Category: Corruption

Your Daily Schadenfreude

No Comments

Elizabeth Holmes, CEO of Theranos has just had her personal wealth recomputed by Fortune. Yesterday,   it was $4,500,000,000.00 today it is $0.00:

Last year, Elizabeth Holmes topped the FORBES list of America’s Richest Self-Made Women with a net worth of $4.5 billion. Today, FORBES is lowering our estimate of her net worth to nothing. Theranos had no comment.

Our estimate of Holmes’ wealth is based entirely on her 50% stake in Theranos, the blood-testing company she founded in 2003 with plans of revolutionizing the diagnostic test market. Theranos shares are not traded on any stock market; private investors purchased stakes in 2014 at a price that implied a $9 billion valuation for the company.

Since then, Theranos has been hit with allegations that its tests are inaccurate and is being investigated by an alphabet soup of federal agencies. That, plus new information indicating Theranos’ annual revenues are less than $100 million, has led FORBES to come up with a new, lower estimate of Theranos’ value.

FORBES spoke to a dozen venture capitalists, analysts and industry experts and concluded that a more realistic value for Theranos is $800 million, rather than $9 billion. That gives the company credit for its intellectual property and the $724 million that it has raised, according to VC Experts, a venture capital research firm. It also represents a generous multiple of the company’s sales, which FORBES learned about from a person familiar with Theranos’ finances.

At such a low valuation, Holmes’ stake is essentially worth nothing. Theranos investors own preferred shares, which means they get paid back before Holmes, who owns common stock. According to VC Experts, investors in Theranos own a particular kind of preferred equity, called participating preferred shares, which take precedence to common stock in the event of a liquidation. FORBES is not aware of any plans to liquidate. If that were to happen, participating preferred investors would get their money back and more before Holmes gets a cent.

We now know the difference between a typical Silicon Valley company and one that actually has to produce a real physical product:  The emperor’s new clothes are revealed far sooner for the companies who make actuall “stuff”.

It appears that the medical testing industry does not lend itself to the “long con.”

The Secret Allure of the Sharing Economy

No Comments

You can form a big company and create pseudo free agents who are free to be bigots:

This is a story of an Airbnb experience I recently went through. I met this awesome lady Crissie in my Facebook group. Super nice lady, successful business owner, beautiful family, and they live in a small town in Idaho.

Crissie would post these amazing videos of the land and the snow, and the mountains and trees, and I told her one day I would come visit.

It‘s so absolutely beautiful there!

………

I like my space when I travel, and thought it would be fun to find a cool cabin.

………

Everything was set! As usual, I included a bit of info about myself on the Airbnb listing to put the host at ease

………

First response: Dang! No luck, even though the dates were available all of a sudden, the host said she was going to use the place.

………

No biggie, I’m really flexible. Crissie told me late June is good as well, so I rebooked for June.

CANCELLED! Well damn. So it wasn’t really the dates—the host cancelled my new request and ignored all future messages.

So I had a white friend book for my same dates, and all of a sudden her plans changed back. Approved immediately!

There are some similar stories and links described at the article.

I rather expect to find the same thing in all the similar apps.

My guess is that a black man finds getting an Uber or Lyft just as hard as finding an old fashioned taxi.

In fact, it might be harder, because there is no taxi commission collecting data on fares and origination and destination points.

That’s why this sh%$ needs real regulation with teeth.

Even With a Slam Dunk, the Guantanamo Courts Collude with Prosecutors

No Comments

You would have to figure that if there were one case where the prosecutors at Guantanamo would have a conviction in the bag, it would be the trial of Khalid Sheikh Mohammed.

Well, it turns out that the prosecutors and the judge colluded to destroy evidence:

The judge overseeing the premiere military tribunal at Guantánamo Bay effectively conspired with the prosecution to destroy evidence relevant to defending the accused architect of the 9/11 attacks, according to a scathing court document.

Army Col James Pohl, who this week at Guantánamo is presiding over a resumption of pretrial hearings in the already troubled case, “in concert with the prosecution, manipulated secret proceedings and the use of secret orders”, the document alleges, preventing Khalid Sheikh Mohammed’s defense team from learning Pohl had permitted the Obama administration to destroy the evidence.

Worst Constitutional Law Professor, Ever!

………

The accusation comes in a 10 May defense filing that the military commissions have recently unsealed. It contains significant detail about an episode that Mohammed’s attorneys say has permanently tainted the most high-profile test of the US’s post-9/11 turn toward military justice for terrorism cases.

………

Mohammed’s attorneys argue that the secret maneuvering left them unable to challenge the destruction of evidence. They contend that the case ought to be scrapped entirely. Their brief quotes a famous 1932 supreme court case, Powell v Alabama, to argue that failing to provide the defense access to evidence “would be little short of judicial murder”.

“Whatever legitimate national security interests might purportedly justify the near-Star Chamber proceedings that have riven this case, there can be no articulable excuse for so clearly misleading Mr. Mohammed’s counsel and preventing them from seeking remedies to prevent the destruction of crucial evidence,” they continued.

………

But on 19 December 2013, Pohl ordered the US to “ensure the preservation of any overseas detention facilities still within the control of the United States” – a reference to the secret “black site” prisons where the CIA and its allies tortured Mohammed and his co-defendants.

