Friday, August 9, 2013

Fukushima Poisons Pacific Ocean & California


The Fukushima Nightmare Gets Worse

Just when it seemed things might be under control at Fukushima, we find they are worse than ever.
Immeasurably worse.
Massive quantities of radioactive liquids are now flowing through the shattered reactor site into the Pacific Ocean. And their make-up is far more lethal than the “mere” tritium that has dominated the headlines to date.
Tepco, the owner/operator--and one of the world's biggest and most technologically advanced electric utilities--has all but admitted it cannot control the situation. Its shoddy performance has prompted former U.S. Nuclear Regulatory Commissioner Dale Klein to charge: “You don't what you are doing."
The Japanese government is stepping in. But there is no guarantee--or even likelihood--it will do any better.
In fact, there is no certainty as to what’s causing this out-of-control flow of death and destruction.
Some 28 months after three of the six reactors exploded at the Fukushima Daichi site, nobody can offer a definitive explanation of what is happening there or how to deal with it.
The most cogent speculation now centers on the reality that, simply enough, water flows downhill.
Aside from its location in an earthquake-prone tsunami zone, Fukushima Daichi was sited above a major aquifer. That critical reality has been missing from nearly all discussion of the accident since it occurred.
There can be little doubt at this point that the water in that underground lake has been thoroughly contaminated.
In the wake of the March 11, 2011, disaster, Tepco led the public to believe that it had largely contained the flow of contaminated water into the Pacific. But now it admits that not only was that a lie, but that the quantities of water involved--apparently some 400,000 gallons per day--are very large.
Some of that water may be flowing from the aquifer. Much of it also, simply enough, flows down Japan’s steep hillsides, through the site and into the sea.
Until now, the utility and regulatory authorities have assured an anxious planet that the contaminants in the water have been primarily tritium. Tritium is a relatively simple isotope with an 8-day half-life. Its health effects can be substantial, but its short half-life has been used to proliferate the illusion that it's not much to worry about.
Reports now indicate the outflow at Fukushima also includes substantial quantities of radioactive iodine, cesium, and strontium. That, in turn, indicates there is probably more we haven’t yet heard about.
This is very bad news.
Iodine-131, for example, can be ingested into the thyroid, where it emits beta particles (electrons) that damage tissue. A plague of damaged thyroids has already been reported among as many as 40 percent of the children in the Fukushima area. That percentage can only go higher. In developing youngsters, it can stunt both physical and mental growth. Among adults it causes a very wide range of ancillary ailments, including cancer.
Cesium-137 from Fukushima has been found in fish caught as far away as California. It spreads throughout the body, but tends to accumulate in the muscles.
Strontium-90’s half-life is around 29 years. It mimics calcium and goes to our bones.
That these are among the isotopes being dumped into the Pacific is the worst news to come from Japan since Hiroshima and Nagasaki, whose bombings occurred 68 years ago this week, and whose fallout has been vastly exceeded at Fukushima.
Indeed, Japanese experts have already estimated Fukushima's fallout at 20-30 times as high as the 1945 bombings.
This latest revelation will send that number soaring.
The dominant reality is this: There is absolutely no indication how or when this lethal outflow will stop.
Thus far, Tepco has built scores of tanks on the site to contain whatever contaminated water it can capture. But the company is by no means getting all of it, and it is running out of space.
Some of the tanks, of course, have already sprung leaks.
There is no clear idea whether this outflow is accelerating. Tepco has injected chemicals into the ground meant to harden and form a wall between the reactors and the sea.
There’s also a surreal discussion of super-cooling a part of the site to conjure up a wall of ice.
But water has a way of flowing around such feeble devices.
We may yet hear that this massive outflow is a temporary phenomenon, but that's not likely.
The site is still unpredictably radioactive. It remains unclear what has happened to the melted cores of the three exploded reactors.
The recent appearance of a steam plume has raised the specter that fission may still be occurring somewhere in the area.
It is also unclear what will happen to the hundreds of tons of spent fuel perched precariously in a pool 100 feet in the air above Unit Four.
Sustaining that cooling system until the rods can be removed--and it's unclear when that will happen--is a major challenge.
Should an earthquake come before that's done, and should those rods go crashing to the ground where they and their zirconium cladding could ignite in the open air, the consequences could only be described as apocalyptic.
Through it all, Japan's new pro-nuclear administration has been talking of restarting the 48 reactors that remain shut since Fukushima.
Tepco has been among the utilities pushing to resume operations at its other plants.
In the U.S., there is talk of atomic reactors somehow solving the global warming crisis.
But what we now know all too well at Fukushima is that the world's worst atomic catastrophe is very far from over.
The only thing predictable is that worse news will come.
And when it does, our increasingly fragile planet will be further irradiated, at immeasurable cost to us all.

