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Government Corruption Media Articles
Excerpts of Key Government Corruption Media Articles in Major Media


Below are key excerpts of revealing news articles on government corruption from reliable news media sources. If any link fails to function, a paywall blocks full access, or the article is no longer available, try these digital tools.


Note: Explore our full index to key excerpts of revealing major media news articles on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.


N.S.A. Devises Radio Pathway Into Computers
2014-01-15, New York Times
http://www.nytimes.com/2014/01/15/us/nsa-effort-pries-open-computers-not-conn...

The National Security Agency has implanted software in nearly 100,000 computers around the world that allows the United States to conduct surveillance on those machines and can also create a digital highway for launching cyberattacks. While most of the software is inserted by gaining access to computer networks, the N.S.A. has increasingly made use of a secret technology that enables it to enter and alter data in computers even if they are not connected to the Internet, according to N.S.A. documents, computer experts and American officials. The technology, which the agency has used since at least 2008, relies on a covert channel of radio waves that can be transmitted from tiny circuit boards and USB cards inserted surreptitiously into the computers. In some cases, they are sent to a briefcase-size relay station that intelligence agencies can set up miles away from the target. In most cases, the radio frequency hardware must be physically inserted by a spy, a manufacturer or an unwitting user. Among the most frequent targets of the N.S.A. and its Pentagon partner, United States Cyber Command, have been units of the Chinese Army, which the United States has accused of launching regular digital probes and attacks on American industrial and military targets, usually to steal secrets or intellectual property. But the program, code-named Quantum, has also been successful in inserting software into Russian military networks and systems used by the Mexican police and drug cartels, trade institutions inside the European Union, and sometime partners against terrorism like Saudi Arabia, India and Pakistan.

Note: For more on government surveillance, see the deeply revealing reports from reliable major media sources available here.


$18M Settlement for RNC Arrests Lawsuits
2014-01-15, ABC News/Associated Press
http://abcnews.go.com/Politics/wireStory/18m-settlement-rnc-arrests-lawsuits-...

New York City has agreed to pay $18 million to settle dozens of lawsuits filed by protesters, journalists and bystanders who said they were wrongly arrested at the 2004 Republican National Convention and held for hours in makeshift holding cells. The settlement, which must be approved by a federal judge, would end nearly a decade of legal wrangling over more than 1,800 arrests, mostly on charges of disorderly conduct or parading without a permit. Hundreds sued, saying they were illegally arrested by an overzealous police department. Nearly all the arrests were dismissed by the court or the defendants acquitted. Lawyers with the New York Civil Liberties Union had previously asked the judge hearing case to conclude that police didn't have probable cause to make mass arrests during the convention, at which President George W. Bush was nominated for another term. "This historic settlement sends a clear message," said NYCLU attorney Chris Dunn. "We will not allow the police to trample on the First Amendment rights of protesters." Sarah Coburn, 30, said her arrest at the convention inspired her to become an attorney to fight for the civil rights of others. She was 20 at the time, and was held for 30 hours before she was released. She's now a public defender. "It was awful to be subjected to those conditions," she said. "I want to make sure no one else has to be."

Note: For more on government assaults on civil liberties, see the deeply revealing reports from reliable major media sources available here.


New analysis of rocket used in Syria chemical attack undercuts U.S. claims
2014-01-15, Miami Herald
http://www.miamiherald.com/2014/01/15/3873228/new-analysis-of-rocket-used-in....

