Kerry Accomplishment
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| Tue, 08-31-2004 - 8:19am |
From Washington Monthly
Follow the Money
How John Kerry busted the terrorists' favorite bank
by David Sirota and Jonathan Baskin
Two decades ago, the Bank of Credit and Commerce International (BCCI) was a highly respected financial titan. In 1987, when its subsidiary helped finance a deal involving Texas oilman George W. Bush, the bank appeared to be a reputable institution, with attractive branch offices, a traveler's check business, and a solid reputation for financing international trade. It had high-powered allies in Washington and boasted relationships with respected figures around the world.
All that changed in early 1988, when John Kerry, then a young senator from Massachusetts, decided to probe the finances of Latin American drug cartels. Over the next three years, Kerry fought against intense opposition from vested interests at home and abroad, from senior members of his own party; and from the Reagan and Bush administrations, none of whom were eager to see him succeed.
By the end, Kerry had helped dismantle a massive criminal enterprise and exposed the infrastructure of BCCI and its affiliated institutions, a web that law enforcement officials today acknowledge would become a model for international terrorist financing. As Kerry's investigation revealed in the late 1980s and early 1990s, BCCI was interested in more than just enriching its clients--it had a fundamentally anti-Western mission. Among the stated goals of its Pakistani founder were to "fight the evil influence of the West," and finance Muslim terrorist organizations. In retrospect, Kerry's investigation had uncovered an institution at the fulcrum of America's first great post-Cold War security challenge.
More than a decade later, Kerry is his party's nominee for president, and terrorist financing is anything but a back-burner issue. The Bush campaign has settled on a new strategy for attacking Kerry: Portray him as a do-nothing senator who's weak on fighting terrorism. "After 19 years in the Senate, he's had thousands of votes, but few signature achievements," President Bush charged recently at a campaign rally in Pittsburgh; spin that's been echoed by Bush's surrogates, conservative pundits, and mainstream reporters alike, and by a steady barrage of campaign ads suggesting that the one thing Kerry did do in Congress was prove he knew nothing about terrorism. Ridiculing the senator for not mentioning al Qaeda in his 1997 book on terrorism, one ad asks: "How can John Kerry win a war if he doesn't know the enemy?"
If that line of attack has been effective, it's partly because Kerry does not have a record like the chamber's dealmakers such as Sens. Joe Lieberman (D-Conn.) or Orrin Hatch (R-Utah). Though Kerry has been a key backer of bills on housing reform, immigration, and the environment, there are indeed few pieces of landmark legislation that owe their passage to Kerry.
But legislation is only one facet of a senator's record. As the BCCI investigation shows, Kerry developed a very different record of accomplishment--one often as vital, if not more so, than passage of bills. Kerry's probe didn't create any popular new governmental programs, reform the tax code, or eliminate bureaucratic waste and fraud. Instead, he shrewdly used the Senate's oversight powers to address the threat of terrorism well before it was in vogue, and dismantled a key terrorist weapon. In the process, observers saw a senator with tremendous fortitude, and a willingness to put the public good ahead of his own career. Those qualities might be hard to communicate to voters via one-line sound bites, but they would surely aid Kerry as president in his attempts to battle the threat of terrorism.
From drug lords to lobbyists
Despite having helmed the initial probe which led to the Iran-Contra investigation, Kerry was left off the elite Iran-Contra committee in 1987. As a consolation prize, the Democratic leadership in Congress made Kerry the chairman of the Subcommittee on Terrorism, Narcotics, and International Operations and told him to dig into the Contra-drug connection. Kerry turned to BCCI early in the second year of the probe when his investigators learned that Panamanian strongman Manuel Noriega was laundering drug profits through the bank on behalf of the Medellin cartel.
By March 1988, Kerry's subcommittee had obtained permission from the Foreign Relations Committee to seek subpoenas for both BCCI and individuals at the bank involved in handling Noriega's assets, as well as those handling the accounts of others in Panama and Colombia. Very quickly, though, Kerry faced a roadblock. Citing concerns that the senator's requests would interfere with an ongoing sting operation in Tampa, the Justice Department delayed the subpoenas until the end of the year, at which point the subcommittee's mandate was running out.
