Hey Harry Reid, Ken Salazar, Kislyak What About Uranium One?

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Note the date of this article….

In 2009, Gregory B. Jaczko was appointed to head the Nuclear Regulatory Commission by Barack Obama and his previous position was working for Harry Reid as his appropriations advisor as well as his science advisor.

PHOENIX — 

U.S. officials said Wednesday that they have proposed ending the Obama administration’s ban on new uranium mining leases on public land outside Grand Canyon National Park.

The Forest Service proposed the change in response to President Donald Trump’s executive order for federal agencies to eliminate restrictions on energy production. The Trump administration has moved to unravel former President Barack Obama’s environmental regulations aimed at curbing climate change.

“Adoption of this recommendation could reopen lands to mineral entry pursuant to the United States mining laws facilitating exploration for, and possibly development of, uranium resources,” according to a report last week by the Forest Service’s parent agency, the Department of Agriculture.

The Oct. 25 report also said it’s in the national interest “to promote the clean and safe development of America’s vast energy resources.” Nuclear power plants use uranium as fuel.

Conservationists are decrying the Forest Service’s move, saying that past uranium mining in the region has polluted soils, washes, aquifers and drinking water.

“The Forest Service should be advocating for a permanent mining ban, not for advancing private mining interests that threaten one of the natural wonders of the world,” said Amber Reimondo, energy program director of the Grand Canyon Trust based in Flagstaff.

In 2012, then-Interior Department Secretary Ken Salazar banned new hard rock mining for 20 years on more than 1 million acres of national forest and Bureau of Land Management land near the Grand Canyon. He said he was acting to protect a “priceless American landscape.”

The ban did not affect existing mining claims in the region.

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TheHill: After the Obama administration approved the sale of a Canadian mining company with significant U.S. uranium reserves to a firm owned by Russia’s government, the Nuclear Regulatory Commission assured Congress and the public the new owners couldn’t export any raw nuclear fuel from America’s shores.

“No uranium produced at either facility may be exported,” the NRC declared in a November 2010 press release that announced that ARMZ, a subsidiary of the Russian state-owned Rosatom, had been approved to take ownership of the Uranium One mining firm and its American assets.

A year later, the nuclear regulator repeated the assurance in a letter to Sen. John Barrasso, a Wyoming Republican in whose state Uranium One operated mines.

“Neither Uranium One Inc. nor AMRZ holds a specific NRC export license. In order to export uranium from the United States, Uranium One Inc. or ARMZ would need to apply for and obtain a specific NRC license authorizing the exports of uranium for use in reactor fuel,” then-NRC Chairman Gregory Jaczko wrote to Barrasso.

The NRC never issued an export license to the Russian firm, a fact so engrained in the narrative of the Uranium One controversy that it showed up in The Washington Post’s official fact-checker site this week. “We have noted repeatedly that extracted uranium could not be exported by Russia without a license, which Rosatom does not have,” the Post reported on Monday, linking to the 2011 Barrasso letter.

Yet NRC memos reviewed by The Hill show that it did approve the shipment of yellowcake uranium — the raw material used to make nuclear fuel and weapons — from the Russian-owned mines in the United States to Canada in 2012 through a third party. Later, the Obama administration approved some of that uranium going all the way to Europe, government documents show.

NRC officials said they could not disclose the total amount of uranium that Uranium One exported because the information is proprietary. They did, however, say that the shipments only lasted from 2012 to 2014 and that they are unaware of any exports since then.

NRC officials told The Hill that Uranium One exports flowed from Wyoming to Canada and on to Europe between 2012 and 2014, and the approval involved a process with multiple agencies.

Rather than give Rosatom a direct export license — which would have raised red flags inside a Congress already suspicious of the deal — the NRC in 2012 authorized an amendment to an existing export license for a Paducah, Ky.-based trucking firm called RSB Logistics Services Inc. to simply add Uranium One to the list of clients whose uranium it could move to Canada.

The license, reviewed by The Hill, is dated March 16, 2012, and it increased the amount of uranium ore concentrate that RSB Logistics could ship to the Cameco Corp. plant in Ontario from 7,500,000 kilograms to 12,000,000 kilograms and added Uranium One to the “other parties to Export.”

The move escaped notice in Congress.

Officials at RSB, Cameco and Rosatom did not return repeated phone calls or emails seeking comment.

Uranium One’s American arm, however, emailed a statement to The Hill on Wednesday evening confirming it did export uranium to Canada through the trucking firm and that 25 percent of that nuclear fuel eventually made its way outside North America to Europe and Asia, stressing all the exports complied with federal law.