A series of revelations about the rocket believed to have delivered poison sarin gas to a Damascus suburb last summer are challenging American intelligence assumptions about that attack and suggest that the case U.S. officials initially made for retaliatory military action was flawed. A team of security and arms experts, meeting this week in Washington to discuss the matter, has concluded that the range of the rocket that delivered sarin in the largest attack that night was too short for the device to have been fired from the Syrian government positions where the Obama administration insists they originated. The authors of a report released Wednesday said that their study of the rocket’s design, its likely payload and its possible trajectories show that it would have been impossible for the rocket to have been fired from inside areas controlled by the government of Syrian President Bashar Assad. In the report, titled “Possible Implications of Faulty U.S. Technical Intelligence,” Richard Lloyd, a former United Nations weapons inspector, and Theodore Postol, a professor of science, technology and national security policy at the Massachusetts Institute of Technology, argue that the question about the rocket’s range indicates a major weakness in the case for military action initially pressed by Obama administration officials. Postol said that a basic analysis of the weapon ... would have shown that it wasn’t capable of flying the 6 miles from the center of the Syrian government-controlled part of Damascus to the point of impact in the suburbs, or even the 3.6 miles from the edges of government-controlled ground.

Note: For more on government lies designed to start wars, see the deeply revealing reports from reliable major media sources available here.


'Transparent' detention at Guantanamo? Not anymore
2014-01-09, MSN
http://news.msn.com/in-depth/transparent-detention-at-guantanamo-not-anymore

After a tumultuous year at the war-on-terror detention center in Guantanamo Bay, Cuba, where the U.S. military's motto is "Safe, Humane, Legal, Transparent," operations are cloaked in secrecy. The prison approaches the start of its 13th year next week with a new reclusive regime that no longer discloses what was once routinely released information. The daily tally of hunger striking detainees — the protest that engulfed more than 100 prisoners at its peak this summer — stopped in December. Guards and other prison camp troops are under orders to withhold their names when talking to reporters. On the witness stand in the war court recently, a lawyer in the uniform of an Air Force officer gave sworn testimony under a curious, unexplained fake name — "Major Krueger." Guantanamo is remote, and what is happening there in this new era has mostly gone unnoticed. The government controls access to everything pertaining to Guantanamo. Journalists have to get the military's permission to go there, navigate censorship of their pictures, wait 40 seconds to hear what happens in court and then wait weeks to see court filings. The current crackdown on information can range from the mildly curious to the outright comedic. At times it seems to signify a gratuitous use of power by troops on rotation with sudden power to [wield] a censor's scissors. At times, it suggests a government bureaucracy whose default is knee-jerk secrecy.

Note: For more on government secrecy, see the deeply revealing reports from reliable major media sources available here.


Burglars Who Took On F.B.I. Abandon Shadows
2014-01-07, New York Times
http://www.nytimes.com/2014/01/07/us/burglars-who-took-on-fbi-abandon-shadows...

On a night nearly 43 years ago, while Muhammad Ali and Joe Frazier bludgeoned each other over 15 rounds in a televised title bout viewed by millions around the world, burglars took a lock pick and a crowbar and broke into a Federal Bureau of Investigation office in a suburb of Philadelphia, making off with nearly every document inside. They were never caught, and the stolen documents that they mailed anonymously to newspaper reporters ... would become a flood of revelations about extensive spying and dirty-tricks operations by the F.B.I. against dissident groups. Perhaps the most damning document from the cache [was] a 1970 memorandum that ... urged agents to step up their interviews of antiwar activists and members of dissident student groups. “It will enhance the paranoia endemic in these circles and will further serve to get the point across there is an F.B.I. agent behind every mailbox.” Another document, signed by Hoover himself, revealed widespread F.B.I. surveillance of black student groups on college campuses. But the document that would have the biggest impact on reining in the F.B.I.’s domestic spying activities [included] a mysterious word: Cointelpro ... shorthand for Counterintelligence Program. Since 1956, the F.B.I. had carried out an expansive campaign to spy on civil rights leaders, political organizers and suspected Communists, and had tried to sow distrust among protest groups. Among the grim litany of revelations was a blackmail letter F.B.I. agents had sent anonymously to the Rev. Dr. Martin Luther King Jr., threatening to expose his extramarital affairs if he did not commit suicide. The intent of Cointelpro was to destroy lives and ruin reputations.

