Title: Leadership in Context: Transforming the FBI in an Uncertain World Video URL: http://www.youtube.com/watch?v=4JrF2X4Db84 The following transcript is provided for your convenience, but does not represent the official record of this recording; it may contain errors and gaps. Please refer directly to the video recording itself regarding any question of content. Copyright 2009, The Board of Trustees of the Leland Stanford Junior University and the Stanford Graduate School of Business ROBERT MUELLER: When I was first appointed to this when I was first appointed to this or suggested that I take this job one of the things you have to do is have a -- an audience or an interview with the President of the United States. Something that doesn't come often. And I knew -- just about everybody knows George Bush's abhorrence of cell phones. I certainly knew it. So I go in on my day of the interview and I'm there with the President and his Chief of Staff. In the middle of the whole thing, my cell phone goes off. >> [Laughing] ROBERT MUELLER: I kid thee not. And I said to myself, "I'm dead. That's it. It's over." Well, it wasn't. And it didn't luckily hold me up. I did find out it was my wife calling me which wasn't -- [Laughing]. >> [Laughing] ROBERT MUELLER: Whenever you give that admonition about turning off the cell phones it brings that experience to mind. Now, I left about eight years ago to take over this position and prior to that I was the U.S. Attorney up here in San Francisco. And I'd have occasion to come down here periodically and talk to the law school. When I left eight years ago Stanford was one of the most prestigious, premier educational institutions in the United States. I come back to find that it is nothing more than a typical football factory. >> [Laughing] [Clapping] ROBERT MUELLER: In any event, what I'd like to do -- I'm happy you called a conversation. What I'd like to do tonight is talk to you a little bit about where we've been the last six or seven years, and where we are today, and where we're going in terms of our priorities. Then talk a little bit about lessons I've learned, mistakes I've made in terms of trying to bring the Bureau through this period and the end talk a little bit about what Mike said in terms of the legal environment in which we find ourselves and the extraordinary importance of the dialogue with regard to the balancing of national security against privacy, civil liberties, and the like. Let me start off if I could with a little bit of background at the Bureau. Mike has told you a little bit about it. We got 32,000 people now. Of those 32,000 approximately 13,000 are agents. We are dispursed. We have 56 field officers around the country, large offices, and we have 400 resident agencies which are satellite offices so we pretty much cover the United States. We have overseas now 61 legal attache offices that have grown substantially over the last few years and, as Mike pointed out, we have a budget of now about $7.5 billion, so we're a fairly large organization and we have grown rather substantially over the last few years basically in response to what happened on September 11th. And for us September 11th was a watershed. And it was a watershed because it drove us to change rather dramatically our focus, it required us to change the metrics and it has done so as a result of what happened on September 11th. Prior to September 11th, yes, we had a number of television shows, we have -- it was all about history and we actually had our hundredth anniversary last year. But prior to September 11th the American public expected us to go out and investigate crimes after they occurred including terrorist attacks. Before September 11th you had 1993 bombings of the Twin Towers of New York, you had the 1995 Oklahoma City bombings, McVeigh, several hundred people lost their lives in that, East African bombings of Cobar, the tower bombings in Saudi Arabia, the bombing of the Cole off Yemen, and every one of these instances the American public would look at us and the FBI would go out, as we have traditionally done to do the investigation, identify those responsible, and bring them to justice. That changed on September 11th and the metric was no longer yep yai going out and investigating and bringing the persons to justice. It was "Why did the FBI let this happen?" I tend to think in thinking back upon it that part of it may be that the 19 hijackers immediately responsible for what happened on September 11th killed themselves in the events of that day. And so the focus was not on who was responsible so much because fairly quickly afterwards we had determined that the 19 hijackers had killed themselves were immediately responsible. But why did the CIA, why did the FBI, why did the NSA, why did our intelligence and law enforcement agencies let this happen? And so the metric came from a change from who have you arrested, who have you indicted, who have you convicted, to how'd you let this happen and the one metric is not let it happen again and for us that was a dramatic change. And a catalyst for change in the Bureau. And since then I would say that we've gone through maybe three phases of development as a result of what happened on September 11th. The first one I would call "triage", the immediate response, the second I would say laying the foundation of a domestic intelligence agency, and the third and I'll talk about briefly is maturation of the intelligence capacity of the Bureau. Let me start with triage. In the immediate aftermath of September 11th we had to do a number of things first of all was priority. And prioritization means actually prioritizing. That means determining your priorities as setting them as priorities and making sure the personnel, the money, the support goes to those particular priorities. And so the first thing we did is prioritize. Counterterrorism