“None of the US U308 product produced to date has been sold to non-US customers except for approximately 25% which was sold via book transfer at the conversion facilities to customers from Western Europe and Asia,” executive Donna Wickers said. “Any physical export of the product from conversion facilities to non-US destinations is under the control of such customers and subject to NRC regulation.”

The United States actually imports the majority of the uranium it uses as fuel. In 2016, according to the U.S. Energy Information Administration, 24 percent of the imports came from Kazakhstan and 14 percent came from Russia.

The sale of Uranium One to a Russian state-owned firm, however, has created political waves that have led to multiple congressional investigations. Republicans say they want to learn how the sale could have been approved and whether there was political interference.

“The more that surfaces about this deal, the more questions it raises,” Sen. Chuck Grassley (R-Iowa) said in a statement released after this story was published. Grassley, the chairman of the Senate Judiciary Committee, has launched an investigation into Uranium One.

“It now appears that despite pledges to the contrary, U.S. uranium made its way overseas as a part of the Uranium One deal,” Grassley said in the statement. “What’s more disturbing, those transactions were apparently made possible by various Obama Administration agencies while the Democrat-controlled Congress turned a blind eye.

“Americans deserve assurances that political influence was not a factor in all this. I’m increasingly convinced that a special counsel — someone with no prior involvement in any of these deals — should shine a light on this ordeal and get answers for the American people.”

Government officials told The Hill that the NRC was able to amend the export license affecting Uranium One because of two other decisions previously made by the Obama administration as part of a Russian “reset” in President Obama’s first term.

First, Obama reinstated a U.S.-Russia civilian nuclear energy cooperation agreement. President George W. Bush had signed the agreement in 2008, but withdrew from it before it could take effect after Russia became involved in a military conflict with the former Soviet republic of Georgia, a U.S. ally, and after new concerns surfaced that Moscow was secretly aiding Iran’s nuclear weapons ambitions.

Obama re-submitted the agreement for approval by the Democrat-controlled Congress in May 2010, declaring Russia should be viewed as a friendly partner under Section 123 the Atomic Energy Act of 1954 after agreeing to a new nuclear weapons reduction deal and helping the U.S. with Iran.

“I have concluded: (1) that the situation in Georgia need no longer be considered an obstacle to proceeding with the proposed Agreement; and (2) that the level and scope of U.S.-Russia cooperation on Iran are sufficient to justify resubmitting the proposed agreement to the Congress,” Obama said in a statement sent to Congress.

Congress took no action, which allowed the deal to become effective 90 days later.

The other step that allowed uranium from the Russian-controlled mines in the United States to be exported came in 2011, when the Commerce Department removed Rosatom, Uranium One’s owner, from a list of restricted companies that could not export nuclear or other sensitive materials or technologies without special approval under the Export Administration Regulations.

“This final rule removes the Federal Atomic Power of Russia (Rusatom) now known as the Russian State Corporation of Atomic Energy (Rosatom),” the Commerce Department’s Bureau of Industry and Security declared in a May 24, 2011, notice in the Federal Register that created few waves.

Rosatom had been on the list for a long time, so long in fact that it was still listed in the federal database under its old name, Rusatom. Officials said the effort to remove the Russian nuclear firm was a “policy decision” driven by the State Department, Energy Department, Commerce Department and other agencies with Russia portfolios designed to recognize that bilateral relations between Russia and the United States had improved slightly.

Nine months after Rosatom was removed from the export restrictions list, the NRC issued its license amendment to the trucking firm in March 2012 that cleared the way for Uranium One exports, making it effective for nearly five years, to the end of 2017. But the NRC also stipulated that Uranium One’s uranium should be returned to the United States.

“The uranium authorized for export is to be returned to the United States,” the NRC instructed in the export license amendment.

But that, too, didn’t happen. Officials told The Hill that the Energy Department subsequently gave approval for some of the American fuel to depart Canada and be exported to European enrichment centers, according to a 2015 letter the NRC sent to Rep. Pete Visclosky (D-Ind.).

The NRC explained to Visclosky that it had originally stipulated that after the American uranium was treated in Canada, it had to “then return the uranium to the U.S. for further processing.”

“That license stated that the Canadian Government needed to obtain prior approval before any of the U.S. material could be transferred to any country other than the U.S.,” the letter added. “Subsequently the U.S. Department of Energy granted approval for some re-transfers of U.S. uranium from the Canadian conversion facilities to European enrichment plants.”

The NRC added, however, it did not believe any of the American uranium made its way “directly” to Russia. And it added that the whole supply chain scenario was made possible by the resubmission of Obama’s Section 123 agreement in 2010.