Saturday, August 3, 2013

SEC Fries Small Fish, NO Predators-in-Charge




Fabrice Tourre, a former Goldman Sachs trader, center, was found liable on Thursday for misleading investors about a complex mortgage product. (photo: Peter Foley/Bloomberg)
Fabrice Tourre, a former Goldman Sachs trader, center, was found liable on Thursday for misleading investors about a complex mortgage product. (photo: Peter Foley/Bloomberg)



Jury Finds Goldman Executive Liable for Misleading Investors

By Dina ElBoghdady, The Washington Post
02 August 13

 Federal jury found former Goldman Sachs executive Fabrice Tourre liable Thursday for duping investors about a shoddy mortgage deal on the eve of the housing market's crash, the first major court victory for the Securities and Exchange Commission in its quest to hold Wall Street accountable for the 2008 financial crisis.

After two days of deliberation, the jury decided Tourre - best known by his "Fabulous Fab" nickname - was liable for six of the seven claims pursued by the SEC. The agency had accused the 34-year-old Frenchman of defrauding investors out of $1 billion by selling them a financial product that was secretly designed to fail.

The trial was one of the few to emerge from the financial crisis, and it cast Tourre as a symbol of Wall Street greed. Only twice before has the SEC brought individuals to trial in cases related to the crisis, and each time ended with lackluster results. The victory this time around is a boon for the agency, which is often criticized as a risk-averse regulator that shies away from court battles in favor of slap-on-the-wrist settlements.

Tourre was only a mid-level executive at Goldman - not a marquee Wall Street figure, some legal experts noted. Still, the morale boost is likely to build momentum inside the agency as it pursues one of its most prominent targets yet: hedge-fund billionaire Steven A. Cohen. 

Last month, the agency charged Cohen with failing to properly supervise two employees who engaged in insider trading, a case that could potentially end the industry tycoon's storied career.

"This was a must-win," said Thomas Gorman, a lawyer at Dorsey & Whitney who has worked for the SEC's enforcement division. "They just have not done well in market-crisis trials, and in this case, they really put it all on the line."

Tourre and his attorneys declined to comment, but the SEC hailed the decision as gratifying. In an e-mail to staffers moments after the verdict, SEC Chairman Mary Jo White said the decision reinforced that the agency "knows how to get the job done." Since joining the SEC in April, the former federal prosecutor has aimed to recast the agency's image and embolden it to get tough on Wall Street.

U.S. District Judge Katherine Forrest, who oversaw the trial in Manhattan, will decide on an appropriate remedy in the Tourre case. In a civil case like this one, the toughest outcomes would include fining Tourre or barring him from the financial services industry for life.  (??? - ed)

The verdict ended a three-week trial that centered on a deal so tangled that some jurors dozed off as each side tried to explain it, prompting Forrest to repeatedly urge the attorneys to keep the case moving and cut back on the jargon.

At issue was the role of Paulson & Co., a prominent hedge fund that hired Goldman to create a product that Paulson could use to bet against the housing market - a popular strategy at large investment banks as the housing boom tapered off.

At age 28, Tourre was the "deal captain" charged with structuring the product and preparing marketing materials about it for potential investors. The product, also known as a synthetic collateralized debt obligation, was designed to include "long" investors who would profit if the product's value rose and "short" investors who would profit only if it dropped.

The SEC did not take issue with that arrangement. Rather, it went after Tourre for allegedly scheming to keep certain investors in the dark about Paulson's strategy.

