Friday, March 31, 2017

Defense Sec. James Mattis: North Korea ‘Has Got to Be Stopped’ - MSNBC News

Defense Sec. James Mattis: North Korea ‘Has Got to Be Stopped’
by ALEXANDER SMITH and GABE JOSELOW

LONDON — After years of North Korea thumbing its nose at the international community, on Friday Defense Secretary James Mattis appeared to signal enough was enough.

"Right now, [North Korea] appears to be going in a very reckless manner … and that has got to be stopped," Mattis said at a press conference in London.

He didn't give any details about how the administration of President Donald Trump plans to deal with the reclusive nation, which, under Kim Jong Un, has drastically increased its missile and nuclear-testing program.

But Mattis' remarks continue a recent trend of Trump officials taking a harder line on North Korea.

Earlier this month, Secretary of State Rex Tillerson said that the "diplomatic … efforts of the past 20 years to bring North Korea to a point of de-nuclearization have failed."

He also said that military action was "on the table."

Many experts say that Trump's options are limited, however.

Kim has pledged to develop a weapons capable of striking the U.S. and its allies. Three of the country's nuclear tests were completed under his rule and he conducted more missile tests over the past four years than in the rest of the country's history.

Image: Defense Secretary James Mattis
Defense Secretary James Mattis made the comments during a joint press conference with British Defence Secretary Michael Fallon (not pictured) on Friday. Jack Taylor / Getty Images
Trump could try to levy more sanctions on the country, although these have not stopped previous tests and Tillerson appeared to dismiss this approach earlier this month.

But a full-scale invasion would be unlikely — not to mention extremely difficult — according to U.S. Army strategist Maj. ML Cavanaugh.

Cavanaugh wrote an article in the Modern War Institute at West Point, which is a research center of the United States Military Academy, warning of North Korea's tough, "Afghanistan-like geography" and an army that could act like "a much better-trained, much better-armed version of the Taliban."

An American invasion would also carry the risk of a retaliatory missile strike against America's allies, South Korea and Japan. The South Korean capital of Seoul, with its population of 10 million, is just 50 miles from its border with the North.

Russian Violation of Missile Treaty Draws U.S. Congress Scrutiny - Bloomberg

by Katia Dmitrieva
31 March 2017 at 8:11:34 AM AEDT
U.S. should add artillery in Europe surrounding Russia: Scher
Pentagon this month said missile deployment threatens NATO
Russia’s deployment of a ground-launched cruise missile in apparent violation of an international treaty drew scrutiny from U.S. lawmakers proposing a tougher stance in support of NATO allies.

Republican Representative Ted Poe of Texas said the U.S. is “living in fantasy land” if it believes that Moscow will comply with the 1987 Intermediate-Range Nuclear Forces Treaty, or INF, which bans both countries from owning, producing, or testing a ground-launched cruise missile capable of a distance of 500 to 5,500 kilometers (3,420 miles.)

General Paul Selva, the vice chairman of the Joint Chiefs of Staff, said in a hearing this month that the missile deployment, to a location he wouldn’t identify, presents a risk to many U.S. facilities in Europe as well as to allies in the North Atlantic Treaty Organization. One battalion of the prohibited missiles is based near the southern city of Volgograd, the New York Times reported last month, citing U.S. officials it didn’t identify.

“There is a chance that we can convince Russia that it is better off coming back into compliance with the treaty, but up to this point, making that case to them through diplomacy has been ineffective, and I doubt that will change," Robert Scher, a former assistant secretary of Defense in the Obama administration, said in a prepared statement to members of two House subcommittees Thursday.

Scher said President Donald Trump’s administration should consider developing a ground-launched cruise missile similar to the one Russia deployed and asking Eastern European allies to add more artillery that can reach key targets in Russia.

In response to Russia’s arms deployment, Poe and Republican Representative Mike Rogers have introduced H.R. 1182, which would allow the U.S. to develop its own intermediate range missiles.

The hearing comes as investigations into Russia’s role in the 2016 U.S. presidential election, and potential contacts between Russian officials and associates of Trump’s campaign, continue to dog the White House. The Senate Intelligence Committee held its first public hearing Thursday on Russian activities during the election.



Hero Judge Shreds Bank of America for Putting Couple Through ‘Kafkaesque’ Foreclosure Nightmare - Wall Street Journal

Posted: 30 Mar 2017 09:29 AM PDT

“Franz Kafka lives. This automatic stay violation case reveals that he works at Bank of America.”
So begins the epic 107-page ruling by a judge in California, who found that Bank of America’s “brazen” and “heartless” behavior, as well as “institutional obstinance and dishonesty” during an improper foreclosure, merited fines of $46 million. In his ruling, U.S. Bankruptcy Court Judge Christopher Klein described the homeowners’ ordeal as a “kafkaesque nightmare,” summing up their surreal sense of confusion and despair. He also compared their trials to the Greek myth of Sisyphus—the guy condemned to rolling a boulder up a hill for eternity—and even referenced one of the biggest scandals in U.S. politics.