“The transfer of the U.S.-supplied uranium from Canada to Europe noted above also was subject to applicable Section 123 agreements,” the NRC noted. Section 123 is the part of the Atomic Energy Act that allows for the U.S. to share civilian nuclear technology and goods with allies.

The Uranium One deal has been controversial since at least 2015, when The New York Times reported former President Bill Clinton received a $500,000 speech fee from a Russian bank and millions in donations to his charitable foundation from sources interested in the deal around the time the Uranium One sale was being reviewed by Secretary of State Hillary Clinton’s State Department and eight other federal agencies.

Hillary Clinton has said she delegated the approval decision to a deputy on the Committee on Foreign Investment in the United States (CFIUS) and did not apply any pressure. Bill Clinton has said the monies he received had no bearing on his wife’s policymaking decisions.

The 2015 Times article included a single reference to Uranium One officials saying they believed some of its American uranium made its way to Europe and Japan without any reference to how that occurred.

NRC officials said the multiple decisions documented in the memos, including the 2012 amendment of the third-party export license, provide the most complete description to date of how Russian-owned uranium ended up getting exported from the United States.

The entire Uranium One episode is getting a fresh look after The Hill disclosed late last month that the FBI had gathered extensive evidence in 2009 — before the mine sale was approved — that Rosatom’s main executive in the United States was engaged in a racketeering scheme that included bribery, kickbacks, extortion and money laundering.

The probe was enabled by an undercover informant working for the FBI inside the Russian nuclear industry, court records show. But the Justice Department did not make that evidence public until 2014, long after Rosatom benefited from multiple favorable decisions from the Obama administration.

The Senate Judiciary, House Intelligence and House Oversight committees have all announced plans to investigate the new revelation, and the Justice Department has given approval for the undercover informant to testify for the first time about what he witnessed the Russians doing to influence Obama administration decisions favorable to Rosatom between 2009 and 2014.

Hillary Clinton and other Democrats have described the renewed focus on the Uranium One deal as simply a distraction from the current investigation into Russian interference in the 2016 election, in which Donald Trump became the 45th president. She also says that concerns about the Uranium One sale have long ago been “debunked.”

But it’s not just Republicans who have said that the revelation the FBI had evidence that Rosatom was engaged in criminality during the time it was receiving favorable decisions from the U.S. government deserves fresh scrutiny.

Sen. Dianne Feinstein (D-Calif.), a member of both the Senate Intelligence and Judiciary committees, told The Hill she would like to learn more about what the FBI knew.

Rep. Elijah Cummings (D-Md.) has criticized Republicans for investigating Clinton, but said on “Morning Joe” last month he has “no problem looking into” the Uranium One deal.

And Sen. Angus King (I-Maine) said Sunday on CNN that he believed it was appropriate for Congress to investigate the new information.

“One of the House committees has already begun an oversight committee hearing,” King said. “I always think oversight hearings are appropriate. I’ve been trying to understand this deal.”

King also repeated the oft-quoted narrative that the “company changed hands, but the uranium that is mined in the United States cannot leave the United States.” The NRC license now shows now that Uranium One was, in fact, allowed to export American uranium.

A legal expert on the CFIUS process told The Hill that the new revelation that the FBI knew that a Rosatom official was engaged in illegality on U.S. soil before the sale was approved could very well have affected the decision if that evidence had been made public in real time.

“Criminal behavior would be something the committee would take into consideration when evaluating a transaction with a foreign company,” said Stewart Baker, a foreign commerce law expert at the Steptoe Johnson firm. “It is a consideration, but it is not something that would guarantee a particular outcome.”

He said the committee board would need “to consider how serious the criminal behavior is, in the context of this transaction, how likely is it that someone acting against U.S. security interest would take action,” he added.

 

Read letter to Barrasso by kballuck1 on Scribd

 

Read NRC license amendment by kballuck1 on Scribd

Read Visclosky letter by kballuck1 on Scribd

Read Obama Section 123 statement by kballuck1 on Scribd

More here from The Hill

Proposed Tax Plan Called The Cut Cut Cut Bill?

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It has been officially introduced. Do we like it? Check it out here.

If Schumer and Pelosi dont like it then perhaps it has some good things in it, right? Anyone talking about the spending and then servicing the debt?

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House Republicans are attempting the biggest transformation of the U.S. tax code in more than 30 years. The new bill aims to chop the corporate tax rate from 35% to 20%, as well as trim income tax brackets from seven to four, with the top rate of 39.6% to remain intact.

Here’s a look at the four new proposed tax brackets.

