08/08/2012 archive

(h/t Kevin Gosztola @ Firedog Lake)

Anti-Leaks Proposals Protect ‘Leak’ Powers of Congress

By: Kevin Gosztola, Firedog Lake

Wednesday August 1, 2012 12:32 pm

Yesterday, I extensively detailed most of the proposals the Senate intelligence committee has approved. Two of the proposals, which are exceptionally crude in their nature, involve forcing intelligence agency employees to surrender their pension benefits if they are found to have disclosed information without proper authorization and prohibiting former intelligence agency employees, who want to take a job as a “consultant” or enter into a contract with a media organization.

Open government groups sent a letter to the Senate arguing this “extreme approach…would imperil the few existing safe channels for those in the intelligence community who seek to expose waste, fraud, abuse, and illegality.” It would dissuade “conscientious” or former employees from reporting wrongdoing to Congress or an agency’s Inspector General because individuals would not want to risk losing their pension through a process with no judicial review. The Center for National Security Studies condemned the proposed measure against employees entering into media contracts and wrote in a letter to the committee, “The over-breadth of this provision in prohibiting commentary and analysis even when no classified information is disclosed would violate the First Amendment. Indeed the provision seems drafted in order to chill public discussion of information that is not classified, rather than being narrowly tailored to simply target disclosures of classified information.”

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What has most upset senators all along is the fact that government employees talk to journalists. For example, during a Senate Judiciary Committee hearing, Senator Jeff Sessions went through the New York Times article written by Jo Becker and Scott Shane on Obama’s “kill list” and questioned Attorney General Eric Holder about this article. He highlighted the individuals that the journalists who wrote the article interviewed. He said “these” people “were all talking to the New York Times. Somebody provided information that shouldn’t have been provided. These are some of the closest people you have in government to the President of the United States. So, this is a dangerous thing.” He went on to note that the Times was talking to senior officials at the Justice Department. He added this is a “matter of seriousness.”

It is the free flow of information, not leaks, which they wish to halt. They wish to halt this flow because they are ideologically opposed to the idea of government employees openly discussing national security matters. They are legislators that have transformed their oversight role over intelligence agencies into one that serves to shield the public from interfering with an agency’s daily affairs by raising objection to policies or programs. They are a faction that wants it to be more difficult for reporters to piece together stories like the story New York Times reporters Eric Lichtblau and James Risen published on Bush administration warrantless wiretapping. They do not want national security journalists to expose corruption that will make it difficult to serve agency heads without looking complicit. As sycophant senators, who have taken advantage of a crisis they have manufactured through the spread of unmitigated hype, they are willing to faithfully oblige those in power who wish to impose strict and likely unconstitutional regimes on lower level employees.

More Executive Branch End Runs, This Time With Cybersecurity

By: David Dayen, Firedog Lake

Monday August 6, 2012 10:26 am

The Obama Administration will consider an executive order on cybersecurity in the wake of a defeat in the Senate on a bill to deal with the issue. This is another example of the executive branch taking action when the legislative branch bogs down in gridlock.

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Carney did not bother to elucidate the authority on which Obama would enact cybersecurity regulations. …  I’m sure the executive branch will somehow find a way, as they did with No Child Left Behind waivers and changes to student loan rules and deferred action on DREAM-eligible immigrants. And nobody is likely to raise much of an objection beyond a stage whisper.

…

We’re really talking here about a breakdown of democracy. I’m not a big fan of the cybersecurity bill because it uses that threat of cyber attacks as a back door to information sharing of private communications. In this instance, executive action would be preferable, since it would probably only lead to the core goal of increased standards for critical infrastructure facilities to guard against cyber attacks. But this is really no way to run a democracy, where the executive branch has to end-run around Congress because they find themselves unable to get anything done. It damages democratic accountability. These end runs don’t deal with the core problem of unnecessary and unworkable supermajority requirements in the Senate. That’s where an executive branch that wants the American system to work needs to target.

NSA Whistleblower Thomas Drake on ‘The Daily Show’

By: Kevin Gosztola, Firedog Lake

Tuesday August 7, 2012 9:24 am

A “Daily Show” clip with correspondent Jason Jones aired last night on “super spy” Thomas Drake, who worked for the National Security Agency as an analyst until he was ultimately charged as “a spy” under the Espionage Act for blowing the whistle on the NSA. The segment nicely plays up the fact he did not commit espionage and, instead, was a “cost-benefit analysis expert,” who had examined two intelligence gathering programs and decided one was cheaper and would lead to less fraud, waste, abuse and illegalities.

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Drake leads Jones through the act he committed describing why the government decided to prosecute him. Jesselyn Radack, a lawyer for Drake and National Security & Human Rights Director at the Government Accountability Project, appears in the segment with Drake and gets in a good line before the segment concludes.

