rage against the interim deal. Obama is trying to do this as an executive agreement among the negotiation parties, rather than as a treaty that would require Senate super-majority approval.  But he may face a problem in that regard because of a single agreement provision: "The U.S. Administration, acting consistent with the respective roles of the President and the Congress, will refrain from imposing new nuclear-related sanctions." That carefully crafted sentence would seem to leave Congress free to enact further sanctions if it can overcome an Obama veto, which requires a supermajority in both houses of Congress. The sentence is, however, susceptible to deliberate misportrayal as a provision tying the hands of Congress too in order to attack the agreement as requiring approval by the Senate, cries of outrage about Obama usurping the Congressional role, etc. But there is a body of case law holding that some classes of "executive agreements" do not rise to the level needed to invoke the Constitution's Treaty Clause. Personally, I think that body of case law constitutes unlawful judicial amendment of the Constitution, but it exists. So litigation over the issue in regard to this agreement is unlikely to get any traction.  
Paul Merrell

The Government's Secret Plan to Shut Off Cellphones and the Internet, Explained | Connecting the Dots, News & Notes, What Matters Today | BillMoyers.com - 0 views

  • This month, the United States District Court for the District of Columbia ruled that the Department of Homeland Security must make its plan to shut off the Internet and cellphone communications available to the American public. You, of course, may now be thinking: What plan?! Though President Barack Obama swiftly disapproved of ousted Egyptian President Hosni Mubarak turning off the Internet in his country (to quell widespread civil disobedience) in 2011, the US government has the authority to do the same sort of thing, under a plan that was devised during the George W. Bush administration. Many details of the government’s controversial “kill switch” authority have been classified, such as the conditions under which it can be implemented and how the switch can be used. But thanks to a Freedom of Information Act lawsuit filed by the Electronic Privacy Information Center (EPIC), DHS has to reveal those details by December 12 — or mount an appeal. (The smart betting is on an appeal, since DHS has fought to release this information so far.) Yet here’s what we do know about the government’s “kill switch” plan:
  • What are the constitutional problems? Civil liberties advocates argue that kill switches violate the First Amendment and pose a problem because they aren’t subject to rigorous judicial and congressional oversight. “There is no court in the loop at all, at any stage in the SOP 303 process,” according to the Center for Democracy and Technology. ”The executive branch, untethered by the checks and balances of court oversight, clear instruction from Congress, or transparency to the public, is free to act as it will and in secret.” David Jacobs of EPIC says, “Cutting off communications imposes a prior restraint on speech, so the First Amendment imposes the strictest of limitations…We don’t know how DHS thinks [the kill switch] is consistent with the First Amendment.” He adds, “Such a policy, unbounded by clear rules and oversight, just invites abuse.”
Paul Merrell

Rep. Mike Rogers Angrily Defends Bathroom Spycam | Popehat - 0 views

  • Representative Mike Rogers (R-Michigan) was defiant today in the face of accusations that he had installed a small digital camera in the women's bathroom in his office at the Capitol. "This is just politics," said the ten-term Congressman. "I would argue the fact that we haven't had any women come forward with any specificity arguing that their privacy has been violated, clearly indicates, in ten years, clearly indicates that something must be doing right. Somebody must be doing something exactly right." When reporters asked how women would know to complain — the spycam, funded by the government, was expertly hidden — Rogers asserted that was the point. "You can't have your privacy violated if you don't know your privacy is violated," said Rogers.
  • Rogers went on to explain that the nation's Capitol — which has housed figures like former Congressman Bob Filner and former Senator Bob Packwood — presents known dangers to women, and that the spycam is calculated to make certain they are protected from those dangers. “If the women knew exactly what that spycam was about, they would be applauding and popping champagne corks. It’s a good thing. it keeps the women safe. It keeps the Capitol safe," Rogers asserted. Rogers then abruptly concluded the interview, threatening to sue reporters if they wrote about it.
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    Ken White of Popehat gives a great satirical take on the statement by Rep. Mike Rogers's statement that this week during a hearing on the NSA scandal that: "You can't have your privacy violated if you don't know your privacy is violated." (Put that one in your memorable quotes file, quick.) Worse, Rogers seemed to be sincere. And even worse yet, he is the chairman of the House Intelligence Committee. The CSPAN footage is in one of the links from White's masterful satire. 
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    Oops! Chairman Rogers apparently has a double standard on what constitutes "privacy" that distinguishes between victims of NSA snooping and victims of an insecure Affordable Care Act web site: "Continuing with the issue of privacy, Rep. Mike Rogers, R-Mich., ridiculed the program as unsafe for private information, stating that functionality concerns are indicative of a lack of privacy. "If it's not functioning, you know it's not secure," said Rogers. "You have exposed millions of Americans because you said it was "an acceptable risk." http://washington.cbslocal.com/2013/10/30/obamacare-website-down-while-sebelius-testifies/ So actual NSA privacy violations: not a problem. Potential ACA privacy violations: huge problem. Somehow, I strongly favor accidental privacy violations over intentional and secret government snooping. But maybe I'm just weird.
Paul Merrell