Currently, there are seven tax brackets: 10%, 15%, 25%, 28%, 33%, and 39.6%. 12%: This new rate applies to single filers starting at $12,000 up to $45,000 and married joint filers after the $24,000 deduction up to $90,000. 25%: This rate starts at $45,000 for single filers and $90,000 for married joint filers. 35%: This rate starts at $200,000 for single filers and $260,000 for married joint filers. 39.6%: This rate starts at $500,000 for single filers and one million plus for married couples.

The Heritage Foundation tax experts summarized it this way:

Months ago, conservatives began pressuring their lawmakers to ensure that tax reform followed five conservative principles. Here’s how the bill stacks up to those principles:

Lowering and Simplifying the Individual Tax Rates: The GOP proposal provides long overdue relief to millions of Americans by simplifying and lowering the individual tax rates to 12 percent, 25 percent, 35 percent and 39.6 percent. For married couples, the 25 percent rate starts at $90,000, the 35 percent rate starts at $260,000 and the top rate starts at $1 million. The bill will also double the standard deduction to $12,000 for individuals and $24,000 for families.

Lowering the Corporate Tax Rate: This bill will immediately lower the corporate rate to 20 percent — the rate demanded by conservatives for months — making American businesses more competitive with the rest of the world and providing hard working Americans with a much needed raise. Rates for small business pass throughs were also reduced by 15 percentage points, down to 25 percent.

Tax Free Entrepreneurship (Full Expensing): The GOP proposal includes full expensing for some investments that phases out after 5 years. This is a necessary boost to investment in the short-term, though improvements could be made as the process advances.

Establishing a Territorial Tax System: This bill attempts to eliminate the double taxation that defines our current worldwide tax system, though there are some provisions that could undermine the full value of that reform. Stay tuned for a more in-depth analysis.

Ending Cronyism in the Tax Code: Conservatives have also been fighting back against big-government special interest groups. The plan eliminates many special interest provisions including the State and Local Tax Deduction (SALT), though it allows a write off for property taxes. If not for conservative pushback, the swamp creatures would have been far more successful in defending the broken, corrupt status quo.

Here are some other things included in the bill you should know:

  • Repeals the Alternative Minimum Tax
  • Child tax credit goes to $1600 from $1000 plus additional $300 credit for parents and non-child dependents.
  • State and local deduction converted to property tax deduction with $10K cap
  • 401k’s are untouched
  • The Death Tax exemption will be doubled and eventually phased out after five years.
  • Preserves the home mortgage interest deduction for current mortgages and limits the deduction to $500,000 for new mortgages.
  • Preserves the Charitable Tax Deduction.

At first glance, the preliminary text released today has the potential to unleash economic growth, create American jobs, increase wages for American workers, allow families to keep more of their hard-earned money, and make U.S. businesses competitive across the globe.

According to documents released by Republicans on the House Ways and Means Committee, a typical middle-income family of four, earning $59K (median household income), will receive a $1,182 tax cut under this bill.

 

Russia Hacked the World, DoJ Suing Kremlin Operatives?

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FNC: The Justice Department reportedly has garnered enough evidence to charge at least six Russian government operatives with hacking the Democratic National Committee’s computers during the 2016 presidential election.

The Wall Street Journal reported Thursday that federal prosecutors could bring charges early next year. The Journal reported that dozens of others may have also played a role in the cyberattack.

Even tech companies are suing Russia.

How Russia hacked the world: Putin’s spies used ‘digital hit list’ to hunt global targets

  • 19,000 malicious links collected by Secureworks after Fancy Bear mistake.

  • 4,700 Gmail users across the globe were targeted by the state hacking team.

  • Alongside Democrats, a handful of Republican targets were also identified.

The hackers who upended the US presidential election had ambitions well beyond Hillary Clinton’s campaign, targeting the emails of Ukrainian officers, Russian opposition figures, US defence contractors and thousands of others of interest to the Kremlin, according to a previously unpublished digital hit list obtained by The Associated Press.

The list provides the most detailed forensic evidence yet of the close alignment between the hackers and the Russian government, exposing an operation that stretched back years and tried to break into the inboxes of 4,700 Gmail users across the globe — from the pope’s representative in Kiev to the punk band Pussy Riot in Moscow.

“It’s a wish list of who you’d want to target to further Russian interests,” said Keir Giles, director of the Conflict Studies Research Centre in Cambridge, England, and one of five outside experts who reviewed the AP’s findings. He said the data was “a master list of individuals whom Russia would like to spy on, embarrass, discredit or silence.”

The AP findings draw on a database of 19,000 malicious links collected by cybersecurity firm Secureworks, dozens of rogue emails, and interviews with more than 100 hacking targets.

