Showing posts with label FBI. Show all posts
Showing posts with label FBI. Show all posts

Tuesday, August 3, 2010

Zinn A True Patriot

Why the Feds Fear Thinkers Like Howard Zinn

by Chris Hedges
Today I will teach my final American history class of the semester to prison inmates. We have spent five weeks reading Howard Zinn’s “A People’s History of the United States.” The class is taught in a small room in the basement of the prison. I pass through a metal detector, am patted down by a guard and walk through three pairs of iron gates to get to my students. We have covered Spain’s genocide of the native inhabitants in the Caribbean and the Americas, the war for independence in the United States and the disgraceful slaughter of Native Americans. We have examined slavery, the Mexican-American War, the Civil War, the occupations of Cuba and the Philippines, the New Deal, two world wars and the legacy of racism, capitalist exploitation and imperialism that continue to infect American society.
We have looked at these issues, as Zinn did, through the eyes of Native Americans, immigrants, slaves, women, union leaders, persecuted socialists, anarchists and communists, abolitionists, anti-war activists, civil rights leaders and the poor. As I was reading out loud a passage by Sojourner Truth, Chief Joseph, Henry David Thoreau, Frederick Douglass, W.E.B Du Bois, Randolph Bourne, Malcolm X or Martin Luther King, I have heard students mutter “Damn” or “We been lied to.”
The power of Zinn’s scholarship—which I have watched over the past few weeks open the eyes of young, mostly African-Americans to their own history and the structures that perpetuate misery for the poor and gluttony and privilege for the elite—explains why the FBI, which released its 423-page file on Zinn on July 30, saw him as a threat. 
Zinn, who died in January at the age of 87, did not advocate violence or support the overthrow of the government, something he told FBI interrogators on several occasions. He was rather an example of how genuine intellectual thought is always subversive. It always challenges prevailing assumptions as well as political and economic structures. It is based on a fierce moral autonomy and personal courage and it is uniformly branded by the power elite as “political.” Zinn was a threat not because he was a violent revolutionary or a communist but because he was fearless and told the truth. 
The cold, dead pages of the FBI file stretch from 1948 to 1974. At one point five agents are assigned to follow Zinn. Agents make repeated phone calls to employers, colleagues and landlords seeking information. The FBI, although Zinn is never suspected of carrying out a crime, eventually labels Zinn a high security risk. J. Edgar Hoover, who took a personal interest in Zinn’s activities, on Jan. 10, 1964, drew up a memo to include Zinn “in Reserve Index, Section A,” a classification that permitted agents to immediately arrest and detain Zinn if there was a national emergency. Muslim activists, from Dr. Sami Al-Arian to Fahad Hashmi, can tell you that nothing has changed.
The file exposes the absurdity, waste and pettiness of our national security state. And it seems to indicate that our security agencies prefer to hire those with mediocre or stunted intelligence, dubious morality and little common sense. Take for example this gem of a letter, complete with misspellings, mailed by an informant to then FBI Director Hoover about something Zinn wrote.
“While I was visiting my dentist in Michigan City, Indiana,” the informant wrote.  “This pamphlet was left in my car, and I am mailing it to you, I know is a DOVE call, and not a HOCK call. We have had a number of ethnic groups move into our area in the last few years. We are in a war! And it doesn’t look like this pamphlet will help our Government objectives.”
Or how about the meeting between an agent and someone identified as Doris Zinn. Doris Zinn, who the agent says is Zinn’s sister, is interviewed “under a suitable pretext.” She admits that her brother is “employed at the American Labor Party Headquarters in Brooklyn.” That is all the useful information that is reported. The fact that Zinn did not have a sister gives a window into the quality of the investigations and the caliber of the agents who carried them out. 
FBI agents in November 1953 wrote up an account of a clumsy attempt to recruit Zinn as an informant, an attempt in which they admitted that Zinn “would not volunteer information” and that “additional interviews with ZINN would not turn him from his current attitude.” A year later, after another interrogation, an agent wrote that Zinn “concluded the interview by stating he would not under any circumstances testify or furnish information concerning the political opinions of others.”
While Zinn steadfastly refused to cooperate in the anti-communist witch hunts in the 1950s, principals and college administrators were busy purging classrooms of those who, like Zinn, exhibited intellectual and moral independence. The widespread dismissals of professors, elementary and high school teachers and public employees—especially social workers whose unions had advocated on behalf of their clients—were carried out quietly. The names of suspected “Reds” were handed to administrators and school officials under the FBI’s “Responsibilities Program.” It was up to the institutions, nearly all of which complied, to see that those singled out lost their jobs. There rarely were hearings.  The victims did not see any purported evidence. They were usually abruptly terminated. Those on the blacklist were effectively locked out of their professions. The historian Ellen Schrecker estimates that between 10,000 and 12,000 people were blackballed through this process.
The FBI spent years following Zinn, and carefully cutting out newspaper articles about their suspect, to amass the inane and the banal. One of Zinn’s neighbors, Mrs. Matthew Grell, on Feb. 22, 1952, told agents that she considered Zinn and another neighbor, Mrs. Julius Scheiman, “to be either communists or communist sympathizers” because, the agents wrote, Grell “had observed copies of the Daily Workers in Mrs. Scheiman’s apartment and noted that Mrs. Scheiman was a good friend of Howard Zinn.”