was number one; counterintelligence, protecting our secrets was number two; and number three on the national security side was cyber. On the criminal side, we had, as Mike pointed out, we have over 200 violations probably far more than that we're responsible for. We had to prioritize on the criminal side so it was first of all public corruption and secondly civil rights. And you may ask why do you prioritize those two? And the quick answer is because if we do not do it, nobody else does. You cannot count on another agency to investigate the civil rights abuses or the public corruption that you see in federal, state, local governments. The third area on the criminal side was international/transnational organized crime because we investigate across state boarders, across national, international boarders, and something that state and local law enforcement cannot do. At the same time back in 2001/2002 white collar crime was big. You recall we had Enron, we had Health South, we had WorldCom, we had Quest, any number of very large frauds perpetrated by large corporations in which investors lost millions and indeed billions of dollars so fourth on the criminal side was white collar crime and the fifth was violent crime mainly because anybody that' s familiar with the devastation of violent crime on our cities knows that whatever agency you're in and you contribute to the reduction of violent crime you should. So first if I think for us to do was to prioritize putting counterterrorism number one. We shifted 2,000 agents from the criminal programs over to counterterrorism. 1500 of those agents were doing drug cases the other 500 were doing smaller, white collar criminal cases. But we needed those resources to investigate what happened on September 11th and to investigate and follow up on the series of threats that we had after September 11th that seemed immediate and eminent. The other part was at that time building up what we called " Joint Terrorism Task Forces" where we had 35 of them before September 11th we now have 106. And they are led by the FBI but contributors are state and local law enforcement, other federal agencies so that we leverage our ability to address terrorism each one of our communities not just with the FBI, not just with federal resources, but also pulling in the sheriffs and the sheriff's deputies and police officers and the others who are so essential to protecting us against the next terrorist attack. As I said, we built up our legal attache offices overseas in places that we had not been before, places like Saudi Arabia, UAE, Qatar, places in the Middle East where terrorism was hot. And so we build up the investigative capabilities on the counterterrorism side and one other factor that came into play then that we recognized that we had to change and that was the presumption prior to September 11th that you did not disclose anything about your investigations to anybody else and had to reverse that presumption so that whatever information we discovered in the United States relating to terrorism could be integrated with that intelligence developed by the CIA, NSA, DIA, any of the intelligence communities overseas so that we had the full picture and not just part of the picture. That is what I call "triage", the first six months to the first year. At the same time we understood there was an ongoing debate in the United States as to whether the FBI should be split. Take the criminal programs leave it with the FBI; take counterintelligence, counterterrorism and intelligence and have a separate domestic intelligence agency. Ought to be probably one of the worst ideas for the United States in being effective in addressing terrorism but the fact of the matter is we had to augment our capabilities with building up a domestic intelligence capability. We, over the years to the extent that we have a history of capability, it has been what I would call a "collection", using the intelligence community jargon. And that is we have been particularly good in the four areas basically four areas of collection. The first area is sources, witnesses, interviews, what the intelligence community calls "HUMINT", we have been particularly good also at conducting wires, whether it be criminal wires under what's called Title 3, or national security wires under the -- pursuant to an order of the Criminal Intelligence Surveillance Court. Whenever we do a wire we do it with the approval -- and by a wire I mean interception of substantive conversations -- we do it with the approval of a court whether it be a regular Article 3 court or the FISA court. The third area which is tremendously important to collection is surveillance. Not necessarily the electronic surveillance but the physical surveillance, trailing people around, aerial surveillance. And the fourth area in which we've been particularly good in the past is forensics, DNA, fingerprints, explosives and the like. We're good at that, have been good at that for most of our hundred years. What we lacked was an intelligence capability and so the next part was putting in place the foundation for an intelligence agency and that meant hiring approximately a thousand analysts, building up back at headquarters what we call the " intelligence directorate". Each of our 56 field offices, field intelligence groups and then putting in place the databases, the search engines that you need to pull the various dots together so it paints a picture of the threat you're trying to intercept. So you put that into place for the next couple two or three years and then it got to a place which I call "maturation." It's something that I had missed and the essence of actually a domestic intelligence agency that I had missed at the outset and that is two areas I recall. One is mind-set and the other is skill-set. In terms of mind-set we in the Bureau have been