US May Invoke "State Secrets" To Stop Banking Suit

An anonymous reader sends us to the International Herald Tribune for news that the Bush administration is signaling that it plans to turn once again to a favorite legal tool, the 'state secrets' privilege. The administration wants to shut down a lawsuit brought against Swift, a huge Belgium banking cooperative that that the article calls the "nerve center of the global banking industry," after it was revealed that Swift secretly let the CIA comb through millions of private financial records. Quoting: "Two US banking customers sued Swift on invasion-of-privacy grounds. Many legal and financial analysts expected that the lawsuit would be thrown out because US banking privacy laws are considered much more lax than those in much of Europe. But to the surprise of many, a judge refused to throw out the lawsuit in a ruling in June."

Re:this all sounds so shady

[tibike77]

Banks help CIA spy, customers find out, sue banks, judge does not through out suit, gov plays "state secret" card for distance and/or to help the banks.

There you go, less than 30 words.

Re:What's the matter?

[Sectrish]

Over here in Europe this was 'big news' a few months ago (I live in Belgium).

The problem over here was that Swift provided the CIA with access to the banking transactions and allegedly personal data from all EU citizens. They could do this because Swift also has a datacentre in the USA (because this data is very precious it has to be duplicated in geographically different areas).

At least that's how I remember it to be reported.

One of the things also mentioned was that the EU could not/would not do the same against American citizens, perhaps out of fear?

To my knowledge, the last report about it stated that the data-transaction to the American government had not stopped, since then the (small) mediastorm has passed over and nobody cares anymore.

Re:Workaround

[arivanov]

Why just Belgium?

In order to be able to perform its function swift is registered in nearly all countries around the globe. Quite a few of them have considerably more strict privacy laws combined with considerably more strict banking regulations. In addition to that in some of them the possibility for political intervention in favour of the defendant will be very slim. Frankly, I am surprised it is not being sued in Switherland.

Re:Since when...

[VValdo]

Since when can the State Secret privilege be used to keep secret a program that is probably illegal? That's an enormous conflict of interest. The president doesn't (or at least shouldn't) have the "privilege" to cover up what are probably illegal actions.

Since at least April 28, 2006 [com.com].

W

Re:What's the matter?

[malkavian]

One of the things also mentioned was that the EU could not/would not do the same against American citizens, perhaps out of fear?

The EU can't and won't do that, as they'd be breaking the law.

SWIFT CONTINUES to break the US law

[Anonymous Coward]

The bad thing is that SWIFT continues to allow free access to the data in violation of US and EU laws. What they've done is to put an auditor in place to review the queries and see if they are terrorist related (that auditor has no access to terror info and has no way of telling).

It's not legal in the US, it's not legal in Europe, it's only legal in Bush brain.

Re:Now SWIFT is an interesting subject

[Anonymous Coward]

Swift's location is not very secret. It's in Terhulpen, Belgium. Right near where IBM used to have an international education center.
Check it out on google maps.
http://maps.google.com/maps?f=q&hl=nl&geocode=&q=s wift+terhulpen+belgium&ie=UTF8&ll=50.735084,4.4831 3&spn=0.01081,0.031929&t=k&z=16&iwloc=A&om=1 [google.com]

swift offices:
http://www.swift.com/index.cfm?item_id=3209 [swift.com]

Now it may be that their data center locations are more hidden. But I am quite sure that those are not as secret today as they may have used to be.

Re:Wait, then investigate after the next election.

[PinkyGigglebrain]

Your making two assumptions.

First, that whoever is in power next will WANT to investigate this.

Second, that there will be a "next election", don't forget that those in power do anything to stay in power. This administration has already tried to delay the elections in '04 due to concerns over security [cnn.com] and has since set itself up with some scary martial law powers [prisonplanet.com].

Anyone want to take bets on the odds of there being a major "terrorist attack" in the US within 4-6 months of the next election? And as long as it doesn't directly impact the "common person", increase in gas price, beer, cable TV or interrupt Monday night football, most of the sheeple will just let it happen.

Re:Revolt!

[Anonymous Coward]

The american people couldn't revolt their way out of a paper bag.
Well, some of them are organizing a General Strike on 9/11/07 [strike911.org]. The way things are, it takes some serious balls...

Re:What's the matter?

[Anonymous Coward]

As a result of this scandal, SWIFT plans to re-engineer their network to keep intra-European traffic within Europe. (Source: http://www.swift.com/index.cfm?item_id=62260 [swift.com])

Re:wow,your pretty smart!!

[GISGEOLOGYGEEK]

HAHAHAHHAHAHA

WOW!

Now if that isn't a disenfranchised american, I don't know what is!

I'm on his side, and he's pissed at me for not complaining more loudly!

By the way, here in Canada our judges not only shoot down unconstitutional laws as they should, they actually identify ways in which the government needs to adapt to protect the constitution ... for example, the same-sex marriage laws.

Here in Canada, we could see the blatant lies of George Bush ... and stayed out of Iraq ... and instead contribute to the effort in Afghanistan, you know, the place 911 was run from remember?

Here in Canada, the polls aren't fixed. We have consistent election laws across our country instead of separate conflicting laws in every state like you have.

Here in Canada, when we really dislike a government that has screwed us bad ... we vote them out! We don't keep them around for a second term to cause more damage like you've done with Dubyafucker.

Sure, I only spoke of recent times ... but Vietnam was started under the same false pretenses as Iraq. the Spanish American war is the same story! and damn! you didn't even come out for WWII until 2 years after Canada joined in.