“There comes a point at which this case is reminiscent of Watergate: the denial and coverup becomes worse than the crime,” Klein wrote. (The Consumerist has a link to the entire ruling.)
The crazy case stems back to 2009, when the homeowners, Erik and Renee Sundquist, sought a loan modification for their house in Sacramento. Bank of America, which had taken over the bank that originally gave the couple a mortgage, instructed them to stop their monthly payments “Their sole reason for defaulting, which they did with considerable reluctance (their credit score had been above 800), was acquiesce in Bank of America’s demand that they default as a precondition for loan modification,” the court ruling explains.
The bank then “led the Sundquists on a not-very-merry chase by inviting and entertaining mortgage modification applications it had no intention of granting,” the judge writes. A “game of cat-and-mouse” commenced. “With one paw, Bank of America batted the debtors between about 20 loan modification requests or supplements that routinely were either ‘lost’ or declared insufficient, or incomplete.”
The Sundquists filed for bankruptcy in 2010, which should have halted foreclosure proceedings, but Bank of America slapped them with an eviction notice anyway. They fled to a $4,000-a-month rental, only to find out later—without being formally notified by the bank—that the home was still theirs after all. While the Sundquists were gone, the house had been looted, major appliances were stolen, and they came home to face a $20,000 fine from the homeowners association because the landscaping had been ignored.
Meanwhile, Renee Sundquist suffered post-traumatic stress disorder that she says caused her to lose a job, and her husband tried to commit suicide. The couple also said their children were repeatedly terrified when bank agents showed up at the house unexpectedly and banged on sliding glass doors while the kids practiced piano.
Many of these personal details come from the extensive journal kept by Renee Sundquist throughout the ordeal. The journal wound up being invaluable to their case, and is quoted throughout the court ruling. A sample excerpt, concerning her mother’s role as a co-signer of their loan:
My mother sent a letter to the bank advising them she was an investor and wanted to make sure she did not lose her investment. She advised that she had the funds to pay for the foreclosure. I called to confirm that the bank had received the letter from my mother and they said they were converting their system and all documents were lost.
And another journal entry:
Called the bank talked to a representative who said the modifications were not real. When I told her my mother could pay it off the representative advised against because the modification doesn’t mean anything and it is just a way to create funds for the bank before foreclosure.
Judge Klein ruled that the Sundquists would receive $1.075 million in damages. Among other things, Bank of America was deemed guilty of “foreclosing on the Sundquist residence, prosecuting an unlawful detainer action, forcing them to move, secretly rescinding the foreclosure, failing to protect the residence from looting, refusing to pay for Sundquist property lost, and subjecting the Sundquists to a mortgage modification charade,” the ruling states.
The judge also found that punitive damages of $45 million, to be paid by Bank of America mostly to consumer advocacy groups and law schools, were necessary to serve as a “deterrent function” to all lenders considering such practices.
“To award punitive damages measured by a conventional multiplier of three to six times of the Sundquist compensatory damages would be laughed off in Bank of America’s boardroom as a mere ‘cost of doing business’ payable out of the petty cash account,” Klein wrote. “The remedy needs to fit the wrong. The award should be sufficient to serve those interests, which may be an ‘eye-popping’ sum in the view of bystanders not possessed of great wealth.”
A Bank of America spokesman described some of Klein’s rulings as “unprecedented and unsupported,” according to the Wall Street Journal.

Thursday, March 30, 2017

How Lyft Is Capitalizing on Uber’s Scandals - TIME Business

Posted: 28 Mar 2017 03:00 AM PDT

For the companies that believe that touting their values can be a path to profits, these are heady days. Customers have not only come to expect that companies stand for something, in addition to selling whatever they’re selling, but many Americans are more attuned to expressing beliefs through how they spend. And one company posed to reap benefits from that zeitgeist is ride app company Lyft.
“We’re woke. Our community is woke, and the U.S. population is woke,” Lyft President John Zimmer tells TIME, sitting in his five-year-old company’s San Francisco headquarters. “There’s an awakening … Our vote matters, our choice matters, the seat we take matters.”