BCCI, meanwhile, had its own connections. Prominent figures with ties to the bank included former president Jimmy Carter's budget director, Bert Lance, and a bevy of powerful Washington lobbyists with close ties to President George H.W. Bush, a web of influence that may have helped the bank evade previous investigations. In 1985 and 1986, for instance, the Reagan administration launched no investigation even after the CIA had sent reports to the Treasury, Commerce, and State Departments bluntly describing the bank's role in drug-money laundering and other illegal activities.
In the spring of 1989, Kerry hit another obstacle. Foreign Relations Committee chairman Claiborne Pell (D-R.I.), under pressure from both parties, formally asked Kerry to end his probe. Worried the information he had collected would languish, Kerry quickly dispatched investigator Jack Blum to present the information his committee had found about BCCI's money-laundering operations to the Justice Department. But according to Blum, the Justice Department failed to follow up.
The young senator from Massachusetts, thus, faced a difficult choice. Kerry could play ball with the establishment and back away from BCCI, or he could stay focused on the public interest and gamble his political reputation by pushing forward.
BCCI and the bluebloods
Kerry opted in 1989 to take the same information that had been coldly received at the Justice Department and bring it to New York District Attorney Robert Morgenthau, who agreed to begin a criminal investigation of BCCI, based on Kerry's leads. Kerry also continued to keep up the public pressure. In 1990, when the Bush administration gave the bank a minor slap on the wrist for its money laundering practices, Kerry went on national television to slam the decision. "We send drug people to jail for the rest of their life," he said, "and these guys who are bankers in the corporate world seem to just walk away, and it's business as usual…When banks engage knowingly in the laundering of money, they should be shut down. It's that simple, it really is."
He would soon have a chance to turn his declarations into action. In early 1991, the Justice Department concluded its Tampa probe with a plea deal allowing BCCI officials to stay out of court. At the same time, news reports indicated that Washington elder statesman Clark Clifford might be indicted for defrauding bank regulators and helping BCCI maintain a shell in the United States.
Kerry pounced, demanding (and winning) authorization from the Foreign Relations Committee to open a broad investigation into the bank in May 1991. Almost immediately, the senator faced a new round of pressure to relent. Jacqueline Kennedy Onassis and Democratic doyenne Pamela Harriman personally called Kerry to object, as did his fellow senators. "What are you doing to my friend Clark Clifford?," staffers recalled them asking, according to The Washington Post. BCCI itself hired an army of lawyers, PR specialists, and lobbyists, including former members of Congress, to thwart the investigation.
But Kerry refused to back off, and his hearings began to expose the ways in which international terrorism was financed. As Kerry's subcommittee discovered, BCCI catered to many of the most notorious tyrants and thugs of the late 20th century, including Iraqi dictator Saddam Hussein, the heads of the Medellin cocaine cartel, and Abu Nidal, the notorious Palestinian terrorist. According to the CIA, it also did business with those who went on to lead al Qaeda.
And BCCI went beyond merely offering financial assistance to dictators and terrorists: According to Time, the operation itself was an elaborate fraud, replete with a "global intelligence operation and a Mafia-like enforcement squad."
By July 1991, Kerry's work paid off. That month, British and U.S. regulators finally responded to the evidence provided by Kerry, Morgenthau, and a concurrent investigation by the Federal Reserve. BCCI was shut down in seven countries, restricted in dozens more, and served indictments for grand larceny, bribery, and money laundering. The actions effectively put it out of business what Morgenthau called, "one of the biggest criminal enterprises in world history."
Bin Laden's bankers
Kerry's record in the BCCI affair, of course, contrasts sharply with Bush's. The current president's career as an oilman was always marked by the kind of insider cronyism that Kerry resisted. Even more startling, as a director of Texas-based Harken Energy, Bush himself did business with BCCI-connected institutions almost at the same time Kerry was fighting the bank. As The Wall Street Journal reported in 1991, there was a "mosaic of BCCI connections surrounding since George W. Bush came on board." In 1987, Bush secured a critical $25 million-loan from a bank the Kerry Commission would later reveal to be a BCCI joint venture. Certainly, Bush did not suspect BCCI had such questionable connections at the time. But still, the president's history suggests his attacks on Kerry's national-security credentials come from a position of little authority.
