Category: Corruption

DOJ, SEC Investigate S&P, EE-I-EE-I-O

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It’s not just S&P, it’s Moody’s too:

The U.S. Justice Department is probing Moody’s Investors Service and Standard & Poor’s over ratings of mortgage-backed securities, according to three former employees who said they were interviewed by investigators.

Washington-based lawyers from the Justice Department spoke to former employees as recently as last month about whether the companies raised their grades for the complex investments in order to win business, said the former employees, who asked for anonymity because the investigation is ongoing. The inquiry is a civil matter, two of them said.

The probe is the latest of dozens of government investigations and investor lawsuits targeting Moody’s and S&P, a unit of McGraw-Hill Cos., all based in New York, over the top grades they assigned to bonds backed by subprime mortgages. Even as the Financial Crisis Inquiry Commission called them “key enablers of the financial meltdown,” the raters avoided legal liability, according to Benchmark Co.’s Edward Atorino.

Note there that the DoJ being involved means that this is some sort of criminal investigation.

Here’s hoping that Eric “Place” Holder doesn’t decide to look forward instead of backward.

Have I Mentioned that I Love Matt Taibbi?*

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He just uncovered another bit of regulatory capture, specifically he is reporting on allegations that the SEC routinely destroyed all records of its investigations:

Imagine a world in which a man who is repeatedly investigated for a string of serious crimes, but never prosecuted, has his slate wiped clean every time the cops fail to make a case. No more Lifetime channel specials where the murderer is unveiled after police stumble upon past intrigues in some old file – “Hey, chief, didja know this guy had two wives die falling down the stairs?” No more burglary sprees cracked when some sharp cop sees the same name pop up in one too many witness statements. This is a different world, one far friendlier to lawbreakers, where even the suspicion of wrongdoing gets wiped from the record.

That, it now appears, is exactly how the Securities and Exchange Commission has been treating the Wall Street criminals who cratered the global economy a few years back. For the past two decades, according to a whistle-blower at the SEC who recently came forward to Congress, the agency has been systematically destroying records of its preliminary investigations once they are closed. By whitewashing the files of some of the nation’s worst financial criminals, the SEC has kept an entire generation of federal investigators in the dark about past inquiries into insider trading, fraud and market manipulation against companies like Goldman Sachs, Deutsche Bank and AIG. With a few strokes of the keyboard, the evidence gathered during thousands of investigations – “18,000 … including Madoff,” as one high-ranking SEC official put it during a panicked meeting about the destruction – has apparently disappeared forever into the wormhole of history.

Under a deal the SEC worked out with the National Archives and Records Administration, all of the agency’s records – “including case files relating to preliminary investigations” – are supposed to be maintained for at least 25 years. But the SEC, using history-altering practices that for once actually deserve the overused and usually hysterical term “Orwellian,” devised an elaborate and possibly illegal system under which staffers were directed to dispose of the documents from any preliminary inquiry that did not receive approval from senior staff to become a full-blown, formal investigation. Amazingly, the wholesale destruction of the cases – known as MUIs, or “Matters Under Inquiry” – was not something done on the sly, in secret. The enforcement division of the SEC even spelled out the procedure in writing, on the commission’s internal website. “After you have closed a MUI that has not become an investigation,” the site advised staffers, “you should dispose of any documents obtained in connection with the MUI.”

Many of the destroyed files involved companies and individuals who would later play prominent roles in the economic meltdown of 2008. Two MUIs involving con artist Bernie Madoff vanished. So did a 2002 inquiry into financial fraud at Lehman Brothers, as well as a 2005 case of insider trading at the same soon-to-be-bankrupt bank. A 2009 preliminary investigation of insider trading by Goldman Sachs was deleted, along with records for at least three cases involving the infamous hedge fund SAC Capital.

The widespread destruction of records was brought to the attention of Congress in July, when an SEC attorney named Darcy Flynn decided to blow the whistle. According to Flynn, who was responsible for helping to manage the commission’s records, the SEC has been destroying records of preliminary investigations since at least 1993. After he alerted NARA to the problem, Flynn reports, senior staff at the SEC scrambled to hide the commission’s improprieties.

And that’s just his first 5 paragraphs.

What’s also in the article is the pattern of what can only be described as a patterned of end loaded bribery, where SEC senior bureaucrats spiked investigations, destroyed all evidence collected, and then found well remunerated positions with firms that they had “exonerated.”

There should be hundreds of people on Wall Street, and regulating Wall Street, who should have been frog marched out of the places of work in hand cuffs.