It accused Tourre of failing to reveal to key players in the deal that Paulson was betting against the securities in the product, in effect duping some investors into believing that their financial interests were aligned with those of the hedge fund. Tourre also failed to properly disclose that Paulson helped select those underlying securities, the SEC said."Investors got half the story, half the truth," Matthew Martens, the lead SEC attorney, told the jury earlier this week. "Half the truth is a fraud."

Goldman was charged alongside Tourre in 2010. But it settled the case for $550 million without admitting wrongdoing and covered Tourre's legal fees when he refused to strike a deal with regulators. Tourre left Goldman after being put on unpaid leave. He is now a doctoral student in economics at the University of Chicago.

Some of the agency's critics said the SEC shouldn't brag about taking down a minion at Goldman without nabbing his bosses or any other high-level Wall Street executives."You would think the SEC convicted the Al Capone of Wall Street today when all it did was scapegoat a single mid-level Goldman Sachs' trader who bragged in emails to his girlfriend," Dennis Kelleher, chief executive of a nonprofit group called Better Markets, said in a statement.

John C. Coffee Jr., a professor at Columbia Law School, said a question still remains: "Why didn't they go after someone important and not this sacrificial lamb?"

Tourre's attorneys argued a similar point. They said Tourre stumbled upon a job at Goldman when the bank came to recruit potential employees at Stanford University, where Tourre was a graduate student in engineering and math.During three days on the stand, Tourre said he had never heard of Goldman until then and that he was one of thousands of vice presidents at the bank when he worked on the mortgage deal. With a heavy French accent, Tourre said that he never meant to confuse anyone and that his superiors expressed no concerns with the materials he prepared.

But the government cast Tourre as a greedy Wall Street villain who earned $1.7 million in the year he devised the deal. Goldman raked in $15 million in fees for the transaction. Paulson, which was not accused of wrongdoing, made $1 billion off the deal.

The SEC seized on a series of personal and professional e-mails to make its point.

The most widely quoted was an e-mail Tourre sent in 2007 to his then-girlfriend about the deteriorating housing market. 

The only potential survivor, the fabulous Fab (as Mitch would kindly call me, even though there is nothing fabulous abt me .?.?.), standing in the middle of all these complex, highly levered, exotic trades he created without necessarily understanding all of the implications of those monstruosities!!!" the e-mail said.

During his testimony, Tourre dismissed the note as a "silly, romantic e-mail" written during a time of great market volatility.

While the jury agreed with nearly all of the SEC's charges, it did not find Tourre responsible for statements made in certain materials circulated to investors.

Jacob Frenkel, a former SEC enforcement lawyer and former federal prosecutor, said the SEC's victory came just in time. The five-year statute of limitations is running out on cases from the time of the financial crisis.

"It would be naive to suggest that this verdict somehow means that the SEC will now bring countless cases," Frenkel said. "You've got the statute of limitations, and there's a little thing called 'facts' that sometimes stand in the way of the agency bringing a case.


Thursday, August 1, 2013

1% Sought S&P to Lower Illinois Bond Rating to Profit

Bombshell:

Plutocrats Screw Working People

Thursday, 01 August 2013 10:59By Lynn ParramoreAlterNet | Op-Ed
Broken Piggy Bank.(Photo: Images Money / Flickr)Illinois fatcats discuss plan to sabotage state bond ratings in scheme to destroy pensions.
These days, many Americans walk around feeling like no matter how hard they work, how much they manage to save or how carefully they plan for the future, the game is rigged against them. They suspect that behind closed doors, CEOs and Wall Street honchos are eagerly scheming to rip them off.
Their worst fears of corruption and collusion just came true in Illinois, where corporate titans were caught red-handed in the act of Rigging the Game.
Let’s step inside a recent gathering of the corporate-backed Union League Club of Chicago, where former Illinois Attorney General Ty Fahner, who now leads a band of plutocrats known as the “Civic Committee of the Commercial Club of Chicago,” recently launched into an hour-long diatribe on the evils of state pensions.
Fahner, a top GOP fundraiser, can’t abide the notion that teachers, firefighters, nurses and other public workers in the state of Illinois can still expect a decent retirement. Not a luxurious retirement, mind you — the average pension is $32,000 a year, and most state employees will not receive Social Security. But even a modest retirement for hard-working people is too much for today’s fatcats.
Fahner is part of a virulent strain of public raiders and economic crackpots who have become dominant in the Republican Party (and increasingly among the Democrats, too) who are hell-bent on destroying unions and attacking public employees. Ultimately they wish to privatize everything and reduce their tax responsibilities down to nothing.
That’s why Fahner has declared war on pensions and is promoting a pension crisis in order to justify itHe has called for cost of living cuts, raising the retirement age, capping pension earnings and shifting the cost of the pension obligation of teachers to local school districtsmany of which are too poor ever to payHe styles himself as a savior who wants only to protect the public from debt, when in reality he is a brutal plutocrat who will stop at nothing to line his pockets at public expense and reduce his and his friends' taxes.
Illinois has real problems. However, Fahner desperately hopes the public will not catch on to the fact that states are having difficulty paying out pensions because of the lack of revenue caused by a Wall Street-driven financial crisis and the deep recession it set off, regressive taxes, and the myriad bond scams financiers have already inflicted on states, cities, towns, and municipalities which have triggered funding crises for pensions and other programs. (See "How Wall Street Fraudsters Plunder Public Finances, And 5 Ways to Fight Back.")
Fahner has tried a number of dirty tricks to attack pensions in his career. But his most recent admission is absolutely breathtaking in its brazenness: He boasted of working to scam the Illinois bond rating.
During Fahner’s talk to the Union League Club, an unidentified person in the audience suggested that pressuring credit agencies to rig the state bond ratings in order to attack pensions might be a jolly good idea. Fahner gleefully replied that he had already thought about that — and his group has tried it.
Audience member: “Maybe sometimes you gotta be irresponsible to be responsible. If a political solution really doesn’t produce a favorable outcome, maybe you really need a market solution. And a market solution, I don’t mean bankruptcy, I mean actually talking down the state rating even further so the state’s bonds essentially become below investment grade. And it drives up the borrowing cost to the state and all of us to a significant level enough that you really feel the public pressure…”
Fahner: “The Civic Committee, not me, but me and some of the people that make up the Civic Committee… did meet with and call – in one case in person – and a couple of calls to Moody’s and Fitch and Standard & Poors, and say, How in the hell can you guys do this?"
Fahner went on to take credit for downgrades to Illinois credit ratings, saying, "If you watch what happened in the last few years, it's been steadily down.”
Check out the video at minutes 46:30 to 49:43 for the full remarks on the ratings scam: “Fahner: Civic Committee helped jaw down state’s bond rating.”
As the audience member correctly adduced, pushing down the bond rating is a great way to screw workers, the state and taxpayers. Pension funds buy bonds, often from the state, to stay financially healthy. In order for the pension fund to buy the bond, it must have a passing grade. If the grade is lowered, say from A to B, the price of the bond goes down, and the pension fund will suffer a loss. If the bond rating is dropped below a minimum standard, then the pension fund must sell the bond, and take a much bigger loss.
Lowering the bond rating also has the effect of artificially inflating the interest rates that bond holders must pay on future bonds, making them more expensive to buy and reducing the state’s ability to borrow. The basic idea is to manufacture a crisis by financially starving pension funds. Fahner & Co. know this will put political pressure on Illinoisans to take away worker pension benefits.
In a nutshell, here’s what the video reveals:
  • Corporate honchos — some of whom may have a vested financial interest in Illinois bonds — feel perfectly comfortable calling and exerting pressure on ratings agencies.
  • Ratings agencies are political entities whose supposedly impartial research can be influenced and perhaps even bought.
  • CEOs think nothing of willingly and knowingly screwing the bond rating and economic standing of their home state in order to enact their anti-worker philosophy and fatten their own bank accounts.
  • Proclaiming you are “fixing” state fiscal problems is a great cover for potential insider self-dealing in the bond market.
  • Committing economic treason against fellow citizens and taxpayers is simply a matter of course for today’s American plutocrats.
The We Are One Illinois union coalition has released a statement condemning Fahner and calling for an investigation into the matter:
"Ty Fahner and unnamed members of his corporate-backed committee have shown their true colors. Fahner bragged openly about joining members of the business-backed group, behind closed doors, in lobbying credit rating agencies to lower Illinois' bond ratings in an irresponsible and unethical attempt to put the state in an even more difficult position. They show total contempt for the taxpaying public, total disregard for the difficult fiscal challenges the state faces, and total hypocrisy over their alleged care for the working families of Illinois.”
In addition, a serious conflict of interest may exist if either these unnamed CEOs or the big corporations they control profited in any way from lobbying to make Illinois pay more interest on its bonds—bonds which they or their corporations may hold.”
All right. What the hell can be done about this shameless hustle?
The state attorney general should immediately open an investigation into whether any members of Fahner’s group sold bonds before the downgrades, based on their conversations. That is plainly insider trading. Everyone who held bonds at the time of the downgrades also took a loss. Attorneys general and treasurers in other states whose portfolios took a hit should also consider suing, given that political pressure seems to have played a role in causing their losses. Ditto for private holders and other unions—anyone who had the bonds at the time of the downgrade.
It’s time for the trustees of the pension funds to stand up for those whose interests they are charged with protecting, and not shrug off one more crime against the public interest that reduces pensions for working people.