reactive most of our history and it is an event happened we go in and investigate afterwards. And if you asked any of this five, eight, ten years ago about the threat from organized crime or the threat from Hezbollah, or Hamas, or Al-Qaeda, or whatever, we would turn to the number of cases we had open on those particular threats to define the threat. It was always reactive. It was what we knew. What is so much more important though if you're going to anticipate attacks is understanding what you do not know. The gaps. It's one thing to know and be on top of something. It's another thing to identify a gap of your knowledge, identify a threat, identify a gap, and then collect to fill that gap. And so for us it was if you want to anticipate an attack you have to look at it differently than we had traditionally in the law enforcement mode and that's identifying the gaps in our knowledge in any particular threat. It can be gangs, it can be MS13, it can be 18th Street Gang, Taliban Gang here in East Palo Alto, understanding who the leaders are, understanding the gaps in our knowledge is as important as anything else if we are to intercept and address that particular threat. So mind-set was a piece of it and the other piece of it was building up the expertise. And by expertise I always thought that an analyst is just an analyst, is an analyst but the fact of the matter there are degrees of expertise when you develop a competent domestic intelligence service that you have to build through. You have to have reports officers that know how to disseminate the information throughout the intelligence community. You need domain managers to understand the domain, the domain for our office here is Northern California. What are the threats here? Nuestra Familia, Mexican Mafia, Sureno, Norteno, white collar crime, public corruption across the board, understanding the domain and the gaps in your knowledge was part of that and the domain manager handles that. Requirements manager. All these skill-sets we had to start building and that's part of the process that I describe now as maturation. And so if you look at us at this point we have grown, we have laid the foundation of the domestic intelligence capability that we need but at the same time we have allocated our resources through the investigations that we have traditionally undertaken. If you look at -- as I indicated we had to change our priorities back in early 2000 -- 2002 right after September 11th. If you look at those priorities today and through the prism of what is happening throughout the United States today you will see that those priorities that we established back then pretty much are and should be the priorities of today. With the capabilities we have now we're addressing mortgage fraud in terms of white collar crime we have 2700 -- approximately 2700 cases around the country. We have approximately 2500 of health care fraud cases around the country. In addition to mortgage fraud we have any number of corporate fraud cases security, fraud cases that we're addressing given the economic turndown of the last couple of years. Counterterrorism you can understand is still our number one priority particularly if you've read the newspapers in the last month, six weeks, two months. The first case we had was out of Charlotte, an individual by the name of Boyd arrested approximately two months ago with a number of other people. In the last two to three weeks we had a case out of Dallas, Texas, an individual sought to blow up a bank building. Another individual in Springfield, Illinois who sought to blow up a federal building and then we had the case in Denver and New York, an individual who was out, according to the papers, looking for the ingredients to put together a explosive device using TATP. And so there have been a series of cases in the last six weeks or two months that would indicate that we can't take our eye off the ball when it comes to -- when it comes to terrorism. A briefer side on terrorism, the cases that we have here persons who are radicalized in a variety of ways but if you look at what we face overseas at this point or domestic you can see that we still face a substantial Al-Qaeda presence in the western part of Pakistan, eastern Afghanistan, I always called it Waziristan, a federally administered tribal areas who with a intent to develop westerners who can assert themselves into western societies and undertake attacks. You have Al-Qaeda that has expanded in the last couple of years to places like Somalia, Yemen, North Africa, Al-Qaeda numagraab it's called which is still a central threat for us to address. You have those here who travel over to be trained and then you have others here in the United States who have been radicalized here whether it be by associates or mentors, or indeed the internet. Counterterrorism, white collar crime, and lastly I'll spend a moment on violent crime. Our statistics that we push out every six months have shown over the last several years violent crime is down. And the fact of the matter is if you look at where we are today and what we can anticipate in the future you will see that we locked up a number of people in the '90s and many of them are going to get out and that's even without the possible 40,000 that are going to be released in California given the budget crisis. And these unfortunately often are individuals who have no skills other than the skills they picked up in prison and they're not the skills that are marketable in the outside. And acquaintances that they've met on the inside that will be acquaintances on the outside. And they're coming out to an economy where even if you have a skill-set it is very difficult to find a job. So I have very few illusions that the violent crime we've seen is going to continue on its downward pace. Unfortunately I think it will probably begin to rise. In