This was the lawsuit against the NSA for their warrantless wiretapping of the Al-Haramain Islamic Foundation, and their discussions with their lawyers, and Chief U.S. District Judge Vaughn Walker has granted a summary judgment against the government, basically saying that the Foundation had good evidence of wiretapping, and if the US government was unwilling to provide exculpatory evidence, it was making a broad claims of the state secrets privilege.
Basically, he said that the government refused to defend themselves, and that the state secrets privilege is trumped by FISA. so they lose the case.
Walker is basically saying, “Well, government, if you won’t give us any evidence to prove you legally wiretapped al-Haramain, and given all the evidence they’ve presented proving they were wiretapped, then they win!”
Here’s his argument. The government had a way to defend against al-Haramain’s case directly, in camera, but they refused to avail themselves of it.
Unfortunately, this may not mean much, because they actually had proof of wiretapping, because the prosecution accidentally delivered logs of the wiretaps to them during discovery.
This is unlikely to be repeated.
Needless to say, I am sick and tired of the Obama administrations full throated defense of executive branch overreach and secrecy, as well as their attempts to further the coverup of Bush administration law breaking under the guise of “looking ahead.”
According to two knowledgeable sources, Republican National Committee chairman Michael Steele once raised the possibility of using party money to buy a private jet for his travel.
………
While Steele has not purchased a plane, he continues to charter them. According to federal disclosure records, the RNC spent $17,514 on private aircraft in the month of February alone (as well as $12,691 on limousines during the same period). There are no readily identifiable private plane expenses for Democratic National Committee chairman Tim Kaine in the DNC’s last three months of filings.
………
Once on the ground, FEC filings suggest, Steele travels in style. A February RNC trip to California, for example, included a $9,099 stop at the Beverly Hills Hotel, $6,596 dropped at the nearby Four Seasons, and $1,620.71 spent [update: the amount is actually $1,946.25] at Voyeur West Hollywood, a bondage-themed nightclub featuring topless women dancers imitating lesbian sex.
RNC trips to other cities produced bills from a long list of chic and costly hotels such as the Venetian and the M Resort in Las Vegas, and the W (for a total of $19,443) in Washington. A midwinter trip to Hawaii cost the RNC $43,828, not including airfare.
(emphasis mine)
There have been some complaints that Michael Steele has been spending his time stumping for Michael Steele, and his upcoming book, and not the party, but this is just nuts.
In a case that has all the ingredients to explode into a national controversy, Attorney General Eric Holder has appointed star prosecutor Patrick Fitzgerald to investigate whether laws were broken after “paparazzi style” photographs of CIA officers were found in the cell of a Guantanamo inmate accused of financing the 9/11 attacks, Newsweek is reporting.
In an interview with TPMmuckraker, the top official for the ACLU project that provided assistance for the defense of the detainee in question — and hired private investigators to take the photos of CIA officers thought to be involved in torture — said that no laws had been broken.
Note that if someone wants to claim that their confession was the product of torture, it’s essential for a competent defense.
They need to know who these people are and to be able to cross examine them, so as to determine the nature of their treatment, and so the admissibility of their statements.
Last week, the Federal Home Loan Bank of San Francisco sued a throng of Wall Street companies that sold the agency $5.4 billion in residential mortgage-backed securities during the height of the mortgage melee. The suit, filed March 15 in state court in California, seeks the return of the $5.4 billion as well as broader financial damages.
Not also that the quasi-governmental GSEs, Fannie Mae and Freddie Mac, are suing too:
Fannie Mae and Freddie Mac may force lenders including Bank of America Corp., JPMorgan Chase & Co., Wells Fargo & Co. and Citigroup Inc. to buy back $21 billion of home loans this year as part of a crackdown on faulty mortgages.
Interesting times.
Full FHLB statement below fold:
Statement Regarding PLRMBS Litigation March 15, 2010
Today the Federal Home Loan Bank of San Francisco (Bank) filed complaints in the Superior Court of California, County of San Francisco, against nine securities dealers in relation to certain of the Bank’s investments in private-label residential mortgage-backed securities (PLRMBS). The Bank is seeking to rescind its purchases of 134 securities in 113 securitization trusts, for which the Bank originally paid more than $19.1 billion. The Bank’s complaints allege that the dealers made untrue or misleading statements about the characteristics of the mortgage loans underlying the securities.
