AIPAC

Who Are The Gosslings?

Zachary Roth | May 1, 2009, 3:50PM

In recent days, speculation about who leaked to CQ the news about Jane Harman's wiretapped conversation with a suspected Israel agent has seemed to focus on former CIA director Porter Goss -- or, more precisely, the group of Goss aides known as the Gosslings.

So we thought it was worth taking a closer look at this crew. And it looks like they have quite a reputation...

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Michael Steele

RNC: Steele Spent $18,500 To Redecorate Office

Zachary Roth | May 1, 2009, 1:50PM

OK, it's small potatoes compared to John Thain's legendary $1.2 million redecoration of his Merill Lynch office suite. But still: in these cash-strapped times, we're wondering how RNC members feel about Michael Steele's decision to spend $18,500 on his own quarters.

Check out this nugget, from a Politico story about rancor between Steele and the committee members:

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AIG

AIG Sets Date For Liddy Testimony -- But Only Under Threat Of Subpoena

Zachary Roth | May 1, 2009, 11:45AM

AIG and the House Oversight committee have agreed to a date, May 13, on which the firm's CEO, Ed Liddy, will testify before the committee. But it looks like Liddy will be going to Washington kicking and screaming.

As we noted earlier this week, the committee invited Liddy to testify May 6, and told us that it expected to see him then. But today the Wall Street Journal reports (sub. req.) that that day "was scrapped because AIG is due to report its results for the first quarter the following day."

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Allen Stanford

Stanford To Feds: Take Me Now. Please?

Zachary Roth | May 1, 2009, 11:07AM

Doesn't anyone want Allen Stanford?

The accused Ponzi schemer tried to turn himself in to the Feds yesterday -- without success.

Over to the Houston Chronicle:

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Swine Flu

Swine Flu: Clearing Up The Numbers

Zachary Roth | May 1, 2009, 10:25AM

As we try to figure out just how concerned to be about swine flu (yeah, we're still calling it that, even if Obama won't), the key indicator we're all looking at is the scale of the outbreak in Mexico, where all this appears to have begun (though that's no longer certain (sub. req.)).

But the Mexican government has used several different metrics to gauge that question. And the numbers, of course, have been been constantly shifting in the last few days as the situation changes. So we thought we'd try to clear up the confusion by briefly laying out what the different numbers are, and what they mean.

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AIPAC

Report: AIPAC Case Dropped

Zachary Roth | May 1, 2009, 9:51AM

The AIPAC case -- which provided the backdrop for the current flap over Jane Harman's wiretapped conversation -- has been dropped, reports the Jewish Telegraphic Agency:

A source with intimate knowledge of the case against two ex-AIPAC staffers accused of passing along classified information says the case has been dropped.

Keith Weissman, the American Israel Public Affairs Committee's former Iran analyst, and Steve Rosen, its former foreign policy chief, were charged under a rarely used section of the 1917 Espionage Act that makes it a crime for civilians to receive and distribute closely held defense information. Both men were later dismissed by AIPAC, with the organization claiming the two had violated its rules; Rosen, in turn has filed a multi-million dollar lawsuit against AIPAC.

Federal prosecutors reportedly had been considering dropping the criminal case in the wake of a number of recent judicial decisions that make the prosecution more difficult. Among these was an appeals court rejection of a prosecution request to review the trial judge's order that prosecutors make the case that the defendants harmed the United States and not merely benefited Israel. Some Democrats see the case as a piece with Bush-era efforts to expand government secrecy powers, but the Post quoted its sources as saying that the review would have occurred whether or not Barack Obama had won election as president.

More on this and its significance in a little while...

AIPAC

Harman And Goss: "Not ... Good Friends"

Zachary Roth | April 30, 2009, 5:10PM

Building off our post from yesterday -- in which we noted the interesting timing of the original 2006 report about the investigation into Jane Harman's AIPAC ties -- Foreign Policy's Laura Rozen has put together, on her personal blog, what amounts to a complete theory of the case. And it's a theory that implicates the Porter Goss camp right from the start.

So we thought we'd follow that road a bit further. It's not news that Harman and Goss haven't exactly been best buds, either while Goss chaired the House intelligence committee and Harman was its ranking Democrat, or later when Goss led the CIA from 2004 to 2006.* One former intel committee staffer explained the relationship to TPMmuckraker this way: "Jane is an assertive person. And Porter struck me as someone who wanted to avoid conflict. I would not say they were good friends."

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AIPAC

Harman Releases Media Statement On Media Advisor

Zachary Roth | April 30, 2009, 9:58AM

We wondered yesterday whether Lanny Davis, who was just hired by Jane Harman as a "media advisor" to deal with the AIPAC flap, was behind her very aggressive effort to show that her sense of humor is intact.

