The Thomas Merton Center, located in a humble storefront in Pittsburgh, is an inviting social justice space where visitors can pick up some pamphlets on non-violent civil disobedience or hold a community potluck. The center, named for an activist and Trappist monk, proudly promotes pacifism, but that didn’t prevent the FBI from spying on Merton Center activists in 2002, branding them terrorists and then later lying about it to Congress.

That was one of the critical findings of a report released Monday by Justice Department Inspector General Glenn Fine. The report said that between 2001 and 2006, the FBI also kept tabs on a Seattle antiwar activist as well as individuals affiliated with Greenpeace, People for the Ethical Treatment of Animals (PETA), Catholic Workers and Quakers. The agency improperly placed these activists on terrorist watch lists, according to the report.

The report found that the FBI gave inaccurate and misleading information to Congress and the public in 2006 when it claimed that an agent who spied on an anti-war rally organized by Thomas Merton Center activists was investigating individuals with possible links to terrorism.

The surveillance of a Merton center rally in November 2002, which consisted of antiwar activists distributing information in a public space, was “an ill-conceived project on a slow work day,” according to the report. The FBI's surveillance of the rally was initially revealed via a Freedom of Information Act (FOIA) request filed by the American Civil Liberties Union (ACLU), which subsequently sparked Fine's probe.

The report said an agent asked his superior for something to do on a slow day of work, and he was directed to monitor the rally for potential terrorism suspects. Fine's investigation found that the agent’s “make work” assignment had nothing to do with any specific terrorism investigation.

Labels: Bush Administration, surveillance

Two years ago, a top psychiatrist at Walter Reed Army Medical Center was so concerned about what he saw as Nidal Hasan's incompetence and reckless behavior that he put those concerns in writing. NPR has obtained a copy of the memo, the first evaluation that has surfaced from Hasan's file.

Officials at Walter Reed sent that memo to Fort Hood this year when Hasan was transferred there.

Nevertheless, commanders still assigned Hasan — accused of killing 13 people in a mass shooting at Fort Hood on Nov. 5 — to work with some of the Army's most troubled and vulnerable soldiers.

On May 17, 2007, Hasan's supervisor at Walter Reed sent the memo to the Walter Reed credentials committee. It reads, "Memorandum for: Credentials Committee. Subject: CPT Nidal Hasan." More than a page long, the document warns that: "The Faculty has serious concerns about CPT Hasan's professionalism and work ethic. ... He demonstrates a pattern of poor judgment and a lack of professionalism." It is signed by the chief of psychiatric residents at Walter Reed, Maj. Scott Moran.

When shown the memo, two leading psychiatrists said it was so damning, it might have sunk Hasan's career if he had applied for a job outside the Army.

Labels: Bush Administration, closing the barn door after the horse escapes, incompetence

Tom Ridge, the first secretary of homeland security, asserts in a new book that he was pressured by top advisers to President George W. Bush to raise the national threat level just before the 2004 election in what he suspected was an effort to influence the vote.

After Osama bin Laden released a threatening videotape four days before the election, Attorney General John Ashcroft and Defense Secretary Donald H. Rumsfeld pushed Mr. Ridge to elevate the public threat posture but he refused, according to the book. Mr. Ridge calls it a “dramatic and inconceivable” event that “proved most troublesome” and reinforced his decision to resign.

The provocative allegation provides fresh ammunition for critics who have accused the Bush administration of politicizing national security. Mr. Bush and his Democratic challenger, Senator John Kerry of Massachusetts, were locked in a tight race heading into that final weekend, and some analysts concluded that even without a higher threat level, the bin Laden tape helped the president win re-election by reminding voters of the danger of Al Qaeda.

Labels: Bush Administration, Propaganda, Republican lies, terrorism, wingnuttia

Labels: Bush Administration, torture

on the morning of Thursday, April 10, 2003, Donald Rumsfeld’s Pentagon prepared a top-secret briefing for George W. Bush. This document, known as the Worldwide Intelligence Update, was a daily digest of critical military intelligence so classified that it circulated among only a handful of Pentagon leaders and the president; Rumsfeld himself often delivered it, by hand, to the White House. The briefing’s cover sheet generally featured triumphant, color images from the previous days’ war efforts: On this particular morning, it showed the statue of Saddam Hussein being pulled down in Firdos Square, a grateful Iraqi child kissing an American soldier, and jubilant crowds thronging the streets of newly liberated Baghdad. And above these images, and just below the headline secretary of defense, was a quote that may have raised some eyebrows. It came from the Bible, from the book of Psalms: “Behold, the eye of the Lord is on those who fear Him…To deliver their soul from death.”

