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  • Anti-terrorism policies crafted by ex-court clerks

    While Supreme Court law clerks can now count on big signing bonuses after their year with the court, they can also count on good and powerful jobs in the government.

    And as they rise to power in these jobs, they most likely find themselves working along side other former court law courts, fellow members of an elite club.

    Connections count, and the Supreme Court connection counts a lot.

    A look at the cast of characters in the ongoing controversy over the Bush presidency’s policies on terrorism and the interrogation of suspected terrorists bears this out.

    Several of the key players in shaping these policies were Supreme Court clerks in the 1990s, the majority of them brought to the court by Justice Clarence Thomas.

    “We all grew up together,” Viet D. Dinh, an assistant attorney general from 2001 to 2003 and the chief author of the U.S. Patriot Act, told the New York Times today. “You start with a small universe of Supreme Court clerks, and you narrow it down from there.”

    Dinh clerked for Justice Sandra Day O’Connor during the 1994-95 term.

    Some of the other former clerks who have influenced Bush policies in the post-9/11 world are:

    Steven G. Bradbury, a Thomas clerk from 1992 to 1993, who is now the head of the Office of Legal Counsel in the U.S. Department of Justice. He is said by the Times to have made the case for harsher interrogation tactics. (Laura Ingraham, conservative talk show host, also clerked for Thomas during this term.)

    John Yoo, a Thomas clerk from 1994 to 1995, worked in the Office of Legal Counsel from 2001 to 2003 and wrote controversial memos on interrogation and made the case for not granting enemy combatants the protection of the Geneva Convention.

    Jack L. Goldsmith, a clerk for Justice Anthony Kennedy from 1990 to 1991, headed the Office of Legal Counsel for nine months (2003-04) and ruled that some of the previous policies on torture had gone too far.

    Patrick Philbin, a clerk for Thomas from 1993 to 1994, served in the Justice Department from 2001 to 2005. While in the Office of Legal Counsel, he advised that terrorist detainees could be tried before military commissions. He is said to have lost favor with the administration when he sided against its position on domestic spying.

    While all of these men have the Supreme Court in common, three of them have another link.

    Before they clerked at the court, Dinh, Yoo and Philbin were law clerks for Laurence H. Silberman, now a senior judge on the United States Court of Appeals for the District of Columbia Circuit.

    An out-spoken conservative who served on the Foreign Intelligence Surveillance Court, Silberman has seen at least 20 of his clerks go on to clerk at the Supreme Court.

    He is also said to have urged Thomas to become a federal judge in the late 1980s and they served together on the Court of Appeals for the District of Columbia.

  • Britney tries to rebound, again

    After the worst week of her life, pop singer Britney Spears is slowly trying to rehab herself in order to get her children back.

    A Los Angeles judge ruled Wednesday that Kevin Federline will retain custody of his two boys with Spears but said the troubled singer can have supervised visitation rights.

    The decision was actually a step forward for Spears, who was ordered Monday to hand over her children, Sean Preston and Jayden James, because she had failed to undergo random drug testing, counseling, and parenting classes.

    Spears decided to give up her children immediately and then work her way through the judge’s list of demands. One report had her flying this weekend to Antigua to once again check herself into Eric Clapton’s Crossroads rehab center, where she had been briefly treated earlier this year.

    “Britney’s team has been working closely with her attorneys to figure out a way to get the babies back,” a Spears source told Muckety. “She is giving up the late-night parties and the alcohol so that there is no questioning if she is drinking or missing any future tests.”

    Legal experts told MTV News that the most Spears could hope for in Wednesday’s hearing would be visitation. In fact, Manhattan divorce lawyer Lois Liberman told MTV that it would take at least three months of clean drug-testing and parenting classes to get custody back.

    “The court is going to err on the side of caution now,” Liberman said. “It will be a gradual opening of the valve, and hopefully for her, custody in the future.”

    Meanwhile, Spears is headed to the top of the music charts despite, or perhaps because of, the negative publicity from the custody battle. Her single “Gimme More” is getting airplay on Top-40 stations, where it’s been one of the top-15 performing songs on pop radio.

    The song also landed in the No. 1 position on Billboard’s Hot Digital Songs chart, having sold 179,000 downloads in its first week. It’s been more than eight years since Spears’ breakthrough, “Baby One More Time,” hit No. 1 in January 1999, the newspaper said.

    On the web:
    Britney’s ‘Gimme More’ a digital hit – Los Angeles Times

  • The Dons of Dr Horton

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  • Britney Tries to Rebound Again

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  • The meteoric rise of Blackwater ([Muckety](http://news.muckety.com/2007/10/03/the-meteoric-rise-of-blackwater/20))

    Blackwater CEO Erik Prince, trained to remain cool in the most stressful of situations, was unflappable during his congressional testimony yesterday.