Toxic US corporate culture 'unchanged': watchdog - Yahoo News - 0 views

  • Five years after the US financial crisis forced the massive government TARP bailout, the US corporate culture remains toxic and breeding crime, the watchdog for the bailout program said Tuesday.More than 300 people in the banking, housing and securities industries are in the hands of the criminal system, whether it is a charge, a conviction or a sentencing, the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) said in a quarterly report to Congress."The financial system has stabilized, but the toxic corporate culture that led up to the crisis and TARP has not sufficiently changed," said Christy Romero, the special inspector general."At the core of the crisis was a pervasive culture at institutions of rampant risktaking and greed combined with significant unchecked power," she said.
  • SIGTARP was launched in early 2009 to detect fraud in the massive TARP bailout program. Within weeks of the Lehman Brothers bankruptcy, the government set up the $700 billion TARP to prop up the collapsing financial system. In 2010, the cap on the Treasury's authority to purchase and guarantee assets under TARP was reduced to $475 billion.To date, 65 people have been sentenced to prison for their crimes investigated by SIGTARP and its law enforcement partners, 112 have been convicted and await sentencing and 154 individuals have been criminally charged and face trial on those charges, the report said.In addition, 60 people have been banned from their industries."Many of these defendants were at the highest levels of banks or companies that applied for or received TARP bailout money. They were trusted to exercise good judgment and make sound decisions. However, they abused that trust. Many times they abused that trust for their own personal benefit," the report said.
  • As of September 30 Treasury had $30.7 billion in write-offs, losses or money not collectible from the program, according to the report."Treasury's write-offs and realized losses are money that taxpayers will never get back. Treasury generally expects the amounts currently not collectible will also be lost," the agency said.The watchdog was harshly critical of the Treasury's oversight of the Hardest Hit Fund, set up in February 2010 to help families in places hurt the most by the housing crisis.The Treasury allocated $7.6 billion in TARP funds for the HHF program in 18 states and Washington, DC, administered by local authorities.But states have reduced their proposed numbers of homeowners needing help, and the Treasury has ignored the SIGTARP's conclusions of an audit reported in April 2012.
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  • "Rather than fix the problem that SIGTARP warned Treasury about in its audit, Treasury allowed the problem to get worse. Rather than following SIGTARP’s recommendations, which were designed to make Treasury and states set goals and work hard to achieve those goals, Treasury is refusing to hold itself or the states accountable to any goal of the number of homeowners to be assisted in HHF, and the result has been that the program is reaching far fewer homeowners than the states expected," the agency said.As of June 30, 2013, the latest data available, it said, states had spent only 22 percent, or $1.7 billion, of the TARP funds and the program had helped only 27 percent of the homeowners that states had anticipated helping in 2011.
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    So many convictions. But somehow, I missed the news about executives at the too-big-to-fail banks being even prosecuted, let alone being convicted. But I did hear about a few of them becoming Obama Administration officials and bankster industry regulators. I'd really like to see a breakdown of who was convicted, of what, and their former positions. And for the 154 awaiting trial, what they're charged with and the positions they occupied at the relevant times. Forgive me for my cynicism, but those in charge of the too-big-to-fail frauds seem to be buying deals not to prosecute people criminally in return for civil penalties that are far less than the money gained by their frauds. Perhaps a relevant reform would be to limit the Justice Department and SEC's ability to bring civil cases against corporations to situations in which they have already secured a criminal conviction of one or more of the the company's principles?  Civil penalties levied against corporations have done little to deter bankster fraud. 
Gary Edwards