This mixing of Crusades-like messaging with war imagery, which until now has not been revealed, had become routine. On March 31, a U.S. tank roared through the desert beneath a quote from Ephesians: “Therefore put on the full armor of God, so that when the day of evil comes, you may be able to stand your ground, and after you have done everything, to stand.” On April 7, Saddam Hussein struck a dictatorial pose, under this passage from the First Epistle of Peter: “It is God’s will that by doing good you should silence the ignorant talk of foolish men.”

Labels: Bush Administration, Christofascist Zombie Brigade, insanity

In the aftermath of the 9/11 attacks, the Justice Department secretly gave the green light for the U.S. military to attack apartment buildings and office complexes inside the United States, deploy high-tech surveillance against U.S. citizens and potentially suspend First Amendment freedom-of-the-press rights in order to combat the terror threat, according to a memo released Monday.

Many of the actions discussed in the Oct. 23, 2001, memo to then White House counsel Alberto Gonzales and Secretary of Defense Donald Rumsfeld's chief lawyer, William Haynes, were never actually taken.

But the memo from the Justice Department's Office of Legal Counsel—along with others made public for the first time Monday—illustrates with new details the extraordinary post-9/11 powers asserted by Bush administration lawyers. Those assertions ultimately led to such controversial policies as allowing the waterboarding of terror suspects and permitting warrantless wiretapping of U.S. citizens—steps that remain the subject of ongoing investigations by Congress and the Justice Department. The memo was co-written by John Yoo, at the time a deputy attorney general in the Office of Legal Counsel. Yoo, now a professor at the Boalt Hall School of Law at the University of California, Berkeley, has emerged as one of the central figures in those ongoing investigations.

In perhaps the most surprising assertion, the Oct. 23, 2001, memo suggested the president could even suspend press freedoms if he concluded it was necessary to wage the war on terror. "First Amendment speech and press rights may also be subordinated to the overriding need to wage war successfully," Yoo wrote in the memo entitled "Authority for Use of Military Force to Combat Terrorist Activity Within the United States."

This claim was viewed as so extreme that it was essentially (and secretly) revoked—but not until October of last year, seven years after the memo was written and with barely three and a half months left in the Bush administration.

Labels: Bush Administration, dictatorship, totalitarianism

In what could turn out to be the greatest fraud in US history, American authorities have started to investigate the alleged role of senior military officers in the misuse of $125bn (£88bn) in a US -directed effort to reconstruct Iraq after the fall of Saddam Hussein. The exact sum missing may never be clear, but a report by the US Special Inspector General for Iraq Reconstruction (SIGIR) suggests it may exceed $50bn, making it an even bigger theft than Bernard Madoff's notorious Ponzi scheme.

"I believe the real looting of Iraq after the invasion was by US officials and contractors, and not by people from the slums of Baghdad," said one US businessman active in Iraq since 2003.

In one case, auditors working for SIGIR discovered that $57.8m was sent in "pallet upon pallet of hundred-dollar bills" to the US comptroller for south-central Iraq, Robert J Stein Jr, who had himself photographed standing with the mound of money. He is among the few US officials who were in Iraq to be convicted of fraud and money-laundering.

Despite the vast sums expended on rebuilding by the US since 2003, there have been no cranes visible on the Baghdad skyline except those at work building a new US embassy and others rusting beside a half-built giant mosque that Saddam was constructing when he was overthrown. One of the few visible signs of government work on Baghdad's infrastructure is a tireless attention to planting palm trees and flowers in the centre strip between main roads. Those are then dug up and replanted a few months later.

Iraqi leaders are convinced that the theft or waste of huge sums of US and Iraqi government money could have happened only if senior US officials were themselves involved in the corruption. In 2004-05, the entire Iraq military procurement budget of $1.3bn was siphoned off from the Iraqi Defence Ministry in return for 28-year-old Soviet helicopters too obsolete to fly and armoured cars easily penetrated by rifle bullets. Iraqi officials were blamed for the theft, but US military officials were largely in control of the Defence Ministry at the time and must have been either highly negligent or participants in the fraud.

American federal investigators are now starting an inquiry into the actions of senior US officers involved in the programme to rebuild Iraq, according to The New York Times, which cites interviews with senior government officials and court documents. Court records reveal that, in January, investigators subpoenaed the bank records of Colonel Anthony B Bell, now retired from the US Army, but who was previously responsible for contracting for the reconstruction effort in 2003 and 2004. Two federal officials are cited by the paper as saying that investigators are also looking at the activities of Lieutenant-Colonel Ronald W Hirtle of the US Air Force, who was senior contracting officer in Baghdad in 2004.