Many of the millions who have used ride apps live in urban markets where residents were left feeling like their votes didn’t matter in the last election and have turned to their wallets to feel a sense of agency. So when Lyft’s massive rival Uber started becoming the subject of a relentless stream of bad headlines in late January, some users started questioning Uber’s values as a company — and looking around for an alternative.
“We’re not the nice guys,” Zimmer says. “We’re a better boyfriend.”
Lyft did its best to demonstrate that behavior during the final weekend in January. President Trump had just issued his first controversial immigration order, which temporarily banned refugees and limited travel from seven Muslim-majority countries, and taxi drivers were striking in protest at New York City’s JFK airport on a Saturday, along with crowds of angry locals. That evening, Uber sent out a tweet noting that the company was still offering rides to the airport and there would no surge pricing, hikes that typically take effect in times of low supply and high demand.
Though Uber later explained that the move was meant to let riders know they still had a way to catch their flights and to show respect for the taxi drivers — by making sure the company was not profiting off the strike, much like the company limits surge prices during disasters — Internet critics were fast to interpret the move as heartless strike-breaking behavior. A #DeleteUber hashtag started trending Saturday night into Sunday morning, as people shared screen shots of flushing the app off their phones on social media.
By some counts, more than 200,000 users left Uber as January gave way to February, an exodus that Lyft employees started noticing in the form of an influx — one boosted by the fact that Zimmer and Lyft CEO Logan Green decided to make a $1 million donation to the American Civil Liberties Union that same weekend.
Some of the company’s employees cautioned against the donation, suggesting that taking a political stance might alienate some users. “There was risk,” says Zimmer, whose wife is in the U.S. on a green card from Spain, “and that was part of the reason we wanted to take action. It should be more okay to stick your neck out.” The executives scheduled an email on Saturday night that would announce the donation on Sunday morning, as Uber CEO Travis Kalanick said that he would maintain a position on Trump’s business advisory council despite the “unjust” order.
“In our minds, there’s been a contrast in the values, there’s been a contrast in the type of business we’re building,” says Zimmer. “And so we weren’t shocked that there was a contrast. There’s been that contrast.”
As media stories about the rival companies swirled that weekend, Lyft saw a 40% increase in installations of the app, the company says, and more than a 60% increase in activations of the app (meaning people put in their credit card details so they can actually hail a ride), compared to what might normally be a low single-digit increase week over week.
The pop happened in New York first, says VP of operations Woody Hartman, before spreading to nearby cities like Boston and Philadelphia, and then to the West Coast, “where the ACLU investment, or donation, really resonated.” Hartman says they questioned whether they’d see defectors in more conservative markets like the areas surrounding Atlanta and Dallas, but downloads ticked up there too.
Employees scrambled to alert drivers through emails and texts — both active ones and those that had lapsed— that there would be increased demand, knowing the company had one shot to deliver sufficient supply to new users if they were to keep them around. The operations team offered bonuses to get drivers on the road, and Hartman says that in major markets, Lyft was generally able to hit three-minute-or-less wait times as Sunday evening rides gave way to Monday morning commutes.
That weekend marked a turning point for the company, employees say, one the company has been able to stick to in part because Uber has had so many tough PR days since then.
Some Lyft employees sat in disbelief as a female engineer who left Uber wrote a viral memo alleging sexism and mismanagement at the company; as Uber weathered allegations that it had deceived local government regulators through so-called “greyballing”; as CEO Travis Kalanick was caught lashing out at an Uber driver on a dash cam and made promises that he would “grow up”; and as Uber’s president left after less than a year on the job and early investors wrote an open letter criticizing “toxic patterns” in the company’s culture. Under pressure from riders and company employees alike, Kalanick resigned from Trump’s advisory group.
On a March 21 conference call, Uber board member Arianna Huffington and other company representatives said the company “must change,” as reporters repeatedly asked whether the board was considering asking Kalanick to step down. They acknowledged that relationships with many drivers are “frayed” and that the company was working to engage those workers in a “more human” way. An investigation into company practices by former Attorney General Eric Holder’s law firm is ongoing, they said, expected to be concluded in April, when those findings will be made public and shared with the press.
The ride-app market, including Lyft, has been blasted for plenty as a whole. Both Lyft and Uber have been criticized for their employment practices, including how they deal with worker status. Drivers for both companies have been accused of racially discriminating. Both have been challenged for not releasing reports on company diversity — though both say those are forthcoming.
But Lyft has had a reputation as a more welcoming, friendly company than “other rideshare programs,” as one survey commissioned by the company put it, since the ride-app war began. From early days, Uber and Lyft positioned themselves as different services, even though they provide essentially the same function for customers. Lyft, founded in 2012, was all fist bumps and fluffy pink mustaches, advertising ride-sharing as a way to build community and encouraging drivers to invite riders to sit in the front seat. Uber, launched in 2009, was all black-cars and cool factor, advertising the promise that everyone deserves their own private driver, the type of employee with whom one has little obligation to chitchat.
Lyft’s feel-good vibes certainly didn’t stop Uber from growing into the most valuable startup in the world, worth more than $60 billion, 10 times the valuation that Lyft reportedly is chasing. And Zimmer says it took time for Lyft to realize that a reputation for warmth wouldn’t mean much until the company’s wait times and prices were as just as good as “the other guys.” He says they are competitive on both those factors in U.S. markets now and believes cultural “contrasts are becoming more and more important.”
Lyft has tried to play up those contrasts in the recent past, as in ads released late last year that featured a thinly-veiled “Ride Corp” and painted Lyft as the bright-side alternative to callous guys hatching evil plans in a board room. But Zimmer says the company is done with such attacks. “Let’s be Lyft and let’s focus on our customer,” Zimmer says. “That’s what we can control and that’s what ultimately is going to enable us to win. Honestly. That’s how we are.”
On Sunday, Lyft announced a new feature called “Round Up & Donate” with a splashy ad in the New York Times. In the app, the ad explains, users will have the option to round up their fare to the nearest dollar and donate that money to a specified charity. The ad does not mention Uber by name but says “treating people better” is part of how Lyft does business.
There can be big drawbacks to overtly going after No. 1 in a marketplace when a company is No. 2. “It’s often a thin line in a consumer’s mind between attacking the competitor,” says Rohit Bhargava, who teaches marketing at Georgetown University and runs a firm called the Non-Obvious Company, “and attacking them as a consumer for buying from that competitor.” That’s the kind of strategy better suited to a “very distant” No. 2 or a No. 3 trying to establish itself, he says.
Lyft is still a pretty distant No. 2. After the #DeleteUber hashtag started trending, about 5% of Uber’s market share shifted to Lyft (“It may have been a little more than that,” Zimmer says), according to TXN Solutions, which tracks debit and credit card spending. Still, that meant Lyft was capturing about 20% of the ride app market to Uber’s nearly 80%.
On the conference call, amid the mea culpas, the Uber representatives said the company has still experienced faster growth in the first quarter of 2017 than it did the previous year. Though Lyft now covers areas where more than 70% of the U.S. population lives, Uber reached that point about two years ago. But both have room to grow: though two-thirds of U.S. adults had heard about ride apps by the beginning of last year, according to Pew, only 15% had actually used them.
Georgetown’s Bhargava believes that Uber has benefitted from what he calls passive loyalty, the kind that exists out of convenience and can quickly evaporate when a consumer is given a reason and opportunity to go elsewhere. “And the cost to switch in the case of Uber versus Lyft is pretty low,” he says. “You press a different button and you get your ride.”
Zimmer tells TIME that Lyft now has 40% of the market share in multiple U.S. markets and that however ambitious it may seem, the company is serious about plans to be the top ride-app in the U.S. eventually. When asked how he would characterize the historically fraught relationship between the two companies these days, with headquarters about 15 minutes apart, the talkative Zimmer goes quiet. He pauses for a full twenty seconds.
“We’re out to win,” he says. “And they’re our competition.”

What Cold War Intrigue Can Tell Us About the Trump-Russia Inquiry - New York Times

What Cold War Intrigue Can Tell Us About the Trump-Russia Inquiry
*
* 15
By JAMES RISEN
MARCH 29, 2017
WASHINGTON — It began with evidence of a breach of the Democratic National Committee’s computers and has now evolved into a sprawling counterintelligence investigation to determine whether there was any coordination between members of Donald J. Trump’s presidential campaign staff and the Russian government, perhaps even influencing the 2016 election.
When James B. Comey, the F.B.I.director, went before Congress on March 20 and confirmed the existence of the Trump-Russia investigation, it echoed of the Cold War investigations in which the bureau and the C.I.A. searched for agents hidden in the government who had spied for Moscow.

A look back at those Cold War cases may reveal lessons for today’s investigators. Above all, those past cases show it could take years before the new investigation uncovers any answers.