addressing that, we go back to what is absolutely essential to our capability whether it be counterterrorism or just about any threat and that is task forces and working together with state and local law enforcement. So if you look at where we've been September 11th was a transforming event for us. We build up in the triage we moved persons from the criminal side of the house to the national security side of the house but with the threats we see today, particularly domestic threats and white collar arena and the gang arena, we'll be building up our resources over on the criminal side. The last note on that public corruption I said was our number one priority then number one priority now because if we don't do it nobility will. Occasionally they get the headlines Jefferson -- Congressman Jefferson being one, Blagojevich of Illinois being another, and a number of you may have read about the arrest of 40 separate individuals in New Jersey several months ago. And so that's something you cannot take your eye off of and right now we have a conjunction of events in which the federal government is pushing out a great amount of money in the TARP program, the stimulus program and the like through federal, state, and local entities which, given the amounts that they have, are to a certain extent invitation to fraud and corruption. And so in addition to what we are doing with the mortgage fraud crisis what we're doing in the securities fraud, corporate fraud arena we have the prospect of a lot of work down the road with the moneys flowing from the federal government through these various state local entities. If you ask for the future in tells of our programs, if you ask for what do we look -- what's the future look like five, ten, twenty years down the road, which we try to do, there are a combination of factors that contributed to the belief that we will continue to grow as a national but more particularly an international law enforcement/national security/intelligence agency. You read the books by Tom Freedman or read his columns on the impact of globalization he talks about globalization when it comes to merchandise -- or manufacturing, or financing and the like. What we has not yet addressed is globalization with it comes to crime, globalization when it comes to terrorism, and the ability of terrorists and criminals to jump across borders with ease to commit crimes whether it be terrorism or white collar, narcotics trafficking, trafficking of persons. And in the future because of globalization and we're not so insulated as we have been in the past, the oceans no longer protect us, it'll be in part our mission to be the bridge between state and local law enforcement and our counterparts overseas which again gets back to why we have built up so many legal attache offices. Let me turn to a moment to talk briefly about lessons learned in terms of the management aspect of being with the Bureau as we've gone through this evolution. And there are four areas I'll touch on. The one thing that I'd learned early on but is always re- enforced day in and day out is the most important thing to have is your people. And people in at least two ways. The most important decisions I make are not on a particular subject matter, particular investigation, or actually when I was a prosecutor a particular prosecution. The important decisions that I would make at any point in time were people. Who I promote, who I put into particular positions. In terms of transforming an organization, the most important component generally, unless you're high-tech, and very high- tech, is the people. And the time you spend -- one spends too little time on that. One always should spend more time but it's absolutely essential. The other aspect of focusing on the people and the persons in this -- at this time is the necessity to in some sense change a culture. A culture in the Bureau of investigating after the fact and being applauded, and patted on the back, and described, and defined, and television commentary as being glorified to an FBI that is focused on particular threats where you don't end up in the courtroom the next day, you don't end up slapping cuffs on somebody and have the satisfaction of seeing them go to trial, be convicted, and go to jail. And so agents have joined the bureau with that in mind. I wanna put people behind bars. I, as a prosecutor, I love to -- I love what I did. I loved trying the case and I was satisfied if I got a conviction. But changing that culture so that you understand the importance. What's primarily important to the American public, not another terrorist attack, preserving our secrets from those who would steal them is a change that is very difficult in the best of times and difficult also in the worst of times. Although I will say that after September 11th one of the side effects of September 11th was the understanding by just about everybody in the Bureau that we could not let it happen again. And so if we had not had that catalyzing event I do not believe we would have made the strides that we've made today to change the culture, to understand the priorities, and to bring everybody in the Bureau, whether you're an agent, an analyst, a professional staff person behind the concept that the American public expects us to stop September 11ths and we have to do it even though more often than not it will not result in cuffs being slapped on somebody and somebody going to jail. But people, and handle the people, and talking about the culture, and bringing the wonderful people that work in the Bureau along the understand that vision has been a challenge but has been eased by the fact that everybody after September 11th realized that we had to change. Second area which is tremendously problematic that I had never fully understood, never expected to be problematic, and that is information technology and the