What’s shown basically affirms what Jon Stewart says in the introduction, “When it’s information the Obama administration no likey, they’ve been sonsofbitches on government whistleblowers.” And it ran right after Stewart skewered former New York Times columnist Judith Miller for going on Fox News to rail against Obama administration “leaks.” [Here’s that segment, which made for a great lead-in to the segment with Drake.]

These two segments aired in the first ten minutes of the program last night, the opening of the show. It gave Americans a flavor of the hypocrisy driving “leak hysteria” and the Obama administration’s war on whistleblowing. Few Americans are likely familiar with Drake-and they should be-so the “Daily Show” engaged in a kind of public service by choosing to satirize his case.

The LIBOR scandal continues to rattle the banking industry revealing the fraud that has gone unchecked by regulators in the US and Europe. The latest scandal that is now rocking international banking involves billions of dollars that were laundered by the British bank, Standard Charter, for Iran:

Standard Chartered bank ran a rogue unit that schemed with Iran’s government to hide more than $250bn (£160bn) in illegal transactions for nearly a decade, according to a scathing report by New York regulators that may put intense pressure on the management of the UK-based bank.

According to the report filed by the New York state department of financial services (NYSDFS), when warned by a US colleague about dealings with Iran, a Standard Chartered executive caustically replied: “You f—ing Americans. Who are you to tell us, the rest of the world, that we’re not going to deal with Iranians.” [..]

The 27-page report claims that Standard Chartered bankers helped Iranian clients skirt US financial sanctions against their country for nearly a decade.

Benjamin Lawsky, superintendent of the NYSDFS, said a Standard Chartered subsidiary in New York had also sought to do business with other US-sanctioned countries, including Libya, Burma and Sudan.

It is the latest blow to the reputation of the City, already criticised in Washington following the HSBC money-laundering debacle and JP Morgan’s multibillion-dollar trading losses at its London office. [..]

The New York regulator has provided emails between members of Standard Chartered staff. In one the head of the US operations warned, among others, the executive director of risk in London, that the dealings with Iran could cause “very serious or even catastrophic reputational damage” to the group.

The email, dated October 2006, warned: “There is equally importantly potential of risk of subjecting management in US and London (e.g. you and I) and elsewhere to personal reputational damages and/or serious criminal liability.” It was this memo that provoked the response about “you f—ing Americans”.

But it wasn’t the Treasury Department or the Federal Reserve that dropped the bomb with these charges, it was  Benjamin Lawsky, the New York Superintendent of Financial Services. Yves Smith at naked capitalism asked yesterday, “where were the Feds?”

The lack of action by everyone ex the lowly New York banking supervisor is mighty troubling. The evidence presented in Lawsky’s filing is compelling; he clearly has not gone off half cocked. Why has he pressed forward and announced this on his own? The Treasury Department’s Office of Terrorism and Financial Intelligence has supposedly been all over terrorist finance; the consultants to that effort typically have very high level security clearances and top level access (one colleague who worked on this effort in the Paulson Treasury could get the former ECB chief Trichet on the phone). For them not to have pursued it anywhere as aggressively as a vastly less well resourced state banking regulator, particularly when Iran is now the designated Foreign Enemy #1, does not pass the smell test.

At a minimum, this lack of sufficient inquisitiveness on behalf of the Feds would the bank snookered them by being terribly forthcoming (as in it was responding only to specific inquiries, and then as narrowly as possible). But it raises the more troubling specter that Federal regulators (oh, and the US Department of Justice) wanted to keep this all quiet so as not to lead to embarrassing headlines. Although there is nothing in the filing to point to failure to act by the New York Fed, which was presumably the lead party in the 2003 sanctions against SCB (indeed, it says specifically that SCB deceived Federal regulators), the flip side is there would be only downside to Lawsky in doing anything that would make Fed or Treasury think he was trying to make then look bad.

There was a huge furor in the UK over who among the banking regulators knew what when on the Libor scandal. If our Congresscritters are at all worth their salt, they ought to be putting Geithner and the relevant folks at the New York Fed under the hot lights. We’ll see soon enough how the Fed and Treasury play this. If they don’t launch parallel actions pronto, it will be a damning sign as to where they think their, and perhaps most importantly, Geithner’s, interests lie.

At emptywheel, Mary Wheeler, wondered as well why the Superintendent of Financial Services is policing our Iran sanctions?

Normally, we’d see accusations like SFS released today from Treasury’s OFAC (Office of Terrorism and Financial Intelligence), perhaps (for charges as scandalous as these) in conjunction with the NY DA and/or a US Attorney. And yet OFAC has had these materials in hand for 2 years, and has done nothing.

In fact, we have a pretty good idea what OFAC’s action would look like, because earlier this year it sanctioned ING for actions that were similar in type, albeit larger in number (20,000 versus 60,000) and far larger in dollar amount ($1.6 billion involving Cuba versus $250 billion involving Iran). Both banks were doctoring fields in SWIFT forms to hide the source or destination of their transfers. [..]