Secureworks stumbled upon the data after a hacking group known as Fancy Bear accidentally exposed part of its phishing operation to the internet.

The list revealed a direct line between the hackers and the leaks that rocked the presidential contest in its final stages, most notably the private emails of Clinton campaign chairman John Podesta.

The issue of who hacked the Democrats is back in the national spotlight following the revelation Monday that a Donald Trump campaign official, George Papadopoulos, was briefed early last year that the Russians had “dirt” on Clinton, including “thousands of emails.”

Kremlin spokesman Dmitry Peskov called the notion that Russia interfered “unfounded.” But the list examined by AP provides powerful evidence that the Kremlin did just that.

“This is the Kremlin and the general staff,” said Andras Racz, a specialist in Russian security policy at Pazmany Peter Catholic University in Hungary, as he examined the data. “I have no doubts.”

New evidence

Secureworks’ list covers the period between March 2015 and May 2016. Most of the identified targets were in the United States, Ukraine, Russia, Georgia and Syria.

In the United States, which was Russia’s Cold War rival, Fancy Bear tried to pry open at least 573 inboxes belonging to those in the top echelons of the country’s diplomatic and security services: then-Secretary of State John Kerry, former Secretary of State Colin Powell, then-NATO Supreme Commander, US Air Force Gen. Philip Breedlove, and one of his predecessors, US Army Gen. Wesley Clark.

The list skewed toward workers for defence contractors such as Boeing, Raytheon and Lockheed Martin or senior intelligence figures, prominent Russia watchers and — especially — Democrats. More than 130 party workers, campaign staffers and supporters of the party were targeted, including Podesta and other members of Clinton’s inner circle.

The AP also found a handful of Republican targets.

Podesta, Powell, Breedlove and more than a dozen Democratic targets besides Podesta would soon find their private correspondence dumped to the web. The AP has determined that all had been targeted by Fancy Bear, most of them three to seven months before the leaks.

“They got two years of email,” Powell recently told AP. He said that while he couldn’t know for sure who was responsible, “I always suspected some Russian connection.”

In Ukraine, which is fighting a grinding war against Russia-backed separatists, Fancy Bear attempted to break into at least 545 accounts, including those of President Petro Poroshenko and his son Alexei, half a dozen current and former ministers such as Interior Minister Arsen Avakov and as many as two dozen current and former lawmakers.

The list includes Serhiy Leshchenko, an opposition parliamentarian who helped uncover the off-the-books payments allegedly made to Trump campaign chairman Paul Manafort — whose indictment was unsealed Monday in Washington.

In Russia, Fancy Bear focused on government opponents and dozens of journalists.

Among the targets were oil tycoon-turned-Kremlin foe Mikhail Khodorkovsky, who spent a decade in prison and now lives in exile, and Pussy Riot’s Maria Alekhina. Along with them were 100 more civil society figures, including anti-corruption campaigner Alexei Navalny and his lieutenants.

“Everything on this list fits,” said Vasily Gatov, a Russian media analyst who was himself among the targets. He said Russian authorities would have been particularly interested in Navalny, one of the few opposition leaders with a national following.

Many of the targets have little in common except that they would have been crossing the Kremlin’s radar: an environmental activist in the remote Russian port city of Murmansk; a small political magazine in Armenia; the Vatican’s representative in Kiev; an adult education organisation in Kazakhstan.

“It’s simply hard to see how any other country would be particularly interested in their activities,” said Michael Kofman, an expert on Russian military affairs at the Woodrow Wilson International Centre in Washington.

He was also on the list.

“If you’re not Russia,” he said, “hacking these people is a colossal waste of time.”

Working 9 to 6 (Moscow Time)

Allegations that Fancy Bear works for Russia aren’t new. But raw data has been hard to come by.

Researchers have been documenting the group’s activities for more than a decade and many have accused it of being an extension of Russia’s intelligence services. The “Fancy Bear” nickname is a none-too-subtle reference to Russia’s national symbol.

In the wake of the 2016 election, US intelligence agencies publicly endorsed the consensus view, saying what American spooks had long alleged privately: Fancy Bear is a creature of the Kremlin.

But the US intelligence community provided little proof, and even media-friendly cybersecurity companies typically publish only summaries of their data.

That makes the Secureworks’ database a key piece of public evidence — all the more remarkable because it’s the result of a careless mistake.

Secureworks effectively stumbled across it when a researcher began working backward from a server tied to one of Fancy Bear’s signature pieces of malicious software.