It starts with an unexplained incident.
Spy hunts usually begin with an unexplained incident. In the Trump-Russia case, there was the hacking of the D.N.C.’s computers. In 1985, there was an arrest on the streets of Moscow.
In June 1985, Burton Gerber, the chief of the Soviet-East European division of the Central Intelligence Agency, was about to sit down to dinner at his home in Washington when he received devastating news. Paul Stombaugh, a C.I.A. case officer, had just been arrested by the K.G.B. in Moscow. Mr. Stombaugh had been caught while he was on a clandestine mission to meet the C.I.A.’s most important Russian spy, Adolf Tolkachev, a scientist at a secret military design facility who had been providing the Americans with top-secret information about Soviet weapons systems. Mr. Gerber knew that Mr. Stombaugh’s arrest meant that Mr. Tolkachev, an agent the C.I.A. had code-named GTVANQUISH, had certainly been arrested as well.
The arrest and subsequent execution of Mr. Tolkachev was the most damaging of a series of mysterious spy losses suffered by the C.I.A. in 1985. In fact, there was so much espionage activity between the C.I.A. and the K.G.B. that burst into public view in 1985 that it became known as the Year of the Spy.
But why?
Debate swirled inside the cloistered world of American counterintelligence. Could all the spy losses be blamed on C.I.A. incompetence? Or had they resulted from something more sinister, like a Russian mole inside the agency?
That 1985 debate has in some ways been mirrored in the public debate about the hacking of the D.N.C. during the 2016 presidential campaign. Did some hacker simply take advantage of the committee’s cyber-incompetence, or was an American political party the specific and premeditated target of Russian intelligence?
It took years for counterintelligence officials at the C.I.A. and the F.B.I. to put the pieces together and finally solve the puzzle of 1985. Eventually, they realized that they had been confused because there were so many investigative threads to try to follow at once. For example, in August 1985 — just two months after Mr. Stombaugh’s arrest — a K.G.B. officer, Vitaly Yurchenko, defected to the United States, and identified a C.I.A. officer, Edward Lee Howard, as a Russian spy. Mr. Howard escaped to Russia, and Mr. Yurchenko then redefected to Moscow.
American officials were left to wonder whether Mr. Howard had been responsible for the spy losses — and if Mr. Yurchenko’s defection had been genuine or whether he had been ordered by the K.G.B. to defect in order to point them toward Mr. Howard and confuse the Americans.
Ultimately, the C.I.A. and the F.B.I. discovered that it had been difficult to determine what was causing all of the losses because the Russians had more than one mole hidden in the United States government. Both Aldrich Ames, a C.I.A. case officer, and Robert Hanssen, an F.B.I. agent, began spying for the Soviets in 1985. Both gave Moscow the names of Soviets working for the United States, but Mr. Ames and Mr. Hanssen didn’t give the Russians the same exact information.
It was only after Mr. Ames was arrested in 1994 that counterintelligence officials realized there had to be another mole, because Mr. Ames had not known certain things that had been compromised, including the existence of an espionage investigation of a State Department official, Felix Bloch. After Mr. Ames was arrested, the United States secretly began a new mole hunt, which ultimately led to the arrest of Mr. Hanssen in 2001.
Thus, the counterintelligence investigations into the 1985 losses lasted 16 years.
Like their Cold War predecessors, American counterintelligence investigators today face the daunting task of trying to unravel myriad business and personal connectionsbetween the Russian government and other Russian entities and people associated with the Trump campaign. It is certain to take officials time to determine which connections are the most significant to their investigation.
Counterintelligence investigations are conducted jointly by the C.I.A. and the F.B.I., with support from other agencies like the National Security Agency. Today, the new Trump-Russia investigation is being conducted by a joint interagency task force, as were the spy hunts of the Cold War.

But interagency counterintelligence operations are often bogged down by competition over jurisdiction, which can lead to frustrating bureaucratic delays and sometimes missed opportunities.

Turf wars badly slowed the investigation of Mr. Hanssen and allowed him to continue to spy until long after the Cold War.
For years, the F.B.I. was convinced that the mole they were hunting was another C.I.A. officer like Mr. Ames, and refused to believe it was possible that an F.B.I. agent was a traitor.
Their fixation on the C.I.A. led investigators to focus on Brian J. Kelley, a longtime C.I.A. counterintelligence officer. The F.B.I.’s obsession with Mr. Kelley was reinforced because of a series of incredible similarities between his life and Mr. Hanssen’s.
Mr. Kelley, like Mr. Hanssen, had known about the investigation of Mr. Bloch. Mr. Kelley lived on a street in Vienna, Va., where Mr. Hanssen had once lived while he was a Russian spy, and Mr. Kelley jogged in Nottoway Park in Vienna, the same park where Mr. Hanssen arranged a series of dead-drops with the K.G.B. An F.B.I. team covertly broke into Mr. Kelley’s house and found a map of Nottoway Park with X’s marked on it, which the F.B.I. was convinced was Mr. Kelley’s spy map.
When they later confronted Mr. Kelley with the map, he asked them, “Where did you get my jogging map?” It turned out that he liked to time his runs from point to point in the park.
Defectors play a key role.
Almost every major spy case is finally solved thanks to defectors from the other side. The lengthy counterintelligence investigation into Mr. Ames was aided by a Russian spy, code-named AVENGER, who provided critical information that pointed toward Mr. Ames. The Hanssen case was also finally solved with the help of a Russian spy who brought out K.G.B. files that helped identify Mr. Hanssen.
The C.I.A. and the F.B.I. do not like to admit that they rely so heavily on defectors to solve their cases. But it is possible that the Trump-Russia case may not be cracked until the C.I.A. or the F.B.I. persuades a Russian intelligence officer to change sidesand provide incriminating information.
But in such a highly politicized case that has the potential to change history, a Russian defector will be met with enormous skepticism, even inside the counterintelligence world. Probably the closest Cold War parallel is the bitter case of Yuri Nosenko.
Mr. Nosenko was a K.G.B. officer who defected to the C.I.A. in 1964 and brought with him the answer to one of the biggest mysteries of modern times: Was the Soviet Union responsible for the assassination of President John F. Kennedy? At the time, the C.I.A. was not certain, since Lee Harvey Oswald had defected to Russia and then returned to the United States before killing Mr. Kennedy.
Mr. Nosenko told the C.I.A. that the K.G.B. was not behind the Kennedy assassination. In fact, he said that the K.G.B. had been so alarmed after the Kennedy assassination that it searched its own files and could not find any evidence that Mr. Oswald had ever worked for the K.G.B.
But C.I.A. officials, led by the counterintelligence chief James Jesus Angleton, were convinced that Mr. Nosenko was a double agent sent by Moscow to muddy the waters. An earlier K.G.B. defector, Anatoliy Golitsyn, had convinced Mr. Angleton that every K.G.B. defector after him would be a double agent. As a result, Mr. Nosenko was held incommunicado for three years in a secret prison at “the Farm,” the C.I.A.’s training center at Camp Peary, near Williamsburg, Va. After the C.I.A. finally realized Mr. Nosenko was telling the truth, he was released in 1967, given $80,000 by the C.I.A. and resettled under a new name.