Labels: Bush Administration, corruption, Iraq casualties

Labels: Bush Administration, corruption, crime, NSA wiretapping

If the unthinkable happens on Inauguration Day, Robert Gates, the defense secretary, will be available to assume the reins of government.

"In order to ensure continuity of government, Defense Secretary Robert Gates has been designated by the outgoing Administration, with the concurrence of the incoming Administration, to serve as the designated successor during Inauguration Day, Tuesday, January 20th," White House press Secretary Dana Perino said.

[snip]

Perino said that Gates will be at a secure, undisclosed location on Inauguration Day, according to CBS News White House Correspondent Mark Knoller. Most of the others on the succession list, by contrast, will be participating in the inauguration festivities.

Labels: Bush Administration, tinfoil

The Bush Administration's Department of Justice announced Monday that they are suing the city of Gary, Indiana for discriminating against white people.



On Monday, the Justice Department announced a lawsuit against the Indiana city, alleging that six EMT technicians appear to have been hired on the basis of race alone in violation of the 1964 Civil Rights Act -- which was passed to combat discrimination against African Americans.



The suit alleges that the city told applicants that offers of employment would be based on the order they were ranked. But the city seems to have ignored their own ordering and instead hired several African American applicants who placed lower than the white applicants.



Each of the six who were hired ranked lower than the highest-ranking white applicant, the Justice Department wrote.



"Federal law guarantees equal access to employment opportunities without regard to race," said Grace Chung Becker, Acting Assistant Attorney General for the Justice Department’s Civil Rights Division, said in a release. "The Department is committed to enforcing all the federal civil rights laws, including Title VII, under its jurisdiction."



Gary's corporate counsel, Hamilton Carmouche, told a local paper the list was prepared by the city's previous mayor, and gave preference to applicants who lived in Gary.



"We hire not on the basis of any race, but on the basis of residency," Carmouche said.



Use of the Civil Rights Act to protect against discrimination against whites is not unprecedented, but it is a novel tactic by the Bush Administration's lawyers.

Labels: Bush Administration, just another outrage, Justice Department

"I think that there's a lot that remains to look at, and I appreciate that President Obama doesn't want to make it his purpose as a new president, with America in real distress in many directions, to go back and look at all this, but I think we in Congress have an independent responsibility, and I fully intend to discharge that responsibility,"

Labels: Bush Administration, crime

...it's absurd to talk about "upholding the Constitution" and say "no one is above the law" if you refuse to look "back" at those who have subverted the Constitution and broken the law.

And you can't have one set of rules for "national security" and a different set of rules for everything else; there is no "national security exception" in the oath President-elect Obama will swear on January 20 in front of the people of the United States and the world:

"I do solemnly swear (or affirm) that I will faithfully execute the office of President of the United States, and will to the best of my ability, preserve, protect and defend the Constitution of the United States."

So if there's any hope for prosecution in Obama's answer, it is that Attorney General Eric Holder will truly be "the people's lawyer" and fully represent us by prosecuting torturers, wiretappers, and other criminals who committed their crimes from secret undisclosed locations hidden within the Bush-Cheney administration.

But let's not leave this to chance. Let's all tell Attorney General Eric Holder what we want through a petition to Holder to appoint a Special Prosecutor for Bush's crimes: http://www.democrats.com/special-prosecutor-for-bush-war-crimes

[snip]

Update 2: Glennzilla believes Obama's reference an independent evaluation by Eric Holder is nothing more than "lip service":

Worst of all, Obama (in response to Stephenapolous' asking him about the number one highest-voted question on Change.gov, first submitted by Bob Fertik) all but said that he does not want to pursue prosecutions for high-level lawbreakers in the Bush administration, twice repeating the standard Beltway mantra that "we need to look forward as opposed to looking backwards" and "my instinct is for us to focus on how do we make sure that moving forward we are doing the right thing." Obama didn't categorically rule out prosecutions -- he paid passing lip service to the pretty idea that "nobody is above the law," implied Eric Holder would have some role in making these decisions, and said "we're going to be looking at past practices" -- but he clearly intended to convey his emphatic view that he opposes "past-looking" investigations. In the U.S., high political officials aren't investigated, let alone held accountable, for lawbreaking, and that is rather clearly something Obama has no intention of changing.