Internet Spying via NSA Program XKeyscore

    Glenn Greenwald
     
    One presentation claims the XKeyscore program covers 'nearly everything a typical user does on the internet'
     
    A top secret National Security Agency program allows analysts to search with no prior authorization through vast databases containing emails, online chats and the browsing histories of millions of individuals, according to documents provided by whistleblower Edward Snowden.
    The NSA boasts in training materials that the program, called XKeyscore, is its "widest-reaching" system for developing intelligence from the internet.
    The latest revelations will add to the intense public and congressional debate around the extent of NSA surveillance programs. They come as senior intelligence officials testify to the Senate judiciary committee on Wednesday, releasing classified documents in response to the Guardian's earlier stories on bulk collection of phone records and FISA surveillance court oversight.
    The files shed light on one of Snowden's most controversial statements, made in his first video interview published by the Guardian on June 10.
    "I, sitting at my desk," said Snowden, could "wiretap anyone, from you or your accountant, to a federal judge or even the president, if I had a personal email".
    US officials vehemently denied this specific claim. Mike Rogers, the Republican chairman of the House intelligence committee, said of Snowden's assertion: "He's lying. It's impossible for him to do what he was saying he could do."
    But training materials for XKeyscore detail how analysts can use it and other systems to mine enormous agency databases by filling in a simple on-screen form giving only a broad justification for the search. The request is not reviewed by a court or any NSA personnel before it is processed.
    XKeyscore, the documents boast, is the NSA's "widest reaching" system developing intelligence from computer networks – what the agency calls Digital Network Intelligence (DNI). One presentation claims the program covers "nearly everything a typical user does on the internet", including the content of emails, websites visited and searches, as well as their metadata.
    Analysts can also use XKeyscore and other NSA systems to obtain ongoing "real-time" interception of an individual's internet activity.
    Under US law, the NSA is required to obtain an individualized FISA Warrant only if the target of their surveillance is a 'US person', though no such warrant is required for intercepting the communications of Americans with foreign targets. But XKeyscore provides the technological capability, if not the legal authority, to target even US persons for extensive electronic surveillance without a warrant provided that some identifying information, such as their email or IP address, is known to the analyst.
    One training slide illustrates the digital activity constantly being collected by XKeyscore and the analyst's ability to query the databases at any time.
     
