Homeland adviser mum on ex-employer’s financial terror links

Sun-Sentinel.com ^ | October 15 2004 | Thomas Maier

[Ginifer]

The chairman of the nation's Homeland Security Advisory Council was helping to guide America's security strategy at the same time he was a top executive with an international banking firm that was investigated and eventually fined more than $100 million for cash transfers to rogue nations, including Iraq, Iran, Libya and Cuba, a Newsday investigation has found.

Joseph Grano Jr., 56, said he did not inform Bush administration officials, including Secretary of Homeland Security Tom Ridge, about the problems of Swiss banking giant UBS, where he worked until June, because he said it "is public record" and he wasn't required to do so.

He denied any wrongdoing and said he was unaware of the accusations against UBS until the Federal Reserve's May announcement of one of its largest fines ever -- for the bank's improper money transfers to "rogue" nations under U.S. economic sanctions and its "deception" in trying to cover it up.

Grano said he assumed Ridge and the administration already knew about the federal investigation of UBS, where Grano worked as one of the bank's senior-most executives after its $11 billion merger with his old firm PaineWebber in January 2001. He simultaneously served on the advisory council and as an executive at UBS for two years.

[justshutupandtakeit]

Another blank fired against the President.

[Capriole]

I don't think it's a blank. I think it's a scandal.

[bryanbig]

Welcome.

Love to hear your reasons why this is a scandal.

[Capriole]

Love to hear your reasons why this is a scandal.

Sure.

1. Because people who work for this administration, particularly in Homeland Security, need to be like Caesar's wife, above reproach. A high-ranking executive for a bank that engaged in major transactions with some of the most heinous regimes on earth is not exactly purer than the driven snow. Don't tell me he didn't know about these shenanigans; even he isn't maintaining that he didn't know. His response is, "Oh, you guys didn't know our company was doing that? Gee, sorry I forgot to mention it."

I've been a through a few TS-clearance investigations myself, and this attitude is a no-no. You don't keep secrets from the agency that is trying to hire you. It's the same as if my daughter were dating a bad dude and, when I found out he had three convictions for assault and car theft, she were to say, "Oh, I thought you knew, Mom! And I thought it would be okay with you if I was dating him!" Um, no, sugar. You knew good and well that it would be a big problem, which is why you didn't mention it.

2. Our vetting process didn't catch this problematic connection. Makes one wonder what else they don't catch. Again, in my own experience I've been horrified at what they don't catch, and my situation was many years ago, before the war started. They're busier now and I fear that many things might be slipping past in the heat of the moment.