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Immunizing Crimes: Blankfein, Zirbel, and Arpaio, but Whither Corzine?

DOJ has been doing a lot of immunizing of late. There’s Lloyd Blankfein, who not only ripped off his clients with “one shitty deal,” he then lied to Congress about it. There’s Matt Zirbel,* the CIA officer who had Gul Rahman doused with water and left to freeze to death in the Salt Pit. And there’s Joe Arpaio, who used the Maricopa County Sherriff’s office to investigate his political enemies.

DOJ immunized all these men in the last month, in spite of a vast amount of publicly available evidence clearly showing their crimes. And while DOJ had the courage to announce their decision about Blankfein and Goldman Sachs on a typical news day, not so their announcements about Zirbel and Arpaio–DOJ slipped those announcements into the journalistic distraction of Paul Ryan’s dishonest speech and Clint Eastwood’s empty chair, and the more generalized distraction of an imminent holiday weekend.

But with these grants of immunity, DOJ cleared the board of most of the politically contentious cases of immunized criminals just in time for election season. The Goldman banksters could donate with no worries, the NatSec types wouldn’t pull an October surprise, and Republicans couldn’t claim Arpaio was caught in a witch hunt because of the witch hunts he himself conducted.

DOJ cleared most, though not all, of the politically contentious cases they plan to clear though. The exception may prove the rule.

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Another Week, Another Bankster with Impunity

This week, the bankster who will avoid all legal accountability is MF Global and its CEO Jon Corzine. So says the NYT.

While I’m disgusted by that news, I’m not shocked. I’ve grown used to the guarantee that top banksters are immune from all laws.

What I’m interested in is how NYT conveys their news.

First, note what crime they claim MF Global might have committed: fraud. Not theft.

After 10 months of stitching together evidence on the firm’s demise, criminal investigators are concluding that chaos and porous risk controls at the firm, rather than fraud, allowed the money to disappear, according to people involved in the case.

I guess if you said “theft” then you couldn’t suggest the money just disappeared–poof!–rather than got taken to pay off the company’s own obligations.

Plus it’d be a lot harder to accomplish the article’s other main objective, besides reporting yet another Get Out of Jail Free card. While the story seems to have been seeded by people in Preet Bharara’s neighborhood to set the expectation that he would once again fail to bring charges against a bankster, the NYT seems intent on rehabilitating Corzine’s reputation. Consider that they dedicate paragraphs 6 and 7 portraying the tragic plight of a multi-millionaire with a cloud hanging over him.

While the government’s findings would remove the darkest cloud looming over Mr. Corzine — the threat of criminal charges — the former Goldman Sachs chief is not yet in the clear. Read more

Overview of the Pat Fitz Resignation Press Conference

Patrick Fitzgerald just finished his resignation press conference (the blockquotes are my notes).

In his own statements, he focused on comments to the people he works for, and those he works with. That was largely a tribute to the 300 people who work in the office, making it clear that the work he often gets thanked for publicly is done by those 300 people. He emphasized that those people would still be here working, doing good work.

I say that not just to make myself to feel less bad. Want citizens to appreciate what a treasure the people I work with are. The other part is that come June 30, that 300 plus team that is really hard working rolls on, and will keep rolling on. Fight against corruption, what we really need is public to keep coming forward.

Both in his opening statements and in later questions, Fitz seemed to want to encourage people to come forward to report corruption. He also talked about the problem of policing so aggressively that people being to fear the authorities.

We’d prefer to learn about corruption from people coming forward, not from a bug.

[snip]

When you start to see people being afraid of us, when citizens fear being shaken down, that’s a bad thing.

Jumping ahead, an emphasis on the continuity of the office is largely how he answered my question about MF Global. I asked whether DOJ had yet decided whether this office or SDNY would have the lead in that case. He refused to comment, but said anyone working in this office would continue to do good work. (Note, he said “this office,” not DOJ generally.) (I asked Randall Samborn later whether the decision on who had the lead in the MF Global case had been made and he would not say either.)

Fitz largely explained his departure in terms of a natural time to leave.

Not an easy decision. Am I rushing out in 11th year of my term. People have terms for a reason. Won’t be here until I’m 65. Comes a time when me and my family have to figure out what we do next. For the office it’s important that there be change.

I think it’s healthy after a certain point that there be change at the top. Always a matter of when, not if, I think you sort of know when it’s time.

As for what next, I don’t know, and that’s sincere. I’m going to run as fast as I can for 30 days that I have left.

When asked about whether he felt bad about the people he had jailed, he described the empty feeling he got after his first jury verdict on Valentines Day in 1989. As part of that, he emphasized that imprisonment is always a waste, not just in the case of white collar cases.

Feb 14 1989, first jury verdict day. Defendant convicted of drug offense. Taken into custody that day.

We think about prison in white collar cases, but we often don’t think about it on the violent side.

He also, in response to a question about being “overzealous” suggested it’s an injustice to bust the low guy on the totem pole without going after the top of the pyramid.

Someone asked whether there were any cases Fitz regretted not having charged. I called out, “Karl Rove.” He answered the question generally, without acknowledging my question. Harumph.

Fitz was asked whether he thought he could be a Defense Attorney.

I respect what defense attorneys do, but I don’t know what I’ll do next. There are some things I’m not comfortable with.

In response to a question whether he’d be interested in public service–possibly the FBI Director job–he said he had not been approached about the FBI job, but that if he was offered a public service job, he would certainly consider it, though he would balance the needs of his family.

Public service is in my blood. If a phone rings down the future and ID says public service, I answer the phone. I would consider if I can make an impact?