    The purpose of XKeyscore is to allow analysts to search the meta datas well as the content of emails and other internet activity, such as browser history, even when there is no known email account (a "selector" in NSA parlance) associated with the individual being targeted.
    Analysts can also search by name, telephone number, IP address, keywords, the language in which the internet activity was conducted or the type of browser used.
    One document notes that this is because "strong selection [search by email address] itself gives us only a very limited capability" because "a large amount of time spent on the web is performing actions that are anonymous."
    The NSA documents assert that by 2008, 300 terrorists had been captured using intelligence from XKeyscore.
    Analysts are warned that searching the full database for content will yield too many results to sift through. Instead they are advised to use the meta data also stored in the databases to narrow down what to review.
    A slide entitled "plug-ins" in a December 2012 document describes the various fields of information that can be searched. It includes "every email address seen in a session by both username and domain", "every phone number seen in a session (eg address book entries or signature block)" and user activity – "the webmail and chat activity to include username, buddylist, machine specific cookies etc".
    Email Monitoring
    In a second Guardian interview in June, Snowden elaborated on his statement about being able to read any individual's email if he had their email address. He said the claim was based in part on the email search capabilities of XKeyscore, which Snowden says he was authorized to use while working as a Booz Allen contractor for the NSA.
    One top-secret document describes how the program "searches within bodies of emails, webpages and documents", including the "To, From, CC, BCC lines" and the 'Contact Us' pages on websites".
    To search for emails, an analyst using XKS enters the individual's email address into a simple online search form, along with the "justification" for the search and the time period for which the emails are sought.
    The analyst then selects which of those returned emails they want to read by opening them in NSA reading software.
    The system is similar to the way in which NSA analysts generally can intercept the communications of anyone they select, including, as one NSA document put it, "communications that transit the United States and communications that terminate in the United States".
    One document, a top secret 2010 guide describing the training received by NSA analysts for general surveillance under the FISA Amendments Act of 2008, explains that analysts can begin surveillance on anyone by clicking a few simple pull-down menus designed to provide both legal and targeting justifications. Once options on the pull-down menus are selected, their target is marked for electronic surveillance and the analyst is able to review the content of their communications:
     
    Chats, browsing history and other internet activity
    Beyond emails, the XKeyscore system allows analysts to monitor a virtually unlimited array of other internet activities, including those within social media.
    An NSA tool called DNI Presenter, used to read the content of stored emails, also enables an analyst using XKeyscore to read the content of Facebook chats or private messages.
    An analyst can monitor such Facebook chats by entering the Facebook user name and a date range into a simple search screen.
     
    Analysts can search for internet browsing activities using a wide range of information, including search terms entered by the user or the websites viewed.
     
    As one slide indicates, the ability to search HTTP activity by keyword permits the analyst access to what the NSA calls "nearly everything a typical user does on the internet".
     
    The XKeyscore program also allows an analyst to learn the IP addresses of every person who visits any website the analyst specifies.
     
    The quantity of communications accessible through programs such as XKeyscore is staggeringly large. One NSA report from 2007 estimated that there were 850 billion "call events" collected and stored in the NSA databases, and close to 150 billion internet records. Each day, the document says, 1-2 billion records were added.
    William Binney, a former NSA mathematician, said last year that the agency had "assembled on the order of 20 trillion transactions about US citizens with other US citizens", an estimate, he said, that "only was involving phone calls and emails". 
    A 2010 Washington Post article reported that "every day, collection systems at the [NSA] intercept and store 1.7 billion emails, phone calls and other type of communications."
    The XKeyscore system is continuously collecting so much internet data that it can be stored only for short periods of time. Content remains on the system for only three to five days, while metadata is stored for 30 days. One document explains: "At some sites, the amount of data we receive per day (20+ terabytes) can only be stored for as little as 24 hours."To solve this problem, the NSA has created a multi-tiered system that allows analysts to store "interesting" content in other databases, such as one named Pinwale which can store material for up to five years. 
    It is the databases of XKeyscore, one document shows, that now contain the greatest amount of communications data collected by the NSA.
     
    In 2012, there were at least 41 billion total records collected and stored in XKeyscore for a single 30-day period.
     
    Legal v technical restrictions
    While the FISA Amendments Act of 2008 requires an individualized warrant for the targeting of US persons, NSA analysts are permitted to intercept the communications of such individuals without a warrant if they are in contact with one of the NSA's foreign targets.
    The ACLU's deputy legal director, Jameel Jaffer, told the Guardian last month that national security officials expressly said that a primary purpose of the new law was to enable them to collect large amounts of Americans' communications without individualized warrants."The government doesn't need to 'target' Americans in order to collect huge volumes of their communications," said Jaffer. "The government inevitably sweeps up the communications of many Americans" when targeting foreign nationals for surveillance.
    An example is provided by one XKeyscore document showing an NSA target in Tehran communicating with people in Frankfurt, Amsterdam and New York.
     