And it looks like we weren't the only people with questions about Lanny's role.

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AIPAC

Evidence Growing That Goss Camp Is Behind Harman Leak?

Zachary Roth | April 29, 2009, 5:18PM

There seems to be an emerging consensus among smart people covering the Jane-Harman/AIPAC case that the sources for CQ's original report -- which revealed that Rep. Harman had been heard on a wiretap discussing a quid pro quo with a suspected Israeli agent -- were aligned with Porter Goss, the former CIA director.

And here's some more evidence pointing in that direction:

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George Will

Hiatt: George Will's Critics Are "Trying To Shut Him Down"

Zachary Roth | April 29, 2009, 4:30PM

Fred Hiatt has waded back into the debate over George Will's global warming distortions -- a debate that only makes Hiatt look more out of touch than ever.

During an online chat with readers that was supposed to be about President Obama's first 100 days, Hiatt, the editor of the Washington Post's editorial page, had the following exchange with a reader:

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AIPAC

Harman: In Case You Missed It The First Time, My Sense Of Humor Is Still Intact

Zachary Roth | April 29, 2009, 2:44PM

I think we get the message ...

Following up on yesterday's rib-splitting news that Jane Harman's team for the Capital Challenge Road Race has been named "Tapped Out", Harman's office is now looking to make more headlines on the subject. Earlier this afternoon, it sent a press release reading:

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Pat Leahy

Leahy to Bybee: Why Not Give Us Your Side Of Torture Story?

Zachary Roth | April 29, 2009, 1:49PM

As the calls for his impeachment grow louder, Jay Bybee -- the Bush OLC lawyer who wrote one of the torture memos, and who is now a federal judge -- has been given the chance to share his side of the story.

The unlikely invitation comes from Pat Leahy, the chair of the Senate Judiciary committee. In a letter sent to Bybee today, Leahy invites him to testify before the committee about his role in writing the memos.

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AIG

Feds Zeroing In On Cassano's Valuation Of Credit Default Swaps

Zachary Roth | April 29, 2009, 12:40PM

Yesterday we told you that federal investigators are now zeroing in on two other AIG staffers, in addition to Joseph Cassano, as part of their probe into potential criminal wrongdoing at AIG. But a report (sub. req.) in the Wall Street Journal, which confirmed that information, also began to flesh out the more interesting question of just what the Feds suspect Cassano and his crew may have done wrong.

We knew that that December 2007 presentation, at which Cassano and others reassured investors that everything was basically fine, was drawing particular scrutiny from investigators. But the Journal adds some meat to that bone.

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Jane Harman

Harman Hires Lanny Davis As Spin-Meister

Zachary Roth | April 29, 2009, 11:27AM

Jane Harman has hired Lanny Davis as a "media adviser" to help her deal with the fallout from the AIPAC story, reports Laura Rozen at Foreign Policy.

Hiring Davis suggests Harman -- who embarked on a media blitz last week, without perfect success, in response to the affair -- isn't so worried about the perception that she's too close to the Israel lobby. Davis -- who was special counsel to President Clinton during the Lewinsky saga, and an indefatigable spinner for Hillary Clinton's presidential campaign -- has long been a supporter of AIPAC, and serves as an adviser and spokesman for the Israel Project, a hawkish, pro-Israel group. He also, for good measure, appears regularly on Fox News.

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AIPAC

Daily Show On Harman-AIPAC

Zachary Roth | April 29, 2009, 10:45AM

Jon Stewart had a good segment last night on the convoluted Jane-Harman/AIPAC affair, which brought out both the byzantine nature of the saga, and the ultimate fact that nothing much came of any of the scheming: Harman didn't get the intel job, the AIPAC guys didn't get off, and Haim Saban didn't withhold money from Democrats.

As Stewart put it: "Your government, not at work."

Watch:

AIG

AIG's Sullivan: "Highly Unlikely" We'll Have To Pay Out On Credit Default Swaps

Zachary Roth | April 28, 2009, 6:22PM

We took another quick look at that press release that AIG released in November 2007 about its third quarter earnings -- which is now reportedly being looked at by federal investigators as evidence that the firm may have deliberately misled investors.

And here's one line that jumps out. The release quotes CEO Martin Sullivan saying:

AIGFP reported an operating loss in the quarter due principally to the unrealized market valuation loss related to its super senior credit default swap portfolio. Although GAAP requires that AIG recognize changes in valuation for these derivatives, AIG continues to believe that it is highly unlikely that AIGFP will be required to make any payments with respect to these derivatives. (our itals)

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John Conyers

Conyers And Nadler To Holder: We Need Special Torture Prosecutor

Zachary Roth | April 28, 2009, 4:52PM

Reps. John Conyers and Jerry Nadler want a special prosecutor to investigate whether Bush administration officials committed crimes in ordering and justifying torture policies.