As the presidential campaign enters its final stretch, Kerry's BCCI experience is important for two reasons. First, it reveals Kerry's foresight in fighting terrorism that is critical for any president in this age of asymmetrical threats. As The Washington Post noted, "years before money laundering became a centerpiece of antiterrorist efforts...Kerry crusaded for controls on global money laundering in the name of national security."
Make no mistake about it, BCCI would have been a player. A decade after Kerry helped shut the bank down, the CIA discovered Osama bin Laden was among those with accounts at the bank. A French intelligence report obtained by The Washington Post in 2002 identified dozens of companies and individuals who were involved with BCCI and were found to be dealing with bin Laden after the bank collapsed, and that the financial network operated by bin Laden today "is similar to the network put in place in the 1980s by BCCI." As one senior U.S. investigator said in 2002, "BCCI was the mother and father of terrorist financing operations."
Second, the BCCI affair showed Kerry to be a politician driven by a sense of mission, rather than expediency--even when it meant ruffling feathers. Perhaps Sen. Hank Brown, the ranking Republican on Kerry's subcommittee, put it best. "John Kerry was willing to spearhead this difficult investigation," Brown said. "Because many important members of his own party were involved in this scandal, it was a distasteful subject for other committee and subcommittee chairmen to investigate. They did not. John Kerry did."

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Sorry that you believe that Kerry is a complex thinker....perhaps he is, which is why he cannot figure out what side of an issue he is truly on.
As far as your feeling that I am not intelligent, that is your opinion, and you know what people say about opinions....not to mention that this criticism comes from someone who appears to blindly believe everything the Kerry campaign is throwing out there without doing any research of her own.
I was on the fence for this election until I truly started doing research into Kerry, and after seeing the fact that even today, Kerry is all over the place, I could never, ever bring myself to vote for a person that does not have a backbone, and can take a stand on an issue and stick with it because they believe it is the right thing to do.
-- That is what the attack ads hope for. We hope people will think for themselves.
It appears that people are starting to make up their minds, and Kerry doesnt like the results so far.
Kerry seems to fit into that mold perfectly. He has proposed spending increases in excess of $1 trillion over the next 10 years (I have read closer to $2 trillion, but I will be fair and say those figures are inflated), where does he suppose to get this money from? If he raises taxes back on the wealthiest of people (making in excess of $200,000 per year) he will have to increase them far beyond where they were prior to the Bush tax cuts in order to make a dent in this spending proposal.
If you truly believe that Kerry will not raise taxes on just about every single working American, then I feel for you. It is a mathmatical certainty that he has to.
I
Don't try to be something you are not, which Kerry seems to try to do at every different campaign stop, and people are seeing right through him.
There has been proof of Kerry's lies. Where is the proof of Bush's lies? The 9/11 commission couldnt come up with them, although Ben Veniste tried to, Michael Moore couldnt provide evidence although his movie tries to convince people otherwise.
Sorry if the facts of the two candidates do not support your theory, but facts are facts.
Take for example the failed attempt of Hillary Clinton 10 years ago to institute a Socialistic form of Health Care. (Thank God that it failed.) Do you really want the type of health care that exists in other countries where you have to wait your turn to have necessary procedures such as a quadruple bypass? Not me.
How has the Republican party infiltrated our schools? By trying to hold teachers that cannot get their students to pass proficiency exams held accountable? I say more power to them.
If you haven't already, everyone should read this, first posted a couple of weeks ago by libraone:
This is what I saw that day'. By William B. Rood
http://www.chicagotribune.com/news/nationworld/chi-0408220342aug22,1,3559580.story?coll=chi-newsnationworld-hed
There were three swift boats on the river that day in Vietnam more than 35 years ago--three officers and 15 crew members. Only two of those officers remain to talk about what happened on February 28, 1969.
One is John Kerry, the Democratic presidential candidate who won a Silver Star for what happened on that date. I am the other.