    In an appearance before the House Committee on Oversight and Government Reform, he expertly defended his company’s activities in Iraq, where about 1,000 Blackwater guards protect U.S. diplomats and other State Department employees. He described Blackwater as “a team of dedicated professionals” who “risk their lives to protect Americans in harm’s way overseas.”

    Prince, a former Navy SEAL, founded Blackwater in 1997. In the early years of operation, the firm did limited business with the U.S. government. However, company fortunes shifted dramatically after the Sept. 11, 2001, terrorist attacks and the onset of war in Iraq. By last year, federal contracts totalled $600 million, primarily from protection services provided to the State Department.

    Yet Prince, the son of a wealthy Michigan industrialist and brother of former Michigan Republican Party chair Betsy DeVos, said family connections had nothing to do with his success. Questioned about how his company landed a $332 million State Department contract in 2004, he said that neither he nor members of his family contacted the White House for help.

    He was also questioned about campaign contributions totalling more than $200,000 to Republican committees and candidates.

    “Yes, I’ve given individual political contributions,” said Prince, who was a White House intern during the George H.W. Bush administration. “I’ve done that since I was in college and I did that when I was in the military, and I will probably continue doing that going forward. I didn’t give that up when I became a military contractor.”

    Prince would not release profit figures for Blackwater, noting that it is a private company. He said his own earnings last year exceeded $1 million.

    The committee hearing was sparked by a Sept. 16 confrontation in which Blackwater employees shot and killed at least 11 Iraqis. Because the shootings are under criminal investigation, Prince and other witnesses were asked not to discuss them yesterday.

    In prepared testimony, however, Prince defended his employees. “Based on everything we currently know,” he said, “the Blackwater team acted appropriately while operating in a very complex war zone on Sept. 16.”

  • The Meteoric Rise of Blackwater

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  • The well-connected Mel Sembler

    Scooter Libby, Joe Lieberman, Bush 41, Bush 43, and Mitt Romney all have at least one thing in common: They’ve been the recipients of Mel Sembler’s largesse and his fund-raising effectiveness.

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    Sembler, a Florida shopping center developer who founded a controversial non-profit group of drug treatment centers for adolescents, helped raise millions for the elections of Bush the elder and Bush the younger.

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    He and his wife, Betty, came through with donations when it looked like Lieberman, a Connecticut Democrat who supports the war in Iraq, might lose his U.S. Senate seat in 2006.

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    And when Libby, assistant to Vice President Dick Cheney, was indicted for perjury, Sembler helped raise millions for his defense fund.

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    Now, Sembler is a one of the founders of Freedom’s Watch. The recently formed advocacy group is spending millions to rally support for the surge in Iraq.

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    “A bunch of us activists kept watching MoveOn and its attacks on the war, and it just got to be obnoxious,” Sembler told the New York Times. “We decided we needed to do something about this, because the conservative side was not responding.”

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    One of the group’s television ads features a National Guardsman who lost his legs to an explosion in Iraq. He urges the American people not to “surrender” in Iraq.

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    Sembler, 77, is a native of Missouri who graduated from Northwestern University. He started building suburban shopping centers in Tennessee and eventually settled his business in St. Petersburg, Fla.

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    He made millions and went on to give away millions, some of this to Republican and conservative causes.

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    In 1989, the first president Bush named Sembler ambassador to Australia and Nauru. Garry Trudeau lampooned the choice in Doonesbury suggesting the Sembler got the post by making the highest bid at an auction. Sembler served as ambassador until 1993.

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    From 1997 to 2000, he was the finance chairman of the Republican National Committee. In 2001, the second president Bush appointed him ambassador to Italy. Sworn in by Cheney, he served until 2005.

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    Over the years, Sembler has drawn fire for his involvement with Straight Inc., the drug rehabilitation group for young he founded in 1976. Former patients, investigators and members of Congress accused the group of harsh treatment tactics, including sleep deprivation and close confinment. Often sued, it closed in 1993.

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    Sembler, his wife and the Sembler company continue to support conservative causes. In July, Mel Sembler and his wife each gave $25,000 to the Republican National Committee.

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    FEC records indicate that Romney is the only one of this year’s Republican presidential candidates to receive contributions from the Semblers so far. Mel Sembler serves as a national finance co-chair of Romney’s campaign.

  • The Well Connected Mel Sembler

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  • Hearst needs a re-write on TV takeover

    TV can be a goofy business, but this couldn’t be the script the boys in Hearst Tower had in mind when they offered $600 million a few weeks ago for the small piece of Hearst-Argyle Television they don’t already own.