The FBI, which describes Zinn as a former member of the Communist Party, something Zinn repeatedly denied, appears to have picked up its surveillance when Zinn, who was teaching at Spelman, a historically black women’s college, became involved in the civil rights movement. Zinn served on the Student Nonviolent Coordinating Committee. He took his students out of the classroom to march for civil rights. Spelman’s president was not pleased.
“I was fired for insubordination,” Zinn recalled. “Which happened to be true.”
Zinn in 1962 decried “the clear violations by local police of Constitutional rights” of blacks and noted that “the FBI has not made a single arrest on behalf of Negro citizens.” The agent who reported Zinn’s words added that Zinn’s position was “slanted and biased.” Zinn in 1970 was a featured speaker at a rally for the release of the Black Panther leader Bobby Seal held in front of the Boston police headquarters. “It is about time we had a demonstration at the police station,” Zinn is reported as telling the crowd by an informant who apparently worked with him at Boston University. “Police in every nation are a blight and the United States is no exception.”
“America has been a police state for a long time,” Zinn went on. “I believe that policemen should not have guns. I believe they should be disarmed. Policemen with guns are a danger to the community and themselves.”
Agents muse in the file about how to help their unnamed university source mount a campaign to have Zinn fired from his job as a professor of history at Boston University.
“[Redacted] indicated [Redacted] intends to call a meeting of the BU Board of Directors in an effort to have ZINN removed from BU. Boston proposes under captioned program with Bureau permission to furnish [Redacted] with public source data regarding ZINN’s numerous anti-war activities, including his trip to Hanoi, 1/31/68, in an effort to back [Redacted’s]  efforts for his removal.”
Zinn and the radical Catholic priest Daniel Berrigan had traveled together to North Vietnam in January 1968 to bring home three prisoners of war. The trip was closely monitored by the FBI. Hoover sent a coded teletype to the president, the secretary of state, the director of the CIA, the director of the Defense Intelligence Agency, the Department of the Army, the Department of the Air Force and the White House situation room about the trip. And later, after Berrigan was imprisoned for destroying draft records, Zinn repeatedly championed the priest’s defense in public rallies, some of which the FBI noted were sparsely attended. The FBI monitored Zinn as he traveled to the Danbury Federal Prison in Connecticut to visit Berrigan and his brother Philip. 
“Mass murders occur, which is what war is,” Zinn, who was a bombardier in World War II, said in 1972, according to the file, “because people are split and don’t think … when the government does not serve the people, then it doesn’t deserve to be obeyed. … To be patriotic, you may have to be against your government.”
Zinn testified at the trial of Daniel Ellsberg, who gave a copy of the Pentagon Papers to Zinn and Noam Chomsky. The two academics edited the secret documents on the Vietnam War, sections of which had appeared in The New York Times, into the four volumes that were published in 1971.
“During the Pentagon Papers jury trial, Zinn stated that the ‘war in Vietnam was a war which involved special interests, and not the defense of the United States,’ ” his FBI file reads.
By the end of the file one walks away with a profound respect for Zinn and a deep distaste for the buffoonish goons in the FBI who followed and monitored him. There is no reason, with the massive expansion of our internal security apparatus, to think that things have improved. There are today 1,271 government organizations and 1,931 private companies working on programs related to counterterrorism, homeland security and intelligence in about 10,000 locations across the United States, The Washington Post reported in an investigation by Dana Priest and William M. Arkin. These agencies employ an estimated 854,000 people, all of whom hold top-secret security clearances, the Post found. And in Washington, D.C., and the surrounding area, 33 building complexes for top-secret intelligence work are under construction or have been built since September 2001. Together, the paper reported, they occupy the equivalent of almost three Pentagons or 22 U.S. Capitol buildings—about 17 million square feet.
We are amassing unprecedented volumes of secret files, and carrying out extensive surveillance and harassment, as stupid and useless as those that were directed against Zinn. And a few decades from now maybe we will be able to examine the work of the latest generation of dimwitted investigators who have been unleashed upon us in secret by the tens of thousands. Did any of the agents who followed Zinn ever realize how they wasted their time? Do those following us around comprehend how manipulated they are? Do they understand that their primary purpose, as it was with Zinn, is not to prevent terrorism but discredit and destroy social movements as well as protect the elite from those who would expose them? 
Zinn’s book is revered in my cramped classroom. It is revered because these men intimately know racism, manipulation, poverty, abuse and the lies peddled by the powerful. Zinn recorded their voices and the voices of their ancestors. They respect him for this. Zinn knew that if we do not listen to the stories of those without power, those who suffer discrimination and abuse, those who struggle for justice, we are left parroting the manufactured myths that serve the interests of the privileged. Zinn set out to write history, not myth.  And he knew that when these myths implode it is the beginning of hope.
“If you were a Native American,” one of my students asked recently, “what would have been the difference between Columbus and Hitler?”
Chris Hedges writes a regular column for Truthdig.com. Hedges graduated from Harvard Divinity School and was for nearly two decades a foreign correspondent for The New York Times. He is the author of many books, including: War Is A Force That Gives Us Meaning, What Every Person Should Know About War, and American Fascists: The Christian Right and the War on America.  His most recent book is Empire of Illusion: The End of Literacy and the Triumph of Spectacle.
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Friday, March 5, 2010

