Posts tagged as:

terrorism

Banking and finance roundup

by Walter Olson on September 21, 2014

  • SEC regs suppress small business capital formation and that’s a shame [Commissioner Daniel Gallagher via Bainbridge]
  • Federally sponsored gripe site for financial institutions not likely to end well [Hester Peirce and Vera Soliman, Mercatus via Kevin Funnell]
  • Alleged terror payments “routed through” sued bank also went through major New York banks, which shouldn’t be surprising [Fisher]
  • Did mid-level managers in securitized mortgage finance know they were in a housing bubble but cynically go ahead? Evidence against [Cheng et al., American Economic Review via MR]
  • Shareholder litigation: “New ‘loser pays’ standard could curb abusive lawsuits” [Examiner editorial] Delaware take note: corporate by-law changes that cut off fee-seeking opportunism deserve acclaim [Keith Paul Bishop via Bainbridge]
  • NYT was hot on “Goldman Sachs manipulated aluminum market” allegations but judge wasn’t [Reuters, July 2013 NYT]
  • CFPB might shrug off discrimination and retaliation charges, but many of the firms it regulates could not afford to [Hans Bader]

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  • Furor grows over Obama administration’s Operation Chokepoint program chilling bank access for legal but disfavored groups [Iain Murray, Elizabeth Nolan Brown, FDIC list (not just payday lenders but also lawful purveyors of pills, guns, ammunition, and much more), Hans Bader] Parallel, though not happening under same program: JP Morgan abruptly closes accounts of former Colombia finance minister who is a renowned international economist, apparently because he made it onto a list of diplomats and other “politically exposed persons” statistically associated with legal risks and high compliance costs [Business Insider] Update via Nolan followup: Dana Liebelson at Mother Jones quotes anonymous bank officials as claiming that some account closures are wrongly being attributed to the program, but even in defending it concedes that should banks opt for continuing to service clients in disfavored lines of business they will shoulder distinctive (maybe decisive) compliance costs from “manag[ing] these relationships and risks,” engaging in due diligence, etc. Also, lawmakers like Sens. Jeff Merkley (D-Ore.) and Elizabeth Warren (D-Mass.) and Rep. Elijah Cummings (D-Md.) back the program; besides, this isn’t “the first time that feds have asked banks to keep an eye on their customers” since the Know Your Customer program goes back some years. So that’s comforting!
  • “Court: Standard & Poor’s is entitled to discovery supporting its ‘selective prosecution’ claim” [Volokh, earlier here and here]
  • “Plaintiff? Is That Really Necessary In A Class Action?” [Daniel Fisher on ZymoGenetics case]
  • Backed by hedge fund, lawyers exploit anti-terror law to squeeze global banks [Norman Lamont, New York Post]
  • “CEO facial masculinity predicts firm’s likelihood of being subject to SEC enforcement action” [Jia, Van Lent, and Zeng, SSRN via @brucecarton]
  • “Reflections on High Frequency Trading” [Robert Levy, Cato]
  • Banks finally lay to rest long-running litigation under Missouri second-mortgage law (MSMLA), though only after one Kansas City law firm ran up more than $600 million in settlements [Litigation Daily]

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With encouragement from both Congress and an active plaintiff’s bar, victims and survivors have been suing various foreign entities in U.S. courts charging complicity, sometimes indirect and roundabout, with participants in international terrorism. But a suit against Bank of China over a Palestinian Islamic Jihad attack suggests that “when it comes to battling global terror, civil suits by American citizens often do more harm than good.” Both the United States and Israel have reportedly negotiated with the Chinese institution to develop ways of combating illicit money transfers, but privately directed damages litigation tends to deter cooperation and perpetuate mistrust, and is hard to call off even when it has begun doing real harm to diplomacy. Even when lawsuits against some of the more obvious bad actors succeed, “the U.S. government has for years blocked financial judgments awarded to American plaintiffs against Iran and other foreign governments. Why? Such judgments are seen as conflicting with American foreign policy interests.” [James Loeffler and Moria Paz, Slate]

Earlier on lawsuits over terrorism: suing U.S. government over Kenya, Tanzania embassy bombings; Ted Frank 2007 essay; everybody “except the guys who did it“; Egyptian hotel forum-shopping; Tanzania gem smuggling; 9/11 suits and more.