Labels: Bush Administration, crime, President Barack Obama, spinelessness

The Federal Reserve refused a request by Bloomberg News to disclose the recipients of more than $2 trillion of emergency loans from U.S. taxpayers and the assets the central bank is accepting as collateral.

Bloomberg filed suit Nov. 7 under the U.S. Freedom of Information Act requesting details about the terms of 11 Fed lending programs, most created during the deepest financial crisis since the Great Depression.

The Fed responded Dec. 8, saying it’s allowed to withhold internal memos as well as information about trade secrets and commercial information. The institution confirmed that a records search found 231 pages of documents pertaining to some of the requests.

“If they told us what they held, we would know the potential losses that the government may take and that’s what they don’t want us to know,” said Carlos Mendez, a senior managing director at New York-based ICP Capital LLC, which oversees $22 billion in assets.

[snip]

Congress is demanding more transparency from the Fed and Treasury on bailout, most recently during Dec. 10 hearings by the House Financial Services committee when Representative David Scott, a Georgia Democrat, said Americans had “been bamboozled.”

Bloomberg News, a unit of New York-based Bloomberg LP, on May 21 asked the Fed to provide data on collateral posted from April 4 to May 20. The central bank said on June 19 that it needed until July 3 to search documents and determine whether it would make them public. Bloomberg didn’t receive a formal response that would let it file an appeal within the legal time limit.

On Oct. 25, Bloomberg filed another request, expanding the range of when the collateral was posted. It filed suit Nov. 7.

In response to Bloomberg’s request, the Fed said the U.S. is facing “an unprecedented crisis” in which “loss in confidence in and between financial institutions can occur with lightning speed and devastating effects.”

Labels: Bush Administration, economic death watch, greed

A bipartisan panel of senators has concluded that former defense secretary Donald H. Rumsfeld and other top Bush administration officials bear direct responsibility for the harsh treatment of detainees at Guantanamo Bay, and that their decisions led to more serious abuses in Iraq and elsewhere.

In the most comprehensive critique by Congress of the military's interrogation practices, the Senate Armed Services Committee issued a report yesterday that accuses Rumsfeld and his deputies of being the authors and chief promoters of harsh interrogation policies that disgraced the nation and undermined U.S. security. The report, released by Sens. Carl M. Levin (D-Mich.) and John McCain (R-Ariz.), contends that Pentagon officials later tried to create a false impression that the policies were unrelated to acts of detainee abuse committed by members of the military.

"The abuse of detainees in U.S. custody cannot simply be attributed to the actions of 'a few bad apples' acting on their own," the report states. "The fact is that senior officials in the United States government solicited information on how to use aggressive techniques, redefined the law to create the appearance of their legality, and authorized their use against detainees."

The report is the most direct refutation to date of the administration's rationale for using aggressive interrogation tactics -- that inflicting humiliation and pain on detainees was legal and effective, and helped protect the country. The 25-member panel, without one dissent among the 12 Republican members, declared the opposite to be true.

Labels: Bush Administration, Donald Rumsfeld, war crimes

Federal authorities are warning police of a possible terror plot against the New York City subway and train systems during the holiday season, prompting local officials to beef up security at stations. An internal memo obtained by The Associated Press says the FBI has received a "plausible but unsubstantiated" report that al-Qaida terrorists in late September may have discussed attacking the subway system.

A person briefed on the matter, speaking to The Associated Press on condition of anonymity because of the sensitivity of the intelligence-gathering work, said the threat may also be directed at the passenger rail lines running through New York, such as Amtrak and the Long Island Rail Road, which are particularly busy with Thanksgiving holiday travelers.

A U.S. counterterror official, also speaking on condition of anonymity because he was not authorized to do so publicly, said senior government officials have been briefed because the FBI very recently received credible information about possible attacks over the holiday season, and authorities are particularly concerned about this long holiday weekend.

As the July 4 holiday approaches, Bush Administration officials are bombarding the nation's police, fire, emergency and corporate-security offices with another round of terrorism warnings. Although there are no plans to raise the threat level from yellow to orange, a senior Justice Department official says, "there's very serious intelligence that's corroborated, that's multiple sourced, that indicates that al-Qaeda is intent on hitting us and hitting us hard this year." The official concedes, however, that "we don't have specific information."