    In recent years, the NSA has attempted to segregate exclusively domestic US communications in separate databases. But even NSA documents acknowledge that such efforts are imperfect, as even purely domestic communications can travel on foreign systems, and NSA tools are sometimes unable to identify the national origins of communications.
    Moreover, all communications between Americans and someone on foreign soil are included in the same databases as foreign-to-foreign communications, making them readily searchable without warrants.
    Some searches conducted by NSA analysts are periodically reviewed by their supervisors within the NSA. "It's very rare to be questioned on our searches," Snowden told the Guardian in June, "and even when we are, it's usually along the lines of: 'let's bulk up the justification'."
    In a letter this week to Senator Ron Wyden, director of national intelligence James Clapper acknowledged that NSA analysts have exceeded even legal limits as interpreted by the NSA in domestic surveillance.
    Acknowledging what he called "a number of compliance problems", Clapper attributed them to "human error" or "highly sophisticated technology issues" rather than "bad faith".
    However, Sen. Wyden said on the Senate floor on Tuesday: "These violations are more serious than those stated by the intelligence community, and are troubling."

States Fight New Federal Surveillance Invasion

How Much Protection Do Password Protection Laws Really Provide?

Nevada is the 11th state to enact password protection legislation designed to ensure online privacy for workers.
Photo Credit: flickr: Bernard Goldbach
 
Victories for privacy rights have been few and far between since 9/11, but an astonishing exception is the blossoming of state laws offering protection for workers against bosses who want to snoop into their social media lives. Last month, Nevada became the 11th state to enact password protection legislation designed to ensure some online privacy for workers. Similar laws are under consideration in about 20 other states.
According to the ACLU’s Allie Bohm, who tracks privacy issues at the group’s New York headquarters, reports of employers requiring workers to disclose the passwords for private social media accounts quickly caught the attention of legislators. Because of Facebook’s broad popularity, lawmakers immediately grasped the threat to individual privacy in allowing employers unrestricted access to the social media lives of their employees.
“If your boss were to demand to read the snail mail that’s delivered to your home by the Postal Service, you would be outraged and consider it a gross violation of your privacy. Well, demanding access to the password to your Facebook account is the same thing,” and even lawmakers not normally sympathetic to civil liberties issues can see the problem, Bohm said. “The fact that the National Security Agency is sweeping up vast quantities of info from the net doesn’t mean that state legislators believe that employers have the same right.”
The issue first burst into public view in 2011 with the case of Robert Collins, a Baltimore man then employed by the state of Maryland. Collins was being interviewed for a transfer to a job in the Department of Corrections and was “stunned” to be asked “illegal and invasive” questions about his social media use, he later testified to the Maryland House of Delegates. Fearful of being denied the transfer, he reluctantly complied with the demand that he provide his Facebook password. On the spot, the interviewer logged on to Collins’ account and began rummaging through the contents. The corrections department just wanted to insure that he was not a gang member, he was told.
Furious at this treatment, Collins brought his complaint to his union, the American Federation of County, State and Municipal Employees (AFSCME), and to the Maryland ACLU. Both organizations are well connected in the state capital in Annapolis and it wasn’t long before the nation’s first worker password protection legislation was introduced. Supporters easily brushed aside opposition from the state Chamber of Commerce and Gov. Martin O’Malley (D) signed the measure into law on May 2, 2012.
“I was ecstatic,” when the bill became law, Collins told AlterNet. “Maryland chose to err on the side of citizens and privacy rights. You don’t see that very often,” he said. He added he has been excited to see other states take up the issue. Laws based in some measure on the Maryland model have been enacted by Arkansas, California, Colorado, Illinois, Michigan, Nevada, New Mexico, Oregon, Utah, and Washington.
A New Jersey state legislature approved similar bill early this year, but it was vetoed by Gov. Chris Christie (R). Christie’s objections, however, appear limited to handful of relatively uncontroversial points, and he has signaled his willingness to approve a basic worker protection bill once the legislature has agreed to some changes to the statutory language.
ACLU’s Bohm indicated that these state-level victories may represent the “low hanging fruit” for privacy proponents, and that additional state or federal laws favoring workers may be harder to come by. She cited the recent of example of Texas, where a good password protection law made rapid progress early this year. The bill stalled, however, as unfriendly legislators began loading it up with exceptions and language designed to protect to employers, not workers. The bill become so heavily laden with pro-business language that its original sponsors were happy to see it die when the legislature ended its session without a vote early this month.