According to the defense filing, six months after Pohl issued an evidence-preservation order at the defense’s behest and over the prosecution’s objections, the judge “authorized the government to destroy the evidence in question”. Pohl’s reversal of course was “the result of secret communications between the government and Judge Pohl, which he conducted without the knowledge of defense counsel”, the motion asserts.

That order, issued exclusively to the prosecution, carried with it a direction to provide the defense with a “redacted version”. But Pohl “did not actually instruct the prosecution to proffer any proposed redactions of the order until 18 months after granting the government permission to destroy the evidence, and over a year after it was apparently actually destroyed”, the defense team claims.

“[B]elatedly,” Mohammed’s attorneys say, the commission gave them a version of Pohl’s destruction order “by attaching it to another secret order,” and concluding, “without benefit of ever having examined the actual evidence, that the government’s proffer or a summary of a substitute for the original (now destroyed) evidence provided the defense with an adequate alternative to access to the evidence in question.”

Destroying the evidence in secret while permitting the defense to believe it had been preserved has “substantially gutted” the credibility of the military commission and “irreparably harmed” Mohammed’s ability to defend himself in a death-penalty case, the lawyers say. The episode “call[s] into question Judge Pohl’s impartiality”.

………

Karen Greenberg, the director of Fordham University Law School’s Center on National Security, said the allegation of collusion to destroy evidence could prove to be a tipping point for the military tribunals more broadly.

“This may well be the straw that breaks the camel’s back in underscoring the unviability of the military commissions,” Greenberg said.

“Remember, a main reason they couldn’t have this [trial] in federal court was that it would have been such a circus. And now you have a full-blown circus, with judicial and every other kind of misstepping.”

Gee, you think?

This has been a complete clusterf%$#, and it has been since it’s begun.

They wanted to create a system that would allow for no possibility of acquittal, and they wanted to be able to claim that it was fair.

They got neither.

BTW, Colonel Pohl should be removed from the case, and probably fired from the military, and if he has a civilian law license, he should be disbarred.

This makes a mockery to the very idea of justice and due process.

Why Billionaires are a Plague on the World

No Comments

Well, we now know that Hulk Hoagan’s lawsuit against Gawker was bankrolled by PayPal founder and billionaire Peter Thiel.

It appears that he was incensed about Gawker outing him almost 9 years ago in what was actually a rather adulatory article. He had been out in all but press release at the time.

It turns out that this incensed him because he literally made his fortune off of gay bashing when at Stanford University:

………

 On the Gawker site, the most popular—I don’t say best–defense appears to be that “outing” Thiel was beyond the pale—so the suit accomplishes belated justice (that’s dubious in itself). Setting aside whether an outing actually happened or what prevailing ethical/journalistic standards are, I think Thiel’s time at Stanford (overlapping mine) bears renewed scrutiny.

 Keeping it brief: Thiel essentially got his public start by founding the Stanford Review. That publication quickly, if not at its inception, was devoted mainly to “anti-PC” arguments, defending in particular fellow reviewer Keith Rabois, another future PayPal zillionare who, as a Stanford Law student was involved in “screaming ‘Faggot! Hope you die of AIDS!’ and ‘Can’t wait until you die, faggot,’ in the direction of the resident fellow cottage of lecturer Dennis Matthies.”

According to a Stanford news release at the time: “first-year law student Keith Rabois … sent a letter to the Stanford Daily confirming the allegations.”

“Admittedly, the comments made were not very articulate, not very intellectual nor profound,” Rabois wrote, according to the news release. “The intention was for the speech to be outrageous enough to provoke a thought of ‘Wow, if he can say that, I guess I can say a little more than I thought.’ “

 Both Thiel and Rabois were/are gay.

 This wasn’t just a youthful indiscretion. … Thiel rode the incident to a book deal and publication in the Wall Street Journal. I assume his conservative bona fides, rooted here, played a serious role in his public profile and early business network? They also weren’t straightforwardly voicing some political/religious position: they were rather rancidly scapegoating other gay men as part of some closeted psychodynamic.

So his declaration of outrage is fueled by rank hypocrisy.

Will Bunch has the most succinct description of what is going on here, “Thiel’s Gawker gambit lifts the veil on how the American kleptocracy hopes to control the American media in the 21st Century — by buying and controlling some key news sites…and using their endlessly deep pockets to destroy journalists who are non-compliant.”

I would also direct you to essays from Feliz Salmon and Bob Lefsetz.

I would also note that Theil is a reactionary nut-job, (scroll down toward the bottom) who opposes women’s suffrage, supports the establishment of floating cities exempt from law, and funded James O’Keefe’s successful jihad against ACORN.

There is nothing inherently wrong with being a rich nut-job.  Our history is filled with this.

But when that rich nut-job begins to think of themselves as a God, whether the Randian Übermensch in the case of Thiel or the brothers Koch, or an actual denizen of Olympus in the case Gaius Julius Caesar Augustus Germanicus (Caligula), it’s the rest of us who bear the cost of their delusional excess.

They are Full of Crap

No Comments

The Maryland Transit Authority (MTA) is now refusing to release footage from Mondawmin at the start of the Freddie Gray riots because they claim that it would increase the risk of terrorism.