    A special committee of Hearst-Argyle directors advised against the deal last week, calling it “inadequate” and saying it is “not in the best interests” of stockholders, other than Hearst.

    That’s the same argument made by nine class-action lawsuits filed against Hearst-Argyle and Hearst Corp. since the buyout offer was made Aug. 24.

    The stock market certainly agrees. Hearst’s tender offer is $23.50 a share for the nearly 27 percent of Hearst-Argyle shares held by others. The stock closed Friday at about $26.

    Privately held Hearst Corp., founded by legendary newspaperman William Randolph Hearst, is one of the nation’s largest media companies. Based in New York City, it owns newspapers (including the San Francisco Chronicle and Houston Chronicle), magazines (Cosmopolitan, Esquire, O), interactive media and 20 percent of ESPN.

    Hearst-Argyle owns 26 TV stations in markets reaching about 18 percent of the nation’s households. Stock analysts say the company should benefit by record spending on political advertising and by new retransmission agreements for its standard and high definition TV signals. Some analysts value Hearst-Argyle stock at $28-$32 a share.

    Hearst-Argyle detailed the takeover saga, including information on the lawsuits, in a long filing with the SEC last week. The filing said:

    In April 2006, at Hearst’s request, Hearst-Argyle executives first prepared a takeover scenario. At the time, the stock was trading at $23.23. The project was put on hold.

    Independent Hearst-Argyle directors David Pulver and Caroline Williams are each being paid $150,000, plus expenses, to be the sole members of the special committee considering the offer. The committee met 19 times.

    The special committee believes 2008 could be stronger financially than the company forecasts.

    Pulver, Williams and director Bob Marbut do not intend to tender their shares to Hearst Corp.

    Directors Frank Bennack Jr., John Conomikes, Victor Ganzi, George Hearst Jr., William Randolph Hearst III and Gilbert Maurer do intend to tender their Hearst-Argyle shares. Each is also a director of Hearst Corp. Ganzi is Hearst Corp.’s CEO; Bennack is its vice chairman.

    One name conspicuously absent from the lawsuits is that of Florida investor Bruce Sherman. As of April, his Private Capital Management owned 8.4 million Hearst-Argyle shares. Sherman is the investor who put newspaper publisher Knight-Ridder in play, leading eventually to the sale to McClatchy.

    Some of the lawsuits question the independence of Pulver and Williams. Both have been directors of Hearst-Argyle and its predecessor since 1994 and are included in the company’s medical insurance plan.

    Pulver runs an investment company and is chairman of Colby College’s investment committee. He received $145,461 in compensation from Hearst-Argyle last year.

    Williams, who works with the Nathan Cummings Foundation, received $140,961 in compensation from Hearst-Argyle last year. One lawsuit said the Cummings Foundation works frequently with the William Randolph Hearst Foundations.

    Some of those filing the lawsuits worry that Hearst is holding so many cards that it could still force the transaction, leaving those who didn’t go along with illiquid shares.

    As they say on TV, stay tuned.

  • Hearst Needs a Re Write on Tv Takeover

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  • ExxonMobil’s well-paid directors

    Outside directors of ExxonMobil are among the highest-paid board members in the world. Each earned well over $300,000 in compensation from the giant oil company in 2006.

    And that’s only part of the story.

    Because of ExxonMobil’s strong stock, if the directors’ 2007 compensation were calculated based on today’s share prices, it would total about $500,000 apiece.

    That may be one reason why ExxonMobil changed its non-employee director pay last week, reducing the annual award of restricted stock from 4,000 shares to 2,500 shares apiece, beginning next year. The company also increased cash payments to each director to $100,000 from $75,000, while eliminating smaller payments for some committee duties.

    When ExxonMobil filed its annual proxy statement in April, it put the value of 4,000 restricted shares at $230,680, or $57.67 a share, about the price at the end of 2006. ExxonMobil stock closed Friday, the end of the third quarter, at about $92.50, making 4,000 shares worth $370,000. At current prices, 2,500 shares are worth about $231,000.

    Directors are paid regular dividends on their restricted shares, but can’t sell them, generally, until they retire from the board.

    At current prices, three directors (Marilyn Carlson Nelson, William Howell and Philip Lippincott) hold restricted shares worth more than $4 million. Nelson is CEO of Carlson Companies, Howell is chairman emeritus of J.C. Penney and Lippincott is the retired chair of Scott Paper and Campbell Soup.

    Four other directors (Michael Boskin, James Houghton, Reatha Clark King and Walter Shipley) hold restricted shares worth $3.5 million or more. Boskin is a professor at the Hoover Institution, Houghton is former chairman of Corning, King is former chairman of the General Mills Foundation, and Shipley is retired chairman of Chase Manhattan.