All of the PLRMBS in the Bank’s mortgage portfolio, including those identified in the complaints filed today, were rated AAA when purchased, based on the information provided by the securities dealers. The Bank employs conservative criteria and guidelines for all its MBS investments. The Bank invests in high-quality financial instruments to facilitate its role as a cost-effective provider of credit and liquidity to its member financial institutions. These investments support the Bank’s mission of promoting housing, homeownership, and community development by providing the Bank with greater financial flexibility in helping members meet the credit needs of their communities during all economic times and in funding the Bank’s Affordable Housing Program and other programs that create affordable housing and promote community economic development.
In filing these complaints, the Bank seeks to continue supporting its mission and to protect the interests of its member shareholders, which include over 400 community banks, credit unions, and savings institutions headquartered in Arizona, California, and Nevada that serve millions of consumers.
Top Vatican officials — including the future Pope Benedict XVI — did not defrock a priest who molested as many as 200 deaf boys, even though several American bishops repeatedly warned them that failure to act on the matter could embarrass the church, according to church files newly unearthed as part of a lawsuit.
The internal correspondence from bishops in Wisconsin directly to Cardinal Joseph Ratzinger, the future pope, shows that while church officials tussled over whether the priest should be dismissed, their highest priority was protecting the church from scandal.
The documents emerge as Pope Benedict is facing other accusations that he and direct subordinates often did not alert civilian authorities or discipline priests involved in sexual abuse when he served as an archbishop in Germany and as the Vatican’s chief doctrinal enforcer.
The Wisconsin case involved an American priest, the Rev. Lawrence C. Murphy, who worked at a renowned school for deaf children from 1950 to 1974. But it is only one of thousands of cases forwarded over decades by bishops to the Vatican office called the Congregation for the Doctrine of the Faith, [note: until 1965, it was called Congregation of the Roman and Universal Inquisition], led from 1981 to 2005 by Cardinal Ratzinger. It is still the office that decides whether accused priests should be given full canonical trials and defrocked.
We should note that Cardinal Ratzinger, now Pope Benedict, did more than ignore allegations, he aggressively pressured priests and lay people to cover up abuse and to not report it to authorities under the penalty of excommunication.
While the statutes of limitation have expired, or at least I think that they have, it’s still obstruction of justice.
Because the Talibaptists make good coin selling babies, and so they want to have a good supply of pregnant women, particularly white pregnant women, without options, so that they can cover a few medical bills, and then extracting fees from desperate parents:
American websites currently offer[ ] mouth-watering incentives to would-be buyers. “Delivery within four months”, “Discounts of up to $19,000”, they proclaim. If it were cars they were selling this would not seem odd, but it’s babies that are for sale – bright, smiling newborns to tempt the childless into parting with about £20,000.
There is no shame in treating babies like any other purchase in America, where the adoption industry is largely privatized… (“Why adoption is so easy in America” Telegraph.co.uk 10/31/07)
………
The Brits have also rightly pointed to U.S. restrictions on birth control and abortion as a contributing to “marketable” infants in the U.S. The religious right’s imposed morality is perfectly partnered with those whose livelihoods depend upon the redistribution of children.
In May, 2007 Evangelical Christians organizations such as Focus on the Family and pastors from across the nation held a three-day summit in Colorado. members of to promote adoption via a media blitz.
While there are any number of people who do good work in adoption, there is a lot of money sloshing around, and it’s driving the way that business is done, and the Mega-churches and their ilk are taking their tithes, which keeps the pastors in SUV’s and business jets, I guess.
Ex-Tyco International Ltd. Chief Executive Officer L. Dennis Kozlowski, jailed for stealing millions of dollars, wants a U.S. court to order the company to pay him tens of millions from his retirement account.
Lawyers for Kozlowski filed court papers in which they claim that Tyco breached its retirement agreement by refusing to pay him the lump sum he has demanded. As of October 2008, the value of Kozlowski’s retirement account was $75.9 million, according to the court papers, which are part of a 2002 lawsuit between Tyco and Kozlowski.
Kozlowski, 63, and former Chief Financial Officer Mark Swartz were convicted in 2005 of securities fraud, grand larceny and falsifying business records. The jury in New York State Supreme Court found they stole about $137 million from Tyco through unauthorized bonuses and the abuse of company loans.
Because, you see, in the world of the big players, going to jail from stealing from your company doesn’t mean you don’t get your golden parachute.
Seriously, can the just have the bailiff beat the snot out of him in open court?
Tyco’s defense, that, “A ‘faithless servant’ is not entitled to any compensation,” would sound fairly convincing to me, but I am an engineer, not a lawyer, dammit!*
Securities and Exchange Commission and Federal Reserve officials were warned by a leading Wall Street rival that Lehman Brothers was incorrectly calculating a key measure of its financial health months before its collapse in 2008, people familiar with the matter say.