I have not seen such a transparent load of bullsh%$ since Hillary Clinton started making excuses for not releasing her speeches at Goldman Sachs:

The Maryland Transit Administration has once again denied a Public Information Act request by The Baltimore Sun for surveillance footage from the Mondawmin Metro station on the day last April that riots broke out in Baltimore, saying that releasing the video would “facilitate the planning of a terrorist attack.”

On April 27, 2015, large numbers of police officers staged in the area around the Metro station and adjacent mall based on intelligence they said they had received that large numbers of students planned to gather in the area en masse to protest the police-custody death of Freddie Gray.

Many in the city, including teachers at nearby Frederick Douglass High School, have blamed the police for provoking students and stranding others by canceling bus service at the transportation hub just as they were getting out of school.

The Sun has sought the footage from the MTA station for nearly a year in order to glean more information about how the clashes that began there, grew, and ultimately turned into rioting, looting and arson in the city that night.

In denying the Sun’s first PIA request last year, the MTA said that the office of Baltimore State’s Attorney Marilyn Mosby had asked it not to release the footage because it was still being used in criminal investigations.

………

The Sun sent the MTA another PIA request for the footage last month, noting that there is a statute of limitations of one year for misdemeanor charges, and that it had been a year since the incident in question — limiting the number of pending investigations there could be.

………

When the MTA responded last week, it made no mention of pending investigations in the state’s attorney’s office. It said instead that the footage could not be released because of Homeland Security concerns.

………

The MTA responded Friday, explaining that The Sun would have to ask the federal Transportation Security Administration for written permission to review any of the footage from the cameras, because they were funded through Homeland Security grants.

But if The Sun were to get that permission, it said, the MTA still would deny the footage based on its belief that the footage “would reveal the facility’s safety and support systems, surveillance techniques, and security systems and technologies,” as well as “jeopardize the security of the facility; facilitate the planning of a terrorist attack; and endanger the life or physical safety of the public.”

Please, take them to court.  Because their arument is 6 pounds of sh%$ in a 5 pound bag.

The only question is whether the MTA is protecting itself, or if the Baltimore PD strong armed into the coverup.

This is F%$#ed Up and Sh%$

No Comments

The Federal Election Commission is so dysfunctional that it cannot even decide that an employer coercing its employees to make political contributions is wrong:

Last week, the Federal Election Commission deadlocked over whether to investigate allegations that coal baron Robert Murray coerced employees at his company, Murray Energy Corporation, into making campaign contributions. It’s a move that watchdogs warn will give the green light to workplace political coercion, which experts say is on the rise.

The case stems from a complaint filed by Citizens for Responsibility and Ethics in Washington (CREW) alleging that Murray Energy coerced its salaried employees to contribute to the company’s PAC. Sources within the company had alleged that their year-end bonuses depended on their levels of political giving.

FEC staff had advised the commission that there was a strong case for enforcement, based on evidence that included internal company documents reportedly showing that the company told managers, “We have been insulted by every salaried employee who does not support our efforts.” Staff members recommended that the commissioners find that Murray and his company’s PAC had violated federal election law by “coercing Murray Energy employees to make contributions to federal candidates and participate in fundraising activities supporting federal candidates.”

When the commission finally voted on whether to take action last week, the FEC split along party lines, with the three Democratic commissioners voting in favor of investigation, and the three Republican commissioners voting against action. FEC rules bar the agency from taking action unless a majority of commissioners agree. It’s just the latest in a long list of FEC disputes that have ended in stalemates and inaction—involving everything from complaints over super PAC coordination with campaigns to nonprofits’ political activity, straw donations to LLCs, and end-runs around contribution limits.

Seriously?  An employer threatening loss of pay and perhaps loss of a job you don’t contribute to their candidates is OK?

Seriously?

We are completely f%$#ed.

Live in Obedient Fear, Citizen

No Comments

It looks like the FBI managed to sneak language into the intelligence authorization bill allowing the FBI to demand email and logs from an ISP without a warrant:

A provision snuck into the still-secret text of the Senate’s annual intelligence authorization would give the FBI the ability to demand individuals’ email data and possibly web-surfing history from their service providers without a warrant and in complete secrecy.

If passed, the change would expand the reach of the FBI’s already highly controversial national security letters. The FBI is currently allowed to get certain types of information with NSLs — most commonly, information about the name, address, and call data associated with a phone number or details about a bank account.

Since a 2008 Justice Department legal opinion, the FBI has not been allowed to use NSLs to demand “electronic communication transactional records,” such as email subject lines and other metadata, or URLs visited.

The spy bill passed the Senate Intelligence Committee on Tuesday, with the provision in it. The lone no vote came from Sen. Ron Wyden, D-Ore., who wrote in a statement that one of the bill’s provisions “would allow any FBI field office to demand email records without a court order, a major expansion of federal surveillance powers.”

Wyden did not disclose exactly what the provision would allow, but his spokesperson suggested it might go beyond email records to things like web-surfing histories and other information about online behavior. “Senator Wyden is concerned it could be read that way,” Keith Chu said.

I know what you’re thinking:  That the FBI would never abuse its power to go after people they disagreed with politically and abuse their powers.

That’s why their headquarters is named after J. Edgar Hoover, because they would never function as a private army for a rogue director.