Note: To learn about the brave citizen burglars who have now revealed themselves and watch the engaging video covering this story, click on the link given above. For more on the realities of intelligence agency activities, see the deeply revealing reports from reliable major media sources available here.


The WikiLeaks Mole
2014-01-06, Rolling Stone
http://www.rollingstone.com/politics/news/the-wikileaks-mole-20140106

Sigurdur "Siggi" Thordarson, [is a] cherubic, blond 21-year-old who has been called everything in the [Icelandic] press from "attention seeker" to "traitor" to "psychopath". Four years ago, just as WikiLeaks was winning international notoriety, the then-17-year-old hacking prodigy became Assange's youngest and most trusted sidekick. But as Assange became more embattled and besieged, the protégé turned on his mentor in the most shocking of ways: becoming the first FBI informant inside the group. His tale reveals not only the paranoia and strife within WikiLeaks, but just how far the feds were willing to go to get Assange. The revelation of Siggi's role as an FBI snitch has polarized WikiLeaks insiders. WikiLeaks spokesman Kristinn Hrafnsson [dismissed] Siggi as "a pathological liar." While other WikiLeaks insiders also question Siggi's credibility, they insist that his story can't be discounted, and there's more to it than the organization is letting on. The truth, it seems, may be held in the leaks. Siggi has provided Rolling Stone with more than a terabyte of secret files he claims to have taken from WikiLeaks before he left in November 2011 and gave to the FBI: thousands of pages of chat logs, videos, tapped phone calls, government documents and more than a few bombshells from the organization's most heated years. Whatever their origins, the SiggiLeaks are a deep and revealing portal into one of the most guarded and influential organizations of the 21st century – and the extreme measures its embattled leader is willing to take.

Note: For more on the realities of intelligence agency activities, see the deeply revealing reports from reliable major media sources available here.


Saying it is so doesn’t make it so
2014-01-02, San Francisco Chronicle (San Francisco's leading newspaper)
http://www.sfgate.com/opinion/reich/article/Saying-it-is-so-doesn-t-make-it-s...

According to reports, one of the first acts of the Republican-controlled Congress will be to fire Doug Elmendorf, director of the nonpartisan Congressional Budget Office, because he won’t use “dynamic scoring” for his economic projections. Dynamic scoring is the magical math Republicans have been pushing since they came up with supply-side “trickle-down” economics. It’s based on the belief that cutting taxes unleashes economic growth and thereby produces additional government revenue. Dynamic scoring would make it easier to enact tax cuts for the wealthy and corporations, because the tax cuts wouldn’t look as if they increased the budget deficit. Few economic theories have been as thoroughly tested in the real world as the asserted revenue effects of supply-side economics, and so notoriously failed. Ronald Reagan cut the top income tax rate from 70 to 28 percent and ended up nearly doubling the national debt. George W. Bush inherited a budget surplus from Bill Clinton, but then slashed taxes, mostly on the rich. The Bush tax cuts reduced revenue by $3 trillion. Yet Republicans don’t want to admit supply-side economics is hokum. As a result, they’ve never had much love for the truth-tellers at the Congressional Budget Office. The pattern seems to be: If you don't like the facts, make them up. Or have your benefactors finance think tanks filled with hired guns who will tell the public what you and your patrons want them to say.

Note: For more along these lines, see concise summaries of deeply revealing government corruption and income inequality news articles from reliable major media sources.


Even After Volcker, Banks Aren't Safe Enough
2013-12-30, Time Magazine
http://content.time.com/time/magazine/article/0,9171,2160950,00.html