Former Merrill Lynch officials said they contacted regulators about the way Lehman measured its liquidity position for competitive reasons.
…
he findings raise questions over what federal regulators knew about Lehman’s accounting and when they knew it. In the account given by the Merrill officials, the SEC, the lead regulator, and the New York Federal Reserve were given warnings about Lehman’s balance sheet calculations as far back as March 2008.
Former and current Fed officials say even in the competitive world of Wall Street, it is unusual for rival bankers to relay such concerns to the Fed.
It takes an awful lot to get one investment bank to rat out another, the first rule of Wall Street is never tell the regulators, and and the Federal Reserve Bank of New York, president Timothy “Eddie Haskell” Geithner, as well as the SEC, which was largely deferring to the NY Fed, decided to ignore it.
As Lehman Brothers careened toward bankruptcy in 2008, the New York Federal Reserve Bank came to its rescue, sopping up junk loans that the investment bank couldn’t sell in the market, according to a report from court-appointed examiner Anton R. Valukas.
The New York Fed, under the direction of now-Treasury Secretary Tim Geithner, knowingly allowed itself to be used as a “warehouse” for junk loans, the report says, even though Fed guidelines say it can only accept investment grade bonds.
Meanwhile, the Fed and Geithner both strongly oppose a congressional measure to authorize an independent audit of the central bank and its lending facilities. The provision passed the House but is under attack in the Senate, where Banking Committee Chairman Chris Dodd (D-Conn.) says he hopes to stop it.
Without an audit, the Fed is able to conceal the specifics of what it holds on its balance sheet. If the Lehman deal is any indication, the Fed is hiding billions of dollars in toxic loans on its books.
“The Fed legally is forbidden from taking such assets. There’s a legal requirement that the Fed’s assets be investment grade,” Rep. Alan Grayson (D-Fla.) told HuffPost. Grayson, who is the cosponsor of the Grayson-Paul Audit the Fed measure that passed the House, said the Lehman scandal shows precisely why such an audit is needed.
Seriously, he cheated on his taxes, he’s aided and abetted the pervasive accounting fraud at Lehman, and he’s still in the bank’s pocket.
I understand that his successor will face a filibuster, but please, fire him, and go with a recess appointment.
It doesn’t matter that he knows where the bodies are buried if he’s a part of the gang what murdered the economy, and he’s still working flashing gang symbols to Dimon and Blankfien.
As to the businesses, we are looking at what may be an actual bribery case:
One of those companies was eCommLink, formerly run by Jack Williams, a man who claimed to have invented the gift card.
Senator Ensign’s then-Chief of Staff John Lopez welcomed the opportunity to help a Nevada company. But sources say Ensign’s office quickly seized on the opportunity to get something in return.
Sources close to the situation say Ensign’s office warned eCommLink and others about pending prepaid card regulation and that donations and support could make those troublesome rules go away.
So, basically the story is as follows: John Ensign sleeps with the wife of a longtime friend and aide, he then gets his parents to pay his friend off, and throws illegal (there is supposed to be a waiting period) lobbying work to his ex-friend in order to keep things quiet, only it appears that there was some more run of the mill corruption, that Ensign, as head of the NRSCC, may have used his position to extort campaign donations.
JPMorgan Chase recorded some repurchase trades as sales, the same accounting gimmick that spawned Lehman Brothers’ now-infamous “Repo 105s”, suggesting that the failed bank was not alone in its interpretation of a new accounting rule.
Unlike Lehman, which never disclosed the effects of its repo deals on the firm’s balance sheet, JPMorgan detailed the year-end values of its repo sales and purchases in annual reports beginning in 2001, after a new accounting rule was introduced.
The practice ended in 2005 when the company merged with Bank One. “The transactions were done in very small amounts and were fully disclosed,” a spokesman said.
Yeah, we believe you.
More seriously, it should be made illegal to engage in activities that have the effect of removing liabilities from the balance sheet a part of their purpose.
Basically, he’s full of it, the Fed pumped up the bubble, and Alan Greenspan was behind it, because he believed that regulation was unnecessary, and because he wanted to be reappointed by George W. Bush.
