Woodward and Insider Trading
Bob Woodward, who as a young man exposed the Watergate burglaries has now become wrapped up in a scandal himself. He did not tell his employers at the Washington Post that he had been leaked to in the Plame affair. It turns out that a high White House official told Woodward that Ambassador Joseph Wilson's wife, Valerie Plame Wilson, worked for the CIA, in June of 2003. Woodward made a deposition to this effect before Fitzgerald on Monday, having been released from his vow of confidentiality by the source for that purpose, even though he was not given permission to discuss the source publicly. Fitzgerald sought the deposition after the high official him- or herself told the special prosecutor of the conversation.
The source was not Irving Lewis Libby, who has been charged with perjury and obstruction of justice in the case, or Karl Rove, who leaked to other reporters. Woodward says he did not disclose the conversation to his employer because he was afraid of compromising the confidentiality of his source.
But it is at least plausible that for a high White House official to tell Woodward that Valerie Plame Wilson was a CIA operative was a crime. It does not matter if Woodward knew she was undercover. It matters whether the leaker knew it, or could reasonably be expected to have inferred it from her employment in the directorate of operations. For Woodward to cover this leak up is no different from a reporter witnessing a burglary and covering that up. ("Burglary": get it?)
Larry Johnson pointed out a couple of weeks ago at tpmcafe that Woodward has increasingly become lost in cronyism, and has been an apologist for the dirty tricks of the White House Iraq Group, which appears to have deliberately outed Plame Wilson in order to punish her husband, Wilson, for blowing the whistle on the Bush administration's hyping of Iraq WMD intelligence.
The defense lawyers for Libby immediately claimed that the new information helped their client. In order to grasp this absurdity, you have to understand that for some attorneys, any proposition may be put forward as long as it has not been explicitly rejected by the relevant court. That is, some lawyers would be perfectly happy to argue that water is dry, and has not been ruled wet by any court of law, and that moreover anyone who criticizes them for so alleging is guilty of copyright infringement and very possibly also of sodomy, until those allegations are ruled on in court.
I remember when I translated Kahlil Gibran's early Arabic works, which had been published in 1905-1915, I had first checked that they were out of copyright (they were). But nevertheless I got a letter from some lawyer representing a member of the Gibran family alleging that these works "might be in copyright." He knew very well this was untrue. But if the letter could scare me into giving up the project, it would have accomplished its goal. It does not matter to those less principled folks that their assertions are false; they are speaking instrumentally, for the accomplishment of some purpose, not to express the truth. (Likewise with the recent assertions in certain quarters that I don't know Arabic, which would have made it difficult for me to pull off those translations, much less all the other books I've written out of difficult Arabic archival and manuscript sources; look into it and you'll find some lawyer put them up to saying it. I'd have to find a judge who knew Arabic even to challenge the stupid libel.)
In fact, the rather bizarre world of political discourse in Washington, DC, in which all sorts of untrue and faintly ridiculous allegations are routinely made, grows directly out of the unreal discourse of the less principled trial lawyers. So politicians (mostly lawyers) alleged to us that Iraq was on the verge of having a nuclear bomb, while in fact Iraq was not even on the verge of having one of those old Mickey Mouse watches that glowed in the dark because they were painted with radium.
Libby has been charged with perjury and obstruction of justice among other charges. He lied to the grand jury on more than one occasion. He said that a journalist told him that Plame Wilson worked for the CIA. This allegation was not true, and nothing Woodward said on Wednesday changes its falsity. Fitzgerald did not charge Libby with speaking to Woodward, or with being the first to leak Plame Wilson's name, or anything else affected by Woodward's minor revelation.
As for Woodward's trivialization of the outing of an undercover CIA operative, it is vileness itself. Arthur Silber is eloquent on the ironies of liberals defending the CIA and conservatives dismissing the significance of Plame Wilson's outing. He cites Steve Weissman's fine article on CIA turncoat Philip Agee and other outers, including, Norman Mailer (who later wrote a novel, Harlot's Ghost, about the agency). All of Plame Wilson's close contacts came under scrutiny by their Third World governments, and for all we know some are no longer with us. (One of Woodward's most abject lies is that the CIA looked into this matter and was reassured; it did not and it isn't, and neither should we be.)
I don't think that the real scandal here is the outing of an undercover operative, however despicable that was. It is the purpose for which she was outed, and the likely consequences. The purpose was petty political revenge. The likely consequence is to make it harder to recruit high-powered people into the agency, so as to improve its ability to take on the hard challenges that the US now faces in the age of asymmetrical warfare.
What Libby, Rove and others did was the equivalent of stock brokers engaging in insider trading. If very many stock brokers did that very often (or if investors became convinced that this was the case), the whole system would collapse. It is an architectonic crime, having to do with the holistic architecture of an entire industry. Likewise, if very many politicians misuse their security clearances to play politics with the lives of covert operatives, it would pulverize the intelligence business. You don't have to be a fan of all the agency's activities to want it to capture Bin Laden and Zawahiri before they blow us up. Libby, Rove and others impeded that effort by harming morale and hurting the ability of the agency to assure its own contacts and clients of confidentiality.