*In a 110% purely heterosexual kind of way, of course, as the General would say.

It’s Official, RICO Time for Rupert

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There are credible reports that the FBI and the DoJ are considering a RICO investigation of Newscorp.

This is significant because the standards of RICO are very lax. You are not showing criminal activity, you are showing a pattern of corrupt behavior within the organization*:

Well-sourced information coming out of the Department of Justice and the FBI suggests a debate is going on that could result in the recently launched investigations of News Corp. falling under the RICO statutes.

RICO, the Racketeer Influenced and Corrupt Organizations Act, establishes a way to prosecute the leaders of organizations—and strike at the organizations themselves—for crimes company leaders may not have directly committed, but which were otherwise countenanced by the organization. Any two of a series of crimes that can be proven to have occurred within a 10-year period by members of the organization can establish a pattern of racketeering and result in draconian remedies. In 1990, following the indictment of Michael Milken for insider trading, Drexel Burnham Lambert, the firm that employed him, collapsed in the face of a RICO investigation.

Among the areas that the FBI is said to be looking at in its investigation of News Corp. are charges that one of its subsidiaries, News America Marketing, illegally hacked the computer system of a competitor, Floorgraphics, and then, using the information it had gleaned, tried to extort it into selling out to News Corp.; allegations that relationships the New York Post has maintained with New York City police officers may have involved exchanges of favors and possibly money for information; and accusations that Fox chief Roger Ailes sought to have an executive in the company, the book publisher Judith Regan, lie to investigators about details of her relationship with New York police commissioner Bernie Kerik in order to protect the political interests of Rudy Giuliani, then a presidential prospect.

Pass the popcorn.

*One of the reasons that I’ve never been a fan of the statute, particularly as embraced and extended by Giuliani when he was US Attorney.

S&P Downgrades the US, Well, Isn’t That Special

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Well, Isn’t that Special!!

Standard and Poors has just downgraded the United States from AAA to AA+.

I think that Jane Hamsher and Scarecrow have nailed what is going on here. This is a shakedown by the credit ratings agencies:

On July 21, 2010 President Obama signs Dodd-Frank into law. Prior to Dodd-Frank, the courts found that credit ratings are expressions of opinion that were protected under the first amendment, subject to a demonstration of actual malice:

The Dodd-Frank Financial Reform Act stripped away those protections, so that CRA’s were now subject to the same expert liability as an auditor or securities analyst, and required only a “knowing” or “reckless” state of mind for liability, rather than proof of scienter. It also repealed Section 436 of the Securities Act of 1933, which granted “safe harbor” for ratings, which were part of a prospectus.

Which, for obvious reasons, made the ratings agencies extremely nervous.

In October 2010 S&P issued its first threat to downgrade US debt: “If the U.S. government maintains its current policies for the next 40 years in the face of rising health care and pension spending pressure, it is unlikely that Standard & Poor’s Ratings Services would maintain its ‘AAA’ rating on the U.S.” The report paints a target on the back of Social Security and Medicare, says nothing about the wars, the Bush tax cuts, private health care costs or the absurdity of 40 year projections.

………

It’s becoming more and more obvious that Standard and Poor’s has a political agenda riding on the notion that the US is at risk of default on its debt based on some arbitrary limit to the debt-to-GDP ratio. There is no sound basis for that limit, or for S&P’s insistence on at least a $4 trillion down payment on debt reduction, any more than there is for the crackpot notion that a non-crazy US can be forced to default on its debt.

Whatever S&P’s agenda, it has nothing to do with avoiding default risks or putting the US on sound fiscal footing. It appears to be intertwined with their attempts to absolve themselves from responsibility for their role in the 2008 financial crisis, and they are willing to manipulate not only the 2012 election but the world economy to escape the SEC’s attempts to regulate them.

It’s time the media and Congress started asking Standard and Poors what their political agenda is and whom it serves.

Note that Dodd-Frank also lifted some statutory requirements mandating the use of  ratings from accredited agencies as well, so the big 3 (S&P, Moodys, Fitch’s) have even more reason to hate the bill, and are trying to sabotage them at the rule-making stage.

Note that this was written a week ago, and a quick read of the S&P statement (first link) sounds like a hit job, some to the effect of, “That Dodd-Frank thing displeases us, it would be a shame for anything to happen to your credit rating.”