He found a hyperactive Bitly account Fancy Bear was using to sneak thousands of malicious links past Google’s spam filter. Because Fancy Bear forgot to set the account to private, Secureworks spent the next few months hovering over the group’s shoulder, quietly copying down the details of the thousands of emails it was targeting.

The AP obtained the data recently, boiling it down to 4,700 individual email addresses, and then connecting roughly half to account holders.

The AP validated the list by running it against a sample of phishing emails obtained from people targeted and comparing it to similar rosters gathered independently by other cybersecurity companies, such as Tokyo-based Trend Micro and the Slovakian firm ESET.

The Secureworks data allowed reporters to determine that more than 95% of the malicious links were generated during Moscow office hours — between 9 am and 6 pm Monday to Friday.

The AP’s findings also track with a report that first brought Fancy Bear to the attention of American voters. In 2016, a cybersecurity company known as CrowdStrike said the Democratic National Committee had been compromised by Russian hackers, including Fancy Bear.

Secureworks’ roster shows Fancy Bear making aggressive attempts to hack into DNC technical staffers’ emails in early April 2016 — exactly when CrowdStrike says the hackers broke in.

Hacking hands
Fancy Bear have long been linked to the Russian security services iStock

And the raw data enabled the AP to speak directly to the people who were targeted, many of whom pointed the finger at the Kremlin.

“We have no doubts about who is behind these attacks,” said Artem Torchinskiy, a project coordinator with Navalny’s Anti-Corruption Fund who was targeted three times in 2015. “I am sure these are hackers controlled by Russian secret services.”

The myth if the 400-pound man

Even if only a small fraction of the 4,700 Gmail accounts targeted by Fancy Bear were hacked successfully, the data drawn from them could run into terabytes — easily rivalling the biggest known leaks in journalistic history.

For the hackers to have made sense of that mountain of messages — in English, Ukrainian, Russian, Georgian, Arabic and many other languages — they would have needed a substantial team of analysts and translators. Merely identifying and sorting the targets took six AP reporters eight weeks of work.

The AP’s effort offers “a little feel for how much labour went into this,” said Thomas Rid, a professor of strategic studies at Johns Hopkins University’s School of Advanced International Studies.

He said the investigation should put to rest any theories like the one then-candidate Donald Trump floated last year that the hacks could be the work of “someone sitting on their bed that weighs 400 pounds.”

“The notion that it’s just a lone hacker somewhere is utterly absurd,” Rid said.

***

Axios: Marathon congressional hearings on Russian election interference and social media left execs from Facebook, Google and Twitter badly bruised and with a new view of just how mad Washington is about their handling of content aiming to divide Americans.

The big takeaway: Lawmakers’ rebukes went far beyond the companies’ responses to Russia’s interference. They also repeatedly revealed a discomfort with the size, power and limited accountability of the large web platforms.

What we learned 569 words

What else we learned:

  • Washington isn’t buying that Facebook, Google and Twitter aren’t media companies. Both Republicans and Democrats seemed baffled at times by an assumption that has been fundamental to Google, Facebook and Twitter’s growth: that they are neutral platforms for information, not judges of content. Multiple lawmakers questioned that argument: “That may well be a distinction that is lost on most of us, that you’re just a platform for other people to express their views as opposed to being a publisher in their own right of those views,” said Republican Sen. John Cornyn.
  • We now know what the Russian ads look like. Lawmakers released some of the Russian-bought ads, which were focused largely on divisive political issues like civil rights, immigration and religion. According to the metadata released, the ads targeted both Republicans and Democrats and were paid for in rubles. For example, one “Black Matters” ad targeted adults in Georgia, Maryland, Missouri and Virginia and received more than 200,000 impressions and more than 12,000 clicks. It cost 53,425 rubles ($915).
  • Still no backing for a regulatory fix. The only piece of concrete legislation tied to this issue is the Honest Ads Act, which would require disclosure for online political ads. While the companies all committed to improving transparency, and companies indicated that they could work with lawmakers on the bill, they did not endorse it.
  • Lawmakers felt slighted by the CEOs’ absence. “I wish your CEOs were here,” said Democratic Sen. Joe Manchin, one of many lawmakers who voiced that sentiment. “They need to answer for this.”
  • The companies are putting significant resources toward vetting content. During nine hours of hearings, they repeatedly touted how much they were investing in both money and personnel to solve the election interference issue. Facebook is doubling the people working on safety and security issues to 20,000 by the end of 2018, for example.
  • Democrats were the harshest critics. Silicon Valley has long had a strong relationship with the liberal left, but that didn’t stop California Sens. Dianne Feinstein and Kamala Harris, as well as tech ally Sen. Ron Wyden, from lacing into the witnesses. Republicans, while critical of the companies, stopped short of conceding that social media manipulation was a deciding factor in Donald Trump’s win.
  • Congressional investigators are still learning the basics. One lawmaker asked Twitter’s general counsel to explain the difference between a bot and a troll. Several inquired about the definition of “impressions.” This highlights how steep the learning curve is for elected officials to fully grasp the nuances of what went wrong online in 2016.
  • Tech made a huge political miscalculation in not moving faster. Again and again, the companies were chided for how long it took them to deliver the goods to investigators. “I hear all your words,” said Sen. Mark Warner, “but I have more than a little bit of frustration that many of us on this committee have been raising this issue since the beginning of this year, and our claims were frankly blown off by the leaderships of your companies.”
What’s next? All of the companies indicated their investigations are ongoing, so the scale of the Russian disinformation campaign could turn out to be even bigger than we know now.