Despite the hoopla over the approval of the Volcker rule, which restricts banks from making certain types of speculative investments, our financial system isn't much safer than it was before 2008. A major reason for the continued complexity and risk in the financial system is lobbying power. The Volcker rule as it stands now has been turned into Swiss cheese by bank lobbyists, who represent the second biggest corporate special-interest bloc after the health care complex, spending nearly half a billion dollars a year on lobbying, according to the nonprofit, nonpartisan Center for Responsive Politics. So while the rule limits federally insured banks from trading for its own sake, they are still allowed to hedge their portfolios, which opens up a lot of gray territory for trading. Certainly having more lenders rather than fewer would help other kinds of businesses, and having trading walled off from lending would encourage that. The fact that the five largest U.S. financial holding companies control 55% of industry assets--compared with 20% in 1990--keeps competition low and credit constrained. In the next two to five years, there will likely be another crisis or trading loss of the kind that reignites the debate over closing trading loopholes and creating a truly safer financial system. Right now, banks complain about rules that would require them to hold a mere 5% of their assets in high-quality, low-risk capital (known as Tier 1 capital), despite the fact that in any other industry, doing business with less than 50% of your own cash would be considered extreme.

Note: For more on government collusion with the biggest banks, see the deeply revealing reports from reliable major media sources available here.


I worked on the US drone program. The public should know what really goes on
2013-12-29, The Guardian (One of the UK's leading newspapers)
http://www.theguardian.com/commentisfree/2013/dec/29/drones-us-military

Whenever I read comments by politicians defending the Unmanned Aerial Vehicle Predator and Reaper program – aka drones – I wish I could ask them a few questions. I'd start with: "How many women and children have you seen incinerated by a Hellfire missile?" Few of these politicians who so brazenly proclaim the benefits of drones have a real clue of what actually goes on. I, on the other hand, have seen these awful sights first hand. What the public needs to understand is that the video provided by a drone is not usually clear enough to detect someone carrying a weapon, even on a crystal-clear day. This makes it incredibly difficult for the best analysts to identify if someone has weapons for sure. One example comes to mind: "The feed is so pixelated, what if it's a shovel, and not a weapon?" I felt this confusion constantly, as did my fellow UAV analysts. We always wonder if ... we destroyed an innocent civilian's life all because of a bad image or angle. I know the feeling you experience when you see someone die. Horrifying barely covers it. When you are exposed to it over and over again it becomes like a small video, embedded in your head, forever on repeat, causing psychological pain and suffering. UAV troops are victim to not only the haunting memories of this work that they carry with them, but also the guilt of always being a little unsure of how accurate their confirmations of weapons or identification of hostile individuals were. The UAVs in the Middle East are used as a weapon, not as protection, and as long as our public remains ignorant to this, this serious threat to the sanctity of human life – at home and abroad – will continue.

Note: For more on war crimes committed by the US and UK in the illegal "global war on terror", see the deeply revealing reports from reliable major media sources available here.


Agent: FBI key in border agent Terry slaying
2013-12-26, Arizona Republic (AZ's leading newspaper)
http://www.azcentral.com/news/articles/20131226fast-furious-agent-terry-killi...

A federal agent who exposed the Justice Departments flawed gun-trafficking investigation known as Operation Fast and Furious says the FBI played a key role in events leading to the 2010 murder near Nogales, Ariz., of U.S. Border Patrol Agent Brian Terry. John Dodson, a special agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives, contends that the bandits who killed Terry were working for FBI operatives and were sent to the border to do a drug rip-off using intelligence from the federal Drug Enforcement Administration. I dont think the (FBI) assets were part of the rip-off crew, Dodson said. I think they were directing the rip crew. Dodsons comments to The Arizona Republic amplify assertions he made in his recently released book, The Unarmed Truth, about his role as a whistle-blower in the Fast and Furious debacle. In his book, Dodson uses cautious language to characterize his account of circumstances surrounding Terrys death, saying the information is based on firsthand knowledge, personal opinion and press reports. He asserts that the DEA had information about, and may have orchestrated, a large drug shipment through Peck Canyon that December night. He alleges that DEA agents shared that intelligence with FBI counterparts, who advised criminal informants from another cartel that the load would be theirs for the taking. Stealing such a shipment would increase the clout of the FBI informants in the cartel organization they had penetrated, Dodson wrote, and thus lead to better intel for them in the future.

