Saturday, May 13, 2017

Treasury unit to share records with Senate for Trump-Russia probe: WSJ


A unit of the U.S. Treasury Department that fights money laundering will provide financial records to an investigation by the Senate into possible ties between Russia and President Donald Trump and his associates, the Wall Street Journal reported on Friday, citing people familiar with the matter.
The Senate Intelligence Committee asked for the records from the Treasury’s Financial Crimes Enforcement Network, or FinCEN, late last month, the Journal cited the people as saying. (http://on.wsj.com/2qbNL7K)
One person said the records were needed to decide whether there was collusion between Trump associates and Russia during the 2016 campaign, the Journal said.
Representatives for FinCEN and Republican Senator Richard Burr, the intelligence committee chairman, declined to comment, the Journal said.
The Senate probe took on added significance after Trump dismissed FBI Director James Comey earlier this week amid an agency investigation into alleged Russian meddling in the 2016 U.S. presidential election and possible Moscow ties to the Trump presidential campaign. The House of Representatives intelligence panel is conducting a similar probe.

With a threat of ‘tapes,’ Trump tells ousted FBI chief not to talk to media


Donald Trump warned ousted FBI Director James Comey on Friday not to talk to the media, a highly unusual move that prompted fresh charges the president is trying to silence the man who led an investigation into possible collusion between Trump’s election campaign and Russia.
On Twitter, Trump appeared to suggest that if Comey gave his version of contacts between them, the administration might produce tapes of conversations, although it was not clear if such tapes exist. The veiled threat added to the storm over Trump’s abrupt firing of Comey on Tuesday.
Critics have assailed Trump for dismissing the FBI chief just as the agency is investigating alleged Russian meddling in the 2016 U.S. election, and possible Moscow ties to the Trump presidential campaign.
The New York Times reported the president asked Comey in January to pledge loyalty to him and that Comey refused to do so. Such a request would undermine the standing of the FBI chief as an independent law enforcer and further fueled charges that Trump has overstepped the norms of his office.
“James Comey better hope that there are no ‘tapes’ of our conversations before he starts leaking to the press!” Trump said in a string of Twitter posts on Friday.
Trump told Fox News he did not ask Comey to pledge loyalty and only wants him to be honest. Trump said he would not talk about the existence of any tapes.
CNN said Comey is “not worried about any tapes” Trump may have, citing an unnamed source familiar with the matter.
The top Democrat on the Senate Intelligence Committee, Mark Warner, told MSNBC that Congress would want to look at the tapes, if they exist.
The Federal Bureau of Investigation probe and parallel congressional investigations have clouded Trump’s presidency since he took office on Jan. 20, threatening to overwhelm his policy priorities.
Democrats accuse the Republican president of trying to dent the FBI probe by firing Comey and have called for a special counsel to investigate the Russia issue.
INDEPENDENT PROBE?
The No. 2 Democrat in the Senate, Richard Durbin, went further on Friday and said Deputy Attorney General Rod Rosenstein should appoint an independent special prosecutor to pursue possible criminal charges related to Comey’s firing, although he did not specify if he meant such charges should be against Trump.
But Rosenstein does not see the need at this time for a special prosecutor, CNN reported. The Justice Department did not immediately respond to a request for comment from Reuters.
Trump told Fox News in an interview he did not think an independent probe was necessary.
In a statement, Durbin said that what he characterized as Trump’s admission that he fired Comey because of the Russia probe was “dangerously close to obstruction of justice.”
Durbin said Trump’s tweet on Friday “could be construed as threatening a witness in this investigation, which is another violation of federal law.”
Comey declined an invitation to testify before the Senate Intelligence Committee in a closed meeting on Tuesday for scheduling reasons, said Warner’s spokesman. An official familiar with the matter told Reuters that Comey had agreed in principle to testify behind closed doors at some point.
As has happened on previous occasions since Trump took office, different versions rapidly circulated of an event – in this case phone conversations between Comey and Trump and a dinner they had at the White House.
The New York Times said Comey told associates he declined to make a pledge of loyalty to Trump when the president requested it while they dined just seven days after his inauguration. Comey instead told Trump he could count on his honesty, the Times said.
Trump says Comey had told him three times he was not under investigation in the Russia probe. He said in an interview on Thursday with NBC News that Comey gave him this assurance during the White House dinner and in two phone conversations. Trump said Comey wanted to have the dinner because he wanted to stay on in the job.
Comey has not publicly discussed any conversations he has had with Trump.
NEWS BRIEFINGS
Trump also hit back on Friday at media reports questioning the credibility of White House accounts of why Comey was fired, which have changed over the course of the week, and threatened an end to regular White House press briefings.
“As a very active President with lots of things happening, it is not possible for my surrogates to stand at podium with perfect accuracy!” Trump said. “Maybe the best thing to do would be to cancel all future ‘press briefings’ and hand out written responses for the sake of accuracy???”
Trump told Fox News he would decide in “the next couple of weeks” whether the briefings would continue.
The White House initially said Trump fired Comey on the recommendation of the top Justice Department officials: Attorney General Jeff Sessions and Rosenstein. In the NBC interview on Thursday, Trump said he would have fired Comey regardless of any such recommendations.
The White House has said Comey’s firing was unrelated to the Russia probe. On Thursday, Trump told NBC he knew he ran the risk that by firing Comey he would “confuse people” and “lengthen out the investigation” into ties to Russia.
The president said he never pressured Comey into dropping the FBI investigation, and added that there was no “collusion between me and my campaign and the Russians.”
Trump told Fox News he was surprised by the fierce reaction of Democrats. “I thought that this would be a very popular thing, that I did, when I terminated Comey, because all of the Democrats couldn’t stand him,” Trump said.
Comey had angered Democrats over his handling of the probe of Democratic presidential candidate Hillary Clinton’s use of a private email server while she was secretary of state.
Trump is considering 11 people to replace Comey, a White House official said. Acting FBI Director Andrew McCabe, Republican Senator John Cornyn, New York Appeals Court Judge Michael Garcia and former Assistant Attorney General Alice Fisher will be interviewed on Saturday for the post, an administration official said.
U.S. intelligence agencies concluded in January that Russian President Vladimir Putin ordered a campaign of interference in the election aimed at tilting the vote in Trump’s favor. Moscow has denied any such meddling.
As part of the Russia investigation, the Justice Department last month requested former Trump campaign chairman Paul Manafort’s banking records, the Wall Street Journal reported, citing sources familiar with the matter.
Seeking to bolster Trump’s case that he has had no concealed dealings with Russia, his lawyers said in a letter released by the White House on Friday that a review of Trump’s tax returns from the past 10 years showed no income from Russian sources outside of a few exceptions, and indicated he did not owe money to Russian lenders.

