Thursday, March 24, 2011

Jamie Gorelick?! Is Obama Kidding?

The latest rumor has Obama looking at appointing Jamie Gorelick to be the next director of the FBI. Good grief. This pick should bother everyone. Gorelick’s career has been an unending series of conflicts of interest, abuses of power, and questionable decisions. Let’s look at the highlights of Gorelick’s reign of error.

1. Gorelick's Wall of Silence
Between 1994 and 1997, Gorelick was Clinton’s Deputy Attorney General, the number two position at the Justice Department. In 1995, Gorelick wrote a memo outlining what would become known as “Gorelick’s Wall.” This memo interpreted court decisions on the Foreign Intelligence Surveillance Act of 1978 and recommended a set of restrictions on the ability of criminal investigative organizations, like the FBI, to share information with intelligence agencies, like the CIA. Gorelick’s Wall prevented intelligence agencies from accessing the computer of Zacarias Moussaoui, a computer which could well have led to the discovery of 9/11 before it happened.

But wait, says Gorelick in an editorial, the 9/11 Commission found that this wall already existed under Reagan and Bush I, and it never found this wall to be that big of a deal. What Gorelick fails to mention, however, is that she was on the 9/11 Commission AND that she never disclosed her 1995 memo to her fellow Commissioners.

This is not only an incredible conflict of interest that never should have been allowed, but it shows exactly why such conflicts must be avoided. By accepting the position on the 9/11 Commission, Gorelick essentially placed herself in the position of investigating herself. The fact she ignored such an obvious conflict of interest speaks poorly of her judgment. Moreover, her failure to disclosed this key memo to the Commission makes any conclusion they reached on this issue meaningless.

Further, Gorelick tries to defend herself by blaming Reagan and Bush for creating the policy, even though she is the one who provided the new interpretation. Then she tries to blame Janet Reno by claiming that her memo was less restrictive than what Reno ultimately put out (an argument which contradicts her attempts to blame Reagan or Bush). Also, she attacks her critics as “partisans” and blames “public rancor” for the allegations against her, which is an evasive tactic.

This incident is an ethical disgrace, and it calls into question whether she can put the interests of the FBI and the nation above her own self-interest.
2. Gorelick Champions Governments’ Right To Know
Also while serving as Clinton’s Deputy Attorney General, Gorelick tried to give the government control over the internet. Arguing that the internet was “transmitting child pornography into our homes,” that terrorists could use the internet to communicate, and that the internet could allow hackers to “shut down the banking system,” Gorelick fought for a ban on the domestic use of strong encryption and tried to force companies to put their encryption codes into escrow so the government could get at them. This is evidence of a mind that cares little for civil liberties and Constitutional rights.

(FYI, internet expert Gorelick didn’t even know her own e-mail address at the time.)
3. Fannie Mae Pay Day
Moving on from the Justice Department, Gorelick took a job as the Vice Chairman of Fannie Mae between 1997 and 2003. Guess what Fannie Mae started doing while Gorelick was there? Yep: bundling subprime loans into securities. . . the same securities that blew up the world economy in 2008. In March of 2002, Gorelick defended this practice in an interviewed with Business Week: “We believe we are managed safely. . . . Fannie Mae is among the handful of top-quality institutions.” She was paid $26,466,834 during her time at Fannie Mae. We would pay $338 billion to bail them out (and take on $5 trillion in loan guarantees).

Moreover, during this period, a $9 billion accounting scandal arose at Fannie Mae. According to the Director of the Office of Federal Housing Enterprise Oversight, false signatures were used by Fannie Mae to shift expenses into the future and wrongly increase profits. During 1998, these false profits triggered $27.1 million in bonuses to a handful of Fannie Mae executives, including Gorelick, who received $779,625 of that.

This scandal eventually resulted in $9 billion in profits being removed from Fannie Mae’s books. And while there is no direct proof of Gorelick’s involvement, let me point out that direct proof was not considered necessary in scandals like Enron or under Sarbanes-Oxley, where executives are considered responsible for the actions that occur under their watch. Further, her senior position and the unwillingness/inability of Fannie Mae to investigate who faked these signatures or who was aware of what, call into question her role, especially as she apparently made no attempt to expose this issue.
4. Railroading White Kids At Duke
Following her departure from Fannie Mae, Gorelick returned to a big DC law firm. In 2006, she joined the defense team that represented Duke University in the 2006 Duke University lacrosse case. This was the incident where Duke railroaded 47 Duke University students on flimsy and contradictory rape allegations by a stripper with a history of mental problems, who actually identified people who were not present as the rapists, who then confessed to a friend that she was lying to get money from the “white boys,” and who later tried to set fire to her live-in boyfriend. Despite this, Gorelick’s client suspended the entire lacrosse team, took no action to stop threats made against the players, their families and the team’s coach, and sent out e-mails stoking racial tensions.
5. International Peace Through Superior Firepower
Gorelick now serves on the board of directors of United Technologies Corporation, a defense contractor with $5 billion in defense contracts, while also serving on the board of directors of the John D. and Catherine T. MacArthur Foundation and the Carnegie Endowment for International Peace, organizations dedicated to (leftist) international peace. Do you see any conflict there?
6. Student Loan Lobbyist
Finally, Gorelick is currently a lobbyist for the lending industry fighting student loan reform. Remember the whole “no lobbyist” thing from Obama? No? Well, neither does Obama apparently. Oh, and she represents BP.

Gorelick has shown a lack of judgment when it comes to conflicts of interest, a penchant for passing blame to others, questionable business ethics, and an utter indifference to the rights of individuals. This is not someone who should be running the FBI.

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