Revealed: Obama's Immense Shadow Army & Its Shocking Takeover Plan - 1 views

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    Is the ObamaCare train wreck a wreck by design? Another notch in the Bankster belt marking another step in the bankrupting of America? Revealed: Obama's Immense Shadow Army & Its Shocking Takeover Plan October 26, 2013  //  By: Eric Odom  //   The ObamaCare train wreck - it's awful, possibly purposeful, certainly useful for team Obama and its growing army of community activists and organizers. In a previous report, we explored the question, "What if the ObamaCare debacle is really a diversion, using a military term a "feint" - a tactical distraction to draw our attention, our focus and our fire away from the real point of attack on liberty?" Remember that horrible train wreck in Spain not long ago, captured on video? As tragic as it was, watching the crash and its gruesome aftermath was almost irresistible, wasn't it? Well, what if the disastrous rollout of the President's signature legislative achievement - what if this spectacular slow motion ObamaCare train wreck has been and is being allowed to happen so that what's going on around the bend from the fiery crash site gets little attention, from the public, from the media or from Congressional investigators? Think about it, friends. How could Barack Obama and his celebrated team of incredibly proficient, plugged in techies - the team that twice got him elected - be behind the utterly disastrous launch of the ObamaCare online storefront, healthcare.gov - arguably the biggest website failure in history? How could so much money have been spent to produce such a problem-plagued site that apparently was doomed in its developmental confusion? And how to fix this monumental mess, well, there doesn't seem to be any clear plan…other than hope. And now we learn that many, if not most, of the people actually signing up for ObamaCare through the website are enrolling in Medicaid, not signing up for private insurance policies they pay for, but adding their names onto government roll
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    There is no doubt in my mind that corporations (and their Chamber of Commerce boot licking lackys) believe that employer provided healthcare benefits was a HUGE MISTAKE. The key feature of ObamaCare is that of ENDING the HMO-Employee Healthcare profit draining quagmire these corporations somehow stumbled into. (Hint: they traded healthcare benefits for wide open government assisted Globalization - the new world order Merchantilism). IMHO, the insurance companies know full well that the entire HMO-Employee Healthcare bandwagon is going to end. Not because of socialism; because of profit hungry out of control mercantilism. So they are trying to cut the best deal possible with the government. The merchantilist doesn't care that their employees are going to suffer. They only care that this cost and the blame for losing the benefit is moved from their books to the government. Nor does the merchantilist care about protecting our borders. They want cheap labor. Even if the social cost of that cheap labor lands on the government and destroys the nation. That's why the merchantilist and his Bankster financiers support Open Borders. The merchantilist could care less about the trade deficit and the massive transfer of American manufacturing jobs overseas. As long as they can sell their junk back into the USA market without a 33% import tax these bastardos are happy to destroy their country. I wonder whose army and navy will secure their investments when the USA no longer can? Are their private armies enough? Just wondering.
Gary Edwards