Note: For more on the realities of intelligence agency activities, see the deeply revealing reports from reliable major media sources available here.


Why the Pentagon's accounting fixes end up broken
2013-12-23, CNBC/Reuters
http://www.cnbc.com/id/101293095

The Defense Department has launched 20 or more projects to build modern business-management systems since the late 1990s. At least five were subsequently killed as complete failures after billions of dollars were spent on them. With each failure, a pattern emerges: An off-the-shelf product with a proven track record in the private sector is chosen and then modified to the point where it doesn't work properly. The Pentagon is unable to account for itself, and thus for roughly half of all congressionally approved annual federal spending. Interviews with scores of current and former defense officials, contractors and Pentagon watchers, as well as a review of dozens of reports by oversight agencies, show that the Pentagon is continually thwarted by a lack of accountability for failures ... and an incentive to spend. All other federal agencies are audited annually ... and with rare exceptions, they pass every year. The Pentagon alone has never been audited, leaving roughly $8.5 trillion in taxpayer dollars unaccounted for since 1996. The Pentagon has for years kept lousy books with impunity. The 2009 law requiring the Defense Department to be audit-ready by 2017 provides for no penalties if it misses the deadline. From 1995 through 2002, Senator Charles Grassley pushed through an amendment to the annual defense appropriations bill requiring the Pentagon to account for its expenditures by following one seemingly simple procedure: match each payment to the expense it covered. The order was ignored, and Grassley gave up. There is no doubt that bad bookkeeping conceals movements of money that in some instances are illegal.

Note: See also this article on the Reuters website. This article sadly fails to state the obvious: Many military officers illegally rake in tons of money with false contracts which benefit those officers and contracting companies. They obviously don't want their accounts to be properly audited. For a revealing essay by a top U.S. general exposing major war manipulations, click here. For more on military corruption, see the deeply revealing reports from reliable major media sources available here.


Why the Pentagon’s many campaigns to clean up its accounts are failing
2013-12-23, Reuters
http://www.reuters.com/investigates/pentagon/#article/part3

The Pentagon has for years kept lousy books with impunity. [A] 2009 law requiring the Defense Department to be audit-ready by 2017 provides for no penalties if it misses the deadline. From 1995 through 2002, Senator Charles Grassley pushed through an amendment to the annual defense appropriations bill requiring the Pentagon to account for its expenditures by following one seemingly simple procedure: match each payment to the expense it covered. The order was ignored, and Grassley gave up. Each branch has insisted on building from scratch its own systems for basic accounting, logistics and personnel, roughly tripling costs. The Army, Navy and Air Force also routinely disregard department-wide standards and rules imposed by the secretary of defense’s office. The Pentagon’s inefficient method of pursuing efficiency has been on full display in the Army, which ... has been building three separate new systems to handle accounting. In 2008, as work on all three projects was under way, the Army office that oversees acquisition of information systems issued a report, [which] recommended that the Army halt work and consolidate the three systems. Doing so, it said, would save between 25% and 50% of the estimated $4.7 billion construction and operating costs of the three separate systems. The report’s recommendations were ignored. Piecemeal fixes that don’t address overarching dysfunction reduce even further the chances the Pentagon will be audit-ready by 2017.

Note: Could it be that the real reason the Pentagon is the only branch of US government that doesn't balance its books is that they don't want us to know where the money is going? For more along these lines, see concise summaries of deeply revealing military corruption news articles from reliable major media sources.


Edward Snowden, after months of NSA revelations, says his mission’s accomplished
2013-12-23, Washington Post
http://www.washingtonpost.com/world/national-security/edward-snowden-after-mo...