Too True

No Comments

Over at The Nation, James Carden exhibits a shocking grasp of the obvious, and notes that Neocons are freaking out over Donald Trump because he represents a reduction in their influence, status, and paychecks, not because they are deeply concerned about the future of the nation:

The past year has been a difficult one for the leaders of the neocon right. First, their campaign to torpedo President Obama’s nuclear deal with Iran came to naught. Then their preferred candidate for the Republican nomination, freshman Florida Senator Marco Rubio, ran a lazy and uninspiring campaign and was easily routed by Donald Trump. And now, with Trump about to be crowned king of the Republican castle in Cleveland, the neocons are experiencing something of an existential meltdown over the prospect of a future Trump administration.

Last week, a Politico piece surveyed the broken hearts among the neocon elite, in which they were described as being marooned on “The Lonely Island of Never Trump.” Just how lonely is that island, however, is open to question. If Politico is to be believed, nearly the entire GOP foreign-policy establishment is ready to bolt and join Team Hillary.

………

Kagan, Cohen and Boot quite rightly denounce Trump’s promise to ban Muslim immigrants. Yet their newfound concern for the well-being of Muslims is striking, given that they were among the most vocal supporters of the Bush administration’s “Global War on Terror” and the Iraq debacle which, according to the Nobel Prize–winning organization International Physicians for the Prevention of Nuclear War, has “directly or indirectly, killed around 1 million people in Iraq, 220,000 in Afghanistan and 80,000 in Pakistan, i.e. a total of around 1.3 million.”

………

Indeed. Are we really supposed to rue the possibility that the armchair warriors who’ve done the yeoman’s work of constructing an intellectual framework for endless foreign interventions and an overweening surveillance state might be excluded from the next administration?

It is hard to escape the conclusion that it isn’t Trump’s policies that are really bothering the neocons. Rather, it is the possibility that, come January 20, 2017, they could be frozen out of the corridors of power for the next four years. But what must really sting is this: Republican voters, given a choice between a neocon revival or Donald J. Trump went resoundingly for the latter. Deep down, I suspect, they know that they have no one to blame for Trump but themselves.

These guys have a hell of a racket:  They are wrong about everything, and the profiteers who benefit from this evil incompetence get them gigs at think tanks, and pay to publish their books.

As Upton Sinclair once observed, “It is difficult to get a man to understand something, when his salary depends on his not understanding it.”

3 “Democrats” Who Think That Your Financial Advisor Should Be Allowed to Cheat You

1 Comment

The Senate voted to prohibit regulators from requiring financial advisors to work in their own client’s best interest:

The Senate voted Tuesday to strike down a controversial Obama administration rule for financial advisers, setting up a showdown with the White House.

Senators voted 56-41 to overturn the Labor Department’s fiduciary rule, which requires financial advisers to act in the best interest of retirement savers.

The Senate’s vote paves the way for a battle with the White House, which has pledged that President Obama will veto the legislation once it reaches his desk.

“The final rule reflects extensive feedback from industry, advocates, and Members of Congress, and has been streamlined to reduce the compliance burden and ensure continued access to advice, while maintaining an enforceable best-interest standard that protects consumers,” the Office of Management and Budget said in a statement.

………

Americans for Financial Reform, an advocacy group, defended the regulation.

The rule “simply says that financial professionals who claim to offer honest, unbiased advice on retirement savings should actually have to do that,” the group said.

“The motive for this resolution is not a genuine concern about the wellbeing of retirement savers. Instead, some Wall Street salespeople and their firms are worried about losing out on the billions of dollars in excess profits they have been making by recommending investment products that serve their own interests.”

If you look at the vote you will find 3 “Democratic” senators who voted to allow grandma to be cheated out of her retirement, former Congressional “Blue Dog” Joe Donnelly (D-IN), Heidi Heitkamp (D-ND), and Jon Tester (D-MT).

They need to be primaried, big time.

They are all up for reelection in 2018

Well, This Explains a Lot

No Comments

It turns out that over the past 70 years, many medical conditions that were considered normal are not considered pathologies that require aggressive treatment.

There is a lot of money in this, which raises the obvious question, “cui bono?”

As many as 16 million Americans are prone to screaming and pounding on the dashboard when someone cuts them off in traffic. Another 7 million are fully capable of devouring a whole box of cookies in front of the TV.

There are 14 million men with low testosterone, 9 million women with low sexual desire — and tens of millions of people with bladders that are too active and blood sugar that’s a little too high.

The common thread: All have non-life-threatening conditions that for most of the 20th century were not considered a part of mainstream medicine. Some did not exist at all as formal disorders.

Each of the conditions, from intermittent explosive disorder to overactive bladder disorder, is the product of a new or expanded definition. These definitions come from medical societies or researchers who get money from drug companies.

Not to worry though, I’m sure that the invisible hand of the market, and the “skin in the game” required by Obamacare, will fix all this.

This Is Either a Scam, or This Will Become a Scam

No Comments
The latest thing in crowd funding is something called a decentralized autonomous organization (DAO) and my nose tells me that this is, or is going to be, a new way for people to have their money stolen:

We’ve flagged cryptocurrency enthusiasts’ distinctly mystic beliefs in spontaneously emergent headless organisms before.

Now something called the “Decentralised Autonomous Organisation” — The DAO, not to be mistaken with Tao — project has begun to attract actual column inches in mainstream publications, albeit in keeping with the new style of journalism… i.e. devoid of critical evaluation and taking all claims at face value.

