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Thursday, December 23, 2010

Wayne Madsen Report: A national security embed on the Federal Reserve Board

December 22, 2010
Dan Tarullo
An informed U.S. intelligence community source has said that a member of the Federal Reserve Board of Governors serves as the eyes and ears of the U.S. intelligence community within the Federal Reserve Board. 

The member is Dan Tarullo, a key member of then-President Clinton's "principals" group of national security and economic security advisers.

Tarullo became a member of the Federal Reserve Board on January 28, 2009, just eight days after President Obama was inaugurated.

Tarullo served on Clinton's National Economic Council, as well as the National Security Council and also served as Assistant Secretary of State for Economic and Business Affairs from 1993 to 1996. He also was President Clinton;s personal envoy to the G7/G8 and is a member of the Council on Foreign Relations.

Tarullo, taught at both Harvard and Georgetown Law Schools and also served as a chief counsel to Senator Edward Kennedy.

He also was a key interlocutor between the intelligence community and private industry in pushing the Clinton administration's unpopular encryption key escrow system that would have given the government the key to break any encrypted communications.


Tarullo also chaired the economic committee of the Princeton Project on National Security, co-chaired by former Secretary of State George Schultz and former Clinton National Security Adviser Anthony Lake.

The Princeton Project is supported financially by the Ford Foundation, Princeton's Woodrow Wilson School of Public and International Affairs, the Hewlett Foundation, and David Rubenstein, the co-founder of The Carlyle Group.

Tarullo was one of three national security advisers under Clinton who provided justification for the approval of sensitive missile technology exports to China by Loral Corporation.

Loral's boss, Bernard Schwartz, was a major contributor to Clinton and the Democratic Party. Joining Tarullo in defending the Loral exports were national security adviser Sandy Berger and White House congressional liaison Larry Stein.

WMR was told that when his resume is compared to the other members of the Fedeal Reserve Board, Tarullo is clearly on the board for other reasons than merely having to do with economic policy.

Rightardia can only guess what his role might be. Many years ago there were high level discussions about getting the intelligence community into economic intelligence collection.  

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