Bill Black’s Top Ten Ways to Crack Down on Corporate Financial Crime

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Published on Friday, March 5, 2010 by Corporate Crime Reporter
Bill Black’s Top Ten Ways to Crack Down on Corporate Financial Crime

by Corporate Crime Reporter

Ninety-five percent of criminologists study blue collar crime.

Five percent study white collar crime.

Of the tiny minority who study white collar crime, ninety five percent focus on the individuals who rip off the corporation.

We are left with a small handful of criminologists – think Edwin Sutherland, John Braithwaite, Gil Geis – who have studied or are studying – corporate crime.

That would be crime by the corporation.

Bill Black is one of the most prominent of those living corporate criminologists.

His specialty – control fraud.

Control fraud is when the CEO of a company uses the corporation as a weapon to commit fraud.

Bill Black is a lawyer and former federal bank regulator.

He’s the author of the corporate crime classic – The Best Way to Rob a Bank is to Own One: How Corporate Executives and Politicians Looted the S&L Industry (University of Texas Press, 2005.)

Black says there are steps we can take as a society to control corporate crime – in particular financial crime.

In an interview with Corporate Crime Reporter last week, Black laid out his top ten.

Number ten: Hire 1,000 FBI agents.

Pass legislation (HR 3995) introduced by Congresswoman Marcy Kaptur that would fund the hiring of 1,000 FBI agents to investigate white collar crime.

Number nine: Appoint a chief criminologist at each of the financial regulatory agencies.

“Each agency needs someone who understands white collar crime,” Black said. “If you don’t understand fraud schemes, if you don’t understand how accounting is used to run these scams, you will always have a disaster in the making.”

Number eight: Fix executive compensation.

Black would tie executive bonuses to long term corporate performance.

Number seven: Target the top 100 corporate criminals.

“We need to do a top 100 priority list – the way it was done in the savings and loan crisis,” Black said. “The FBI, the Justice Department and the regulatory agencies got together and put together a list of top 100 companies to target. There was a recognition that these were control frauds. The top executives were using seemingly legitimate savings and loans as their weapons of fraud. And that is why any serious look will tell you the same thing about this most recent crisis as well. The criminal justice referral process has collapsed at the agencies.”