Major cyber attack hits companies, hospitals, schools worldwide


LONDON/MADRID (Reuters) – A global cyber attack leveraging hacking tools believed to have been developed by the U.S. National Security Agency has infected tens of thousands of computers in nearly 100 countries, disrupting Britain’s health system and global shipper FedEx.
Cyber extortionists tricked victims into opening malicious malware attachments to spam emails that appeared to contain invoices, job offers, security warnings and other legitimate files.
The ransomware encrypted data on the computers, demanding payments of $300 to $600 to restore access. Security researchers said they observed some victims paying via the digital currency bitcoin, though they did not know what percent had given in to the extortionists.
Researchers with security software maker Avast said they had observed 57,000 infections in 99 countries, with Russia, Ukraine and Taiwan the top targets.
Asian countries reported no major breaches on Saturday, but officials in the region were scrambling to check and the full extent of the damage may not be known for some time.
China’s official Xinhua news agency said some secondary schools and universities had been affected, without specifying how many or identifying them.
The most disruptive attacks were reported in Britain, where hospitals and clinics were forced to turn away patients after losing access to computers on Friday.
International shipper FedEx Corp said some of its Windows computers were also infected. “We are implementing remediation steps as quickly as possible,” it said in a statement.
FROM ARGENTINA TO SPAIN
Only a small number of U.S.-headquartered organizations were hit because the hackers appear to have begun the campaign by targeting organizations in Europe, said Vikram Thakur, research manager with security software maker Symantec.
By the time they turned their attention to the United States, spam filters had identified the new threat and flagged the ransomware-laden emails as malicious, Thakur added.
Infections of the worm appeared to have fallen off significantly after a security researcher bought a domain that the malware was connecting to, by chance undermining the malware’s effectiveness.
Making the domain active appears to have stunted the spread of the worm, Thakur said on Saturday.
“The numbers are extremely low and coming down fast,” he said, while cautioning that any change in the original code could lead the worm to flare up again.
The U.S. Department of Homeland Security said late on Friday it was aware of reports of the ransomware, was sharing information with domestic and foreign partners and was ready to lend technical support.
Telecommunications company Telefonica was among many targets in Spain, though it said the attack was limited to some computers on an internal network and had not affected clients or services. Portugal Telecom and Telefonica Argentina both said they were also targeted.
Private security firms identified the ransomware as a new variant of “WannaCry” that had the ability to automatically spread across large networks by exploiting a known bug in Microsoft’s Windows operating system.
The hackers, who have not come forward to claim responsibility or otherwise been identified, likely made it a “worm”, or self spreading malware, by exploiting a piece of NSA code known as “Eternal Blue” that was released last month by a group known as the Shadow Brokers, researchers with several private cyber security firms said.
“This is one of the largest global ransomware attacks the cyber community has ever seen,” said Rich Barger, director of threat research with Splunk, one of the firms that linked WannaCry to the NSA.
The Shadow Brokers released Eternal Blue as part of a trove of hacking tools that they said belonged to the U.S. spy agency.
Microsoft said it was pushing out automatic Windows updates to defend clients from WannaCry. It issued a patch on March 14 to protect them from Eternal Blue.
“Today our engineers added detection and protection against new malicious software known as Ransom:Win32.WannaCrypt,” Microsoft said in a statement on Friday, adding it was working with customers to provide additional assistance.
SENSITIVE TIMING
The spread of the ransomware capped a week of cyber turmoil in Europe that began the previous week when hackers posted a trove of campaign documents tied to French candidate Emmanuel Macron just before a run-off vote in which he was elected president of France.
On Wednesday, hackers disrupted the websites of several French media companies and aerospace giant Airbus.Also, the hack happened four weeks before a British general election in which national security and the management of the state-run National Health Service (NHS) are important issues.