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PS The original version of this posting was insufficiently careful to distinguish between attorneys of principle and those that lack it. I apologize to the former.

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10 Comments:
RE: Philip Agee
Turncoat seems a little derogatory for someone who seems to have acted out of conscience and made some citizens more aware to the ways of intelligence services.
Whistleblower, perhaps?
Usually, people are responsible for what they do, not for what they don't do. In particular, journalist has absolutely no obligation to pursue every single political scandal he comes across in his work! By this logic, Woodward's book was not a good thing because it is heavily confusing on the Iraqi WMD scam.
As for his role in Plamegate, we have no proof that it was anyhow important. So, why this apology? The answer is - Woodwardgate is part of the current GOP counter-attack, it can be useful to get Libby and others off the hook. That's typical IWMD smokescreen #10,001.
1. Howard Kurtz. Woodward Apologizes to Post For Silence on Role in Leak Case
Bob Woodward apologized to The Washington Post yesterday for failing to reveal for more than two years that a senior Bush administration official had told him about CIA operative Valerie Plame, even as an investigation of who disclosed her identity mushroomed into a national scandal.
Woodward, an assistant managing editor and best-selling author, said he told Executive Editor Leonard Downie Jr. that he held back the information because he was worried about being subpoenaed by Patrick J. Fitzgerald, the special counsel leading the investigation.
2. Amazon. Bob Woodward. Plan of Attack
"I don't think that the real scandal here is the outing of an undercover operative, however despicable that was. It is the purpose for which she was outed, and the likely consequences. The purpose was petty political revenge."
I agree that the one scandal here is not the outing of an undercover agent, but rather the purpose behind that crime. However, while "Petty political revenge" was perhaps a motivation of outing Plame, it was certainly not the purpose of doing so.
Plame's identity was revealed for the purpose of tarring the name of her husband, and thus discrediting his well-informed criticism of the Bush administration's use of obviously fabricated intelligence to lead the nation to war.
Thus another, larger scandal: a sitting president and every senior member of his administration lied to the public (and their elected representatives) over the course of years in order to justify beginning a war or aggression.
Thus, the gravest scandal around: the truth of all the points of this discussion – the purpose of revealing Plame’s identity, the truthfulness of Wilson’s criticisms of the administration’s use of intelligence, that the administration lied this country into an aggressive war, all of it – is easily ascertainable by means of the slightest bit of research, yet journalists at major news organizations throughout America refused (and continue to refuse) to do this research.
As elected officials subject to limited terms the members of the Bush administration can be made to go away. It'd be nice to see them answer for the illegality of what they've done, but they will go away eventually regardless.
What can we do about a fundamentally dishonest press?
As a law student, I would like to denounce everything you're saying about the profession...but...well...I can't. It's pretty much dead on.
I will point out that it is a phenomenon hardly limited to lawyers, though. Opinion writers often seem to master the trick with remarkable speed. So many voices on TV/radio/internet now just try to scream the most absurd points over and over again until they are somehow proven by repetition. This is basically just the same trick.
Your Amazon link to the Gibran book is apparently broken, perhaps the one for Broken Wings would suffice?
Great column today btw. On second thought I retract the word "today". How anyone makes any sense whatever of what's going on in the qWagmire without reading your posts is entirely beyond me.
On insiders -- generally stock brokers are not insiders. Insider trading is what Frist did -- he was a major shareholder (an insider) trading on informatin not known to the general public. The stockbroker he used wasn't an insider, just the agent of an insider. Martha Stewart likewise was not an insider - she was not an officer or major shareholder of Imclone. Her trading may not have been a crime, her lying about the trading was the crime. In the Wilson context, Rove et al are the insiders, Woodward the outside agent who is lying about the crime.
While I normally agree with the general thrust of your arguments, I have to take exception to today's anti-lawyer riff. (Note, I am admittedly one of the damned myself.) In particular, I am bothered by the seemingly off-the-cuff anti-lawyerism in this statement: "It does not matter to those folks that their assertions are false; they are speaking instrumentally, for the accomplishment of some purpose, not to express the truth."
As we all know the so-called "truth" is an elusive concept. Who bombed the hotel in Jordan? I think its pretty clear that nobody has any idea and we will never know the "truth." It may be baathists as you seem to think. It may have been Al Queda in Messepotamia, if that group even exists. It may have been the Mossad, considering that the Israeli occupants of the hotel were evacuated and a bunch of senior Palestinian Authority figures were killed. (I will spare you the discourse in the flaws I see in the official 9/11 story.)
The point being that the "truth" is a hard to find. There are two sides to every story. In most lawsuits, both sides feel that they are right. If they didn't, they probably wouldn't be willing to dump so much money into lawyers fees.
Therefore, we have created a legal process. We have judges and juries. These so-called finders of facts evaluate the evidence and arguments presented by both sides and make the best determination they can. There is no definitive truth.
Importantly, everyone knows what Libby's attorneys are doing. They are paid mouthpieces. They interpret facts in the best interest of their client. I think Libby's lawyers may be making a mistake in that they lose credibility by making absurd statements, but anyone with a BS detector knows what they are doing.
