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  • 16
    Nov
    2012
    9:11am, EST

    Petraeus thought at the outset that Benghazi attack was terrorist act

    During a top secret briefing, lawmakers said David Petraeus made it clear the CIA believed terrorists -- not protestors -- were responsible for the deadly assault in Benghazi. NBC's Kelly O'Donnell reports.

    By Tom Curry, NBC News national affairs writer

    Updated 3:00 pm ET -- Former CIA Director David Petraeus testified Friday before congressional intelligence panels telling members that he had believed from the outset that the Sept. 11 attack on the U.S. Consulate in Benghazi was an act of terrorists.

    NBC’s Kelly O’Donnell reported that members of the Senate Intelligence Committee said after hearing from Petraeus that Obama administration officials made a decision to hold back as classified information an explicit depiction of Benghazi incident as an act of terrorists -- therefore that description did not make it into the “talking points” that the administration prepared for officials when they went on TV talk shows and spoke to reporters.

    Instead, the initial talking points focused on spontaneous reactions to an anti-Islamic video as a spark for the attack. Five days after attack, the administration dispatched U.N. Ambassador Susan Rice to speak on the Sunday news shows to offer a preliminary explanation of the attack, which she attributed to an anti-Islamic video that was circulated on YouTube.

    In the attack Ambassador Chris Stevens and three other Americans – Glen Doherty, Tyrone Woods and Sean Smith – were killed.

    Keeping as classified the determination that the Benghazi attack was the work of terrorists may have been done in order to help pursue those very same terrorists.

    “There might have been two tracks happening all along: the public statements that were reflecting part of what they may have known” and the classified information that terrorists had been the ones attacking the consulate. “The real question is if they knew it was terrorism all along – was there too much suggestion that a video or demonstrations may have been involved?” said O’Donnell.

    House Intelligence Committee member Peter King, R-N.Y., told reporters Friday after Petraeus testified that the initial “talking points” from the Obama administration to prepare officials for what they should say publicly in the first days after the attack had been changed to delete references to any al Qaida involvement in the event.

    Rep. Peter King said he was "satisfied" with Gen. Petraeus' testimony at the Senate hearings on Benghazi, though the former-CIA director gave, to King, a "different impression this time around."

    King said he and his colleagues now needed to hear testimony from officials in the State Department, the Defense Department “and also people at the White House – to see if anyone at the White House changed the talking points.”

    King told reporters after Petraeus testified that “his testimony today was that from the start (immediately after Sept. 11) he had told us that this was a terrorist attack, that terrorism was involved from the start.”

    But King said that he himself “had a very different recollection" of what Petraeus had told the panel in the initial aftermath of the attack. 

    Senate Intelligence Committee Chairwoman Dianne Feinstein comments following closed door hearings of the House and Senate Intelligence Committees regarding an attack on the U.S. Consulate in Libya.

    "The clear impression that we (members of the House Intelligence Committee) were given (in the initial days after the attack) was that the overwhelming amount of evidence was that it arose out of a spontaneous demonstration and it was not a terrorist attack,” King said. 

    Rep. C.A. “Dutch” Ruppersberger of Maryland, the senior Democrat on the House Intelligence Committee, told MSNBC’s Thomas Roberts after hearing from Petraeus that “I can’t agree that there was entirely an intelligence failure” in the days leading up to the attack.

    The Daily Rundown panel, which includes former DCCC spokesman Doug Thornell, The New York Times' Jackie Calmes and Roll Call's David Drucker talk about the latest in the hearings on Benghazi.

    He said, “The intelligence community did put people in the area of Benghazi and in Libya generally. It was a hot spot, it was an area where you had to be on high alert – they did not pick up the actual attack itself. So we’re evaluating whether or not it was or was not an intelligence failure.”

    Another House Intelligence Committee member, Rep. Tom Rooney, R–Fla., told MSNBC’s Roberts that he’d learned from the Petraeus testimony how inadequate the protection at the consulate was on Sept 11.

    “We had less than a handful of security there for the ambassador,” Rooney said. “First of all, I don’t know why the ambassador was there on 9/11 to begin with, but that’s a whole other story. Second we were relying really on local Libyan militia who – if there was anything coordinated about the two attacks, at the compound and at the annex, it is that there was a coordinated absence by the people who were supposed to be protecting us.” He said the Libyan militia “were nowhere to be found” when the assault occurred.   

    Sen. John McCain, R-Ariz., says Gen. Petraeus' briefing before the Senate Intelligence Committee, concerning he Sept 11, 2012, attack on the US consulate in Benghazi, Libya, was "comprehensive" and "added to our ability to make judgments about what is clearly a failure of intelligence."