    When Sam Palmisano, CEO of IBM, joined the ExxonMobil board last year, he received a one-time grant of 8,000 restricted shares, like all of the company’s new directors. At the time, those shares were valued at $484,640. At today’s prices, those shares are worth $740,000.

    Of course, the directors’ highly paid part-time jobs go with the territory. They are helping lead one of the largest commercial enterprises in the world. At the end of third quarter, ExxonMobil had a market cap of about $510 billion, equal to the combined market caps of Microsoft, Google and eBay.

    It can be easy to get excited about high tech, but never under estimate the power of $80-a-barrel oil.

  • Burkle’s new pied-a-terre

    Billionaire Ron Burkle has a new crash pad in New York, complete with a heated swimming pool and a panic room.

    Burkle, one of former President Bill Clinton’s best friends, has purchased a swank Manhattan apartment for a whopping $17.5 million, plus nearly $100,000 a year in maintenance fees. Burkle already owns the lavish Green Acres estate in Beverly Hills, where frequent Democratic fundraisers are held.

    The three-level apartment with 5 bedrooms and 5.5 bathrooms doesn’t have a doorman and is situated in a fairly uninteresting part of lower Manhattan.

    But, according to the Real Estalker, the 11,000-square-foot “behemoth has ridiculously high ceilings, 50+ windows, walls of glass, a panic room behind the library bookcases, and a carpet of green grass and a small forest on the eastern terrace. But by far the most remarkable and notable feature of the aerie is the heated swimming pool that hangs over the city with 360 degree views as far as the eye can see.”

    The apartment is said to be exquisitely detailed with massive Danish Tudor wood-burning fireplace, two separate sound systems controlled from every room with speakers throughout. Perfect for more Democratic fundraisers.

    Burkle is best known as Clinton’s pal and as a major donor to the Democratic party. He earned his fortune buying and selling grocery chains; Forbes magazine calculates that he has been involved in 17 major business deals worth $15 billion – 11 of which involved grocery stores. He recently expressed interest in buying the Tribune Company, or the Los Angeles Times, but was beat out by real estate magnate Sam Zell.

    Venture capitalist Jonathan Leitersdorf reportedly purchased the entire building at 700 Broadway for about $2.5 million before gutting it and renovating. Burkle’s new home was first put on the market in 2002 for $27,500,000, but was reduced to its final asking price of $18,750,000. Burkle apparently cut the price even more.

    On the web: Ron Burkle’s Swimming Pool in the SkyReal Estalker

  • Legality of Hunt Oil deal “uncertain”

    Hunt Oil’s controversial production-sharing deal with Kurdistan is “legally uncertain” and has “needlessly … Baghdad told The New York Times.

    Dallas-based Hunt Oil is run by Ray Hunt, a close friend and advisor of president Bush.

    Speaking anonymously, the official told The Times that the State Department advised Hunt before the… American and international oil companies.

    On the web
    Official Calls Kurd Oil Deal at Odds With Baghdad – New York Times

    Related stories on Muckety
    Why Ray Hunt is so powerful

  • Exxonmobils Well Paid Directors

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  • Burkles New Pied a Terre

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  • Smithsonian Faces More Criticism

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  • Legality of Hunt Oil Deal Uncertain

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  • Senate reviews Google-DoubleClick deal

    Execs from Google and Microsoft are scheduled to appear before the Senate today to argue the merits of Google’s proposed acquisition of DoubleClick.

    Google announced the $3.1 billion deal in April, but the plan requires approval of the Federal Trade Commission and regulators abroad.

    As CNet notes today, this will be the first time that Congress has scrutinized the Internet behemoth. Microsoft, with years of experience in arguing antitrust issues, has mobilized a legion of lobbyists to block the deal, saying it would create an online advertising monopoly.

    Consumer privacy groups have also raised concerns. Marc Rotenberg, executive director of the Electronic Privacy Information Center, is scheduled to testify today as well. His group says the deal would give Google too much information about web users.

    Google is expected to argue that it respects users’ privacy, and that its current business focuses on text-based advertising, while DoubleClick specializes in banners.

    In his prepared testimony, released before the hearing, Google Senior VP David Drummond says Google and DoubleClick offer complementary services. “DoubleClick is to Google what FedEx or UPS is to Amazon.com,” he said.

    Those of us who have been running Google AdSense banners for ages find this argument a bit puzzling.

    On the web:
    Microsoft, Google square off in Washington – CNet

    Related stories on Muckety:
    Advantage Microsoft in flap with Google?