Along with this now familiar general warning, the FBI has introduced the specter of a new terrorism threat: booby-trapped beer coolers. A lightly classified bulletin sent to 18,000 state and local agencies last week advised local authorities to look out for plastic-foam containers, inner tubes and other waterborne flotsam commonly seen around marinas that could be rigged to blow up on contact. Also, the bulletin warned, terrorists might attach bombs to buoys. FBI and Department of Homeland Security officials say no such devices have actually been discovered, nor is there any current intelligence that terrorists are hatching plots involving floating bombs. But some officials believe al-Qaeda may be focusing on harbors and shipping channels in an effort to replicate the success of the October 2000 attack on the U.S.S. Cole in the port of Aden, in which suicide bombers used a small launch laden with explosives to rip a 40-ft. hole in the warship's hull, killing 17 sailors.

The Department of Homeland Security raised the U.S. terror threat level from elevated to high Sunday, warning of possible terrorist strikes more devastating than the attacks of September 11, 2001.

Homeland Security Secretary Tom Ridge said the move was the result of a "substantial increase" in the volume of intelligence pointing to "near-term attacks that could either rival or exceed what we experienced on September 11."

Ridge urged the public to be patient with stricter security measures "in the coming days and weeks" and to proceed with holiday plans despite the threat.

"America is a country that will not be bent by terror," he said.

A senior administration official familiar with the decision said the volume of threats was "significantly higher" and was coming from known sources but that there was "nothing site-specific."

Top officials discussed the matter among themselves and with President Bush for several days. The intelligence "reached the level at which we felt this is [the] right decision, to ramp up in time for [the] holidays," the senior administration official said.

Labels: Bush Administration, House of Saud, terrorism

Saudi Arabian prince Alwaleed bin Talal has come to the rescue of Citigroup with a much-needed cash injection today.

The surprise turnaround ended a two-year selloff that has wiped more than $200bn (£135bn) from the bank's market value.

The Saudi prince will increase his stake from about 4 to 5% in the coming days.

The move initially filled investors with confidence and sparked a buying spree before the bell. The shares surged 25 cents to $6.65, but then fell back to tumble by another 17.5%. Yesterday, they fell more than 22% in a single session while the stock is down more than 90% since 2006.

Based on Wednesday evening's closing price, the prince plans to invest about $349m of his fortune in Citigroup shares.

In a statement released at 9am in New York, Talal said he believed Citi's shares were "dramatically undervalued" and expressed "full and complete support to Citi management" including the embattled chief executive, Vikram Pandit.

He said the New York-based bank was "taking all the necessary steps to position the company to withstand the challenges facing the banking industry and the global economy".

Talal said he was "fully confident that Citigroup's universal banking model and global franchise will make it a long-term winner in the financial services industry".

In the short term, the latest effort to steady Citigroup has removed the risk that a sudden failure of the giant bank would send losses cascading through the financial industry.

But longer term, the new bailout could haunt regulators and taxpayers. The move ultimately may encourage banks to take more risks in the belief that the government will step in if they run into trouble.

With a recession looming, if not here already, banks big and small are bracing for more loans to sour, particularly those related to commercial real estate, autos and credit cards. Many are making fewer loans, even though the industry has received nearly $300 billion from the government.

Before long, anxious investors may start wondering which banks will be vulnerable next. If confidence fades, other big lenders will probably seek deals like Citigroup’s, in which the government has pledged to pick up potentially $290 billion in additional losses. Regulators drafted the plan with an eye to using it as a template for future bailouts.

There are other worries for Citigroup’s big rivals. Almost overnight, Citigroup went from being the sick man of the industry to an institution with an edge over its competitors. The government is guaranteeing $250 billion of risky assets and pumping an additional $20 billion into the bank.

With the government behind it, Citigroup may now be able to borrow money in the capital markets at lower interest rates than its peers.

“Citi has a decided advantage over them because of the loss-sharing agreement,” said John Kanas, the former chief executive of North Fork Bank of Long Island. While banks may hold out for now, it may be only a matter of time before they too line up, several analysts said.

Labels: bank failures, Bush Administration, Cronyism, House of Saud

Shawn Nguyen bragged that he could sneak anything past airport security using his top-secret clearance as a federal air marshal. And for months, he smuggled cocaine and drug money onto flights across the country, boasting to an FBI informant that he was "the man with the golden badge."

Michael McGowan used his position as an air marshal to lure a young boy to his hotel room, where he showed him child porn, took pictures of him naked and sexually abused him.

And when Brian "Cooter" Phelps wanted his ex-wife to disappear, he called a fellow air marshal and tried to hire a hit man nicknamed "the Crucifixer."