Go deeper:

Foreign Agents in DC, at the White House?

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Romanian leader seeks more Trump meetings

A Romanian politician sentenced to jail for rigging elections is trying to arrange meetings with Vice President Mike Pence and House Speaker Paul Ryan (R-Wis.), according to recent Justice Department filings.

Liviu Dragnea, who is speaker of Romanian Parliament’s lower chamber and party president, received a two-year suspended jail sentence last year for trying to rig a referendum election to impeach the country’s president.

Now, his Social Democratic Party is paying Washington public-affairs group Madison & Co. $100,000 to introduce Dragnea to Pence and Ryan “as soon as possible” and to arrange “political, media and academic meetings” for Dragnea. Operatives working on the case include Madison & Co. president Al Madison; Democratic lobbyist and “rainmaker” William Oldaker; Drew Willison, Senate Democratic Minority Leader Harry Reid’s (Nev.) final chief of staff; and William Harris, a Republican operative who “has worked for the Trump Organization on a variety of political and business matters,” according to a disclosure filing. The Justice Department has not yet released disclosures forms for Oldaker or Willison.

This wouldn’t be Dragnea’s first brush with members of the current administration. In the days before President Donald Trump’s inauguration, Dragnea met with the president-elect, now-former National Security Adviser Michael Flynn and Ed Royce (R-Calif), who chairs the House Foreign Affairs Committee.

*** Remember Guccifer is Romanian.

The Foreign Agents Registration Act is in fact a joke, but quite a lucrative one if you are part of a Washington DC law firm. As noted on the website, under the guidance and management of the Department of Justice:

The Foreign Agents Registration Act (FARA) was enacted in 1938. FARA is a disclosure statute that requires persons acting as agents of foreign principals in a political or quasi-political capacity to make periodic public disclosure of their relationship with the foreign principal, as well as activities, receipts and disbursements in support of those activities. Disclosure of the required information facilitates evaluation by the government and the American people of the statements and activities of such persons in light of their function as foreign agents. The FARA Registration Unit of the Counterintelligence and Export Control Section (CES) in the National Security Division (NSD) is responsible for the administration and enforcement of the Act.

The person at the Justice Department who is in charge of this division was Dana Boente. He suddenly resigned last week…..hummmm. Boente assumed the position of Deputy Attorney General, when Trump fired Sally Yates when she refused to defend Trump’s travel suspension executive order. Boente declared he would defend in court that executive order, but was that really true since he suddenly resigned?

Seems Boente was selected to oversee the department’s division handling the probe into alleged Russian election interference, overseeing efforts on cybersecurity and counterintelligence.

Another hummm

So back to foreign lobby and continued foreign interference in DC…

*** In part from Politico:

The last time I can remember a stir about a lobby firm evading disclosure law was in 2004, when Qorvis Communications’ offices were raided by the FBI in a probe about its work for the royal family of Saudi Arabia. However, nothing much came of it, and business carried on as usual among Washington lobbyists. Two years ago, reportedly, a number of Qorvis lobbyists quit because they were uncomfortable with the firm’s work. According to this 2015 story in the New York Observer, more than a third of Qorvis partners had left the firm—to start their own lobby shops—“partly because of the firm’s work on behalf of such clients as Yemen, Bahrain, Saudi Arabia and the Central African nation of Equatorial Guinea,” reported the Huffington Post. “‘I just have trouble working with despotic dictators killing their own people,’ said one Qorvis insider.”