The DAO is currently raising Ether tokens (the pre-mined currency of the Ethereum blockchain, itself funded via a bitcoin capital raising) — $110m at mark-to-market rates today — in exchange for DAO, a token which “grants its holder voting and ownership rights.” As Techcrunch put it, holders of DAO “can use their tokens to vote on big governance issues (akin to traditional shareholders) but also on minute details of how The DAO spends its resources. In this way, token holders have total control over The DAO’s assets and its actions.”

The DAO explicitly states its tokens are not a form of equity — even if to the average bystander everything about the DAO token looks, smells and feels like common equity. (Perhaps the feeling is that if you dazzle them with “tokens” instead of stocks, those pesky unlicensed stock solicitation rules won’t apply? We’re not sure regulators will see it that way.)

We won’t go on about how the world has had 100 years (or more) of feedback with respect to what happens when you remove the professional executive/management function from corporate identity, or transfer all day-to-day decision making to amateur committees. Any cursory review of modern history (or a quick read of Animal Farm) will flag up the problems: indecision paralysis; wasted time and resources on voting and bureaucracy; entirely non-diplomatic means of grabbing power just to get things done; uninformed decision making; exploitation of the ignorant; tragedies of the commons scenarios and last but not least: a lack of skin-in-the-game accountability for poor decision making leading to post-facto due diligence processes with dire consequences for capital, human resources and environments.

We won’t even mention that $110m raised in illiquid tokens based on mark-t0-market valuations is akin to a paper profit only, and might create a helluva Ether currency collapse if it’s actually spent on resources in the real-world…

I don’t know if this is a scam now, but I do know that it it isn’t, it will be, and it will be sooner than later, because this is what happens when people set up a business based on self delusion.

Not Enough Bullets

No Comments

In the brave new world of f%$#ing over the American worker, we have the financial innovation (hold on to your wallets) of payroll cards:

Hey, remember our old friends, Darden Restaurants? They’re the dickbag parent company of Olive Garden, Longhorn Steakhouse, and (formerly) Red Lobster, who (allegedly knowingly) source from slave labor and who are legendary within the restaurant industry for screwing over their workers. Yeah, turns out they have a fun new way of screwing their employees out of their hard-earned money. The best part? It’s (mostly) perfectly legal.

The secret is a fun (not at all fun) method of paying their employees called payroll cards. The way payroll cards work is that instead of actual paychecks, employees are given what amounts to a debit card they can use to access their pay. Some (assholes) have argued that this is actually good for workers, because it means they can access their money immediately. But a new report from Restaurant Opportunities Centers United sheds some light on the practice and, well … Darden doesn’t come out of it looking pretty. Among other things, the report found that:

  • 23% of employees surveyed said they were never given instructions on how to use the cards
  • 42% had trouble accessing their money using the cards
  • 63% weren’t told about the fees associated with the card when it was foisted on them
  • 49% said they had no access to an ATM from which they could withdraw their money without a fee
  • 24% reported fees at point of purchase — meaning they had to pay fees when they tried to use the payroll card for a purchase, rather than just a withdrawal

Payroll cards are great for banks: they get to charge exorbitant ATM fees to people whom they would otherwise have never been able to gouge. They’re just as great for the companies themselves, especially in Darden’s case: all told, the practice of using payroll cards saves the company $5 million per year, according to the report. The only people they’re not great for are actual workers, who (as per usual) get hosed in a big way.

Employers are required to offer an alternative, but a lot of them don’t, and those that do try to hide it from their workers.

F%$# these folks, without lube.

Why Ignoring CIA Torture Was a Bad Idea

No Comments

Some how or other, the CIA “accidentally” deleted the Senate Intelligence Committee’s torture report, though there appears to be another copy “safe”:

……

Yeah, good luck with those files, especially given the spectacular news from this side of the pond regarding one of the CIA’s most recent escapades in international thooleramawnery. Once again, the dedicated worker bees of our intelligence community have proven themselves tragically accident prone. As Michael Isikoff of Yahoo News reports:

Although other copies of the report exist, the erasure of the controversial document by the CIA office charged with policing agency conduct has alarmed the U.S. senator who oversaw the torture investigation and reignited a behind-the-scenes battle over whether the full unabridged report should ever be released, according to multiple intelligence community sources familiar with the incident. The deletion of the document has been portrayed by agency officials to Senate investigators as an “inadvertent” foul-up by the inspector general. In what one intelligence community source described as a series of errors straight “out of the Keystone Cops,” CIA inspector general officials deleted an uploaded computer file with the report and then accidentally destroyed a disk that also contained the document, filled with thousands of secret files about the CIA’s use of “enhanced” interrogation methods.

And I am the Tsar of all the Russias.

It is a good thing that the Congressional oversight panels have been right on the ball in informing we suckers who foot the bill about this flagrant disregard for security protocols and spectacular bungling by the relevant authorities in The Company. No, wait.

The incident was privately disclosed to the Senate Intelligence Committee and the Justice Department last summer, the sources said. But the destruction of a copy of the sensitive report has never been made public. Nor was it reported to the federal judge who, at the time, was overseeing a lawsuit seeking access to the still classified document under the Freedom of Information Act, according to a review of court files in the case. A CIA spokesman, while not publicly commenting on the circumstances of the erasure, emphasized that another unopened computer disk with the full report has been, and still is, locked in a vault at agency headquarters. “I can assure you that the CIA has retained a copy,” wrote Dean Boyd, the agency’s chief of public affairs, in an email.