    Rooney added that President Barack Obama has said “he did everything he could” to protect the consulate. “He may have done everything he could, but it wasn’t enough because our people are dead.” 

    The investigation into the Benghazi events has become a major focus for members of Congress returning to the Capitol after last week’s elections. The episode has political implications not only for Obama but for Secretary of State Hillary Clinton, who may run for president in 2016.

    Petraeus resigned one week ago after the revelation of his adulterous affair with his biographer Paula Broadwell.

     

    Rice told NBC’s David Gregory on Meet the Press Sept. 16 that “putting together the best information that we have available to us today – our current assessment is that what happened in Benghazi was, in fact, initially a spontaneous reaction to what had just transpired hours before in Cairo – almost a copycat of the demonstrations against our facility in Cairo, which were prompted, of course, by the video.”

    She added that in Benghazi “opportunistic extremist elements came to the consulate as this was unfolding. They came with heavy weapons, which, unfortunately, are readily available in post-revolutionary Libya, and that escalated into a much more violent episode.”

    Rice is said to be in the running to be Obama’s nominee to be secretary of state once Clinton departs.

    Slideshow: Petraeus case: Cast of characters

    ISAF via Reuters file

    Meet the people who have been pulled into the scandal that caused Gen. David Petraeus to resign.

    Launch slideshow

    But Sen. John McCain, R-Ariz., and other Republican senators have made clear they will use any means they can to block her nomination if Obama does select her.  

    “I don’t trust her,” Sen. Lindsey Graham, R-S.C., said of Rice, calling her “more a political operative than she is anything else when it comes to Benghazi.”

    Obama defended Rice Wednesday, saying she had “represented the United States and our interests in the United Nations with skill and professionalism and toughness and grace… Should I choose, if I think that she would be the best person to serve America in the capacity of the State Department, then I will nominate her.”

    McCain on Wednesday introduced a resolution to create a special eight-member select Senate committee to examine the attack on the consulate. But McCain’s proposal got a mostly chilly reception Wednesday from Chambliss and other senators.

    NBC’s Kelly O’Donnell and The Associated Press contributed to this report.

    U.S. Ambassador to the United Nations Susan Rice recaps the causes and effects of recent violence against Americans in the Middle East.

     

    2450 comments

    I hope General Patreaus testifies using his military ethics and personal ethics. If so I think he'll clean house on what he was told to do/not do, whom told him as much, the timeline, the resources that were available, what CIA protocal for emergencies is and what they do, etc.

    Show more
    Explore related topics: congress, senate, capitol-hill, foreign-policy, petraeus, appfeatured, commentid-petraeus
  • 17
    Jul
    2012
    5:52am, EDT

    Report: HSBC allowed money laundering that likely funded terror, drugs

    Luke Macgregor / Reuters, file

    A HSBC bank logo is highlighted by the sun in London in this file photo taken March 1, 2010.

    By NBCNews.com's Alastair Jamieson and news services

    A "pervasively polluted" culture at HSBC allowed the bank to act as financier to clients moving shadowy funds from the world's most dangerous and secretive corners, including Mexico, Iran, Saudi Arabia and Syria, according to a scathing U.S. Senate report issued on Monday.

    The report [link to PDF here] which comes ahead of a Senate hearing on Tuesday, said large amounts of Mexican drug money likely passed through the bank. 


    HSBC's U.S. division provided money and banking services to some banks in Saudi Arabia and Bangladesh believed to have helped fund al-Qaida and other terrorist groups, according to an Al-Jazeera story on the report.

    While the big British bank's problems have been known for nearly a decade, the Senate probe detailed just how sweeping the problems have been, both at the bank and at the Office of the Comptroller of the Currency, a top U.S. bank regulator which the report said failed to properly monitor HSBC.

    "The culture at HSBC was pervasively polluted for a long time," said Senator Carl Levin, chairman of the U.S. Senate Permanent Subcommittee on Investigations, a Congressional watchdog panel.

    The report comes at a troubling time for a banking industry reeling from a multi-country probe into the manipulation of global benchmark rates. Last month, rival British bank Barclays agreed to pay a $453 million fine to settle a U.S.-British probe into the rigging of the benchmark interest rate known as the London interbank offered rate, or Libor.

    Lax controls
    The report caps a year-long inquiry that included a review of 1.4 million documents and interviews with 75 HSBC officials and bank regulators. It will be the focus of a hearing on Tuesday at which HSBC and OCC officials are scheduled to testify.