More Foreign Worker Visa Fraud

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It turns out that notorious software off shoring operation Infosys decided at some point that cheating H1b visa fraud was too damn much time and money so they have become more inventive:

In a case that threatens to scald Infosys in the North American market, from where it gets over 60% of its revenues, and intensify the debate on outsourcing in the US, Jack Palmer said the company was circumventing H-1B visa rules by sending low-level and unskilled employees to the US on B1 visas instead.

H-1B visas, which are needed to send employees to work in the US, have become more expensive and harder to get than B1 visas that are only meant for meeting, conferences and business negotiations. Palmer, who has been working with the company since 2008, further said that Infosys managers in the US were intentionally committing fraud to avoid paying taxes locally and that the company mistreated him when he filed a complaint as part of the whistleblower policy.

Outsourcing has been an inflammable issue in the US as it continues to struggle with high unemployment. The Indian IT services have often been accused of taking away American jobs to cheaper destinations. This anti-outsourcing sentiment has also resulted in visa norms becoming more stringent in the past few years.

This raises an interesting point.

My solution to H1b visa abuse, it’s largely used to bring in cheap labor and depress wages, is to raise the cost of the application and permitting process, but obviously this would tend to drive exactly this sort of fraud.

I’m beginning to think a bounty program, with people who rat out their employers getting 3 to 5 year work permits, might be the most effective way to deal with enforcing the laws.

H/t Naked Capitalism.

More Like The Bush Administration Every Day

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Meet the new boss, same as the old boss

Case in point, punishing scientists who speak the truth even when big oil wants lies:

It was seen as one of the most distressing effects of climate change ever recorded: polar bears dying of exhaustion after being stranded between melting patches of Arctic sea ice.

But now the government scientist who first warned of the threat to polar bears in a warming Arctic has been suspended and his work put under official investigation for possible scientific misconduct.

Charles Monnett, a wildlife biologist, oversaw much of the scientific work for the government agency that has been examining drilling in the Arctic. He managed about $50m (£30.5m) in research projects.

Some question why Monnett, employed by the US Bureau of Ocean Energy Management, Regulation and Enforcement, has been suspended at this moment. The Obama administration has been accused of hounding the scientist so it can open up the fragile region to drilling by Shell and other big oil companies.

“You have to wonder: this is the guy in charge of all the science in the Arctic and he is being suspended just now as an arm of the interior department is getting ready to make its decision on offshore drilling in the Arctic seas,” said Jeff Ruch, president of the group Public Employees for Environmental Responsibility. “This is a cautionary tale with a deeply chilling message for any federal scientist who dares to publish groundbreaking research on conditions in the Arctic.”

There could be some completely innocent explanation for this, and I could be the rightful heir to the house of Saud.

I think that both are equally likely.

It Looks Like the 50-State Foreclosure Fraud Coverup May be Unraveling

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First, Massachusetts Attorney General Martha Coakley said yesterday she will not release banks from liability incurred through fraudulent paperwork:

Three states conducting their own probes of residential mortgage practices are resisting broad liability releases sought by banks to settle a nationwide foreclosure investigation.

The banks, in settlement talks with state and federal officials, are seeking releases that would protect them from future legal liabilities. Massachusetts Attorney General Martha Coakley said yesterday she won’t endorse a deal that includes certain releases. New York and Delaware have raised similar concerns over terms of a possible deal.

All three states are conducting investigations tied to mortgage operations of banks. Delaware and Massachusetts officials say a settlement shouldn’t release banks from some claims, including those related to bundling mortgages into securities, while the inquiries continue.

“We’re not prepared to do a broad liability release for either securitization issues or for MERS until we’ve completed that piece of investigation,” Coakley said in a telephone interview yesterday. Mortgage Electronic Registration Systems Inc., or MERS, is a national mortgage database used by banks.

Basically, Coakley is saying that if there is a release on securitization fraud, she will not sign onto the deal, and the banks know that if they are ever effectively pursued on securitization fraud, they are dead, so no deal.

To the rest of the AGs, get off your ass, and convene a grand jury, the rest of the AGs, and stop letting yourself get strong-armed by Obama, Holder, and company to go easy on the banks.

H/t Naked Capitalism.

You Have to Love the Bait and Switch that Obama Pulled on the CFPB

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As you know, Barack Obama decided not to appoint Elizabeth Warren as the first head of the Consumer Financial Protection Bureau (CFPB), but instead chose to nominate their current head of enforcement, Richard Cordray, former Ohio Attorney General, who had filed lawsuits against predatory banks.

It was better than the alternative, Raj Date, but it seemed to me that it was a worthless gesture to the Republicans, since they promised to filibuster anyone, because they want the bureau gutted.