Tech roundup

by Walter Olson on November 6, 2013

  • Far-reaching, little-discussed new regulation: Stewart Baker on NIST rules mandating cybersecurity at private enterprises [Volokh; first, second, third, fourth posts]
  • “Ominous Developments on the Internet Governance Front” [David Post]
  • “The Exaggeration Of The Cyberbullying Problem Is Harming Anti-Bullying Efforts” [Tim Cushing, TechDirt]
  • “Will California’s New Data Breach Notification Duty Stimulate Class Action Litigation?” [Glenn Lammi, WLF]
  • Some thoughts on how the law should treat domestic drones, public and private [Kenneth Anderson]
  • Privacy lawsuit against Gmail could do a lot of damage [Mike Masnick, TechDirt; Matt Powers, CEI "Open Market", parts one, two]
  • Warning: more efforts ahead from legal academia to come up with stringent liability schemes for software makers [New Republic and Lawfare]

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The implications are mind-boggling [Houston Chronicle/Connecticut Post via NACDL via Americans for Forfeiture Reform, earlier] On paper, NSA is supposed to turn over spy-collected data only if evidence of serious unrelated crime turns up while investigating terrorist threats or other specified matters. However, as Reuters shows in an important new investigation, in drug investigations (and probably other types as well) “law enforcement agents have been directed to conceal how such investigations truly begin — not only from defense lawyers but also sometimes from prosecutors and judges” Thus the common little white lie about how such-and-such was discovered “during a routine traffic stop,” when in fact the traffic stop was intended to intercept something or someone known by previous investigation to be aboard the vehicle. With the origins of investigation routinely “phonied up” in this way, however, it becomes virtually impossible to know how many handoffs of spy information fall into gray areas beyond the clear intent of the authorizing law. [Julian Sanchez, Cato] Our coverage of the Foreign Corrupt Practices Act is here; earlier on surveillance here.

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Yes, “copyright infringement”:

Agencies working to curb drug trafficking, cyberattacks, money laundering, counterfeiting and even copyright infringement complain that their attempts to exploit the [National Security Agency's] vast resources have often been turned down because their own investigations are not considered a high enough priority, current and former government officials say. …

“It’s a very common complaint about N.S.A.,” said Timothy H. Edgar, a former senior intelligence official at the White House and at the office of the director of national intelligence. “They collect all this information, but it’s difficult for the other agencies to get access to what they want.”

“The other agencies feel they should be bigger players,” said Mr. Edgar, who heard many of the disputes before leaving government this year to become a visiting fellow at Brown University. “They view the N.S.A. — incorrectly, I think — as this big pot of data that they could go get if they were just able to pry it out of them.”

Rep. Justin Amash (R-Mich.) speaks out on NSA bulk surveillance in this new Cato video with Caleb Brown. Earlier on surveillance here, here, and here; earlier on panopticons here. For the use of “money laundering” laws to pursue financial flows having nothing to do with terrorism or drug smuggling, see our reports here, here, here, here, etc.

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A spy’s warning

by Walter Olson on July 17, 2013

U.K.: “Dame Stella Rimington, the former head of MI5, has warned that the fear of terrorism is being exploited by the Government to erode civil liberties and risks creating a police state.” [Telegraph]

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Surveillance roundup

by Walter Olson on June 14, 2013

  • “Old crisis creates new leviathan” [Barton Hinkle] Some other things that maybe should happen before Snowden gets prosecuted [Bruce Schneier] “Were they here, my parents might have asked, ‘What happened to America?'” [Nat Hentoff]
  • Candidate Obama, meet President Obama; on surveillance, you’ll find you have little in common [graphic courtesy Caleb Brown, Cato at Liberty] Don’t say the president wants to be trusted with complete discretion unfettered by the other branches of government; that’s his assassination program, not his surveillance program [Jacob Sullum]
  • A different view: two leading libertarian legal thinkers, Roger Pilon and Richard Epstein, defend the NSA surveillance program [Chicago Tribune]
  • How very wrong David Simon is about the NSA’s capabilities [Clay Shirky, Guardian]
  • Tracking by advertisers just as bad? No, here’s why state surveillance is worse [Jason Kuznicki, Brian Doherty]
  • I’m not the only one wondering whether prosecution of QWest’s Joseph Nacchio relates to his non-cooperation with NSA [Michael Kelly/Business Insider, Scott Shackford/Reason, Greg Campbell/Daily Caller]
  • What would it take to bring back a Watergate-era spirit of reform? [Jesse Walker]
  • “As the NSA has made all too clear, unless we update our concept of the Fourth Amendment to fit the realities of the Internet Age, those general warrants [despised by colonists] will be back — on a far larger scale, and in secret.” [Julian Sanchez]