The last time I can remember a stir about a lobby firm evading disclosure law was in 2004, when Qorvis Communications’ offices were raided by the FBI in a probe about its work for the royal family of Saudi Arabia. However, nothing much came of it, and business carried on as usual among Washington lobbyists. Two years ago, reportedly, a number of Qorvis lobbyists quit because they were uncomfortable with the firm’s work. According to this 2015 story in the New York Observer, more than a third of Qorvis partners had left the firm—to start their own lobby shops—“partly because of the firm’s work on behalf of such clients as Yemen, Bahrain, Saudi Arabia and the Central African nation of Equatorial Guinea,” reported the Huffington Post. “‘I just have trouble working with despotic dictators killing their own people,’ said one Qorvis insider.”

 

U.S Should Follow Europe’s Lead on Cyber

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Imagine that….Europe may be more right on this issue than the United States is due to congress where decisions just cannot be made.

Going back to 2011, the Pentagon has concluded that computer sabotage coming from another country can constitute an act of war, a finding that for the first time opens the door for the U.S. to respond using traditional military force.

In 2016, Pentagon leaders are still working to determine when, exactly, a cyber-attack against the U.S. would constitute an act of war, and when, exactly, the Defense Department would respond to a cyber-attack on civilian infrastructure, a senior Defense Department official told lawmakers on Wednesday.

A cyber strike as an act of war “has not been defined,” Acting Assistant Secretary of Defense for Homeland Defense and Global Security Thomas Atkin told the House Armed Services Committee. “We’re still working toward that definition.” More here.

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Related reading: North Korea’s Elite Cyber Soldiers Hacked Top Secret Warship Blueprints, Seoul Lawmaker Says

So, is Europe ahead of the United States on this issue?

EU governments to warn cyber attacks can be an act of war

European Union governments will formally state that cyber attacks can be an act of war in a show of strength to countries such as Russia and North Korea.

Diplomats and ambassadors in Brussels have drafted a document, obtained by The Telegraph, that represents an unprecedented deterrent aimed at countries using hackers and cyber espionage against EU members.

The document, set to be agreed by all 28 EU members states, including Britain, in the coming weeks warns that individual member states could respond “in grave instances” to cyber attacks with conventional weapons.

The British government has now said it was all but certain that North Korea was behind the “WannaCry” malware attack that hit NHS IT systems in May. Work on the EU paper began among fears that Russia would attempt to influence this year’s German elections and over hybrid warfare employed in Ukraine. More here.

This could be a pretext for what is a probable threat.

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Banks fearing North Korea hacking prepare defenses: cyber experts

WASHINGTON/TORONTO (Reuters) – Global banks are preparing to defend themselves against North Korea potentially intensifying a years-long hacking spree by seeking to cripple financial networks as Pyongyang weighs the threat of U.S. military action over its nuclear program, cyber security experts said.

North Korean hackers have stolen hundreds of millions of dollars from banks during the past three years, including a heist in 2016 at Bangladesh Bank that yielded $81 million, according to Dmitri Alperovitch, chief technology officer at cyber security firm CrowdStrike.

Alperovitch told the Reuters Cyber Security Summit on Tuesday that banks were concerned Pyongyang’s hackers may become more destructive by using the same type of “wiper” viruses they deployed across South Korea and at Sony Corp’s (6758.T) Hollywood studio.

The North Korean government has repeatedly denied accusations by security researchers and the U.S. government that it has carried out cyber attacks.

North Korean hackers could leverage knowledge about financial networks gathered during cyber heists to disrupt bank operations, according to Alperovitch, who said his firm has conducted “war game” exercises for several banks.

“The difference between theft and destruction is often a few keystrokes,” Alperovitch said.

Security teams at major U.S. banks have shared information on the North Korean cyber threat in recent months, said a second cyber security expert familiar with those talks.

“We know they attacked South Korean banks,” said the source, who added that fears have grown that banks in the United States will be targeted next.

Tensions between Washington and Pyongyang have been building after a series of nuclear and missile tests by North Korea and bellicose verbal exchanges between U.S. President Donald Trump and North Korean leader Kim Jong Un.

John Carlin, a former U.S. assistant attorney general, told the Reuters summit that other firms, among them defense contractors, retailers and social media companies, were also concerned.

“They are thinking ‘Are we going to see an escalation in attacks from North Korea?’” said Carlin, chair of Morrison & Foerster international law firm’s global risk and crisis management team.

Jim Lewis, a cyber expert with Washington’s Center for Strategic and International Studies, said it is unlikely that North Korea would launch destructive attacks on American banks because of concerns about U.S. retaliation.

Representatives of the U.S. Federal Reserve and the Office of the Comptroller of the Currency, the top U.S. banking regulators, declined to comment. Both have ramped up cyber security oversight in recent years.

For other Reuters Cyber Summit news click on www.reuters.com/cyberrisk