Obviously, this screams “Recess Appointment,” but Obama is having none of that, not because he’s weak, but because this creates paralysis which he can exploit to effectively make a banker the head of the agency.

Raj Date has been elevated to adviser to the Treasury secretary for the Consumer Financial Protection Bureau, Warren’s old position, and I guarantee that there will be no pressure from the Obama to administration to get an up or down vote on Cordray.

They give a nod to the people who want the CFPB to work with their nomination, and then they put a bankster in charge of running the bureau.

Seriously, Obama has his tongue so far up the bankster’s asses that he tastes tonsils.

Who is Date? He’s the current associate director of research, markets and regulations, and he’s a f%$#ing bankster, having been the, “senior vice president for corporate strategy and development at Capital One and a managing director in the financial institutions group at Deutsche Bank.”

So now, Date can emasculate the CFPB while Cordray waits for a vote on his nomination that will never come.

If You Were Wondering How Evil the Banksters Were………

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The fact that they are threatening to drop millions of customers because the law may require them not to F%$# them over quite so badly might give you an inkling:

Brokerage firms may drop millions of individual retirement account holders if a proposed U.S. Labor Department rule takes effect, a lobbying group said today.

The Labor Department wants to expand the scope of fiduciary responsibility to protect those saving for retirement from conflicts of interest, such as recommending investments with higher fees. The rule would require investment professionals who advise employers and workers with retirement savings plans such as 401(k)s or IRAs to act in the best interest of their clients.

The change may cause financial firms to offer fewer investment options in retirement accounts and shift to a fee- based model used by investment advisers, which will raise costs, Kenneth Bentsen, executive vice president for public policy and advocacy at the Securities Industry and Financial Markets Association, said at a Washington hearing before the House Subcommittee on Health, Employment, Labor and Pensions.

He’s circumspect, but what the lobbyist from the lead financial services organization in the country just said was, “If you don’t let us f%$# our customers without lube, we’ll kick them to the curb.”

Why aren’t these guys going to jail?

H/t Naked Capitalism.

The Unemployed Need not Apply

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Many employers are now explicitly saying in their ads that they only hire people who are currently employed:

That is the message being broadcast by many of the nation’s employers, making it even more difficult for 14 million jobless Americans to get back to work.

A recent review of job vacancy postings on popular sites like Monster.com, CareerBuilder and Craigslist revealed hundreds that said employers would consider (or at least “strongly prefer”) only people currently employed or just recently laid off.

Unemployed workers have long suspected that the gaping holes on their résumés left them less attractive to employers. But with the country in the worst jobs crisis since the Great Depression, many had hoped employers would be more forgiving.

“I feel like I am being shunned by our entire society,” said Kelly Wiedemer, 45, an information technology operations analyst who said a recruiter had told her that despite her skill set she would be a “hard sell” because she had been out of work for more than six months.

Legal experts say that the practice probably does not violate discrimination laws because unemployment is not a protected status, like age or race. The Equal Employment Opportunity Commission recently held a hearing, though, on whether discriminating against the jobless might be illegal because it disproportionately hurts older people and blacks.

The American business culture is truly repulsive.

If You Are Not Up to Speed on Patent Trolls………

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Planet Money and This American Life joined forces to run Nathan Myhrvold’s Intellectual Ventures patent extortion ring to the ground, and it is well worth the read. (There is a link to the This American Life broadcast there)

It shows how our patent system, where I sh%$ you not, someone has patented toast, rather than being a spur to innovation, or, as they conclude:

The big companies — Google, Apple, Microsoft — will probably survive. The likely casualties are the companies out there now that no one’s ever heard of that could one day take their place.

One of the more interesting bits is how they show that Myhrvold’s claim that they are a purely defensive company which does not sue people is a bald faced lie.  They use a network of shell corporations to extract their tribute.

This system needs to be fixed, but the victims are largely invisible and poor, and the rentiers have lots of money, because they get paid for doing nothing, which means that it is tough to get Congress interested in this.

Let’s Be Clear On This: Republicans Are Not the Patriotic Opposition, They are the Treasonous Enemy

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Why do I say this?

Because at the core of our system of government is the idea that people should be denied the right to vote, nor have excessive roadblocks placed in their way, and that the vote and vote counting should be free and fair.