The List: Unnecessarily Shut Down by Obama to Inflict Public Pain - 0 views

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    "The media may or may not report on these individual occurrences, but what they will never do is provide the American people with the full context and scope of Obama's shrill pettiness. Below is a list of illogical, unnecessary, and shockingly spiteful moves our government is making in the name of essential and non-essential. This list will be regularly updated, and if you have something you feel should be added, please email me at jnolte@breitbart.com or tweet me @NolteNC.Please include a link to the news source. -- 1. Treatments for Children Suffering From Cancer - The GOP have agreed to a compromise by funding part of the government, including the National Institutes of Health, which offers children with cancer last-chance experimental treatment. Obama has threatened to veto this funding. 2. The World War II Memorial - The WWII memorial on the DC Mall is a 24/7 open-air memorial that is not regularly staffed. Although the White House must have known that WWII veterans in their eighties and nineties had already booked flights to visit this memorial, the White House still found the resources to spitefully barricade the attraction.  The Republican National Committee has offered to cover any costs required to keep the memorial open. The White House refused. Moreover, like the NIH, the GOP will pass a compromise bill that would fund America's national parks. Obama has threatened to veto that bill. 3. Furloughed Military Chaplains Not Allowed to Work for Free - Furloughed military chaplains willing to celebrate Mass and baptisms for free have been told they will be punished for doing so. 4. Business Stops In Florida Keys - Although the GOP have agreed to compromise in the ongoing budget stalemate and fund the parks, Obama has threatened to veto that funding. As a result, small businesses, hunters, and commercial fisherman can't practice their trade. While the feds have deemed the personnel necessary to keep this area open "non-essential," the "enforcement office
Paul Merrell

Court Rebukes White House Over "Secret Law" - Secrecy News - 1 views

  • DC District Judge Ellen Segal Huvelle yesterday ordered the Obama Administration to release a copy of an unclassified presidential directive, and she said the attempt to withhold it represented an improper exercise of “secret law.” The Obama White House has a “limitless” view of its authority to withhold presidential communications from the public, she wrote, but that view is wrong. “The government appears to adopt the cavalier attitude that the President should be permitted to convey orders throughout the Executive Branch without public oversight– to engage in what is in effect governance by ‘secret law’,” Judge Huvelle wrote in her December 17 opinion. “The Court finds equally troubling the government’s complementary suggestion that ‘effective’ governance requires that a President’s substantive and non-classified directives to Executive Branch agencies remain concealed from public scrutiny,” she wrote.
  • The directive in question, Presidential Policy Directive (PPD) 6, “is a widely-publicized, non-classified Presidential Policy Directive on issues of foreign aid and development that has been distributed broadly within the Executive Branch and used by recipient agencies to guide decision-making,” the Judge noted. “Even though issued as a directive, the PPD-6 carries the force of law as policy guidance to be implemented by recipient agencies, and it is the functional equivalent of an Executive Order.” “Never before has a court had to consider whether the [presidential communications] privilege protects from disclosure under FOIA a final, non-classified, presidential directive.”
  • Several significant points emerge from this episode. First, President Obama’s declared commitment to “creating an unprecedented level of openness in Government” has not been internalized even by the President’s own staff. This latest case of “unbounded” secrecy cannot be blamed on the CIA or an overzealous Justice Department attorney. It is entirely an Obama White House production, based on a White House policy choice. Second, and relatedly, it has proved to be an error to expect the executive branch to unilaterally impose transparency on itself. To do so is to ignore, or to wish away, the Administration’s own conflicting interests in secrecy and disclosure.  Instead, it is the role of the other branches of government to check the executive and to compel appropriate disclosure.
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  • Significantly, Judge Huvelle insisted on examining the document herself in camera instead of simply relying on the Administration’s characterization of the document.  Having done so, she found that it “is not ‘revelatory of the President’s deliberations’ such that its public disclosure would undermine future decision-making.” She criticized the government for “the unbounded nature” of its claim. “In the government’s view, it can shield from disclosure under FOIA any presidential communication, even those — like the PPD-6 — that carry the force of law, simply because the communication originated with the President…. The Court rejects the government’s limitless approach….”
  • An official Fact Sheet on PPD-6 (which has not yet been released) is available here. The Electronic Privacy Information Center is currently pursuing release of another presidential directive, the Bush Administration’s NSPD-54 on cyber security. In October, Judge Beryl Howell unexpectedly ruled that that directive was exempt from disclosure because, she said, it was not an “agency record” that would be subject to the FOIA.  Her opinion came as a surprise and was not persuasive to everyone. In a footnote in yesterday’s ruling, Judge Huvelle said that the arguments over the two directives were sufficiently distinguishable that “this Court need not decide if it will follow Judge Howell’s rationale”– suggesting that if pressed, she might not have done so.  Yesterday, EPIC filed a notice of its intent to appeal the decision.
  • DC District Judge Ellen Segal Huvelle yesterday ordered the Obama Administration to release a copy of an unclassified presidential directive, and she said the attempt to withhold it represented an improper exercise of “secret law.” The Obama White House has a “limitless” view of its authority to withhold presidential communications from the public, she wrote, but that view is wrong. “The government appears to adopt the cavalier attitude that the President should be permitted to convey orders throughout the Executive Branch without public oversight– to engage in what is in effect governance by ‘secret law’,” Judge Huvelle wrote in her December 17 opinion. “The Court finds equally troubling the government’s complementary suggestion that ‘effective’ governance requires that a President’s substantive and non-classified directives to Executive Branch agencies remain concealed from public scrutiny,” she wrote.
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    Outrageous. I read the court's opinion. This happened only because: [i] federal judges are reluctant to impose sanctions on government attorneys; and [ii] government attorneys know that. In all my years of legal practice, I read only one court opinion where an assistant U.S. attorney was sanctioned and instead of the normal sanction of paying the other side's attorney fees and expenses of litigation, the judge just awarded a $500 sanction. That is also why litigating against the Feds is such a chore; you spend half your time shooting down blatantly implausible arguments. That's far less of a problem when facing attorneys who are in private practice. But so much for Obama's "transparency" platform; this was the result of the Obama Administration itself asserting a preposterous privilege claim supported only by ridiculous arguments, no more than a delaying action.  
Paul Merrell