integration of information technology in an organization. What I come to fine after a -- what is it? About a hundred and $197 million-mistake is that you have to keep your fingers on it and I'll talk about that in a moment. But the challenge in this technological world is taking an individual who is knowledgeable in technology on the one hand and putting them together and marrying the individual with a person who knows and understands the business practices. If all you're going to do is digitize a stand business practice that's not too bad and that marriage is fairly easy. If, on the other hand, you want to update and modernize your business practices and use technology to do it, it is tremendously difficult. On the one hand I have the geeks as I call them and they are affectionately known within the building who know the technology. On the other hand you have agents who have been and know the business, who have been in the business for ten, 15, 20, 25 years and know the business practices but the marriage is very, very difficult. And one of the first big mistakes I made was conning on a software package thinking it would work and only come to fine that there was not -- you did not have that marriage of the information technologist and the person who understands and knew -- understood and knew the business practices of the Bureau. And it is -- I think it's a huge challenge for anybody in this business who has to upgrade the technology while still running the business at a clip. Third area is what I would call a combination of delegation and execution. Those of you who are business students there are tons of books out there on execution and execution is important. And every one of those books read 'em. They're good 'cause execution -- people can come up with ideas but executing the ideas is the hard part. And it comes to intersect somewhat with delegation. One of the things I recall -- and I'm a strong supporter as you might imagine of the Marine Corps and the training I got in the Marine Corps I wouldn't be here without that training -- but one of the things that I remember is going through officer candidate school in the Marine Corps and you get in there and you're - - I don't know it was ten weeks or whatever it was and you get in the third week -- three or four and they start evaluating you. They evaluate you obviously on your fitness for it. Can you do it? They evaluate you on how you're doing on the scholastic part of it and the exams on the like. And I did pretty well on both of those. And then they got down to another area called "delegation." I said, what are you talking about delegation? And I didn't do well on that. And I said, well, why are you downgrading me on delegation? >> [Laughing] ROBERT MUELLER: They said, because one of the most important things you will learn as a Marine Corps officer the your duty in your assignments is the ability to delegate. And I say they're intertwined, delegation and execution, because indeed they are. You have to know how to delegate and you have to know to whom to delegate, and you have to know what to delegate if you're gonna get something executed and I've made any number of mistakes in that regard. When I first came in this job I read most of the books that I could that would help me be a manager. Prior to that I have been a lawyer and there is nothing more apathetical than being a manager than being a lawyer. >> [Laughing] ROBERT MUELLER: And so I got the management books and the management books always talk about the CEO or the head of an organization should be up on the balcony and not on the dance floor. You've read that, you've seen that responsible for strategy, and direction, and all of those good things. Well, I started to do that for a period of time. One area I knew I could not delegate and that was terrorism. Had to brief the President every day for four years and in briefing the President every day for four years and then once a week afterwards you learn you cannot delegate that. You push it through the organization and you have to be ready to respond. That's pretty easy. But the mistake I made in technology was to rely on advisers and not ask the hard questions, be up in that balcony and say, okay, and listen to the platitudes about how good it's going to be without asking the hard questions that inevitably in my own mine I knew I should have been asking. So when it comes to being on the balcony or on the dance floor yes, you have to learn when to delegate and leave it to the dance floor but there are other areas you have to do you cannot delegate they're so important that you intimately have to know the ins and outs of them. That's the third. The fourth is listening and the importance of listening and fining ways to listen. In a position such as mine everybody below you wants to it will you how good things are and finding out how bad things are is the real -- is the real challenge. And it's listening. One quick anecdote about listening. Sometime ago when I'd moved from California went to the U.S. Attorney's Office in Boston and that was pretty much my first supervisory position, I was head of the Criminal Division, the U.S. Attorneys Office in Boston and over a period of time you'll find if you manage people there are two types of people that come into your office. Those that wanna come in and talk to you and the other people wanna come in and get a decision or get something done. And after a period of time if you're busy and you're going day in and day out you start asking the question as soon as the person appears in the doorway, say "What's the issue? Is there something I have to decide or do you wanna talk?" So over a period of time I got in the habit of asking what's the issue. Well, one night I come home and I come into the kitchen -- >> [Laughing] ROBERT MUELLER: -- and my wife greets me at the door and we have a