Well, we are now seeing evidence that the system set up to tabulate vote in Ohio in 2004 was constructed in a manner which appears to specifically designed to facilitate a man-in the middle attack:

A new filing in the King Lincoln Bronzeville v. Blackwell case includes a copy of the Ohio Secretary of State election production system configuration that was in use in Ohio’s 2004 presidential election when there was a sudden and unexpected shift in votes for George W. Bush.

The filing also includes the revealing deposition of the late Michael Connell. Connell served as the IT guru for the Bush family and Karl Rove. Connell ran the private IT firm GovTech that created the controversial system that transferred Ohio’s vote count late on election night 2004 to a partisan Republican server site in Chattanooga, Tennessee owned by SmarTech. That is when the vote shift happened, not predicted by the exit polls, that led to Bush’s unexpected victory. Connell died a month and a half after giving this deposition in a suspicious small plane crash.
Additionally, the filing contains the contract signed between then-Ohio Secretary of State J. Kenneth Blackwell and Connell’s company, GovTech Solutions. Also included that contract a graphic architectural map of the Secretary of State’s election night server layout system.
Cliff Arnebeck, lead attorney in the King Lincoln case, exchanged emails with IT security expert Stephen Spoonamore. Arnebeck asked Spoonamore whether or not SmarTech had the capability to “input data” and thus alter the results of Ohio’s 2004 election. Spoonamore responded: “Yes. They would have had data input capacities. The system might have been set up to log which source generated the data but probably did not.”
Spoonamore explained that “they [SmarTech] have full access and could change things when and if they want.”

(emphasis mine)

The Republicans constantly accuse the Democrats of voter fraud, the sort where some people who should not vote, but do. Retail voting irregularities.

This is wholesale voting irregularities, and, unsurprisingly, the Republicans take their lead from “Uncle Joe” Stalin, who said, “I consider it completely unimportant who in the party will vote, or how; but what is extraordinarily important is this—who will count the votes, and how.”

Seriously, watching the Republicans is like watching the Soviets: You know that they are doing something because they accuse the other side of this.

And then we have Wisconsin, where the Republicans are requiring a DMV supplied voter ID while closing DMVs in Democratic districts:

Michael Shatz, a Wisconsin blogger:

This story shows just how stupid neoconservatives think the public really is. Walker and his ilk pass a bill requiring voters to present valid photo identification at the polls. Then, in the same breath, Walker and his ilk propose a bill to close the identification issuing centers (the DMV’s) in the Democratic districts, making ID’s more difficult for low-income voters to obtain.

And the reaction when they were called on it was just classic:

A high-ranking DOT official rejected that claim, saying the changes were based on economics, not politics.

Rep. Andy Jorgensen, D-Fort Atkinson, called on the state Department of Transportation to reconsider its plants to close the Fort Atkinson DMV center. The department plans to expand by four hours a week the hours of a center about 30 minutes away in Watertown.

Jorgensen said he was concerned doing that would discourage people from Fort Atkinson from participating in elections.

“What the heck is going on here?” Jorgensen said. “Is politics at play here?”

Transportation Department executive assistant Reggie Newson denied that politics was behind the office closure plan, saying the decisions were being made based on what made the most economic sense.

“This has nothing to do with politics,” he said. “We’re trying to make sure that we can provide service in each county statewide efficiently.”

How conveeenient.

This is not the opposition.

These are people who are determined to destroy our government in order to achieve power.

I believe that the term “Seditious Conspiracy” applies here.

We Need to Primary Him Now!!!

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I’m beginning to think that the Republicans, the ½ sane ones anyway, may have been right in their criticisms in 2008 when they tried to portray him as a self-absorbed narcissist.

I am increasingly convinced that he obsessed with his own legacy such a degree that he just does not care about right and wrong.

He thinks that he is so damn awesome that he can somehow create a post partisan partisan paradise, with sparkle ponies!

To be fair, it could be that he’s just enamored by the idea that government should be private companies run by his Harvard buddies, but the effect is the same.

The latest episode in this is that he is trying to cut a deal with Republicans on the debt ceiling which is all cuts, including Social Security, Medicare, and Medicaid:

President Obama and House Speaker John A. Boehner rushed Thursday to strike agreement on a far-reaching plan to reduce the national debt but faced a revolt from Democrats furious that the accord appeared to include no immediate provision to raise taxes.

With 12 days left until the Treasury begins to run short of cash, Obama and Boehner (R-Ohio) were still pursuing the most ambitious plan to restrain the national debt in at least 20 years. Talks focused on sharp cuts in agency spending and politically painful changes to cherished health and retirement programs aimed at saving roughly $3 trillion over the next decade.