For years, no one asked about those events. But now they are the focus of skirmishing in a presidential election with a group of swift boat veterans and others contending that Kerry didn't deserve the Silver Star for what he did on that day, or the Bronze Star and three Purple Hearts he was awarded for other actions.
Many of us wanted to put it all behind us--the rivers, the ambushes, the killing. Ever since that time, I have refused all requests for interviews about Kerry's service--even those from reporters at the Chicago Tribune, where I work.
But Kerry's critics, armed with stories I know to be untrue, have charged that the accounts of what happened were overblown. The critics have taken pains to say they're not trying to cast doubts on the merit of what others did, but their version of events has splashed doubt on all of us. It's gotten harder and harder for those of us who were there to listen to accounts we know to be untrue, especially when they come from people who were not there.
Even though Kerry's own crew members have backed him, the attacks have continued, and in recent days Kerry has called me and others who were with him in those days, asking that we go public with our accounts.
I can't pretend those calls had no effect on me, but that is not why I am writing this. What matters most to me is that this is hurting crewmen who are not public figures and who deserved to be honored for what they did. My intent is to tell the story here and to never again talk publicly about it.
I was part of the operation that led to Kerry's Silver Star. I have no firsthand knowledge of the events that resulted in his winning the Purple Hearts or the Bronze Star.
But on Feb. 28, 1969, I was officer in charge of PCF-23, one of three swift boats--including Kerry's PCF-94 and Lt. j.g. Donald Droz's PCF-43--that carried Vietnamese regional and Popular Force troops and a Navy demolition team up the Dong Cung, a narrow tributary of the Bay Hap River, to conduct a sweep in the area.
The approach of the noisy 50-foot aluminum boats, each driven by two huge 12-cylinder diesels and loaded down with six crew members, troops and gear, was no secret.
Ambushes were a virtual certainty, and that day was no exception.
Instructions from Kerry
The difference was that Kerry, who had tactical command of that particular operation, had talked to Droz and me beforehand about not responding the way the boats usually did to an ambush.
We agreed that if we were not crippled by the initial volley and had a clear fix on the location of the ambush, we would turn directly into it, focusing the boats' twin .50-caliber machine guns on the attackers and beaching the boats. We told our crews about the plan.
The Viet Cong in the area had come to expect that the heavily loaded boats would lumber on past an ambush, firing at the entrenched attackers, beaching upstream and putting troops ashore to sweep back down on the ambush site. Often, they were long gone by the time the troops got there.
The first time we took fire--the usual rockets and automatic weapons--Kerry ordered a "turn 90" and the three boats roared in on the ambush. It worked. We routed the ambush, killing three of the attackers. The troops, led by an Army adviser, jumped off the boats and began a sweep, which killed another half dozen VC, wounded or captured others and found weapons, blast masks and other supplies used to stage ambushes.
Meanwhile, Kerry ordered our boat to head upstream with his, leaving Droz's boat at the first site.
It happened again, another ambush. And again, Kerry ordered the turn maneuver, and again it worked. As we headed for the riverbank, I remember seeing a loaded B-40 launcher pointed at the boats. It wasn't fired as two men jumped up from their spider holes.
We called Droz's boat up to assist us, and Kerry, followed by one member of his crew, jumped ashore and chased a VC behind a hooch--a thatched hut--maybe 15 yards inland from the ambush site. Some who were there that day recall the man being wounded as he ran. Neither I nor Jerry Leeds, our boat's leading petty officer with whom I've checked my recollection of all these events, recalls that, which is no surprise. Recollections of those who go through experiences like that frequently differ.
With our troops involved in the sweep of the first ambush site, Richard Lamberson, a member of my crew, and I also went ashore to search the area. I was checking out the inside of the hooch when I heard gunfire nearby.
Not long after that, Kerry returned, reporting that he had killed the man he chased behind the hooch. He also had picked up a loaded B-40 rocket launcher, which we took back to our base in An Thoi after the operation.
John O'Neill, author of a highly critical account of Kerry's Vietnam service, describes the man Kerry chased as a "teenager" in a "loincloth." I have no idea how old the gunner Kerry chased that day was, but both Leeds and I recall that he was a grown man, dressed in the kind of garb the VC usually wore.