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Friends of liberty? Not exactly:

Sen. Lindsey Graham would propose censoring Americans’ “snail” mail if he thought it would help protect national security, the South Carolina Republican said Tuesday. But for now, he says he doesn’t think it’s necessary.

“For now.” Nice. And Rep. Peter King (R-N.Y.) wants to prosecute reporters who publish leaked material. Meanwhile, say what you will about Glenn Greenwald, he’s willing to call out by name some “principle-free, hackish, and opportunistic” media lefties whose views on surveillance and civil liberties have proved malleable.

P.S., a reminder: Rep. Peter King made his name as an apologist for unspeakable IRA terrorism [Riggs]

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Don’t just think vacuum cleaners, think J. Edgar Hoover. [Gene Healy, Washington Examiner] In fact there’s a long history of misuse of ostensibly secure law-enforcement files and databases [1993 GAO report; Robert F. Weir, ed., book on Stored Tissue Samples; unlawful private-investigator access to the National Crime Information Center (NCIC), the FBI's electronic criminal-records database] Once DNA databases are open to varied queries from multiple law enforcement agencies, can we presume them immune from abuse? Even the NSA, whose level of professionalism is presumedly far higher than that of local law enforcement agencies, is no stranger to stories about gratuitous and offensive abuse of privacy. And, writes Jim Harper, the evidence is that the NSA has gathered telecom metadata on a dragnet basis (as distinct from individualized suspicion) not merely for data mining, but to assist in investigations of persons who may happen to come under suspicion in the future, quite a different rationale.

More: “Was a Telecom CEO Sent to Prison Because He Resisted NSA?” [Alexander Cohen, Atlas, on Joseph Nacchio's prosecution on insider trading charges after QWest refused to participate in surveillance] For many other telecoms, at any rate, fear of regulatory muscle will turn them into eager cooperators [Ira Stoll on Verizon] Related: 2007.

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According to a panel discussion hosted by the law firm of Edwards Wildman Palmer, sponsors of the Boston Marathon could face liability claims over the terrorist bombing of the event. One panelist cited the Station nightclub fire litigation in Rhode Island, in which plaintiffs lodged claims against upwards of 90 defendants, such as beer and radio-station sponsors of the concert, and won substantial settlements — $22 million from the parent company of the local radio station and $21 million from the beer defendants, for example. [Sheri Qualters, National Law Journal]

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“Human rights advocates claim that the depiction of torture in popular TV shows has had the effect of promoting the practice in real life, implying that the production companies may have failed to meet their responsibility to respect human rights as articulated in the UN Guiding Principles on Business and Human Rights.” [Faris Natour, JustMeans.com; Wired on Zero Dark Thirty] “So, ban Schindler’s List?” [@susanwake]

Meanwhile, the regime in Iran says it will sue over its depiction in the movie “Argo” [CNN; more from Wikipedia on French lawyer Isabelle Coutant-Peyre, whose attempts to marry imprisoned terrorist Carlos the Jackal "have been frustrated by legal issues"]

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The NYT’s Room for Debate airs pros and cons of what could be a significant new area of federal regulation.