Testosterone Pit - Home - NSA Revelations Kill IBM Hardware Sales in China - 0 views

  • The first shot was fired on Monday. Teradata, which sells analytics tools for Big Data, warned that quarterly revenues plunged 21% in Asia and 19% in the Middle East and Africa. Wednesday evening, it was IBM’s turn to confess that its hardware sales in China had simply collapsed. Every word was colored by Edward Snowden’s revelations about the NSA’s hand-in-glove collaboration with American tech companies, from startups to mastodons like IBM.
  • The explanation is more obvious. In mid-August, an anonymous source told the Shanghai Securities News, a branch of the state-owned Xinhua News Agency, which reports directly to the Propaganda and Public Information Departments of the Communist Party, that IBM, along with Oracle and EMC, have become targets of the Ministry of Public Security and the cabinet-level Development Research Centre due to the Snowden revelations. “At present, thanks to their technological superiority, many of our core information technology systems are basically dominated by foreign hardware and software firms, but the Prism scandal implies security problems,” the source said, according to Reuters. So the government would launch an investigation into these security problems, the source said. Absolute stonewalling ensued. IBM told Reuters that it was unable to comment. Oracle and EMC weren’t available for comment. The Ministry of Public Security refused to comment. The Development Research Centre knew nothing of any such investigation. The Ministry of Industry and Information Technology “could not confirm anything because of the matter’s sensitivity.”
  • I’d warned about its impact at the time [read.... US Tech Companies Raked Over The Coals In China]. Snowden’s revelations started hitting in May. Not much later, the Chinese security apparatus must have alerted IT buyers in government agencies, state-owned enterprises, and major independent corporations to turn off the order pipeline for sensitive products until this is sorted out. As Mr. Loughridge’s efforts have shown, it’s hard to explain any other way that hardware sales suddenly collapsed by “40%, 50%” in China, where they’d boomed until then. This is the first quantitative indication of the price Corporate America has to pay for gorging at the big trough of the US Intelligence Community, and particularly the NSA with its endlessly ballooning budget. For once, there is a price to be paid, if only temporarily, for helping build a perfect, seamless, borderless surveillance society. The companies will deny it. At the same time, they’ll be looking for solutions. China, Russia, and Brazil are too important to just get kicked out of – and other countries might follow suit. In September, IBM announced that it would throw another billion at Linux, the open-source operating system, to run its Power System servers – the same that China had stopped buying. It seems IBM was trying to make hay of the NSA revelations that had tangled up American operating system makers. Linux, free of NSA influence, would be a huge competitive advantage for IBM. Or so it would seem. Read.... The Other Reason Why IBM Throws A Billion At Linux (With NSA- Designed Backdoor)
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  • The first shot was fired on Monday. Teradata, which sells analytics tools for Big Data, warned that quarterly revenues plunged 21% in Asia and 19% in the Middle East and Africa. Wednesday evening, it was IBM’s turn to confess that its hardware sales in China had simply collapsed. Every word was colored by Edward Snowden’s revelations about the NSA’s hand-in-glove collaboration with American tech companies, from startups to mastodons like IBM.
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    It's starting to look as though the price of NSA collaboration is bankruptcy. Look for Big Blue to attempt to recover the loss from the U.S. government via some juicy deal.
Paul Merrell