Number six: Regulate first.

“When you desupervise or deregulate an industry, in fact you are decriminalizing control fraud. The regulators are the ones who make the bulk of these cases. I’m not saying they can do it alone. In the current crisis, the FBI had no meaningful support from the regulators. You have regulators denying they were regulators and saying that there could be no fraud because the rating agencies were handing out high ratings. That kind of naivete is ideologically driven. You will not have effective prosecution with that kind of regulatory regime.”

Number five: Bust up the FBI partnership with the Mortgage Bankers Association.

“Now we have the FBI standing with what it calls its partners – the Mortgage Bankers Association,” Black said. “But the Mortgage Bankers Association – that’s the trade association of the perps. So, the FBI is partnering with the perps.”

“The result is – we have seen zero prosecutions of the specialty non-prime lenders that caused the crisis,” Black said. “The mortgage bankers are going to position themselves as the victims. This has been so successful that the FBI now has a mantra. They are saying there are two kinds of mortgage fraud. Fraud for profit and fraud for housing. And neither of them is control fraud. They have effectively said – control fraud is impossible. Even though it was the entire story behind the savings and loan crisis, the Enron wave, and the creation of the most recent housing bubble.”

Number four: Get rid of Ben Bernanke as chair of the Fed. Replace him with Nobel prize winner Joseph Stiglitz.

“Ben Bernanke should not have been reappointed as head of the Fed,” Black said. “He was the most senior regulator. And he was an utter failure. Under President Bush, he was President of the Council of Economic Advisors. So, he was a failure as a regulator. And he was a failure as an economist.”

Number three: Get rid of too big to fail.

There are about 20 banks that have assets of $100 billion or more. They are considered too big to fail. “You do three things,” Black says. “First, you stop them from growing. Second, you shrink them (to below $20 billion in assets.) You create the tax and regulatory incentives where they have to shrink below the level where they pose a systemic risk. And third, you regulate them much more intensively while they are in the process of moving from a systemically dangerous institution to a more leaner, smaller, more efficient, less dangerous institution.”

Number two: Create a consumer financial protection agency headed by Harvard Law School professor Elizabeth Warren.

“The sine qua non for success as a regulator is independence,” Black says. “So, it’s a very bad sign that Congress is moving away from an independent regulator.”

“As we speak, news is breaking that they are moving away from housing the regulator at the Treasury Department. Now they are talking about putting it at the Federal Reserve. The Fed is an independent regulator. Unfortunately, it’s an independent anti-regulator. I called putting it at the Treasury a sick joke. Putting it at the Fed is also a sick joke. They are both recipes for failure.”

Number one: Fire Treasury Secretary Timothy Geithner, Office of Thrift Supervision chief John Bowman, Fed chief regulator Patrick Parkinson, and Office of the Comptroller of the Currency Chief John Dugan.

“Tim Geithner was testifying before Congress a couple of years ago,” Black said. “And in response to a question from Ron Paul (R-Texas), Geithner said – ‘I have to stop you right there – I’ve never been a regulator.’ Well, that’s true. But you are not supposed to admit it.”

“Can you imagine. This is the President of the New York Fed, testifying about the greatest failure in banking in the history of the nation. And he is so completely out of it – the mindset of capture is so complete, that he says – I’ve never been a regulator. This is the ultimate capture. You don’t even think of yourself as a regulator.”
“Ben Bernanke in October 2009 appointed Patrick Parkinson as the top supervisor at the Fed,” Black said. “He’s the guy who, under Alan Greenspan, led the Fed charge against Brooksley Born when she wanted to regulate credit default swaps.”

“Patrick Parkinson, on behalf of the Fed, testified that credit default swaps should be left completely deregulated.”

“The reasons? If we regulate them, they will flee to the city of London. We should be so lucky, of course.”

“And two, fraud can’t happen in credit default swaps, because the participants are so sophisticated. This is the most astonishingly naive model of white collar crime by people who know nothing about white collar crime and don’t study it at all.”

“John Dugan’s sole priority and all of his passion as OCC director has been pre-empting state efforts to protect us from predatory lenders,” Black said.
“And John Bowman should be fired,” Black said. “The OTS got in bed with the industry most openly.”
© 2010 Corporate Crime Reporter
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