More savings would be generated through an overhaul of the tax code that would lower personal and corporate income tax rates while eliminating or reducing an array of popular tax breaks, such as the deduction for home mortgage interest. But the talks envisioned no specific tax increases as part of legislation to lift the debt limit, and the tax rewrite would be postponed until next year.

Democrats reacted with outrage as word filtered to Capitol Hill, saying the emerging agreement appeared to violate their pledge not to cut Social Security and Medicare benefits as well as Obama’s promise not to make deep cuts in programs for the poor without extracting some tax concessions from the rich.

………

After a lunchtime meeting between Lew and Senate Democrats, Majority Leader Harry M. Reid (D-Nev.) made no attempt to hide his anger, telling reporters that his caucus would oppose the “potential agreement” because it appeared to include no clear guarantee of increased revenue.

“The president always talked about balance, that there had to be some fairness in this, that this can’t be all cuts. There has to be a balance. There has to be some revenue and cuts. My caucus agrees with that,” Reid said. “I hope that the president sticks with that. I’m confident that he will.”

Congressional and administration officials said the White House informed Democratic leaders about the talks after Obama met privately with Boehner and House Majority Leader Eric Cantor (R-Va.) late Wednesday. Congressional aides, speaking on the condition of anonymity to detail private discussions, said the White House acknowledged that the emerging agreement is “to the right of the Gang of Six” — a bipartisan Senate debt-reduction framework unveiled this week — and far removed from what Democrats have said would be acceptable.

Obama summoned top Democratic leaders in both the House and the Senate back to the White House later Thursday for further discussions.

Barack Obama is the Manchurian Democrat.

To be fair, sources within the Obama administration are denying this, but as John Aravosis notes, in terms identical to when they killed the public option in secret:

Obama White House’s Dan Pfeiffer on rumors that they sold out the public option:

A rumor is making the rounds that the White House and Senator Reid are pursuing different strategies on the public option. Those rumors are absolutely false.

In his September 9th address to Congress, President Obama made clear that he supports the public option because it has the potential to play an essential role in holding insurance companies accountable through choice and competition. That continues to be the President’s position.

We all know how that went.

Obama White House on the rumors that the President has sold out on the budget deal:

A White House spokesman called the claims from aides “not credible” — the result of having a “3rd hand version of the facts.”

And here’s more on the record from – wait for it – Dan Pfeiffer:

pfeiffer44 Dan Pfeiffer
Anyone reporting a $3 trillion deal without revenues is incorrect. POTUS believes we need a balanced approach that includes revenues.

Barack Obama is going to f%$# the American people, and he’s going to f%$# the Democratic party, and while he does not understand it, he’s going to make Sarah Palin President, because the American people hate the idea of cutting entitlements, and like taxing the rich, and he’s decided that we are all idiots, so he’s setting it up so that Republicans will be completely insulated from the consequences of gutting Social Security, Medicare, and Medicaid.

I Think that Jimmy Murdoch is Going to Jail…

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Of course, if the Parliamentary inquiry committee had sworn him in, it would have been even more likely.

You see, according to tow of James Murdoch’s staffers, he was specifically made aware of the phone hacking when he signed off on settlements with litigants:

James Murdoch has been accused of misleading the parliamentary select committee this week in relation to phone hacking, igniting yet another fire for the embattled News International boss to extinguish.

In a highly damaging broadside, two former News of the World senior executives claimed the evidence Murdoch gave to the committee on Tuesday in relation to an out-of-court settlement to Gordon Taylor, chief executive of the Professional Footballers Association, was “mistaken”.

The statement came as something of a bombshell to the culture, sport and media select committee, which immediately announced it would be asking Murdoch to explain the contradiction.

Colin Myler, editor of the paper until it was shut down two weeks ago, and Tom Crone, the paper’s former head of legal affairs, said they had expressly told Murdoch of an email that would have blown a hole in its defence that only one “rogue reporter” was involved in the phone-hacking scandal.

This contradicts what Murdoch told the committee when questioned on Tuesday.

As an aside on the media, if you want to follow this, I recommend two sources, the Guardian, which really went out on a limb in following this for years, and Keith Olbermann who has been on this like white on rice.

How is Barack Obama Different from George W. Bush?