    Banks pulling out of rate-setting panels in wake of Libor scandal

    In a statement emailed to NBCNews.com, the bank said: 

    We will apologize, acknowledge these mistakes, answer for our actions and give our absolute commitment to fixing what went wrong. We believe that this case history will provide important lessons for the whole industry in seeking to prevent illicit actors entering the global financial system.

    The report also contained strong criticism of the OCC, saying the regulator failed to crack down on the bank despite multiple red flags, allowing money laundering issues "to accumulate into a massive problem".

    The failings and lax controls inside HSBC included an inability to properly monitor $15 billion in bulk cash transactions between mid-2006 and mid-2009, inadequate staffing and high turnover in the bank's compliance units, the report said.

    HSBC ignored risks in doing business in countries such as Mexico, a country rife with drug trafficking, it said.

    Between 2007 and 2008, HSBC's Mexican operations moved $7 billion into the bank's U.S. operations. According to the report, both Mexican and U.S. authorities warned HSBC that the amount of money could only have reached such a level if it was tied to illegal narcotics proceeds.

    The focus of the Senate probe was HSBC's U.S. operations, which has its main office in New York. HSBC used the U.S. unit as a selling point to clients outside the United States, touting its ability to handle U.S. dollar transactions.

    Red flags
    The report described that among HSBC's problems was the bank's compliance division being unable to battle the suspect money. High turnover of top compliance officials made it difficult for reform to take hold, the report said. Employees were "overwhelmed" by a mounting number of suspect transactions that needed review.

    HSBC, according to the report, helped move money for a Mexican foreign-exchange dealer called Casa de Cambio Puebla that served as a hub for laundered proceeds, according to the report.

    Banks' bad behavior may be scaring away investors

    Between 2005 and 2007, there was a "growing flood" of U.S. dollars moving between the exchange house and HSBC, setting off red flags inside HSBC. Some bankers said the transfers were legal. One said the money came from Mexican landscapers working in the United States and routing money back home to their families.

    HSBC ultimately closed the account in November 2007 after it received a seizure warrant from the Mexican attorney general seeking money tied to the exchange dealer, the Senate report said.

    Some of the money that moved through HSBC was tied to Iran, the report said, which would violate U.S. prohibitions on transactions linked to it and other sanctioned countries.

    Between 2001 and 2007, more than 28,000 transactions were identified by an outside auditor for HSBC that potentially could have run afoul of laws that prohibit transactions with sanctioned countries. Of those, 25,000 involved Iran. A smaller number required additional analysis to determine if violations of U.S. regulations had occurred, the report said.

    In 2010, Wachovia agreed to pay $160 million as part of a Justice Department probe that examined Mexican transactions, according to a BBC report, which also said ING last month agreed to pay $619 million to settle U.S. government allegations that it violated U.S. sanctions against Cuba and Iran.

    Reuters contributed to this report.

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    615 comments

    Come on, now you are trying to convince us that bankers would stoop so low as to help terrorists, just for corporate gain and profit? OK, I believe you. Suddenly I see more validation in support of nationalizing banks.

    Show more
    Explore related topics: drug, senate, bank, money-laundering, finance, regulation, hsbc, featured, crime-courts
  • 25
    May
    2012
    5:13am, EDT

    Senate panel votes to cut $33M in Pakistan aid over bin Laden doctor's conviction

    Pakistan's decision to convict a doctor who helped the U.S. track down Osama bin Laden was met with outrage in the U.S. NBC's Andrea Mitchell reports.

    By msnbc.com news services

    WASHINGTON — A Senate panel expressed its outrage Thursday over Pakistan's conviction of a doctor who helped the United States track down Osama bin Laden, voting to cut aid to Islamabad by $33 million — $1 million for every year of the physician's 33-year sentence for high treason.

    "It's arbitrary, but the hope is that Pakistan will realize we are serious," said Senator Richard Durbin after the unanimous 30-0 vote by the Senate Appropriations Committee.


    "It's outrageous that they (the Pakistanis) would say a man who helped us find Osama bin Laden is a traitor," said Durbin, the Senate's number two Democrat.

    Pakistan jails doctor who helped CIA find Osama bin Laden

    The sentencing on Wednesday of Dr Shakil Afridi for 33 years on treason charges added to U.S. frustrations with Pakistan over what Washington sees as its reluctance to help combat Islamist militants fighting the Afghan government and the closure of supply routes to NATO troops in Afghanistan.