Authorities in Britain have been braced for cyber attacks in the run-up to the vote, as happened during last year’s U.S. election and on the eve of the French vote.
But those attacks – blamed on Russia, which has repeatedly denied them – followed a different modus operandi involving penetrating the accounts of individuals and political organizations and then releasing hacked material online.
On Friday, Russia’s interior and emergencies ministries, as well as its biggest bank, Sberbank, said they were targeted. The interior ministry said on its website that about 1,000 computers had been infected but it had localized the virus.
The emergencies ministry told Russian news agencies it had repelled the cyber attacks while Sberbank said its cyber security systems had prevented viruses from entering its systems.
NEW BREED OF RANSOMWARE
Although cyber extortion cases have been rising for several years, they have to date affected small-to-mid sized organizations, disrupting services provided by hospitals, police departments, public transport systems and utilities in the United States and Europe.
“Seeing a large telco like Telefonica get hit is going to get everybody worried. Now ransomware is affecting larger companies with more sophisticated security operations,” said Chris Wysopal, chief technology officer with cyber security firm Veracode.
The news is also likely to embolden extortionists when selecting targets, Chris Camacho, chief strategy officer with cyber intelligence firm Flashpoint, said.
In Spain, some big firms took pre-emptive steps to thwart ransomware attacks following a warning from the National Cryptology Center of “a massive ransomware attack”.
Iberdrola and Gas Natural, along with Vodafone’s unit in Spain, asked staff to turn off computers or cut off internet access in case they had been compromised, representatives from the firms said.
The attacks did not disrupt the provision of services or networks operations of the victims, the Spanish government said in a statement.

Friday, May 12, 2017

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U.S. consumer watchdog’s prepaid-card rule survives Congress challenge


A major challenge to the U.S. watchdog for consumer finances fizzled on Thursday, as Congress missed a deadline to repeal the agency’s new rule on prepaid cards.
Late last year, the Consumer Financial Protection Bureau issued a rule requiring greater disclosures and overdraft limits for the cards sold by companies such as Mastercard Inc. and Greendot and frequently used in place of paychecks.
The timing made the rule eligible for Congress to repeal it under the Congressional Review Act (CRA), but lawmakers only had until Thursday to kill the regulation by passing a disapproval resolution in both chambers with simple majorities.
Republican Senator David Perdue of Georgia, one of the agency’s biggest critics, had introduced a resolution that he tried to speed through his chamber, but congressional aides and advocacy groups said he could not gather enough votes.
Perdue has repeatedly said the CFPB, created in the 2010 Dodd-Frank Wall Street reform law to protect individuals against fraud, oversteps its authority. Earlier this week he said he intends to keep up pressure on the agency.
The resolution’s failure indicates that future regulations from the CFPB, reviled by many Republicans, may have shots at survival. The agency is led by Democrat Richard Cordray, was created by former President Barack Obama, a Democrat, and was originally conceived by Massachusetts Senator Elizabeth Warren, a leader in the liberal wing of the Democratic Party.
The CFPB was expected to soon finalize restrictions on the fine print in contracts known as “mandatory arbitration clauses” that require consumers to give up their rights to class-action lawsuits as a condition of buying a service or product. But the rule’s fate has been caught in limbo. Congress is expected to kill it swiftly with a CRA resolution once it is official.
While the first half-dozen CRA resolutions flew easily through Congress, repealing a wide spectrum of Obama-era regulations, the final resolutions faced a tougher time. One limiting methane emissions from oil and gas production on public lands failed on Wednesday. All told, Congress killed 14 regulations since Feb. 1.
Lawmakers could still vote after this week to repeal rules that Obama finished in the last six months of his administration, but they will need super-majorities in each chamber, which is nearly impossible to achieve in the more closely divided Senate.