Since 9/11, more than three dozen federal air marshals have been charged with crimes, and hundreds more have been accused of misconduct, an investigation by ProPublica has found. Cases range from drunken driving and domestic violence to aiding a human trafficking ring and trying to smuggle explosives from Afghanistan.

The Federal Air Marshal Service presents the image of an elite undercover force charged with making split-second decisions that could mean the difference between stopping a terrorist and shooting an innocent passenger.

But an examination of police reports, court records, government reports, memos and e-mails shows that 18 air marshals have been charged with felonies, including at least three who were hired despite prior criminal records or being fired from law enforcement jobs. A fourth air marshal was hired while under FBI investigation. Another stayed on the job despite alarming a flight attendant with his behavior.

Labels: air safety, Bush Administration, FUBAR, Homeland Security

U.S. military helicopters launched an extremely rare attack Sunday on Syrian territory close to the border with Iraq, killing eight people in a strike the government in Damascus condemned as "serious aggression."

A U.S. military official said the raid by special forces targeted the network of al-Qaida-linked foreign fighters moving through Syria into Iraq. The Americans have been unable to shut the network down in the area struck because Syria was out of the military's reach.

"We are taking matters into our own hands," the official told The Associated Press in Washington, speaking on condition of anonymity because of the political sensitivity of cross-border raids.

The attack came just days after the commander of U.S. forces in western Iraq said American troops were redoubling efforts to secure the Syrian border, which he called an "uncontrolled" gateway for fighters entering Iraq.

A Syrian government statement said the helicopters attacked the Sukkariyeh Farm near the town of Abu Kamal, five miles inside the Syrian border. Four helicopters attacked a civilian building under construction shortly before sundown and fired on workers inside, the statement said.

The government said civilians were among the dead, including four children.

Labels: Bush Administration, Mid-East, October Surprise, Syria

President Bush is asking the Justice Department to look into whether 200,000 Buckeye State poll-goers must use provisional ballots on Election Day because their names do not match state databases.

White House spokesman Carlton Carroll confirmed Friday that the president will forward a letter to Attorney General Michael Mukasey from House Minority Leader John Boehner (R-Ohio), requesting that the Justice Department look into whether the state’s voter rolls comply with the Help America Vote Act.

In a letter dated on Friday, the House GOP leader wrote that with Election Day “less than two weeks away, immediate action by the Department is not only warranted, but also crucial.”

“I respectfully request that you use your authority to direct Attorney General Michael Mukasey and the U.S. Department of Justice to investigate these actions and direct the appropriate authorities in each state to comply with the Section 303 requirements of HAVA,” Boehner wrote.

“Unless action is taken by the Department immediately, thousands, if not tens or hundreds of thousands, of names whose information has not been verified through the HAVA procedures mandated by Congress will remain on voter rolls during the November 4, 2008 election; and there is a significant risk — if not a certainty, that unlawful votes will be cast and counted.”

Labels: 2008 election, Bush Administration, vote suppression, wingnuttia

The FBI, after years spent focusing on national security, is struggling to find agents and resources to investigate wrongdoing tied to the country's economic crisis, The New York Times reported in Sunday editions.

Citing current and former FBI officials, the Times said cutbacks in its criminal investigative workforce following the September 11 attacks left the FBI weaker in areas like white collar crime.

The cutbacks were the result of a shift in focus to terrorism and intelligence matters. More than 1,800 agents, or nearly one-third of all those in criminal programs, moved into those areas, the Times said.

"Clearly, we have felt the effects of moving resources from criminal investigations to national security," the newspaper quoted FBI Assistant Director John Miller as saying. "In white collar crime, while we initiated fewer cases over all, we targeted the areas where we could have the biggest impact. We focused on multimillion-dollar corporate fraud, where we could make arrests but also recover money for the fraud victims."

While the FBI plans to double the number of agents working on financial crimes, people within and outside the Justice Department question where the agents will come from and whether that will suffice, the Times said.

Records and interviews show that FBI officials have warned of a looming mortgage threat since 2004, and asked the Bush administration to fund such nonterrorism investigations, but the requests were denied and no new agents were approved for financial criminal investigation work, the newspaper said.

Internal FBI data shows the cutbacks were especially sharp in areas of white collar crime like mortgage fraud, with more than 600 agents lost, or more than one-third of 2001 levels.

According to Justice Department data, fraud prosecutions directed at financial institutions dropped by nearly one-half from 2000 to 2007, insurance fraud cases fell 75 percent and securities fraud decreased by 17 percent, the Times said.

Labels: Bush Administration, Republic Party, vote suppression