Well, I’m certainly reassured. They’re probably using the disc to play floor hockey at Langley.

But Senator Dianne Feinstein is still a trusting soul.

The functions of our state security apparatus are important.

The enormous intelligence industrial complex that we have created is not.

It is out of control, wasteful, and incompetent.

Cuomo Has to be Sh%$ting Bullets Now

No Comments

It’s pretty clear that US Attorney U.S. Attorney Preet Bharara’s investigations of corruption in Albany have not ended with the convictions of the speaker of the assembly and the majority leader of the state senate:

As U.S. Attorney Preet Bharara’s office issues a storm of subpoenas to the administration of Governor Andrew Cuomo and his close associates in relation to the state’s Buffalo Billion economic development program, the governor and his aides have delivered a consistent message: the investigation targets the dealings of a few bad apples, the governor wasn’t aware of any wrongdoing and he wants to get to the bottom of the situation as quickly as possible.

“I’ve said to all my people, and I’ve said to the U.S. attorney, any way we can find out and be helpful and be cooperative, we will be,” Cuomo told reporters during a press conference in the Adirondacks on Tuesday. “Nobody wants the facts more than us. That’s why we started our own private investigation. We know the questions: did two people act improperly? Did they represent companies they shouldn’t have? Was there undue influence for those companies? Those are the questions, we now need the answers and we don’t have the answers.”

The message rings as spin to a number of expert observers who insist Cuomo has long overseen a system that allows, at the very least, for the appearance of pay-to-play to flourish as mini-economies have popped up around the state where connected consultants work with both state government entities and those looking to win state contracts, and where the state funnels money through non-profits, allowing them to avoid scrutiny and standard state contracting procedures.

Bharara’s probe appears to have also spurred inquiries into surrounding issues by Attorney General Eric Schneiderman and Comptroller Thomas DiNapoli – all of whom, like Cuomo, are Democrats.

It is unclear whether the two men who have been reported to be at the center of the probe – longtime Cuomo aide Joe Percoco and Cuomo family associate and lobbyist Todd Howe – violated the law or how Bharara’s many subpoenas that have targeted the executive chamber, former Cuomo aides, consultants, and businesses involved in the Buffalo Billion all fit together. However, the scope of the investigation and the deep layers of connections between and among some of the players involved makes it fairly clear that the target of Bharara’s investigation is not simply two Cuomo associates.

………

“The governor is looking at it in terms of the mistakes, or poor behavior of a couple aides that he seems to be disassociating himself with,” said John Kaehny, executive director of Reinvent Albany. “But what the subpoenas are targeting seems to be the corruption risk and bid-rigging favoring the governor’s campaign contributors. No one cares Todd Howe did something dumb. This is not what this is about – the governor sidestepped the larger issues.”

At least six current or former members of the Cuomo administration have been targeted by subpoenas. The administration has defended some of them.

A review of a number of businesses targeted by Bharara’s subpoenas shows that most of them are regular contributors to Cuomo’s campaigns. That leads some observers, including Kaehny, to believe that Bharara is interested in the state’s economic development subsidy programs as a whole.

“The Buffalo Billion is just a microcosm of the pay-to-play racket that has engulfed economic development under Governor Cuomo,” said Kaehny. “It is just a giant machine that takes in donations and doles out grants to donors. It is remarkable in its scope, consistency, and is dramatic in how it all leads back to the same people. What caught Bharara’s interest in this is a system – not a rogue agent, not a bad apple, it’s a system.”

………

Gerald Benjamin, a professor of political science at SUNY New Paltz noted that the fact SUNY Polytechnic President Alain Kaloyeros has been subpoenaed and appears to have been a target of the probe since the fall, “makes it a much bigger matter that could be focused on systemic practices.”

Kaloyeros has overseen much of the Buffalo Billion contracting and has become a major figure in the Cuomo administration as the governor has ramped up his economic development programs.

“The issue we have is confidentiality,” Kaloyeros told Gotham Gazette by Facebook messenger last fall when being asked about the Buffalo Billion investigation. “We were instructed in no uncertain terms not to comment on the inquiry from down South with the threat of jail which is being interpreted as we are the target of an investigation. So that part we cannot comment on beyond what we were authorized to say publicly.”

………

Aside from the red flags sent up by donations and dealings with the air of conflict of interest, watchdog groups say they believe Bharara may be examining the Buffalo Billion because it is clear that up until now on one on the state level has been.

Cuomo and the Legislature crippled the Comptroller’s ability to audit deals made regarding the Buffalo Billion in 2011, [New York Comptroller Thomas] DiNapoli and others say, by passing legislation that prevented auditing of SUNY, CUNY, hospital or construction funds. That is important to the Buffalo Billion because the state funnels cash for Buffalo Billion contracts through two non-profits controlled by SUNY.

The question at this point whether Cuomo was merely willfully blind or complicit.

My money is on the former.  He’s a former prosecutor, and he knows how to walk that line.

It’s a pity.  He is an evil rat-bastard.