U.S. knocks plans for European communication network | Reuters - 0 views

  • The United States on Friday criticized proposals to build a European communication network to avoid emails and other data passing through the United States, warning that such rules could breach international trade laws. In its annual review of telecommunications trade barriers, the office of the U.S. Trade Representative said impediments to cross-border data flows were a serious and growing concern.It was closely watching new laws in Turkey that led to the blocking of websites and restrictions on personal data, as well as calls in Europe for a local communications network following revelations last year about U.S. digital eavesdropping and surveillance."Recent proposals from countries within the European Union to create a Europe-only electronic network (dubbed a 'Schengen cloud' by advocates) or to create national-only electronic networks could potentially lead to effective exclusion or discrimination against foreign service suppliers that are directly offering network services, or dependent on them," the USTR said in the report.
  • Germany and France have been discussing ways to build a European network to keep data secure after the U.S. spying scandal. Even German Chancellor Angela Merkel's cell phone was reportedly monitored by American spies.The USTR said proposals by Germany's state-backed Deutsche Telekom to bypass the United States were "draconian" and likely aimed at giving European companies an advantage over their U.S. counterparts.Deutsche Telekom has suggested laws to stop data traveling within continental Europe being routed via Asia or the United States and scrapping the Safe Harbor agreement that allows U.S. companies with European-level privacy standards access to European data. (www.telekom.com/dataprotection)"Any mandatory intra-EU routing may raise questions with respect to compliance with the EU's trade obligations with respect to Internet-enabled services," the USTR said. "Accordingly, USTR will be carefully monitoring the development of any such proposals."
  • U.S. tech companies, the leaders in an e-commerce marketplace estimated to be worth up to $8 trillion a year, have urged the White House to undertake reforms to calm privacy concerns and fend off digital protectionism.
  •  
    High comedy from the office of the U.S. Trade Representative. The USTR's press release is here along with a link to its report. http://www.ustr.gov/about-us/press-office/press-releases/2014/March/USTR-Targets-Telecommunications-Trade-Barriers The USTR is upset because the E.U. is aiming to build a digital communications network that does not route internal digital traffic outside the E.U., to limit the NSA's ability to surveil Europeans' communications. Part of the plan is to build an E.U.-centric cloud that is not susceptible to U.S. court orders. This plan does not, of course, sit well with U.S.-based cloud service providers.  Where the comedy comes in is that the USTR is making threats to go to the World Trade organization to block the E.U. move under the authority of the General Agreement on Trade in Services (GATS). But that treaty provides, in article XIV, that:  "Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between countries where like conditions prevail, or a disguised restriction on trade in services, nothing in this Agreement shall be construed to prevent the adoption or enforcement by any Member of measures: ... (c)      necessary to secure compliance with laws or regulations which are not inconsistent with the provisions of this Agreement including those relating to:   ... (ii)     the protection of the privacy of individuals in relation to the processing and dissemination of personal data and the protection of confidentiality of individual records and accounts[.]" http://www.wto.org/english/docs_e/legal_e/26-gats_01_e.htm#articleXIV   The E.U., in its Treaty on Human Rights, has very strong privacy protections for digital communications. The USTR undoubtedly knows all this, and that the WTO Appellate Panel's judges are of the European mold, sticklers for protection of human rights and most likely do not appreciate being subjects o
Paul Merrell

Report: Massive Increase In Local Governments Spying on Citizens - 0 views

  • A report from Al Jazeera America has revealed that the private data of everyday citizens is being spied upon much more than previously thought.
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    12-1/2 min. report from Al Jazeera on abuse of state databases by government officials and the growing problem of surveillance by automated license plate readers.
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