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No this is not a lead in for a joke it’s a real question because Barack “I’m Shutting Down the CIA Black Sites” Obama has set up a new CIA black site:

Nestled in a back corner of Mogadishu’s Aden Adde International Airport is a sprawling walled compound run by the Central Intelligence Agency. Set on the coast of the Indian Ocean, the facility looks like a small gated community, with more than a dozen buildings behind large protective walls and secured by guard towers at each of its four corners. Adjacent to the compound are eight large metal hangars, and the CIA has its own aircraft at the airport. The site, which airport officials and Somali intelligence sources say was completed four months ago, is guarded by Somali soldiers, but the Americans control access. At the facility, the CIA runs a counterterrorism training program for Somali intelligence agents and operatives aimed at building an indigenous strike force capable of snatch operations and targeted “combat” operations against members of Al Shabab, an Islamic militant group with close ties to Al Qaeda.

As part of its expanding counterterrorism program in Somalia, the CIA also uses a secret prison buried in the basement of Somalia’s National Security Agency (NSA) headquarters, where prisoners suspected of being Shabab members or of having links to the group are held. Some of the prisoners have been snatched off the streets of Kenya and rendered by plane to Mogadishu. While the underground prison is officially run by the Somali NSA, US intelligence personnel pay the salaries of intelligence agents and also directly interrogate prisoners. The existence of both facilities and the CIA role was uncovered by The Nation during an extensive on-the-ground investigation in Mogadishu. Among the sources who provided information for this story are senior Somali intelligence officials; senior members of Somalia’s Transitional Federal Government (TFG); former prisoners held at the underground prison; and several well-connected Somali analysts and militia leaders, some of whom have worked with US agents, including those from the CIA. A US official, who confirmed the existence of both sites, told The Nation, “It makes complete sense to have a strong counterterrorism partnership” with the Somali government.

The CIA presence in Mogadishu is part of Washington’s intensifying counterterrorism focus on Somalia, which includes targeted strikes by US Special Operations forces, drone attacks and expanded surveillance operations. The US agents “are here full time,” a senior Somali intelligence official told me. At times, he said, there are as many as thirty of them in Mogadishu, but he stressed that those working with the Somali NSA do not conduct operations; rather, they advise and train Somali agents. “In this environment, it’s very tricky. They want to help us, but the situation is not allowing them to do [it] however they want. They are not in control of the politics, they are not in control of the security,” he adds. “They are not controlling the environment like Afghanistan and Iraq. In Somalia, the situation is fluid, the situation is changing, personalities changing.”

Bullsh%@.

This is not an existing state security apparatus who is doing us a favor, this the CIA, and possibly the NSA running another black site.

The “official government” in Somolia controls, “Somali government forces control roughly thirty square miles of territory in Mogadishu thanks in large part to the US-funded and -armed 9,000-member AMISOM force.”

This government controls about half the land area of Liechtenstein and that only by dint of massive foreign aid.

Seriously, what Barack Obama has done by way of the rule of law and civil rights is worse than what George W. Bush did, because he has normalized behavior, both by refusing to investigate criminality, and by aping the policies of Bush/Cheney.

…and it’s not getting any coverage by the MSM.

Can We Please Primary the Bastard Now?

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So it appears that Barack Obama is removing Elizabeth Warren as head of the Consumer Financial Protection Bureau:

President Barack Obama has chosen a candidate other than Elizabeth Warren as director of the new Consumer Financial Protection Bureau, according to a person briefed on the matter.

The president’s choice is a person who already works at the consumer agency, the person said yesterday. Obama may make the nomination as soon as next week, another person briefed on the administration’s plans said.

The people, who spoke on condition of anonymity because the process isn’t public, didn’t name Obama’s choice.

Elizabeth Warren, a Harvard professor, was appointed last fall by Obama to set up the consumer bureau until a director was named. Warren previously was head of the congressional watchdog panel overseeing the bank bailout.

And here is the kicker:

Raj Date, a top deputy to Warren at the consumer bureau, was on a short list of candidates to become director ………

………He was senior vice president for corporate strategy and development at Capital One and a managing director in the financial institutions group at Deutsche Bank. During the debate over Dodd-Frank, Date headed the Cambridge Winter Center for Financial Institutions Policy, a research group he founded.

So he’s replacing Elizabeth Warren with a f%$#ing banker.

But in classic fashion, he’s floating out a payoff for her to keep her mouth shut until after the 2012 election, the Democratic nomination for Senate, where she would run against Scott Brown:

Elizabeth Warren’s calendar sure looks like the schedule of a woman considering a Senate bid, or at least someone being courted by power players in Massachusetts and the Senate Democrats’ campaign operation in Washington.