Yep. This is a Woman of the People

No Comments

If Hillary were serious about inequality, she wouldn’t be hosting $100,000.00 a head fundraisers:

Democratic presidential front-runner Hillary Clinton is ramping up her fundraising schedule, attending a number of fundraisers this week that cost donors six-figures to attend.

The former secretary of state attended a pair of small, intimate gatherings in New York City on Thursday evening that cost donors a minimum of $100,000 to attend, according to a campaign official. On Wednesday, she attended two $100,000-a-head events in Englewood, N.J., and New York City.

Maureen White and Steven Rattner, two prominent Democratic fundraisers, hosted one of the Thursday fundraisers at their home in Manhattan. Mr. Rattner also was a prominent businessman and served in the Obama administration. The second Thursday event was at the home of Lynn Forester de Rothschild, a prominent New York businesswoman and supporter of Mrs. Clinton and Democratic candidates. On Wednesday, architect Jon Stryker and hedge fund manager Orin Kramer played host.

Rattner settled with the SEC and the New York State Attorney General over kickbacks.

Lynn Forester de Rothschild is one of Those Rothschilds, the original multinational banksters.

And $100,000.00 a head for the contributors.

Does this sound like a woman who has the slightest interest in addressing the parasitic finance that is at the heart of Wall Street?

Does the former board member for Walmart sound like someone who would support labor unions?

Win or lose, this little foray into dynastic politics will not end well.

What a Lovely Family

No Comments

Chelsea Clinton’s husband, Marc Mezvinsky, just shuttered a hedge fund after losing 90% of his investor’s money:

Despite having Goldman Sachs CEO Lloyd Blankfein as an investor and being Bill and Hillary Clinton’s son-in-law, Marc Mezvinsky (and two former colleagues from Goldman Sachs who manage Eaglevale Partners hedge fund) told investors in a letter last February they had been “incorrect” on Greece, generating staggering losses for the firm’s main Eaglevale Hellenic Opportunity, a/k/a the “Greek recovery” fund during most of its life. By ‘incorrect’ the Clinton heir apparent meant the $25 million Eaglevale Greek fund had lost a stunning 48% in 2014.

Which is not to say the larger fund it was part of is doing any better: as of last February, Eaglevale had spent 27 of its 34 months in operation below its high-water mark. We are confident that 13 months later the numbers are 40 out of 47, respectively.

………

Meanwhile, things went from terrible to abysmal for both the clueless hedge fund manager and his LPs, and as the NYT reports, Hillary Clinton’s son-in-law is finally shutting down the Greece-focused fund, after losing nearly 90% of its value.  Investors were told last month that Eaglevale Hellenic Opportunity would finally be put out of its misery and would shutter.

The closure comes as the worst possible time: we are confident that Donald Trump will be quick to work it into his political attack routine.

While there is no indication of legal or ethical wrong doing, I guarantee that Mezvinsky made his millions in various fees out of this fiasco.

This might be ONE reason why Clinton is so dedicated to preserving the, “Heads I win, tails you lose,” ethos of  Wall Street.

Something to Hide

No Comments

Purdue Pharma, best known as the manufacturer of the opiate Oxycontin, has been fighting tooth and nail to keep their marketing tactics from the public, but today a judge ordered those records unsealed:

Purdue Pharma, the maker of OxyContin, lost a legal battle Wednesday to keep records and testimony about its bestselling and widely abused painkiller secret.

A judge in Pike County, Kentucky, a region hard-hit by prescription painkiller abuse, granted a motion by a news outlet to unseal records from a lawsuit by the state accusing the company of fraud, conspiracy and negligence in the development and marketing of the drug.

Purdue settled that suit in December for $24 million without any admission of wrongdoing.

Circuit Judge Steven Combs granted the request of Boston Globe-affiliated investigative health news outlet STAT to unseal the documents, writing: “The Court sees no higher value than the public (via the media) having access to these discovery materials so that the public can see the facts for themselves.”

The judge said the order would not take effect for 32 days, allowing Purdue time to appeal.

Let’s be here:  Purdue has been aware of its potential for abuse and its addictive properties for a very long time, and it is clear that they used these to increase sales.

They are no different from the corner drug pusher, and seeing their marketing exposed to the light of day, with the resulting social pressure and prosecutions, would please me no end.

Yeah, This Really Inspires Support for the TTIP

No Comments

The US ambassador to Italy, a political appointee by Obama, is saying that the US and Europe need to approve the trade deal in order to prevent prosecution of the banksters at the mega-banks:

On May 7th, Deutsche Wirtschafts Nachrichten, or German Economic News, headlined, “USA planen mit TTIP Frontal-Angriff auf Gerichte in Europa” or “U.S. Plans Frontal Attack on Europe’s Courts via TTIP,” and reported that, “America’s urgency to sign TTIP with Europe has solid reason: Megabanks must protect themselves from claims by European investors who allege that they were cheated during the debt crisis. … The U.S. Ambassador to Italy has now let the cat out of the bag on this — probably unintentionally.”

In this particular case, the megabank that’s being sued isn’t American but German, Deutsche Bank, which the U.S. Ambassador to Italy has cited as his example to defend, perhaps so as to appeal to Germans to protect their megabanks against lawsuits from foreign investors (such as Italians) who complain. In that case it was investors in the Italian city of Trani, population 53,000. The smallness of the city was an issue the Ambassador raised against the suit’s having been brought there.