It ends with damage assessments, political posturing and untold secrets.
Even after an arrest is made, counterintelligence officials can spend several more years trying to determine exactly how much damage was inflicted. Often that damage assessment takes on a political tinge, because officials want to either inflate the damage or play it down, depending on what an official or an agency or a department stands to win or lose. That will almost certainly be true with the Trump-Russia investigation.

Frequently, the damage assessment reports remain classified, and the American public is never told how the story really ends.


NYT

Wednesday, March 29, 2017

Trump administration sought to block Sally Yates from testifying to Congress on Russia - Washinton Post


Trump administration sought to block Sally Yates from testifying to Congress on Russia
  

The Trump administration sought to block former acting attorney general Sally Yates from testifying in the House investigation of possible links between Russian officials and Donald Trump’s campaign, according to letters provided to The Washington Post. The effort to keep Yates from testifying has further angered Democrats, who have accused Republicans of trying to damage the inquiry. 
According to the letters, the Justice Department notified Yates earlier this month that the administration considers her possible testimony — including on the ouster of former national security adviser Michael Flynn for his contacts with the Russian ambassador — to be off-limits in a congressional hearing because the topics are covered by attorney-client privilege or the presidential communication privilege.
The issue of Yates’s testimony adds to the political controversy surrounding the House Intelligence Committee’s investigation of Russian meddling in last year’s election and any possible coordination between Trump associates and Moscow.
David O’Neil, an attorney for Yates, met at the Justice Department to discuss the issue with government officials on Thursday. At the meeting, O’Neil presented a letter in which he said the Justice Department had “advised” him that Yates’s official communications on issues of interest to the House panel are “client confidences” that cannot be disclosed without written consent. O’Neil challenged that interpretation as “overbroad” in the letter.
O’Neil, the Justice Department responded with another objection: that Yates’s communications with the White House are probably covered by “presidential communications privilege,” and referred him to the White House.
A Justice Department spokeswoman declined to comment.
O’Neil then wrote to White House Counsel Donald McGahn, saying that he believed any privilege had been waived as a result of past White House statements and that Yates planned to testify unless he heard back from McGahn.
But that same day, the hearing, which also would have included former CIA director John Brennan and former director of national intelligence James R. Clapper Jr., was canceled by the House Intelligence Committee’s chairman, Rep. Devin Nunes (R-Calif.), and any White House decision on Yates’s testimony became moot.
In his Tuesday briefing, press secretary Sean Spicer said that the White House did not weigh in on whether Yates could testify. “To suggest in any way, shape or form that we stood in the way of that is 100 percent false,” he said.
Nunes has said he canceled the hearing to first hear from FBI Director James B. Comey in a classified setting. That session was also canceled.
Democrats charge that Nunes has aligned himself too closely with the White House to conduct an independent probe.
“You see the unraveling of this committee happening overnight for no good reason,” said Rep. Jackie Speier (D-Calif.), a committee member. “We have a responsibility to do this investigation.”
O’Neil’s meeting at the Justice Department and the exchange of letters came to light as the House GOP leadership continued to stand by Nunes. House Speaker Paul D. Ryan (R-Wis.) rejected demands that Nunes recuse himself. Nunes said Tuesday that he had no plans to step aside.
Yates was the deputy attorney general in the final years of the Obama administration and served as the acting attorney general in the first days of the Trump administration.
Trump fired Yates in January after she ordered Justice Department lawyers not to defend his first immigration order temporarily banning entry to the United States for citizens of seven Muslim-majority countries and refugees from around the world.
As acting attorney general, Yates played a key part in the investigation surrounding Flynn, who was ousted after revelations that he had discussed sanctions with the Russian ambassador to the United States.
Yates and Brennan had made clear to government officials by Thursday that their testimony to the committee would probably contradict some statements that White House officials had made, according to a person familiar with the matter who spoke on the condition of anonymity.
O’Neil and Ken Wainstein, a lawyer for Brennan, declined to comment.
During his press briefing Tuesday, Spicer said of Yates: “I hope she testifies. I look forward to it.’’
Spicer said the White House did not seek to have the House hearing canceled.
Rep. Adam B. Schiff (Calif.), the ranking Democrat on the Intelligence Committee, said the panel was aware that Yates “sought permission to testify from the White House. Whether the White House’s desire to avoid a public claim of executive privilege to keep her from providing the full truth on what happened contributed to the decision to cancel today’s hearing, we do not know. But we would urge that the open hearing be rescheduled without delay and that Ms. Yates be permitted to testify freely and openly.’’
In January, Yates warned McGahn that statements White House officials, including Vice President Pence, had made about Flynn’s contact with the ambassador were incorrect and could therefore expose the national security adviser to future blackmail by the Russians.
In his March 23 letter — addressed to acting assistant attorney general Samuel Ramer — O’Neil noted that Yates was willing to testify and that she would avoid discussing classified information and details that could compromise investigations. The correspondence was later shared with the House Intelligence Committee.
O’Neil went on to memorialize the government’s position:
“The Department of Justice has advised that it believes there are further constraints on the testimony Ms. Yates may provide at the [House Intelligence Committee] hearing. Generally, we understand that the department takes the position that all information Ms. Yates received or actions she took in her capacity as Deputy Attorney General and acting Attorney General are client confidences that she may not disclose absent written consent of the department,’’ he wrote.
O’Neil continued: “We believe that the department’s position in this regard is overbroad, incorrect, and inconsistent with the department’s historical approach to the congressional testimony of current and former officials.
The following day, Scott Schools, a senior Justice Department lawyer, replied to O’Neil, writing that Yates’s conversations with the White House “are likely covered by the presidential communications privilege and possibly the deliberative process privilege. The president owns those privileges. Therefore, to the extent Ms. Yates needs consent to disclose the details of those communications to [the intelligence panel], she needs to consult with the White House. She need not obtain separate consent from the department.’’
That letter, in essence, marked Justice Department officials backing away from their earlier strictures, saying that although they thought executive privilege probably applied to Yates’s discussions, that was a conversation she would have to have with lawyers at the White House.
In response, O’Neil sent a letter Friday to McGahn, the White House counsel, saying that any claim of privilege “has been waived as a result of the multiple public comments of current senior White House officials describing the January 2017 communications. Nevertheless, I am advising the White House of Ms. Yates’ intention to provide information.’’
He closed the letter by saying that if he did not hear back from the White House by 10 a.m. Monday, he would assume that it “does not exert executive privilege over these matters with respect to the hearings or other settings.’’
The cancellation of the hearing made O’Neil’s deadline moot, although Spicer said the lack of a response to the lawyer’s letter showed the administration had no problem with Yates testifying.
Karoun Demirjian contributed to this report.