Basically, prosecutors have a blanket immunity regarding whether or not they choose to prosecute someone, but police, and prosecutors and attorneys general, who direct that someone be arrested and detained are subject to the same sort of personal liability as a cop who engages in false arrests, as the 3 judge panel notes:
“Framers of our Constitution would have disapproved of the arrest, detention, and harsh confinement of a United States citizen as a ‘material witness’ under the circumstances, and for the immediate purpose alleged, in al-Kidd’s complaint. Sadly, however, even now, more than 217 years after the ratification of the Fourth Amendment to the Constitution, some confidently assert that the government has the power to arrest and detain or restrict American citizens for months on end, in sometimes primitive conditions, not because there is evidence that they have committed a crime, but merely because the government wishes to investigate them for possible wrongdoing, or to prevent them from having contact with others in the outside world. We find this to be repugnant to the Constitution, and a painful reminder of some of the most ignominious chapters of our national history.”
Note that everyone else who was originally sued over this has settled, so here’s hoping that Abdullahal-Kidd, impoverishes John Ashcroft, because, under Obama and Holder, Bush and His Evil Minions™ will never see the inside of a jail cell.
In the past decade, nearly every pillar institution in American society — whether it’s General Motors, Congress, Wall Street, Major League Baseball, the Catholic Church or the mainstream media — has revealed itself to be corrupt, incompetent or both. And at the root of these failures are the people who run these institutions, the bright and industrious minds who occupy the commanding heights of our meritocratic order. In exchange for their power, status and remuneration, they are supposed to make sure everything operates smoothly. But after a cascade of scandals and catastrophes, that implicit social contract lies in ruins, replaced by mass skepticism, contempt and disillusionment.
The downfall of empires has always been the replacement of meritocracies with nepotism, because as people become entitled, they become stupid.
Get your pitchforks and torches, get your pitchforks and torches here!
The former president of New York’s privately held Park Avenue Bank was arrested on Monday on fraud charges, the first person accused of attempting to steal U.S. government bailout funds in the financial crisis.
The charges came just three days after regulators seized the bank, which had $520 million in assets.
A 10-count criminal complaint said Charles Antonucci devised “an elaborate round-trip loan transaction” that he told others was his own $6.5 million investment in Park Avenue Bank, misleading bank regulators. Antonucci made false statements in the bank’s application for $11.2 million from TARP, the Troubled Asset Relief Program, according to the complaint.
I gotta figure that there is some more TARP fraud among the banksters, but time will tell.
In May, 2002, Jerome Mitchell, a 17-year old college freshman from rural South Carolina, learned he had contracted HIV. The news, of course, was devastating, but Mitchell believed that he had one thing going for him: On his own initiative, in anticipation of his first year in college, he had purchased his own health insurance.
Shortly after his diagnosis, however, his insurance company, Fortis, [now Assurant] revoked his policy. Mitchell was told that without further treatment his HIV would become full-blown AIDS within a year or two and he would most likely die within two years after that.
…………
Previously undisclosed records from Mitchell’s case reveal that Fortis had a company policy of targeting policyholders with HIV. A computer program and algorithm targeted every policyholder recently diagnosed with HIV for an automatic fraud investigation, as the company searched for any pretext to revoke their policy. As was the case with Mitchell, their insurance policies often were canceled on erroneous information, the flimsiest of evidence, or for no good reason at all, according to the court documents and interviews with state and federal investigators.
…………
In the motions, [presiding judge, Michael G. ] Nettles not only strongly denied Fortis‘ claims but condemned the corporation’s conduct.
“There was evidence that Fortis‘ general counsel insisted years ago that members of the rescission committee not record the identity of the persons present and involved in the process of making a decision to rescind a Fortis health insurance policy,” Nettles wrote.
Elsewhere in his order, Nettles noted that there were no “minutes of actions, votes, or any business conducted during the rescission committee’s meeting.”
The South Carolina Supreme Court, in upholding the jury’s verdict in the case in a unanimous 5-0 opinion, said that it agreed with the lower court’s finding that Fortis destroyed records to hide the corporation’s misconduct. Supreme Court Chief Justice Jean HoeferToal wrote: “The lack of written rescission policies, the lack of information available regarding appealing rights or procedures, the separate policies for rescission documents” as well as the “omission” of other records regarding the decision to revoke Mitchell’s insurance, constituted “evidence that Fortis tried to conceal the actions it took in rescinding his policy.”
They were engaging in actions in which they knew that they were defrauding their customers, a felony, and they knew that there was a significant livelihood of death resulting, which makes this felony murder, and perhaps 1st degree murder .
It’s nice that Mr. Mitchell got his money, but the company and its agents need to go to jail.
BTW, this is Murray Waas reporting this, and I would argue that he is one of the 5 best investigative reporters out there.
You see, Daniel Larison, reads Ross Douthat’s most recent New York Times screed (no link to the Times, I don’t want to encourage them, but his wankitude is here on my blog).