Free speech roundup

by Walter Olson on October 12, 2012

  • Why did Chevron subpoena a lawprof/blogger who took opposite side in Ecuador case? [Kevin Jon Heller, Opinio Juris]
  • “Paleo Diet Lawsuit Dismissed By Court in Blow to Free Expression” [Brian Doherty, Reason; earlier here, etc.]
  • “[National Hispanic Media Coalition] Renews Call for Federal Government to Study Hate Speech in Media” [Volokh]
  • Call for “oversight board of regional experts” to direct more YouTube takedowns [Ann Althouse]
  • No more dirty looks: North Carolina students now face possible jail time for what they say about teachers online [Reason]
  • Popehat sampler: “Schadenfreude Is Not A Free Speech Value; Holmes’s fire-in-theater quote the most “pervasive lazy cheat in American dialogue about free speech”; “Zampolit Angela McCaskill, Report For Reeducation.”
  • EU “terror” web-muzzle schemes: “We should start to freak out, but in a sort of preliminary way” [Ars Technica]

July 17 roundup

by Walter Olson on July 17, 2012

  • Prediction: Homeland Security to emerge as major regulatory agency prescribing security rules to private sector [Stewart Baker] Regulators fret: air travel’s gotten so safe it’s hard for us to justify new authority [Taranto via Instapundit] “Romney’s regulatory plan” [Penn RegBlog]
  • Claim: frequent expert witness in Dallas court proceedings is “imposter” [PoliceMisconduct.net]
  • “‘Temporary’ Takings That Cause Permanent Damage Still Require Just Compensation” [Ilya Shapiro, Cato]
  • On the ObamaCare decision’s wild card, the ruling on “coercive” conditions on Medicaid grants under the Spending Clause [Mike McConnell, Ilya Somin] Ramesh Ponnuru argues that ruling is no victory for supporters of limited government [Bloomberg]
  • D.C.’s historic Shaw neighborhood near Cato Institute narrowly escaped planners’ bulldozer [Greater Greater Washington, WaPo]
  • Michelle Obama on the right track with an idea on occupational licensure but should take it farther [Mark Perry]
  • Everyone’s a judicial critic: Auto-Correct proposes replacing “Posner” with “Poisoner.”

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A year ago the D.C. Circuit told the Transportation Security Administration (TSA) that it needed to go through notice-and-comment rulemaking for its controversial program of full-body scanners at airports. The rulemaking process is intended to ensure that the agency lays out clearly the factual, legal and policy basis for its actions, with a chance for opponents to lodge objections and establish a basis for judicial review. As my colleague Jim Harper points out, the agency has dragged its heels about doing this — a sort of passive resistance it would probably not tolerate from the hapless citizens stuck in its lines. TSA screening is one of the most widely resented governmental intrusions on the individual citizen of our era. Shouldn’t we all demand that the federal government demonstrate adequate justification for imposing it? [Cato at Liberty and Ars Technica; Consumerist; Constitutional Law Prof, 2011] (& welcome National Review “Web Briefing” readers; John LaPlante, Detroit News “Water Cooler”)

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Free speech roundup

by Walter Olson on March 30, 2012

  • Keeping prosecutors busy? Georgia lawmaker files bill that would make Internet defamation a crime [Fulton County Daily Report]
  • Sarkozy calls for law banning visits to pro-terror websites [Ken Paulson, First Amendment Center]
  • “Ron Paul Campaign Drops Effort To Identify Anonymous Videographer” [Paul Alan Levy]
  • Playboy caused how many divorces? Junk science in the service of big-government conservatism [Andrew Stuttaford, NRO] How Santorum’s plans to get porn off internet go beyond GWB’s [Josh Barro] Contra Santorum, “arrival of Internet was associated with reduction in rape incidence” [Steve Chapman]
  • “Brian Deer and the British Medical Journal File An Anti-SLAPP Motion Against Andrew Wakefield” [Popehat]
  • Iowa passes law penalizing animal rightsers who spy on farms [Reuters, earlier] Illinois turns thumbs down on “ag-gag” proposal [Steve Chapman]
  • “What’s happened to free speech in Britain?” [Alex Massie, John O'Sullivan/NRO, earlier here and others]

Some heroes for our time

by Walter Olson on January 30, 2012

My new post at Cato at Liberty is on Italian labor law professors Pietro Ichino and Carlo Dell’Aringa, who live under police protection because of their support for liberalization of the job market; two other professors, Massimo D’Antona and Mario Biagi, have been killed by Red Brigades gunmen. More: Coyote.

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