conversation as you would have a dialogue to which she starts talking to me about what happened to the kids at school and I'm a little bit tired and I'd been asking the question all day, so I say, "Darling, what's the Issue?" >> [Laughing] ROBERT MUELLER: And my wife who is gentle and kind all of a sudden turns into a tigress. >> [Laughing] ROBERT MUELLER: I am your wife. I am not somebody who serves under you. Don't you ever ask me what the issue is. You sit there and you listen to me 'til I'm through! >> [Laughing] ROBERT MUELLER: It's the absolute truth [Laughing]. >> [Laughing] ROBERT MUELLER: And I'd like to say that I've learned the lesson. I'm not certain she would agree, however. But apart from a commentary on inter-marital success I would tell you that -- it's a lesson to learn. As somebody who is in a business of running other things you want to solve the problems and you don't spend enough time listening. And if I have one great failure it is I'll sit down in a meeting and I'll hear about five minutes of it and then I wanna jump to a solution. And the fact of the matter is, I should do more listening. And so that's a fourth area that I tried to learn in the last -- in the last several years. Let me turn for a moment and finish up on the legal side of the house because as Mike points out and as we knew in September 11th we'd have to build up a domestic intelligence capability and we would have to address our mission in a far different way. When you're within the court system, when you're doing criminal cases, the monitor is the court system itself. You don't get a search warrant without going to a magistrate and laying out the probable cause. You have a defense counsel that's always questioning what happened so there's an automatic monitor. When you're developing intelligence, on the other hand, there is no court system monitoring to the extent that you have in the criminal justice system and there is a balance that has to be made day in can day out between national security and civil liberties. I am comfortable with that balance as to how we have addressed it over the number of years. It is part of our history, it is part of our legacy, I may in a moment read an excerpt of what we admonish or special agents but if you look back at what has happened in terms of balance over the last several years we have the Patriot Act that people are -- some people are supportive of, some question. But the fact of the matter is the Patriot Act dropped the walls between the intelligence community on the one hand and the law enforcement community on the other. Before the Patriot Act one half of the FBI could not talk to the other half of the FBI because one-half of the FBI was in the criminal arena, the other half was in the intelligence arena. The information that it gathered by the CIA or NSA overseas could not be shared with the FBI nor could the FBI share with those entities the information that had been developed here. And so inevitably in each of those agencies you only had a partial picture of what is happening. So the Patriot Act -- and it's up for the revisions that they're talking about day in and day out now but I am very comfortable and supportive that that is absolute essential of the safety of the country without unduly burdening civil liberties or privacy. Same thing with the debate on the FISA court, Foreign Intelligence Surveillance Act of what is required in order for us to -- by us I mean ourselves and the intelligence community to get an order from the FISA court to intercept conversations it absolutely had to be updated. Probably will have to be updated every other year encryption, all of these things that made it particularly difficult for us to do our job if we are to prevent another terrorist attack. So if you look at the legislation that has been passed, if you look at what we have done in the Bureau since September 11th I'm comfortable that we have done what we should within the confines of the Constitution, the statutes, and the Attorney General guidelines. Let me finish with reading you the admonition that we give new agents -- at least an excerpt of the admonition that we give new agents as they come out and get their badges. "For the past 100 years, the FBI has stood for some of the best of America. We have disrupted terrorist cells, we have rescued hostages from kidnappers, we have broken the backs of organized criminal groups, we have put violent criminals and drug dealers behind bars. And we have done this by adhering to our motto of 'fidelity, bravery, and integrity' and by respecting the authority given to us under the Constitution. Today, we are building on that legacy as we focus on our top priority, preventing another terrorist attack in the United States. And it is indeed a time of change in the Bureau but or values never change. As always, we will protect the security of our nation while upholding the civil rights guaranteed by the Constitution to every citizen. It is not enough to prevent foreign countries from stealing our secrets. We must prevent that happening while still upholding the rule of law. It is not enough to stop the terrorists. We must stop him while maintaining civil liberties. It is not enough to catch the criminal. We must catch him while respecting his civil rights. The rule of law, civil liberties, civil rights, these are not our burdens. They are what make us better and they are what have made us better for the past 100 years. You, each of you, new agents, are charged with upholding this legacy." Thank you and I'd be happy to answer any questions that you' d have. >> [Applause] ROBERT MUELLER: You know what this is like? I'll tell you what this is like. I go out and visit my office, today I was up in Seattle visiting my office, and at the end I always say you got any questions or things I oughta know? And there is dead silence. The