Mysterious Buyer of Trump’s Childhood Home Said to Be From China - New York Times

Mysterious Buyer of Trump’s Childhood Home Said to Be From China

By SARAH MASLIN NIR
MARCH 28, 2017
They first arrived in late January, caravans of black Escalades driving along a small street in Jamaica Estates, an upscale neighborhood in Queens, and stopping in front of a modest Tudor-style house that had just been sold at auction: the home where President Trump lived as a boy. Out stepped a stream of people in business suits, according to a neighbor, all speaking Chinese.
The visits spiked between the auction and the closing of the sale last week, according to the neighbor, who did not want to be identified because of concerns about her privacy. It was revealed last week that the home had been bought by Trump Birth House, a limited liability company that obscured the identity of the person behind it.

But while the buyer’s identity remained unknown, a person with knowledge of the deal said that the new owner, who spent over $2 million for the childhood home of the current president of the United States, is a woman from China.

“Why is there an influx of Chinese people interested in this house, of all people?” the neighbor said she recalled wondering. “What do they want?”
The house on Wareham Place has become another curiosity in the vast orbit of properties connected to Mr. Trump, even though he last lived in the five-bedroom home, built by his father, Fred C. Trump, when he was 4. The house’s intrigue lies not just in the price it fetched in an auction by Paramount Realty USA — $2.14 million, more than double the price of comparable houses in the area — but also in the mystery surrounding the buyer. She remains unknown, shrouded behind the limited liability company.
They first arrived in late January, caravans of black Escalades driving along a small street in Jamaica Estates, an upscale neighborhood in Queens, and stopping in front of a modest Tudor-style house that had just been sold at auction: the home where President Trump lived as a boy. Out stepped a stream of people in business suits, according to a neighbor, all speaking Chinese.
The visits spiked between the auction and the closing of the sale last week, according to the neighbor, who did not want to be identified because of concerns about her privacy. It was revealed last week that the home had been bought by Trump Birth House, a limited liability company that obscured the identity of the person behind it.

But while the buyer’s identity remained unknown, a person with knowledge of the deal said that the new owner, who spent over $2 million for the childhood home of the current president of the United States, is a woman from China.

“Why is there an influx of Chinese people interested in this house, of all people?” the neighbor said she recalled wondering. “What do they want?”
The house on Wareham Place has become another curiosity in the vast orbit of properties connected to Mr. Trump, even though he last lived in the five-bedroom home, built by his father, Fred C. Trump, when he was 4. The house’s intrigue lies not just in the price it fetched in an auction by Paramount Realty USA — $2.14 million, more than double the price of comparable houses in the area — but also in the mystery surrounding the buyer. She remains unknown, shrouded behind the limited liability company.


A thin trail of documents associated with the sale led first to a second-story office on Main Street in Flushing, Queens, of Michael X. Tang, a lawyer who represents Trump Birth House. In the cramped and bustling office, which, according to its website, specializes in facilitating Chinese purchases of American real estate, a woman at a desk welcomed visitors.
“Oh, about the Trump house,” she said. She continued: Mr. Tang declined to comment.
Documents show that Mr. Tang was also the lawyer for a seemingly unrelated transaction on a palatial home in Old Westbury, N.Y., which sold for more than $3.6 million in 2014 to a person named Jiying Wei. The redbrick mansion, tucked at the end of a cul-de-sac and abutted by a private tennis court, is a far cry from the modest butter-colored childhood home of Mr. Trump. But, according to a person with knowledge of the sale, the mansion’s owner is a relative of the woman from China who bought the Trump family home.
Standing in the collonaded entryway of her home a few doors down in Old Westbury, a neighbor, who declined to give her name for privacy reasons, deepened the mystery: The only person who lives in the mansion, she said, is the family’s son, a local college student; the rest of the family lives in China.
The trail dead-ended at the cul-de-sac: The house was empty and the owner could not be reached.
“I did have some expectation that the purchaser would be a huge Trump supporter from within America,” Misha Haghani, principal of Paramount Realty USA, said of the Jamaica Estates home. He declined to reveal the identity of the buyer. “But it is entirely possible that the purchaser is a huge Trump supporter from outside of America,” he said.
Cathy Han, a real estate agent in New York who specializes in marketing high-end properties to Chinese buyers — including apartments in Trump-owned buildings — said she was not surprised that the home had been purchased by a Chinese buyer.
“When I saw it was Trump’s birth house property for sale, I knew immediately it would get a lot of attention from Chinese buyers,” Ms. Han said. “I know he is a controversial figure in the States, but among Chinese people, Trump is a very popular kind of character in China.”
She said the image that Mr. Trump liked to promote of himself as a successful businessman resonated in China.
“The whole thing about Trump is he has no experience in politics, but now he is the president of the U.S.A.,” she said. “The story is like a movie: It’s kind of inspiring, in a way, that a person can rise up to that position. And I think most Chinese people kind of respect that journey.”
The home had been owned by Isaac Kestenberg, purchased with his wife, Claudia, in 2008 for $782,500. On Election Day last year, as Mr. Trump’s ascendancy seemed possible, Michael Davis, a real estate investor, made an offer on the house, he said, ultimately purchasing it for about $1.4 million. Neither Mr. Kestenberg nor Mr. Davis knows who bought it this time, they said.