My wildarsed guess, in this case, is that we have an understanding with our allies that they’ll allow us to require the rest of the world to comply with our sanctions so long as it doesn’t affect that country’s businesses. That is, I suspect countries like Britain are happy to comply with our sanctions so long as British banks don’t lose competitive advantages as a result. Of course, these sanctions are different that-say-our stupid Cuba sanctions in that the UK is as enthusiastic about sanctioning Iran into docility as the US is, and this scheme is all about retaining lucrative business with Iran.

But we may never learn what reason that is, because that would make things uncomfortable for the entities that claim there is rule of law for banks while they ensure that usually is not the case.

But no matter, the Feds are now upset with Lawsky who had the cajones to do what they were obviously trying to cover up. Barry Ritholtz at Economonitor points out that Lawsky has virtually declared the Treasury and Federal reserve as “too corrupt” to handle this:

   “Pursuant to the statutory powers vested in him by the People of the State of New York . . . [and] extensive investigation included the review of more than 30,000 pages of documents, including internal SCB (Standard Chartered Bank) e-mails that describe willful and egregious violations of law.

  For almost ten years, SCB schemed with the Government of Iran and hid from regulators roughly 60,000 secret transactions, involving at least $250 billion, and reaping SCB hundreds of millions of dollars in fees. SCB’s actions left the U.S. financial system vulnerable to terrorists, weapons dealers, drug kingpins and corrupt regimes, and deprived law enforcement investigators of crucial information used to track all manner of criminal activity.

   –NYS Department of Financial Services

Benjamin Lawsky, head of the New York State Department of Financial Services, has declared that the Treasury Department and the Federal Reserve is “too corrupt” to be involved in NY’s actions against money launderers and Iran sponsors at Standard Chartered bank.

At least, that corruption is what was implied by his actions (note those are my words, not his). Lawsky refused to give Tim Geithner or Ben Bernanke or anyone else at Treasury or the Fed any advance notice of pending legal/regulatory actions. Sorry, Treasury, he seemed to be saying, but your track records preceded you. [..]

This Treasury Department, like the one that preceded it, along with Congress and the White House, have proven themselves to be utterly incapable of overseeing the banking industry. Rather than adhere to this betrayal of the public trust, Mr. Lawsky decided to do something amazing: He actually followed the law. The rest of the regulatory sector should take note.

Have a read of the paragraph at the top of this page to see how prosecution of banking felons and their crony capitalist allies is supposed to be done.

We live in the Banana Republic formerly known as the United States. Its time to turn this nation back into a Democracy . . .

Let’s hope that Mr. Lawsky doesn’t cave to pressure like NY State Attorney General Eric Scneiderman did.

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

Wednesday is Ladies’ Day

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Jeanne Mirer and Marjorie Cohn: The Toxic Effects of Agent Orange Persist 51 Years After the Vietnam War

From the beginning of the spraying 51 years ago, and even today, millions of Vietnamese have died from, or been completely incapacitated by, diseases which the US government recognizes are related to Agent Orange for purposes of granting compensation to Vietnam veterans in the United States. The Vietnamese, who were the intended victims of this spraying, experienced the most intense, horrible impact on human health and environmental devastation. Second and third generations of children, born to parents exposed during the war and in areas of heavy spraying hot spots, suffer unspeakable deformities that medical authorities attribute to the dioxin in Agent Orange. [..]

For the past 51 years, the Vietnamese people have been attempting to address this legacy of war by trying to get the United States and the chemical companies to accept responsibility for this ongoing nightmare. An unsuccessful legal action by Vietnamese victims of Agent Orange against the chemical companies in US federal court, begun in 2004, has nonetheless spawned a movement to hold the United States accountable for using such dangerous chemicals on civilian populations. The movement has resulted in pending legislation HR 2634 hot spots, lawsuit to compensate them, as the unintended victims, for their Agent-Orange-related illnesses. But the Vietnamese continue to suffer from these violations with almost no recognition, as do the offspring of Agent-Orange-exposed US veterans and Vietnamese-Americans.

Ruth Coniff: Tragedy in Wisconsin and Our Out-of-Control Gun Policies

The shooting rampage Sunday at the Wisconsin Sikh Temple outside Milwaukee has got to prompt serious soul-searching about our out-of-control gun policies in this country.

Although President Obama’s timely words of condolence strike the right note, once again the President did not seriously address the main problem: that the floridly psychotic, violent racists, and anyone else who attends a gun show or chooses to order thousands of rounds of ammunition online, has easy access to weapons like the two semiautomatic handguns the temple gunman apparently used.