Ross, it seems, felt offended because people were using insufficient nuance when describing Bush and His Evil Minions™, particularly with regard to the architects of the invasion of Iraq, and Mr. Larison responds:
Yes, the problem might be that we do not have artists capable of rendering contemporary architects of a war of aggression that was based on shoddy intelligence, ideological fervor and deceit in a sufficiently subtle, even-handed manner. If only Hollywood were better at portraying the depth and complexity of people who unleashed hell on a nation of 24 million people out of an absurd fear of a non-existent threat! Life is so unfair to warmongers, is it not? Then again, the reason our debates are so poisonous and our nation so divided might have something to do with the existence of utterly unaccountable members of the political class that can launch such a war, suffer no real consequences, and then reliably expect to be defended as “decent” and “well-intentioned” people who made understandable mistakes. The unfortunate truth of our existence is that villains do not have to come out of central casting for comic book movies. They are ordinary, “decent” people who commit grave errors and terrible crimes for any number of reasons. Many great evils have found their origins in a group’s belief that they were doing the right thing and were therefore entitled and permitted to use extraordinary means.
What actually happened was that McCain did his best to cover up all the dirt in 2004, because he wanted to run for President in 2008, which meant getting the Republican nomination.
So, now that Hayworth has had his ass kept out of jail by McCain, Hayworth is running a scorched earth primary challenge against him.
Heh.
BTW, Dennis G. at Balloon Juice has the full story, and McCain’s cover-up is a remarkably sordid tale.
Heh.
I wonder when McCain starts leaking stuff from his files tot he press about this.
A Repo 105 transaction: if it looks confusing, that’s because it’s intended to confuse
As I noted a few days ago, Lehman used what any normal human being would have called, “accounting fraud.”
Well, we have some more details, and it appears that the New York Bank of the Federal Reserve, and its president, current Treasury Secretary Timothy Geithner, knew it, and did nothing about it.
Basically, this was all about what is called “Repo” transactions.
Essentially, it’s a way to get short term cash by turning over assets as collateral, which is normal and ordinary. It’s a lot like pawning your wedding ring, only the amounts are much larger, and typically the periods of the loan are typically shorter.
So, what is the problem?
Well, ignoring the fact that the assets were in reality absolute crap, which is really a matter of due diligence for the lender, if you remain responsible for any losses in value of these assets, and you structure the transaction so that it does not show up on your balance sheet, because they booked the transaction as a sale of assets, as opposed to borrowing money.
The thing is, that this is illegal, or at least without precedent, in the United States, so they justified the activities, which took place in the United States, by claiming that they operated under UK law:
When Lehman first designed Repo 105 in 2001, however, there was one catch. The firm couldn’t get any American law firms to sign off on the aggressive accounting, namely that these transactions were true sales instead of what amounted to the parking of assets. From the firm’s own Repo 105 accounting policy document, according to the report:
Repos generally cannot be treated as sales in the United States because lawyers cannot provide a true sale opinion under U.S. law.
Enter Linklaters, [a “magic circle” law firm, the US equivalent is a “white shoe” law firm] which grounded its legal brief in English, rather than American, law. The firm explicitly said: “This opinion is limited to English law as applied by the English courts and is given on the basis that it will be governed by and construed in accordance with English law.”
The full legal opinion is after the break.
In any case, other investment banks are denying that they use this accounting gimmick, to which I reply, “Yes, and you will respect me in the morning, the check is in the mail, and you won’t cum in my mouth.”
It’s no wonder that the bankruptcy examiner described the behavior as, “grossly negligent.”
Let me make this clear, I have not read the report, it’s 1053 pages long not counting appendices, but Yves Smith did, and she finds that the NY Fed did not exercise due diligence, and cites the footnotes:
Liquidity was an important factor in the stress testing that Lehman was required to run under the CSE Program. After March 2008 when the SEC and FRBNY began onsite daily monitoring of Lehman, the SEC deferred to the FRBNY to devise more rigorous stress‐testing scenarios to test Lehman’s ability to withstand a run or potential run on the bank.5753 The FRBNY developed two new stress scenarios: “Bear Stearns” and “Bear Stearns Light.”5754Lehman failed both tests.5755 The FRBNY then developed a new set of assumptions for an additional round of stress tests, which Lehman also failed.5756 However, Lehman ran stress tests of its own, modeled on similar assumptions, and passed.5757It does not appear that any agency required any action of Lehman in response to the results of the stress testing.
A final note on all this, for some reason, the blogs are doing a good job of covering all of this, but the papers are burying the story on inside pages, with the WSJ placing it on page C7, and the NYT placing it on B2.