    'A schizophrenic ally'
    The punitive move came on top of deep reductions the Appropriations Committee already had made to President Barack Obama's budget request for Pakistan, a reflection of the growing congressional anger over its cooperation in combatting terrorism. The overall foreign aid budget for next year had slashed more than half of the proposed assistance and threatened further reductions if Islamabad failed to open the overland supply routes.

    "We need Pakistan, Pakistan needs us, but we don't need Pakistan double-dealing and not seeing the justice in bringing Osama bin Laden to an end," said Sen. Lindsey Graham, R-S.C., who pushed for the additional cut in aid. 

    Fuel tankers sit idle during Pakistan-US dispute over supply routes

    He called Pakistan "a schizophrenic ally," helping the United States at one turn, but then aiding the Haqqani network which has claimed responsibility for several attacks on Americans. The group also has ties to al-Qaida and the Taliban. 

    It's been a tough year for Pakistan U.S. relations. Crucial NATO supply routes have been shuttered since November, there is tension over drone strikes and now the countries are at odds over the treason conviction of the Pakistani doctor who helped the U.S. locate Osama Bin Laden. 

    Secretary of State Hillary Clinton said the jailing of the doctor was "unjust and unwarranted" and vowed to continue to press the case with Islamabad. "The United States does not believe there is any basis for holding Dr. Afridi."

    Afridi was accused of running a fake vaccination campaign, in which he collected DNA samples, that is believed to have helped the American intelligence agency track down bin Laden in a Pakistani town last year. 

    Aid workers become targets as Pakistan faces new crisis

    The al-Qaida leader was killed in the town of Abbottabad a year ago in a unilateral U.S. special forces raid that heavily damaged ties between Islamabad and Washington. Since then, there have been growing calls in the U.S. Congress to cut off some or all of U.S. aid.

    Senator John McCain, top Republican on the Armed Services Committee, said lawmakers had agreed to withhold certain military aid for Pakistan until the defense secretary certifies that Pakistan is not detaining people like Afridi.

    Slideshow: Pakistan: A nation in turmoil

    Muhammed Muheisen / AP

    Images of daily life, political pursuits, religious rites and deadly violence.

    Launch slideshow

    "All of us are outraged at the imprisonment and sentencing of some 33 years — virtually a death sentence — to the doctor in Pakistan who was instrumental ... in the removal of Osama bin Laden," McCain said, adding that Afridi was innocent of any wrongdoing. "That has frankly outraged all of us."

    McCain criticizes Pakistan for jailing of doctor

    The Senate Appropriations Committee's action docking Pakistan's aid came after a subcommittee earlier in the week slashed assistance to Islamabad -- and warned it would withhold even more cash if Pakistan does not reopen supply routes for NATO soldiers in neighboring Afghanistan.

    Members of the committee complained about mafia-style extortion by Pakistan in seeking truck fees in exchange for opening the supply lines. The cost had been $250 per truck prior to the attack. Pakistan is now demanding $5,000 per truck. The United States has countered at $500.

    Pakistan has been one of the leading recipients of U.S. foreign aid in recent years. Even after the cuts voted this week it still would receive about $1 billion in fiscal 2013, if the full Senate and House of Representatives approve. That figure includes $184 million for State Department operations and $800 million for foreign assistance. Counterinsurgency money for Pakistan would be limited to $50 million.

    Reuters and The Associated Press contributed to this report.

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    Follow us on Twitter: @msnbc_world

    640 comments

    WOW, 33 Million, out of the Billions we give them! That will teach em (EYE ROLL) How about a COMPLETE CUT OFF, Until released. We could better use the money here anyway.

    Show more
    Explore related topics: pakistan, senate, capitol-hill, osama-bin-laden, featured, appfeatured
  • 23
    May
    2012
    12:45pm, EDT

    Senators grill Secret Service boss on prostitution scandal

    Secret Service Director Mark Sullivan testified Wednesday in front of the Homeland Security and Governmental Affairs committee -- the first time he spoke publicly about the prostitution scandal involving agents in Cartagena, Colombia. NBC's Pete Williams reports.

    By NBC News and news services

    The alleged hiring of prostitutes suggests a cultural problem within the Secret Service, Sen. Susan Collins said Wednesday amid reports of new evidence of law enforcement misconduct during the president's trip to Colombia.


    Follow @msnbc_us

    "This was not a one-time event," Collins, the senior Republican on the Senate Homeland Security and Governmental Affairs Committee, said during the first Senate hearing on the matter. "The circumstances unfortunately suggest an issue of culture."