GOP Needs To Fight for Principles


While President Trump celebrated the AHCA passing in the House, Stephen Moore said the next top priorities, are passing his tax plan, passing his budget, and building the wall.
Stephen Moore, an economist from the Heritage Foundation, said the spending bill that passed  was a disappointment.
But Moore thinks President Trump made a calculated political move to not fight on the budget, because he wanted to get the healthcare act through.
But now, it’s time for conservatives and the Trump administration to fight for the priorities of the American people.
Moore said economic growth and putting Americans back to work is the key to solving the budget and poverty problem
But if the Democrats want to shutdown the government in opposition to Trump’s tax plan and the budget, then the blame is on them.
“It’s no great crisis if we have a short-term government shutdown. It only means that places like the Department of Education, the Department of Energy won’t show up to work for a couple of days, but if it is to fight over a major principle about our debt or about what are the functions of our government what should we be funding or what shouldn’t we be funding. If its about funding our national security to make our county is safe, then Republicans should stand up for principle they shouldn’t just go in fetal position over these budget fights,” Moore said.
Moore said he has never seen an opposition party like the Democratic Party, but despite this resistance, President Trump’s agenda is moving forward.

U.S. House tax committee sets first hearing on tax reform


The U.S. House Ways and Means Committee on Thursday set a May hearing on the potential impact of tax reform on U.S. economic growth, the first in what is expected to be a series of sessions as Congress edges toward tax reform legislation.
The Republican-controlled panel, which oversees tax policy in the House of Representatives, said in a statement that the hearing will take place on Thursday, May 18 at 10 a.m. (1400 GMT) and focus on tax reform policies that Republicans see as most likely to spur economic growth and job creation. The statement did not identify witnesses for the hearing.
House Ways and Means Committee Chairman Kevin Brady has said he could introduce a tax reform bill sometime in June.

Kushner Cos says to skip China marketing push this weekend


The company owned by the family of senior White House aide Jared Kushner will skip roadshow events in China this weekend seeking money from local investors for a real estate project in exchange for a shot at U.S. immigrant visas, a company spokesman said.
Nicole Kushner Meyer, Jared’s sister, appeared at marketing events last weekend in Beijing and Shanghai in an effort to raise $150 million from Chinese investors through the controversial EB-5 visa-for-investment program.
According to marketing materials from one of the organizers of the roadshow, sales events for the project are scheduled in the southern cities of Shenzhen on Saturday and Guangzhou on Sunday.
“No one from Kushner Companies will be in China this weekend,” James Yolles, spokesman for the firm, said.
The company and KABR Group are raising money for a two-tower apartment complex in New Jersey called One Journal Square, marketing materials showed.
Kushner Companies earlier this week apologized for Meyer having mentioned Jared Kushner, U.S. President Donald Trump’s son-in-law, in discussing the project. The company said Meyer had done so only in an attempt to make clear that her brother was not involved.
“Kushner Companies apologizes if that mention of her brother was in any way interpreted as an attempt to lure investors. That was not Ms. Meyer’s intention,” it said.
In addition to Meyer, Laurent Morali, president of Kushner Companies, was included in marketing materials online for the China road show.
Jared Kushner, whose White House portfolio includes relations with China, sold his stake in Kushner Companies to a family trust early this year.
The EB-5 program allows wealthy foreigners to, in effect, buy U.S. immigration visas for themselves and families by investing at least $500,000 in certain development projects.
A member of the audience at the marketing event in Shanghai said Meyer spoke for about 10 minutes during last Sunday’s event and described her family’s humble roots.
According to the New York Times, in Beijing on Saturday she told the audience of about 100 people the project “means a lot to me and my entire family”.

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