This is not a hunting issue. It is not an issue of self defense. It is a question, as the President himself put it after the horrible massacre in a Colorado movie theater, of whether automatic weapons belong in the hands of soldiers, or of anyone who cares to use them.

Here’s a pretty good summary of Bankster crime.

This summer.

In London.

String of summer scandals tarnishes reputation of London’s financial industry

By Associated Press

Published: August 7

First came U.K. bank Barclays. Its chief executive, Bob Diamond, was forced to step down last month after U.S. and British authorities fined the bank $453 million for manipulating a key market interest rate. Other banks are being investigated for their part in the scandal.

Then there was HSBC, another big London-based bank. It faces fines of up to $1 billion after the U.S. Senate issued a damming report last month alleging it had failed to stop the laundering of Mexican drug money.

Back in May, JPMorgan Chase & Co. disclosed a surprise $2 billion trading loss – later upgraded to $5.8 billion – racked up by its London office in a portfolio designed to hedge against risks the company takes with its own money.

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And now Standard Chartered, that most predictably profitable of British banks, has been accused by a regulator in New York of laundering Iranian oil money for years.

And what is the problem with this?

“We will get out of it, but it is a blow that means regulators will have a greater say in life, which means that economic growth will be slower.”

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

Click on images to enlarge

August 8 is the 220th day of the year (221st in leap years) in the Gregorian calendar. There are 145 days remaining until the end of the year.

On this day in 1974, Richard M. Nixon becomes the first President to resign.

In an evening televised address, President Richard M. Nixon announces his intention to become the first president in American history to resign. With impeachment proceedings underway against him for his involvement in the Watergate affair, Nixon was finally bowing to pressure from the public and Congress to leave the White House. “By taking this action,” he said in a solemn address from the Oval Office, “I hope that I will have hastened the start of the process of healing which is so desperately needed in America.”

Just before noon the next day, Nixon officially ended his term as the 37th president of the United States. Before departing with his family in a helicopter from the White House lawn, he smiled farewell and enigmatically raised his arms in a victory or peace salute. The helicopter door was then closed, and the Nixon family began their journey home to San Clemente, California. Minutes later, Vice President Gerald R. Ford was sworn in as the 38th president of the United States in the East Room of the White House. After taking the oath of office, President Ford spoke to the nation in a television address, declaring, “My fellow Americans, our long national nightmare is over.” He later pardoned Nixon for any crimes he may have committed while in office, explaining that he wanted to end the national divisions created by the Watergate scandal.

Jon Stewart’s extended interview with Fred Guterl.

Well the Olympics is winding down to Closing Ceremonies on Sunday which you can tell from the length and breadth of the coverage.  I wonder if we’ll have another unlisted Greco-Roman Final Monday and if so will anyone notice?

Yesterday I watched two really extraordinary contests and if they both happened to involve the USA team I must admit I’m not immune to the kind of jingoistic nationalism that pervades the Olympics (and international sporting in general, let’s talk Formula One).  However it’s also my philosophy that sports are more understandable and enjoyable if you have a rooting interest in the result.  Thus my scramble around Series time to find the team I hate least, goodness knows I’ll never see my Mets on that field but I’m not above picking based on cute mascots and jersey color.

And in my defense they are both distaff teams.  Men’s Basketball doesn’t need my help, their heads can fill a stadium.

In Water Polo the women advance after double overtime (it’s always a double overtime).  They scored 2 in the first overtime that went unanswered but the critical moment was a literal last second time out (which was idiotic and they didn’t need) called by USA and without clear possession.  The resulting penalty shot tied the game.

It’s the first time the USA Women’s Water Polo team will be in the finals in ages.

In Basketball it was Lady Huskies 2000 as Geno and the UConn All-Stars doubled down on Team Canada.  I’d pay good money to see them play the men, bet they’d kick their ass.

Back to the Women’s Football ‘victory’.  Canada is very depressed.  The game was sent into overtime on a penalty kick from a 6 second goalie holding violation.  Well, Team USA had been holding all day and it was never called.  Of course it’s Canada that’s being investigated for letting this slip to the public.

Finally from the halls of bad officiating.  It seems that despite getting his loss over turned, Spence fails to advance and the USA is sent home medal less for the first time ever.  Women’s team has two guaranteed.

Team USA Dressage was only able to muster a 6th place finish yesterday and Rafalca’s performance wasn’t good enough to qualify for individual competition.  This means they can strap her to the roof of the Gulfstream and have her back for the announcement of Consul any time.

Broadcast Schedule

All this is sourced through the NBC Olympics broadcast schedule.  Competition starts again at 8 am tomorrow.  

Competitions designated by (Medal) will award winners that day.  ‘all’ means not specified.  Sometimes NBC especially does mashups and doesn’t include event or competitor information.  Elimination means no round robin, one and done.

These schedules are a place for you to make sure you don’t miss a sport you like and share your observations.  Have fun today!