    "If only one or two individuals out of the 160 male Secret Service personnel assigned to this mission had engaged in this type of serious misconduct, then I'd think this was an aberration," the Maine senator said. "But that's not the case; there were 12 individuals involved . . . 12. That's 8 percent of the male Secret Service personnel in-country, and 9 percent of those staying at the El Caribe Hotel."

    Service Service chief Mark Sullivan, who was called to testify at the inquiry, apologized "for the conduct of these employees and the distraction it has caused." But Sullivan's assertion that the agency has a "zero tolerance" policy on such conduct did not convince the lawmakers, who brought more allegations to light.

    "We can only know what the records of the Secret Service reveal," said Connecticut Sen. Joe Lieberman, who is leading the hearing. The records, however incomplete, show 64 instances of allegations or complaints of sexual misconduct made against Secret Service employees in the last five years, he said.

    Lieberman cited three complaints of inappropriate relationships with a foreign national and one of "non-consensual intercourse," which he did not elaborate on. Sullivan said that complaint was investigated by outside law enforcement officers who decided not to prosecute.

     

    A Columbian escort spoke publicly on the radio this week claiming to be the one at the center of the Secret Service prostitution scandal and revealing her version of events. NBC's Mark Potter reports.

     

    Sullivan also told the committee an agent was fired in a 2008 Washington prostitution episode, after trying to hire an uncover police officer.

    An older incident involved several Secret Service employees who were disciplined for "partying with alcohol with underage females in their hotel rooms while on assignment" at the 2002 Winter Olympics in Salt Lake City, Lieberman said.

    Regarding the Colombia incident, Sullivan said the actions of a few should not taint the whole agency and its roughly 7,000 employees, and he pushed back on any suggestion that such behavior was considered acceptable when agents were on the road.

    DEA agents investigated for hiring prostitutes in Colombia

    The thought or the notion that this type of behavior is condoned or authorized is just absurd, in my opinion," said Sullivan, who has worked nearly 30 years at the Secret Service.

    "I never one time had any supervisor or any other agent tell me that this type of behavior is condoned. I know I've never told any of our employees that it's condoned," he said.

    Obama has called the Secret Service employees involved in the scandal "knuckleheads" and maintained that the vast majority of agents perform their work admirably.

    The Washington Post, citing unnamed sources, reported that four of the employees involved in the incident are challenging their dismissals, saying the Secret Service has made them scapegoats for behavior that previously had been tolerated.

    Sullivan told the committee that the agency's numbers differed: "We have two employees who had originally said that they were going to resign, that have now come back and said that they are going to challenge that."

    Secret Service head: Prostitution scandal was 'aberration'

    In addition to the two who rescinded their resignations, seven Secret Service employees retired, resigned, were fired or are in the process of having their security clearance permanently revoked because of the scandal.

    Three others were cleared and a 13th employee is on administrative leave after reporting his own potential misconduct in a separate incident.

    Collins said there was no excuse for "recklessness" and that the Secret Service employees had "willingly made themselves potential targets" who could easily have been drugged, kidnapped or blackmailed. Sullivan said no secret information had been compromised because of the incident.

    Sullivan listened to senator after senator express concern. The agency's reputation was "badly stained" by the "sordid story," Lieberman said.

    Colombia hookers not tied to cartels, terror group, Secret Service says

    Lieberman and Collins, who were among lawmakers briefed on the incident, described the evening in mid-April when the men, in separate groups of two to four, went to different nightclubs and strip clubs, drinking alcohol heavily.

    They returned to their hotel with women, some of whom were prostitutes, and registered them under their actual names as overnight guests as required by hotel rules.

    "If one of the agents had not argued with one of the women about how much he owed her, the world would never have known this sordid story," Lieberman said.

    Senator Scott Brown, a Republican, pressed Sullivan about some of the new rules announced by the agency since the scandal surfaced, such as sending a senior employee to supervise behavior on trips.

    "I'm a little bit confused as to why we would be sending a $155,000 (annual salary) person, another person to basically babysit people that you say this hasn't happened before," Brown said.

    A dozen U.S. military personnel also are under investigation in connection with the prostitution scandal in Colombia.

    Charles Edwards, the acting inspector general of the Department of Homeland Security, which includes the Secret Service, told the hearing he would conduct an independent investigation into the events in Cartagena.

    NBC News national investigative correspondent Michael Isikoff, Reuters and The Associated Press contributed to this report.

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    200 comments

    The only reason a US Senator needs to be asking the Secret Service Agency Head about prostitutes is to find out where they can go to get them. More FRAUD, WASTE & ABUSE on the part of the US Senate.

    Show more
    Explore related topics: senate, secret-service, prostitution-scandal

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