The sale to Trump Birth House closed on March 23. “I hope that the broader economy has as much lift from the president’s policies as the president’s childhood home got,” Mr. Davis said.

On Tuesday, rain pelted the crocuses popping up outside the home on Wareham Place. The house appeared to have been emptied. Around 1 p.m. a worker arrived in a National Grid van.
The new owner couldn’t be found, he said, so he had come to turn off the power.
Eli Rosenberg and Nate Schweber contributed reporting. Susan C. Beachy contributed research.

The Stock Market Barely Recovered After Losses From the GOP’s Health Care Failure - TIME Business

Posted: 27 Mar 2017 02:24 PM PDT

(NEW YORK) — Worries that Washington may not be able to help businesses as much as once thought knocked stock indexes down hard early Monday, but they clawed back most of their losses and ended the day mixed.
The Standard & Poor’s 500 index fell 2.39 points, or 0.1 percent, to 2,341.59 for its seventh drop in the last eight days. The Dow Jones industrial average sank 45.74, or 0.2 percent, to 20,550.98, while the Nasdaq composite index rose 11.64, or 0.2 percent, to 5,840.37.
When trading opened for the day, it looked as if losses would be much worse. The S&P 500 sank from the start and was down as much as 0.9 percent.

The weakness followed last week’s failure by Republicans to repeal the Affordable Care Act, something they’ve been pledging to do for years, which raised doubts that Washington can push through promises to help businesses. Investors have been anticipating that President Donald Trump and the Republican-led Congress will cut taxes, loosen regulations for companies and institute other corporate-friendly policies.
Indexes recovered most of their losses in the afternoon, largely thanks to gains in hospital and other health care stocks. Tax cuts, deregulation and other business-friendly moves could still happen, but even if they don’t, the stock market has several pillars of support, said John Manley, chief equity strategist at Wells Fargo Funds Management.
“Trump lucked out when he got elected president, because it was just as earnings were coming out of a two-year slumber,” he said. “I think it’s been as much, if not more, about earnings as it’s been him” behind the 9.4 percent rise for the S&P 500 since Election Day.
An improving economy is translating into bigger profits for businesses, which are set to report their first-quarter results in the coming weeks. The Federal Reserve, meanwhile, is moving very slowly in raising interest rates and is loath to apply the brakes to the economy too quickly.
“Investors have to acknowledge that a 5 percent correction can happen at any time, and the fact that we haven’t had a 1 percent down day for so long is extraordinary,” Manley said. “But the things that are usually responsible for a major market decline just don’t seem to be in place.”
The S&P 500 has lost 1 percent in a day just once since mid-October.
Interest rates fell Monday. The yield on the 10-year Treasury dropped to 2.37 percent from 2.41 percent late Friday. Just a couple weeks ago, it was above 2.60 percent.
Bank stocks have tracked the movements of Treasury yields recently, because higher interest rates would allow them to charge more for loans and reap bigger profits. Investors also expected financial companies to be some of the biggest beneficiaries of easier regulations with a Republican-led White House.
Financial stocks in the S&P 500 dropped 0.5 percent, one of the larger losses among the 11 sectors that make up the index. Morgan Stanley fell 88 cents, or 2.1 percent, to $41.58, and Capital One Financial lost $1.67, or 2 percent, to $82.13.
Hospital stocks were among the strongest performers. The Republican health care plan would have resulted in 24 million additional uninsured people in a decade, according to a tally by the Congressional Budget Office. And hospitals take care of patients, whether they’re insured or not.
HCA Holdings jumped $4.45, or 5.2 percent, to $90.49 for the biggest gain in the S&P 500. Universal Health Services rose $4.08, or 3.3 percent, to $125.97.
Also demonstrating the swing from nervousness in the morning to a more measured mood in the afternoon was the VIX index, which tracks how much traders are paying to protect against upcoming drops in the S&P 500.
Early Monday, the VIX jumped nearly 17 percent and was close to its highest level since mid-November. It calmed through the day and was down by the afternoon.
The price of gold rose $7.20 to settle at $1,255.70 an ounce. Silver rose 36 cents to $18.11 per ounce. Copper was close to flat at $2.63 per pound.
Benchmark U.S. crude fell 24 cents to settle at $47.73 per barrel. Brent crude, used to price international oils, fell 5 cents to $50.57 a barrel.
Natural gas fell 2 cents to $3.05 per 1,000 cubic feet, wholesale gasoline rose a penny to $1.62 per gallon and heating oil was close to flat at $1.50 per gallon.
The dollar fell to 110.57 Japanese yen from 110.80 late Friday. The euro rose to $1.0868 from $1.0808, and the British pound rose to $1.2566 from $1.2500.
Stocks were weak around the world. In Asia, Japan’s Nikkei 225 index dropped 1.4 percent, South Korea’s Kospi index lost 0.6 percent and the Hang Seng in Hong Kong fell 0.7 percent. In Europe, the German DAX lost 0.6 percent, the French CAC 40 fell 0.1 percent and the FTSE 100 in London dropped 0.6 percent.