Taken together, the [Edward Snowden] revelations have brought to light a global surveillance system that cast off many of its historical restraints after the attacks of Sept. 11, 2001. Secret legal authorities empowered the NSA to sweep in the telephone, Internet and location records of whole populations. Six months after the first revelations ... Snowden agreed to reflect at length on the roots and repercussions of his choice. He was relaxed and animated over two days of nearly unbroken conversation. Snowden offered vignettes from his intelligence career and from his recent life as “an indoor cat” in Russia. But he consistently steered the conversation back to surveillance, democracy and the meaning of the documents he exposed. “For me, in terms of personal satisfaction, the mission’s already accomplished,” he said. “I already won. As soon as the journalists were able to work, everything that I had been trying to do was validated. Because, remember, I didn’t want to change society. I wanted to give society a chance to determine if it should change itself. All I wanted was for the public to be able to have a say in how they are governed,” he said. Snowden ... had come to believe that a dangerous machine of mass surveillance was growing unchecked. Closed-door oversight by Congress and the Foreign Intelligence Surveillance Court was a “graveyard of judgment,” he said, manipulated by the agency it was supposed to keep in check. The NSA’s business is “information dominance,” the use of other people’s secrets to shape events. At 29, Snowden upended the agency on its own turf.

Note: For more on the realities of intelligence agency activities, see the deeply revealing reports from reliable major media sources available here.


100 Years Later, The Federal Reserve Has Failed At Everything It's Tried
2013-12-20, Forbes
http://www.forbes.com/sites/markhendrickson/2013/12/20/100-years-later-the-fe...

On Dec. 23, 1913, President Woodrow Wilson signed the Owen Glass Act, creating the Federal Reserve. As we note its centennial, what has the Fed accomplished during the last 100 years? The stated original purposes were to protect the soundness of the dollar and banks and also to lessen the jarring ups and downs of the business cycle. Oops. Under the Fed’s supervision, boom and bust cycles have continued. Three of them have been severe: the Great Depression, the stagflationary period of 1974-82, and the current “Great Recession.” Bank failures have occurred in alarmingly high numbers. Depending on what measurements are used, the dollar has lost between 95 and 98 percent of its purchasing power. (Amazingly, the Fed’s official position today is that inflation is not high enough, so the erosion of the dollar continues as a matter of policy.) Having failed to achieve its original goals, the Fed also has had a miserable record in accomplishing later goals. The 1970 amendments to the Federal Reserve Act stipulated that the Fed should “promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.” In baseball parlance, the Fed has been “0-for-three.” So, what has the Fed accomplished during its century of existence? Well, it has become adept at bailing out mismanaged banks. In the aftermath of the 2008 financial crisis, the Fed orchestrated the big bailout of Wall Street. Politically, the Fed is repugnant. Its chairman is commonly referred to as the second most powerful person in the country. In a democratic republic, should the second most powerful policymaker be unelected?

Note: How remarkable for Forbes to publish an article chastising the Fed! The times are a changin'! For an essay by noted financial researcher Ellen Brown on this occasion, click here. For more on the collusion between government and the biggest banks, see the deeply revealing reports from reliable major media sources available here.


Stealth Surprises in NSA Report Take on Non-NSA Spying
2013-12-20, ABC News
http://abcnews.go.com/Blotter/stealth-surprises-nsa-report-nsa-spying/story?i...

The White House's expert NSA panel may have made headlines ... for telling President Barack Obama to knock off the collection of Americans' meta-data, but surveillance experts said they were surprised that the panel also took to task some controversial non-NSA-related spy tactics as well. One recommendation was to impose much stricter oversight on the FBI's ability to issue National Security Letters (NSLs), which have been used to obtain telephone call records and credit reports in terrorism and espionage cases. Another even more peculiar recommendation by the five national security experts ... was their advice that "governments" shouldn't hack into bank accounts and drain funds. "Governments should not use their offensive cyber capabilities to change the amounts held in financial accounts or otherwise manipulate the financial systems," the unanimous Review Group on Intelligence and Communications Technologies report warned Obama. "That was a strangely specific recommendation for something nobody was talking about," Kel McClanahan, executive director of government transparency group National Security Counselors, told ABC News. Michelle Richardson, the American Civil Liberties Union's legislative council in Washington, also said the findings on "NSLs" and government hacking were unexpected -- but welcomed.