Finally, I asked if he had any reflection on our counterterrorism efforts so many years after he first indicted al Qaeda (note, I fucked up my question and said it had been 14 years; it has been 24 since the 1998 indictments). He said that they’ve made great progress against core al Qaeda. While affiliates remain a threat, core al Qaeda has largely been wrapped up.

We’ve made incredible progress. Core Al Qaeda has largely been rolled up. Remarkable progress in core al Qaeda.

He also emphasized the continuing, under-appreciated effort of FBI agents still chasing down leads.

Still dangerous threat out there we shouldn’t under-estimate. Remarkable job. People don’t appreciate people overseas,squads of FBI agents.

I did much better at this whole press scrum thing than I usually do, but as proof I’m not an expert yet, I failed to follow-up on what he thought about efforts to force terrorism trials into Military Commissions.

Finally, the funniest detail from the press conference. Apparently, when he called Dick Durbin to tell him he was resigning yesterday, the phone wasn’t working. He claims he may have missed most of the conversation.

When I spoke to Durbin yesterday phone was malfunctioning ,I missed a lot of call, may have had conversation in which I have no idea what he said.

There’s more in my Twitter stream. Plus, a plethora of questions about whether or not, as a Mets fan, he really could be baseball commissioner.

Glad I made it to the presser to at least ask a few serious questions. And make sure Karl Rove got mentioned as the single biggest person (Jon Corzine potentially aside) whom he didn’t prosecute.

Break with the Bankers

In the calm before yesterday’s election night storm, Howie Kurtz took a moment to engage in his favorite hobby, obsessing about Democratic men’s penises.

If any of the candidates are patronizing hookers, Chris Matthews has the right guest. Eliot Spitzer, on the set.

But Matthews may in fact have had the most logical guest on to interpret last night’s results. As Digby concluded last night,

At this point, the only thing that seems obvious to me is that the super wealthy just aren’t as popular as they used to be. Even in New York City.

You see, regardless of his own considerable fortune and whether he has paid for sex, Spitzer had this to say yesterday (presumably before Bloomberg almost failed to buy a city):

Imagine this: by next spring, an intellectual consensus will have emerged that the concentration in the banking sector that developed from the 1980s until the crash of ‘08 was misguided. Voices as disparate as Former Fed Chair Paul Volcker, Bank of England Governor Mervyn King, meta- investor George Soros, and the Wall Street Journal editorial page will be in agreement on this point.A few brave souls on the Right — recognizing that the Republican Party has been bereft of ideas in its attacks on President Obama — will then try to re-define a populist, conservative attack by asserting that the White House has been captured by Wall Street. Real populism and change, they will argue, will come from the Republican, not the Democratic, party.

The power of such an attack from the Right should not be underestimated. There will be a huge first mover advantage that goes to the candidates who grab the real banner of attacking the structure of Wall Street as having been the root of the crash of ‘08.

[snip]

So the simple question remains: why aren’t we focusing on the problem that got us here in the first instance — the scope, range, and size of the mega-institutions whose risk taking has so far inflicted only enormous harm on our economy? If the Republicans pick up this issue before we do, the elections of 2010 could be even worse than we are now fearing.

The teabaggers failed yesterday, but there’s every reason to believe they will be more successful at mobilizing anxiety and frustration in Florida. And they’ll be doing it all the while downplaying Dick Armey’s considerable financial largesse.

If the teabaggers can then turn their energy into a focus on Wall Street, I do believe they’ll be successful in coming years. Particularly if the Administration continues to coddle the bankers.

Update: Speaking of Spitzer, Gawker has the journalist/flack emails from the first days that scandal broke.

Christie’s AUSAs Still Won’t Respond to Corzine’s FOIA Requests

Jon Corzine’s campaign wants some more information about just what Chris Christie was doing at the US Attorney’s office while he was handing out multi-million dollar deals to his friends. 

So the Corzine campaign has submitted 18 FOIA requests for information on Christie’s tenure as US Attorney. They have submitted them, each time, to the Executive Office of US Attorneys, which keeps kicking the FOIAs down to the NJ US Attorney’s office, where they appear to be routinely ignored. So today, the Corzine took the next step in its attempts to figure out just what Christie was doing at the US Attorney office.

The campaign filed eight administrative challenges – representing 18 separate requests – with the United States Department of Justice’s Office of Information and Privacy. Despite repeated efforts by the campaign to obtain the information, beginning in March 2009, it has repeatedly been told that the failures to fulfill its requests lie with the United States Attorney’s Office for the District of New Jersey. The records the campaign is seeking from Christie’s tenure as U.S. Attorney include: budgets, travel expenses and schedules – even public ones.

"The United States Attorney’s office has many fine, dedicated, professional lawyers," said Corzine ’09 campaign strategist, Tom Shea. "But, in light of recent reports that Acting U.S. Attorney Ralph Marra is under investigation to determine if he has used the office to help further the Christie campaign, Second Assistant U.S. Attorney Michele Brown has an ongoing financial relationship with Christie and Christie was communicating with Karl Rove about his run for governor from that office, we feel it is even more important we receive the information requested."

The campaign is also seeking details of no-bid contracts Christie awarded while U.S. Attorney, including a $52 million contract to his former boss, ex-Attorney General John Ashcroft. In addition it has demanded Mr. Christie’s communications with former Bush political advisor Karl Rove, and communications between Mr. Christie and current officials in the U.S. Attorney’s Office for the District of New Jersey since Mr. Christie resigned as U.S. Attorney.

I’m actually somewhat agnostic on this. Perhaps DOJ is not turning over the requested materials for the same reasons DOJ is protecting Dick Cheney’s PatFitz interview–because they’re trying to avoid any appearance of political taint by letting Republicans avoid any scrutiny after the fact. Or it could just be that the Read more