Sean Spicer Tells A Grown Woman To Stop Shaking Her Head - Huffington Post

Sean Spicer Tells A Grown Woman To Stop Shaking Her Head
😐
 29/03/2017 5:23 AM AEDT | Updated 11 hours ago
* 
Paige Lavender

Senior Politics Editor, The Huffington Post



White House Press Secretary Sean Spicer on Tuesday demanded a journalist stop shaking her head while he answered a question during the daily press briefing.
April Ryan, the Washington bureau chief for American Urban Radio Networks, asked Spicer how the administration would work to revamp its image amid investigations of potential ties to Russia, mentioning a report that Trump officials tried to stop former acting Attorney General Sally Yates from testifying on links between Trump’s campaign staff and Russian officials.
White House Press Secretary Sean Spicer on Tuesday demanded a journalist stop shaking her head while he answered a question during the daily press briefing.
April Ryan, the Washington bureau chief for American Urban Radio Networks, asked Spicer how the administration would work to revamp its image amid investigations of potential ties to Russia, mentioning a report that Trump officials tried to stop former acting Attorney General Sally Yates from testifying on links between Trump’s campaign staff and Russian officials.
Spicer accused Ryan of having an agenda, arguing “if the president puts Russian salad dressing on his salad tonight, somehow that’s a Russian connection.”
“It seems like you’re hell-bent on trying to make sure that whatever image you want to tell about this White House stays,” Spicer argued later.
Ryan interrupted to further question Spicer, and as their exchange continued, the press secretary ordered Ryan to stop shaking her head while they talked.
Ryan tweeted after the briefing ended:
She also appeared on MSNBC to discuss the moment, saying “you cannot ignore as a reporter” the issues she questioned Spicer about.
“Sean is being the White House press secretary, talking about and trying to make this administration look better than what it does right now, and unfortunately I was road kill today,” Ryan said.

Tuesday, March 28, 2017

‘Fearless Girl’ of Wall Street Faces Uncertain Future - TIME Business


Posted: 26 Mar 2017 01:44 PM PDT

NEW YORK — Should the “Fearless Girl” stand up to Wall Street’s charging bull forever?
That’s the question New York City officials are facing after a statue of a ponytailed girl in a windblown dress went up in front of the bronze bull early this month and immediately became a tourist draw and internet sensation.
What was intended as a temporary display to encourage corporations to put more women on their boards is now getting a second look in light of its popularity, which has spawned an online petition seeking to keep it.
But does keeping the girl past her scheduled April 2 deadline forever alter the meaning of the bull? After all, the 11-foot-tall, 7,100-pound bull has been hugely popular in its own right; it was placed in a lower Manhattan traffic median in the wake of the 1987 stock market crash as a symbol of Americans’ financial resilience and can-do spirit.

Some fans of the bronze girl already see the bull much differently.
“The bull represents men and power,” says Cristina Pogorevici, 18, a student from Bucharest, Romania, who visited the statues this past week. “So she is a message of women’s power and things that are changing in the world right now.”
Holli Sargeant, 20, a visitor from Queensland, Australia, says the 4-foot-tall, 250-pound bronze girl “is standing up against something and we see her as powerful image. She represents all the young women in the world that want to make a difference.”
Such shifting perceptions of the bull — from American hero to villain of sorts — outrage bull sculptor Arturo De Modica, who wants the girl gone.
He dismissed Kristen Visbal’s statue as nothing more than an “an advertising trick,” noting the bronze was a marketing effort on the eve of the March 8 International Women’s Day by Boston-based State Street Global Advisors and its New York advertising firm, McCann.
As for his bull, “I put it there for art,” the Italian-born sculptor told MarketWatch, which first reported his anger. “My bull is a symbol for America. My bull is a symbol of prosperity and for strength.”
The girl’s sculptor has no hostile feelings toward the bull.
“I love Charging Bull!” Visbal told The Associated Press on Sunday, speaking from her home in Rehoboth Beach, Delaware. “But women are here, and we’re here to stay.”
She was commissioned to create a 36-inch-tall girl with hands on hips and chin up. “Then we thought, this is a really big bull and we should increase the height to 50 inches,” she said. “But I made sure to keep her features soft; she’s not defiant, she’s brave, proud and strong, not belligerent.”
The sculptor based her work on two Delaware children — a friend’s daughter she said had “great style and a great stance, and I told her to pretend she was facing a bull.” The second was a “beautiful Latina girl, so everyone could relate to the Fearless Girl.”
Visbal, who was born in Montevideo, Uruguay, while her American father was in the foreign service, is to be honored Monday along with State Street on the steps of New York’s City Hall by a group of prominent bipartisan women who are asking that the statue be made permanent.
A spokesman for New York City, which controls public art in the area, did not say when a decision would be made. Mayor Bill de Blasio has said only that he would try to prolong the girl’s presence.
David Levi Strauss of Manhattan’s School of Visual Arts, known for his writings about the impact of art on society and politics, says he is excited by the dynamics the girl statue has brought to the space and agrees the overall meaning has shifted.
“The girl has changed the meaning of the bull forever,” he says. “With public art like this, you never know what’s going to happen; it’s a Rorschach test onto which people are projecting their own opinions and feelings.”
A similar point-counterpoint was played out at the Vietnam Veterans Memorial, erected in 1982 in Washington, with three soldiers in bronze added two years later, seemingly interacting with the stark marble wall bearing the names of the dead. The result prompted debate; some said the soldiers infused life onto the wall, while protesters blasted the statue as a tasteless intrusion.
When it comes to the girl facing the bull, Strauss said, “the bull’s stature diminishes. She’s the individual standing up to the beast of power. … She’s frozen in a sort of dream of winning, and that’s what appeals to people. She’s irresistible.”