Note: The fact that this expert panel would even mention governments manipulating financial accounts suggests that if it hasn't already happened, some were seriously considering this. For lots more on this strange news, click here. For more on the realities of intelligence agency activities, see the deeply revealing reports from reliable major media sources available here.


GCHQ and NSA targeted charities, Germans, Israeli PM and EU chief
2013-12-20, The Guardian (One of the UK's leading newspapers)
http://www.theguardian.com/uk-news/2013/dec/20/gchq-targeted-aid-agencies-ger...

British and American intelligence agencies had a comprehensive list of surveillance targets that included the EU's competition commissioner, German government buildings in Berlin and overseas, and the heads of institutions that provide humanitarian and financial help to Africa, top-secret documents reveal. The papers show GCHQ [and the NSA were] targeting organisations such as the United Nations development programme, the UN's children's charity Unicef and Médecins du Monde, a French organisation that provides doctors and medical volunteers to conflict zones. The head of the Economic Community of West African States (Ecowas) also appears in the documents, along with text messages he sent to colleagues. One GCHQ document, drafted in January 2009, makes clear that the agencies were targeting an email address listed as belonging to another important American ally – the "Israeli prime minister". Ehud Olmert was in office at the time. Three further Israeli targets appeared on GCHQ documents, including another email address understood to have been used to send messages between the then Israeli defence minister, Ehud Barak, and his chief of staff, Yoni Koren. The names and details are the latest revelations to come from documents leaked by the whistleblower Edward Snowden. They provoked a furious reaction. The disclosures reflect the breadth of targets sought by the agencies, which goes far beyond the desire to intercept the communications of potential terrorists and criminals, or diplomats and officials from hostile countries.

Note: Later reports revealed that GHCQ also targeted the global human rights organization Amnesty International. For more on the realities of intelligence agency activities, see the deeply revealing reports from reliable major media sources available here.


Secret contract tied NSA and security industry pioneer
2013-12-20, CNBC/Reuters
http://www.cnbc.com/id/101290438

As a key part of a campaign to embed encryption software that it could crack into widely used computer products, the U.S. National Security Agency arranged a secret $10 million contract with RSA, one of the most influential firms in the computer security industry. Documents leaked by former NSA contractor Edward Snowden show that the NSA created and promulgated a flawed formula for generating random numbers to create a "back door" in encryption products, the New York Times reported in September. Reuters later reported that RSA became the most important distributor of that formula by rolling it into a software tool called Bsafe that is used to enhance security in personal computers and many other products. Undisclosed until now was that RSA received $10 million in a deal that set the NSA formula as the preferred, or default, method for number generation in the BSafe software, according to two sources familiar with the contract. Although that sum might seem paltry, it represented more than a third of the revenue that the relevant division at RSA had taken in during the entire previous year. The RSA deal shows one way the NSA carried out what Snowden's documents describe as a key strategy for enhancing surveillance: the systematic erosion of security tools. NSA documents released in recent months called for using "commercial relationships" to advance that goal, but did not name any security companies as collaborators.

Note: For more on the realities of intelligence agency activities, see the deeply revealing reports from reliable major media sources available here.


HSBC Gets Small Fine For Terrorist Transactions
2013-12-18, Huffington Post
http://www.huffingtonpost.com/2013/12/18/hsbc-terrorists_n_4467329.html