In a just-released letter to Attorney General Eric Holder, the Democratic lawmakers write:

The authorization and use of interrogation techniques that likely amounted to torture has generated concern and outrage in this country, and has harmed our legal and moral standing in the world. As a country committed to the rule of law, we must investigate and demand accountability for acts of torture committed by or own our behalf (sic). Appointing a special counsel to undertake this task would serve the interests of the department and of the public in ensuring that the necessary investigation is through and impartial, and that the United States fairly investigates serious and credible accusations of misconduct, even where high-ranking government officials may be involved.

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Jane Harman

Harman: Despite AIPAC Flap, I Can Still Make Lame Puns

Zachary Roth | April 28, 2009, 4:23PM

It's all in good fun -- but is an alleged quid pro quo with a suspected Israeli agent really a laughing matter?

CQ reports that Jane Harman's office plans to compete in a road race tomorrow, sponsored by the American Council of Life Insurers. The Harman team's name: "Tapped Out."

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Barack Obama

Court Rejects Obama Admin's State Secrets Claim

Zachary Roth | April 28, 2009, 2:29PM

A court has rejected the Obama administration's claim of the state secret privilege.

Via the blog Legal Pad: A three-member panel of the 9th circuit Court of Appeals ruled this morning on a request from the government that it dismiss the Jeppesen case, which focuses on the CIA's extraordinary rendition program.

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AIG

Report: Feds Probing Two Cassano Deputies

Zachary Roth | April 28, 2009, 1:02PM

CBS News has some new developments in the criminal probe into AIG...

We knew that Joe Cassano, the former head of AIG's Financial Products unit, was in investigators' crosshairs for potentially giving misleading public statements about AIGFP's position. But the network now reports that the Justice Department is also looking closely at two of his deputies -- Andrew Forster, an executive vice president, and Thomas Athan, a managing director -- for the same reason.

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AIG

Congress To DOJ And SEC: Hand Over AIG Docs Or We'll Subpoena Them

Zachary Roth | April 28, 2009, 10:21AM

Congress is upping the ante in its bid to get access to those insider reports on AIG compiled by a government monitor.

House Oversight chair Ed Towns, joined by ranking GOPer Darrell Issa, yesterday sent letters to the Justice Department and the SEC, threatening them with subpoenas if they don't hand over the information by this Thursday*.

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AIPAC

Did Goss Target Harman?

Zachary Roth | April 27, 2009, 5:33PM

In our last post on the Jane-Harman/AIPAC story, we noted growing evidence that Bush administration officials worked aggressively to prevent Congress from learning about Harman's wiretapped conversation with that suspected Israeli agent. But Ron Kampeas of the Jewish Telegraphic Agency had an (unfortunately titled) post late last week that took things in a very different, but equally interesting, direction.

Kampeas conducts a close reading of a New York Times report on the affair from last week to make a strong case that it was Porter Goss, then the CIA director, who took the initiative in going after Harman after hearing her on the wiretap, by trying to have authorized a separate wiretap of the lawmaker herself.

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Jack Abramoff

Two Thumbs Up! Kevin Spacey To Play Abramoff in Casino Jack

Zachary Roth | April 27, 2009, 3:08PM

Get ready for Jack Abramoff: The Movie.

The well-sourced Hollywood blogger Nikki Finke reported Friday that Kevin Spacey and director George Hickenlooper were visiting the disgraced former lobbyist in prison -- as part of their research for Casino Jack, which will start filming next month, with the man who once played Keyser Soze in the lead role. (Variety had reported last August on plans for the project, then known as Bagman.)

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AIPAC

Hastert: Source Said Negroponte Blocked Me From Getting Briefed On Harman Wiretap

Zachary Roth | April 27, 2009, 12:29PM

The Jane-Harman/AIPAC story is only getting more interesting.

Former House Speaker Dennis Hastert has gone on the record with information that suggests a broader effort than we'd yet been aware of by the Bush administration to keep secret the fact that it had wiretapped a member of Congress.

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AIG

Congress To Ask Liddy: "What Caused The Downfall Of AIG?"

Zachary Roth | April 27, 2009, 10:22AM

AIG CEO Ed Liddy has already testified once before Congress about his firm's starring role in the financial crisis. But it looks like he'll soon be doing so again.

Last week, Rep. Ed Towns -- who chairs the House Oversight Committee, which is probing the causes of the crisis -- sent a letter to Liddy inviting him to appear May 6th. Among the topics that Towns intends to cover, according to the letter: "What caused the downfall of AIG?" and "what has AIG done with its Federal financial assistance?"

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