In recent weeks, Warren has met in person or spoke on the phone with Democratic Senatorial Campaign Committee Chairwoman Patty Murray, David Axelrod, Sen. Charles Schumer (D-N.Y.), Sen. John Kerry (D-Mass.) and Massachusetts Democratic Reps. Barney Frank, Stephen Lynch and John Tierney. The phone call with Murray took place in early June, Roll Call has learned. Warren attended a community banking event with Tierney in the Bay State and dined with Schumer, a former DSCC chairman and an aggressive recruiter who remains involved in DSCC activities.

Warren’s May calendar, the most recently available public schedule, shows the Schumer dinner along with the other meetings and discussions.

Given that Warren is leading the creation of a new Consumer Financial Protection Bureau, CFPB business could, of course, have been the lone agenda item during these meetings. But for a woman some national Democrats and liberal activists are hoping will take on Massachusetts Sen. Scott Brown (R) — a prime target in 2012 — her calendar alludes that she has at least been examining the possibility of a run.

So he’s putting her up to run against Scott Brown, which is a win-win for Obama.

Basically, she’s about the only person who appears to have a possibility to beat him right now, though it’s a tough row to hoe, because Brown is the consummate politician, and she isn’t.

If she wins, it’s easier to hold onto the Senate, and she gets buried as a low seniority Senator, where the old boys’ network keeps her far away from any meaningful banking regulation

If she loses, then no one could have won, and he keeps her inconvenient truths out of the press until his reelection.

Two More Heads Roll at Newscorp

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Rebckah Brooks and Les Hinton are the last to to exit:

Two key lieutenants in Rupert Murdoch’s media empire resigned Friday as a widening scandal involving illegal phone hacking by Murdoch’s British newspaper journalists continued to engulf his company.

Leslie “Les” Hinton, head of Dow Jones & Co., the division of Murdoch’s News Corp. that owns the Wall Street Journal, resigned late in the day, providing a bookend to the morning resignation of Rebekah Brooks, the executive in charge of the company’s British newspaper unit.

Hinton, who had been in Murdoch’s employ for more than 50 years, and Brooks are key figures in the still-unfolding scandal. Hinton oversaw News Corp.’s British newspapers when one of its papers, the News of the World, began to pry into the phone accounts of hundreds of British celebrities, politicians and ordinary citizens. Brooks was editor of the News of the World at the time and succeeded Hinton as chief of the British unit, News International.

Murdoch, and his family are out at Newscorp, they just don’t know it yet.

Basically what is going on is, to paraphrase Norman Schwarzkopf, is that, “First we’re going to cut it off, and then we’re going to kill it.”

We are seeing the systematic removal their support structure, and they will be removed from the running of the media conglomerate.

Not a Good Day for Murdoch

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A Bit of Fry and Laurie have Murdoch pegged

First, he and his son try to blow off a summons to testify before Parliament, only to back down when threatened with jail time:

A threat of imprisonment by parliament forced Rupert Murdoch and his son James to perform a volte face and agree to give evidence next week to a Commons committee investigating why News International executives provided false information to MPs.

Hours after the parliamentary authorities delivered a summons by hand to the two Murdochs, News International announced that father and son would accept an invitation to appear before the Commons culture select committee next Tuesday.

Additionally, the FBI has initiated an investigation of potential violations of the Foreign Corrupt Practices Act as possibly hacking the phones of 911 victim’s families.

It couldn’t be happening to a more deserving group of people.

Murdoch Drops BSkyB Bid

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With almost every member in Parliament, of all the parties, chomping at the bit to pass a law to ban his bid to take over the UK’s biggest satellite network, he has announced that he will withdraw the bid:

Rupert Murdoch withdrew his bid for broadcaster BSkyB on Wednesday, as outrage over alleged crimes at his newspapers galvanized a rare united front in parliament against a man long used to being courted by Britain’s political elite.

The Australian-born billionaire’s U.S.-based News Corp, thwarted in a key move to expand its media empire in television, said it would keep its 39 percent of the highly profitable pay-TV network, but left investors guessing over whether it might try again to buy up the rest, or even sell up.

The withdrawal removes the most pressing political conflict the company faced. But a police probe and new public inquiries into the scandal and into media regulation as a whole may keep an unflattering spotlight on it and weaken the influence the 80-year-old media magnate has enjoyed in Britain for decades.

I think that this is a tactical move.  He’s holding onto his 30% stake in BSkyB, so if everything is back to business as usual in 9 months, I expect him to go for another bite at the apple.

I’m kind of hoping that  things won’t be back to “business as usual” in 9 months.