A major U.S. bank has agreed to a settlement for transferring funds on the behalf of financiers for the militant group Hezbollah, the Treasury Department announced on Tuesday. Concluding that HSBC's actions "were not the result of willful or reckless conduct," Treasury's Office of Foreign Assets Control accepted a $32,400 settlement from the bank. Everett Stern, a former HSBC compliance officer who complained to his supervisors about the Hezbollah-linked transactions, told HuffPost he was ... satisfied that the government was taking action. But, he added, "Where I am upset was those were a handful of transactions, and I saw hundreds of millions of dollars" being transferred. Stern said he hopes the government's enforcement actions against HSBC have not come to an end with the latest settlement. "They admit to financing terrorism and they get fined $32,000. Where if I were to do that, I would go to jail for life," he said. HSBC's fine is less than the $40,165.07 covered in the settlement agreement that the bank transferred between December 2010 and April 2011 on behalf of a development company that Treasury says serves as a front for some of Hezbollah's biggest financiers in Africa. In December 2012, the bank agreed to pay a $1.9 billion settlement for moving money that a 2012 Senate report found had likely helped drug cartels and a Saudi Arabian bank the CIA has linked to al Qaeda. No one at HSBC was criminally charged.

Note: For more along these lines, see concise summaries of deeply revealing news articles about corruption in government and in the financial industry.


The most important political story you haven’t heard about
2013-12-18, Washington Post blog
http://www.washingtonpost.com/blogs/the-fix/wp/2013/12/18/the-most-important-...

Money is flooding into federal elections in the post-Citizens United era. And yet the agency tasked with monitoring and regulating all of that activity is close to crippled due to staff cuts and partisan bickering. That’s according to Dave Levinthal of the Center for Public Integrity, which released a massive analysis on the Federal Election Commission and its problems earlier this week. Among the problems with the agency Levinthal identified include: * The commission over the past year has reached a paralyzing all-time low in its ability to reach consensus, stalling action on dozens of rulemaking, audit and enforcement matters, some of which are years old. * Despite an explosion in political spending hastened by key Supreme Court decisions, the agency’s funding has remained flat for five years and staffing levels have fallen to a 15-year low. * Analysts charged with scouring disclosure reports to ensure candidates and political committees are complying with laws have a nearly quarter-million-page backlog. This is the rule-making and rule-enforcing entity for all federal money in politics. We live in an age in which public financing of presidential elections is a thing of the past — 2012 is the first election since Watergate where neither major party nominee accepted public funds for the general election – and, thanks to super PACs, wealthy individuals have more power than ever. The price tag for the 2012 election topped $6 billion, according to the Center for Responsive Politics. As Levinthal puts it: “As the nation heads into what will undoubtedly be the most expensive midterm election in history and a 2016 presidential election that, in no small way, has already begun, the FEC is rotting from the inside out.”

Note: For more on deep problems in the US electoral system, see the deeply revealing reports from reliable major media sources available here.


Senate Asks C.I.A. to Share Its Report on Interrogations
2013-12-18, New York Times
http://www.nytimes.com/2013/12/18/us/politics/senators-ask-to-see-internal-ci...

The Senate Intelligence Committee has asked the C.I.A. for an internal study done by the agency that lawmakers believe is broadly critical of the C.I.A.’s detention and interrogation program but was withheld from congressional oversight committees. The committee’s request comes in the midst of a yearlong battle with the C.I.A. over the release of the panel’s own exhaustive report about the program, one of the most controversial policies of the post-Sept. 11 era. The Senate report, totaling more than 6,000 pages, was completed last December but has yet to be declassified. According to people who have read the study, it is unsparing in its criticism of the now-defunct interrogation program and presents a chronicle of C.I.A. officials’ repeatedly misleading the White House, Congress and the public about the value of brutal methods that, in the end, produced little valuable intelligence. Senator Mark Udall, Democrat of Colorado, disclosed the existence of the internal C.I.A. report during an Intelligence Committee hearing on Tuesday. He said he believed it was begun several years ago and “is consistent with the Intelligence’s Committee’s report” although it “conflicts with the official C.I.A. response to the committee’s report.” “If this is true,” Mr. Udall said ... “this raises fundamental questions about why a review the C.I.A. conducted internally years ago — and never provided to the committee — is so different from the C.I.A.’s formal response to the committee study.”

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