Rep. Alan Grayson: Is former NSA Director Keith Alexander selling classified information to the banks?
Alan Grayson just sent some of the entities that Alexander is in business with a letter asking how the former NSA Director can be making a reported $600,000 a month. From the letter:
Security expert Bruce Schneier noted that this fee for Alexander’s services is on its face unreasonable. “Think of how much actual security they could buy with that $600K a month.Unless he’s giving them classified information.” Schneier also quoted Recode.net, which headlined this news as: “For another million, I’ll show you the back door we put in your router.”
Disclosing or misusing classified information for profit is, as Mr. Alexander well knows, a felony. I question how Mr. Alexander can provide any of the services he is offering unless he discloses or misuses classified information, including extremely sensitive sources and methods. Without the classified information that he acquired in his former position, he literally would have nothing to offer to you.
Please send me all information related to your negotiations with Mr. Alexander, so that Congress can verify whether or not he is selling military and cybersecurity secrets to the financial services industry for personal gain.
Check out Emptywheel’s article in May on how Alexander, after retirement, launched a consulting firm for financial institutions looking to address cybersecurity threats and leased office space from the global consulting firm Promontory Financial: http://www.emptywheel.net/2014/05/08/lying-keith-alexander-to-shack-up-with-promontory-and-profit-off-his-fearmongering/
Ginnie Mae’s MBS portfolio reaches $1.5 trillion
Ginnie Mae’s mortgage-backed securities portfolio has reached a record level. Just four years after Ginnie’s portfolio reached $1 trillion, the corporation’s portfolio now stands at more than $1.5 trillion.
That marks an extraordinarily rapid growth, considering that it took 42 years — from the corporation’s founding in 1968 to 2010 — to reach $1 trillion in unpaid principal balance.
Ginnie Mae President Ted Tozer said that the rapid growth demonstrates the effectiveness of Ginnie’s “unique” business model. “Our role is critical because our unique business model – a public/private partnership – provides a safe, effective and government-backed channel for the flow of capital for U.S. mortgages, significantly limiting risks to the taxpayer and providing much needed capital for the government,” Tozer said.
Banks withdraw business from Barclays’ dark pool – FT
(Reuters) – Big banks have started pulling their business out of Barclays’ dark pool, after the British bank was sued by New York’s top securities regulator for allegedly misleading institutional investors over its anonymous trading venue, The Financial times reported.
Deutsche Bank, Credit Suisse and Royal Bank of Canada, asset manager Alliance Bernstein were among the institutions that withdrew from Barclays’ dark pool on Thursday, the paper said. (http://on.ft.com/1liYksA)
Barclays said any drop in trading volumes at LX might be due to a technical glitch.
Goldman Sachs, Morgan Stanley and JPMorgan Chase & Co, were not sending orders to Barclays’ dark pool, the daily reported, citing people familiar with the companies.