Reuters headlined on May 6th, “Italian prosecutor investigates Deutsche Bank over 2011 bond sale”, and reported that, “An Italian prosecutor is investigating Deutsche Bank (DBKGn.DE) over its sale of 7 billion euros ($8 billion) of Italian government bonds five years ago, an investigative source told Reuters. A prosecutor in Trani, a town in southern Italy, is investigating because Deutsche Bank allegedly told clients in a research note in early 2011 that Italy’s public debt was no cause for concern, and then sold almost 90 percent of its own holding of the country’s bonds.” The U.S. bond-rating agencies are also subjects in this suit, because Trani had relied upon their ratings of those bonds.

The Obama Administration (through its Italian Ambassador) seems thus to be saying, in effect, that unless TTIP is passed into law, Europe’s megabanks (and the U.S. bond-rating agencies, S&P, Moody’s and Fitch) will be able successfully to be sued by cheated investors, just as has been happening with such American banks as JPMorgan/Chase and Goldman Sachs in the United States, which — since TTIP hasn’t yet been in force anywhere, including in the U.S. — were forced to pay billions to cheated investors. Apparently, Obama would be happier if those suits had been impossible in the U.S. The argument here, though only implicitly, seems to be that TTIP is the way to protect megabanks and the bond-rating firms. It concerns specifically the selling of sophisticated derivative investments.

I didn’t think that there was any bit of news that would make me more opposed to the TTIP or TPP.

I was misinformed.

It Would Be My Concern Too

No Comments

The anonymous source behind the huge leak of documents known as the Panama Papers has offered to aid law enforcement officials in prosecutions related to offshore money laundering and tax evasion, but only if assured of protection from punishment.

“Legitimate whistle-blowers who expose unquestionable wrongdoing, whether insiders or outsiders, deserve immunity from government retribution,” the source, who has still not revealed a name or nationality, said in a statement issued Thursday night.

The documents, which list the true owners of thousands of companies created to hide the people behind them, expose the holdings of current and former world leaders and other prominent figures. The source, who uses the pseudonym John Doe but whose gender is not known, said that the papers could spur thousands of prosecutions, “if only law enforcement could access and evaluate the actual documents.”

John Doe noted that journalists who have viewed the papers have said they will not turn over the full archive of 11.5 million documents. “I, however, would be willing to cooperate with law enforcement to the extent that I am able,” the source wrote.

The statement, which was issued Thursday night under the condition that it not be reported until Friday morning, gave some hints about John Doe’s political views and concerns. They include income inequality, the American campaign finance system and the “revolving door” of United States officials who take jobs at banks or other companies they once regulated.

………

In the statement, the source denied being a government official or contractor, now or in the past. The confidential source was also extremely critical of the news media, suggesting that certain unnamed news organizations had declined initial offers to take and report on the documents.

I can understand “John Doe’s” concern.  There have been numerous cases where whistle blowers have been typically been sentenced to more jail time than the folks actually breaking the laws.
What’s more, when one looks at those prosecutions, and the the sentences, it becomes pretty clear that this is a feature of the American criminal justice system, and not a bug.
Prosecutors seem intent on punishing people who whistle blow on members of our plutocracy.

Same as it Ever Was………

No Comments

It looks like GSE Freddie Mac may need another baliout:

Freddie Mac is expected to report a loss when it announces first-quarter earnings before the bell on Tuesday. That’s bad news for any public company, but especially critical for the mortgage provider because of its tangled history with the federal government.

Freddie and its counterpart, Fannie Mae were put into conservatorship in 2008 as the mortgage meltdown ensnared the financial system. They have lingered as wards of the state ever since. The Treasury Department modified the deal in 2012, requiring Fannie and Freddie to send all quarterly profits to the government — and shrink their reserves to zero by 2018.

As Mel Watt, the chairman of Fannie and Freddie’s regulator, put it in a speech in February, Fannie and Freddie are quickly approaching the point where they won’t be able to weather quarterly losses without going back to the Treasury for taxpayer dollars.

………

Bank analyst Richard Bove speculated about the possibility of a first-quarter loss in a recent note. “It is impossible for an outsider to predict what this will do to Freddie Mac earnings but it is not unrealistic to assume a loss of $2 billion plus in derivatives (it could be as high as $4 billion or more). At the $2 billion plus level, Freddie Mac’s pretax earnings would be negative $749 million,” Bove, vice president of equity research at Rafferty Capital Markets, wrote.

Spokeswomen for Freddie and its regulator, the Federal Housing Finance Agency, declined to comment.

A Treasury draw is a possibility, Moody’s Analytics Chief Economist Mark Zandi told MarketWatch, although he thinks the chance of one is “less than 50-50.”

The 10-year Treasury declined 49 basis points in the first quarter, far more than the 29-basis point drop that caused Freddie’s loss last year, noted Laurie Goodman, director of the Housing Finance Policy Center at the Urban Institute. (A basis point is one one-hundredth of a percentage point.)

Time to party like it’s late 2008, I guess.

Seriously, has there been a financial “Innovation” since the Automatic Teller Machine that has been about anything but ripping the rest of us off?

We are now in a never ending bust and bust cycle where the banksters get richer, and the rest of us get poorer.