The man Kerry chased was not the "lone" attacker at that site, as O'Neill suggests. There were others who fled. There was also firing from the tree line well behind the spider holes and at one point, from the opposite riverbank as well. It was not the work of just one attacker.
Our initial reports of the day's action caused an immediate response from our task force headquarters in Cam Ranh Bay.
Congratulatory message
Known over radio circuits by the call sign "Latch," then-Capt. and now retired Rear Adm. Roy Hoffmann, the task force commander, fired off a message congratulating the three swift boats, saying at one point that the tactic of charging the ambushes was a "shining example of completely overwhelming the enemy" and that it "may be the most efficacious method of dealing with small numbers of ambushers."
Hoffmann has become a leading critic of Kerry's and now says that what the boats did on that day demonstrated Kerry's inclination to be impulsive to a fault.
Our decision to use that tactic under the right circumstances was not impulsive but was the result of discussions well beforehand and a mutual agreement of all three boat officers.
It was also well within the aggressive tradition that was embraced by the late Adm. Elmo Zumwalt, then commander of U.S. Naval Forces, Vietnam. Months before that day in February, a fellow boat officer, Michael Bernique, was summoned to Saigon to explain to top Navy commanders why he had made an unauthorized run up the Giang Thanh River, which runs along the Vietnam-Cambodia border. Bernique, who speaks French fluently, had been told by a source in Ha Tien at the mouth of the river that a VC tax collector was operating upstream.
Ignoring the prohibition against it, Bernique and his crew went upstream and routed the VC, pursuing and killing several.
Instead of facing disciplinary action as he had expected, Bernique was given the Silver Star, and Zumwalt ordered other swifts, which had largely patrolled coastal waters, into the rivers.
The decision sent a clear message, underscored repeatedly by Hoffmann's congratulatory messages, that aggressive patrolling was expected and that well-timed, if unconventional, tactics like Bernique's were encouraged.
What we did on Feb. 28, 1969, was well in line with the tone set by our top commanders.
Zumwalt made that clear when he flew down to our base at An Thoi off the southern tip of Vietnam to pin the Silver Star on Kerry and assorted Bronze Stars and commendation medals on the rest of us.
Error in citation
My Bronze Star citation, signed by Zumwalt, praised the charge tactic we used that day, saying the VC were "caught completely off guard."
There's at least one mistake in that citation. It incorrectly identifies the river where the main action occurred, a reminder that such documents were often done in haste and sometimes authored for their signers by staffers. It's a cautionary note for those trying to piece it all together. There's no final authority on something that happened so long ago--not the documents and not even the strained recollections of those of us who were there.
But I know that what some people are saying now is wrong. While they mean to hurt Kerry, what they're saying impugns others who are not in the public eye.
Men like Larry Lee, who was on our bow with an M-60 machine gun as we charged the riverbank, Kenneth Martin, who was in the .50-caliber gun tub atop our boat, and Benjamin Cueva, our engineman, who was at our aft gun mount suppressing the fire from the opposite bank.
Wayne Langhoffer and the other crewmen on Droz's boat went through even worse on April 12, 1969, when they saw Droz killed in a brutal ambush that left PCF-43 an abandoned pile of wreckage on the banks of the Duong Keo River. That was just a few months after the birth of his only child, Tracy.
The survivors of all these events are scattered across the country now.
Jerry Leeds lives in a tiny Kansas town where he built and sold a successful printing business. He owns a beautiful home with a lawn that sweeps to the edge of a small lake, which he also owns. Every year, flights of purple martins return to the stately birdhouses on the tall poles in his back yard.
Cueva, recently retired, has raised three daughters and is beloved by his neighbors for all the years he spent keeping their cars running. Lee is a senior computer programmer in Kentucky, and Lamberson finished a second military career in the Army.
With the debate over that long-ago day in February, they're all living that war another time.
Photo

John Kerry (left) and William Rood on a barracks barge with a rocket launcher and an automatic rifle seized in a raid on Feb. 28, 1969, in southern Vietnam in which swift boats charged ambush sites.
Interesting read however.
What do you have to say about the contents of the article itself? Or is this guy to be entirely dismissed because of his lapse in "journalistic ethics"?
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