This lawyer mentality, however,is problematic when we discuss politicians. Should politicians be willing to play the lawyer game to represent the interests of their districts or contributorrs or whatever? The answer is probably no.
The real problem, however, is that the finder of fact in the politics game, the media, the opposition parties, and public discourse, has been corrupted and compromised to the point where evaluating the credibility of facts and assertions is no longer a goal. Perhaps this is inevitable in a for profit venture.
Concentration of power in two (really one with two wings) political parties and concentration of power in the media are the real culprits. Nobody seems to be willing to call people on their lies (or what seems like lies) and hold them accountable.
Either way, I don't think lawyers can be blamed for our current mess. The rule of law and the work of lawyers and legal scholars is the thin line that keeps America from degenerating into the police state that it seems to want to become. I certainly don't think that the system is perfect, but it is still a system where most of the time an illegal search will be seen as such and the evidence resulting therefrom will be suppressed. It is still a system where someone who has been wronged by a major corporation can find relief. It still needs work. I would bet, however, that the next time someone plagarizes your work or hits you with a car, you will go to a lawyer and a court instead of gathering up your friends and seeking violent revenge. I think thats for the best.
I don't think Prof. Cole's comments re: trial lawyers are particularly substantive nor do they amount to more than a complaint that "lawyers advocate for their clients." That Libby's lawyers are advocating for him is not surprising, that's their job. But Prof. Cole is correct in that his attorneys comment cannot be accorded authority since they are advocacy.
One point of clarification I would like is that Novak asserted he contacted CIA prior to publication and was not told Plame was undercover or that he should not publish her name. Has that assertion been retracted? What Novak's assertion raised to me is the potential that Tenet was playing both sides of the fence and laying a trap for his enemies in the VP's office and DOD, i.e. he provides the info to Cheney and then has his staff waffle on her status so the info goes out and then "snap" he catches the neo-cretins in the vise. That Tenet is the one who reported to Cheney about Plame raises that potential to me. Just curious about that since I have not seen any reporting in months mention Novak's claim to have contacted CIA pre-publication (maybe he did retract that assertion, I don't know).
I think full disclosure also requires that Prof. Cole note Larry Johnson is close friends with Plame-Wilson. He has cited Johnson more than once and I think that proviso ought to be made.
I am dubious of the assertion that the Plame "outing" was a crime. It was, unquestionably, a sleazy, dirty trick by the neocons. But Johnson's assertion that no one knew Plame worked for CIA even though she went to work there every day for years is absurd. It's also absurd that her neighbors would claim not to know she worked for the agency. As one who grew up in D.C., our "spook-o-meter" is pretty attuned to people with no apparent profession who travel a lot. Usually we get the hoary, I work for the state dept. claim. Either her neighbors don't know her well or they're dumb as boxes of rocks. In any event, that's not the criminal standard. If the information could be obtained from non-confidential sources, then revealing it is not a crime, apart from the intent of the revealer.
It is amusing that the DC sharks would think Woodward's admission would change Libby's circumstances. As Prof. Cole noted, Libby's statements would still be false and obstruction, etc. This is yet more spin as he noted.
One last bit on Woodward's story: his colleague Walter Pincus has basically said in the nicest way possible that what he's saying now is complete bull.
From the Washington Post:
[quote]
Woodward's statement said he testified: "I told Walter Pincus, a reporter at The Post, without naming my source, that I understood Wilson's wife worked at the CIA as a WMD analyst."
Pincus said he does not recall Woodward telling him that. In an interview, Pincus said he cannot imagine he would have forgotten such a conversation around the same time he was writing about Wilson.
"Are you kidding?" Pincus said. "I certainly would have remembered that."
Pincus said Woodward may be confused about the timing and the exact nature of the conversation. He said he remembers Woodward making a vague mention to him in October 2003. That month, Pincus had written a story explaining how an administration source had contacted him about Wilson. He recalled Woodward telling him that Pincus was not the only person who had been contacted.
[end quote]
Full at: http://tinyurl.com/7dq92
update...
In the next phase of the Plamegate scandal, major WPost reporter Bob Woodward enters the scene. The question is, what is the meaning of this development? Mr.Cockburn seems to have found a right way to describe the current situation. The theory is, Woodward's role is not really different from that of NYT Judith Miller. Well, this makes something clear: multiple layers of PR smokescreens aside, both journalists are nothing like objective investigators in search of truth about Iraqi WMD and origins of the Iraqi war, both are instrumental in the neocon designs in one way or another. From this prospective, Woodward's recent apology for God knows what can be quite useful to help Libby's defense.
Ever since the administartion has suffered a blow and Cheney's aid Libby (one of many IWMD scammers) has been indicted for purgery, they counter-attack. The goal is to show that everything was just fine about IWMD, nothing was found simply because they were not there, no fabrication at all.
So, let us wait and see whether recent Woodward's testimony will work for this end. All that matters is whether IWMD magic still works. If this is the case, Libby will get off the hook and nobody will get punished for the criminal outing of the CIA agent Valery Plame.
ALEXANDER COCKBURN, JEFFREY ST.CLAIR. The Long, Long Fall of Bob Woodward
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