only difference being that there's dead silence when I ask my people that because they expect if they ask a question I don't like they'll be transferred to Yemen or someplace. >> [Laughing] ROBERT MUELLER: But I can't transfer you. I can't control you. >> [Laughing] ROBERT MUELLER: And let me go right over here. Yes, sir. I'm sorry. I was looking for the person with the microphone. >> Okay. Thank you. My name's Joe Sindridge and what I wanted to ask you is with regards to Vladimir Putin. Is he -- I understand he may be building a factory in Venezuela to build AK47s. Is this something you don't know about or should know about? ROBERT MUELLER: The question was Vladimir Putin building a factory in Venezuela? We stay away from that. That's a little bit too precise for an answer. >> [Laughing] ROBERT MUELLER: You know what you learn in this business is to duck questions. >> [Laughing] ROBERT MUELLER: And something like that, even if I did know the answer I'm not certain in this arena I could discuss it. Yes, sir? Over here in the yellow? And I think. >> Hello? >> (Asking question in the background.) ROBERT MUELLER: The question is, in my opinion why have we not had another terrorist incident? And I attribute it to a number of factors. The first factor is the going into Afghanistan in the immediate wake of September 11th and removing the sanctuary for Al- Qaeda. That was as the result. Prior to that, training -- recruiting, training, the September 11th plot was hatched and organized and run from the sanctuary of Afghanistan and removing that sanctuary was the first order of business and appropriately so. Secondly, the work that the principally the CIA has done overseas in taking off the leadership of Al-Qaeda. You look at somebody like ha Khalid Shaikh Mohammed who's responsible for September 11th, he was -- spent a couple of years in North Carolina in college, he understood the United States, computer literate, charismatic, tremendous organizer, a confidant of bin Laden. You take somebody like that off the playing field and it is very, very difficult to replace them. And over a series of years the CIA has taken off the mayor leadership of Al-Qaeda and regardless of how you feel about various aspects of it it has had a substantial effect on our ability to prevent another terrorist attack. And a third area I would say is somewhat what I've described is the vigilance within in country, in joint terrorism task forces, the ability to work with the rest of the intelligence community to pick up a snippet of informing that would indicate that a terrorist plot is afoot and to disrupt it before it comes to a de-fruition. Right here in the middle. Lady in blue. >> Thanks. (Asking question in the background.) ROBERT MUELLER: The question was, we have the 56 field offices and they're run by a special agent in charge and you elude to the autonomy they have. They probably think they have more autonomy than -- >> [Laughing] ROBERT MUELLER: ROBERT MUELLER: I could tell you they wish they had more autonomy than they have but how do we transform? Part of it is developing leadership over a period of time and leadership that understands the mission and is going to subscribe to that mission it takes a while to replace and build it up. The only thing that we do which is a -- we learn from the New York Police Department Bill Braden who just took over -- no, took over several years ago Los Angeles Police Department established it in New York which is called ComStat which means pulling in statistic relating to crime by precinct and every week having a meeting with the precinct commanders where you confront them with the statistics and confront them with asking them what are they doing to drive down those statistics. We've documented that. We call it SPS sessions. I don't know what it stands for but -- >> [Laughing] ROBERT MUELLER: Every other week I have four offices on the video conference and spend two hours, half hour each, going through what the threat is in each of those offices and what they're doing to address the threat, fill the gaps, where are your sources? Where are you lacking source coverage? How many Title 3s do you have? What do you need in terms of electronic surveillance? What else do you need in support and what are you doing about it? How are you prioritizing? And so it is a give and take. It gives me an opportunity to learn more about the office, it puts them through a rigorous exercise in preparing for that but also drives the organization. It's one of the initiatives I think has been particularly helpful during this period of maturization. Let me go right here, sir. >> (Asking question in the background.) ROBERT MUELLER: An InfraGuard is a program -- I think -- we got I think 70,000 in InfraGuard now is a program where we have outreached a private industry where we have a network with private industry focused principally but not totally on the cyber arena. And it is exceptionally helpful for us to learn what is happening in various companies when it comes to the cyber arena particularly cyber warfare and cyber intrusions and the like and also as a mechanism that we utilize to pass on information to those who are a member of the InfraGuard program. So I give it high marks and it's a program that we're continuing to expand. One of the issues I did not focus on in this dialogue is the impact of cyber crime on what we do across the board. And if you look at the future of the Bureau, one of the expanding areas for us is going to be addressing cyber. Cyber attacks, denial service attacks, worms, viruses, any number of pishing schemes, we just yesterday took down a group of Egyptians and individuals in the United States made over I think 70 arrests at this point where we had a pishing scheme that was operated in Egypt and the United States with a number of victims here but also a number of victims overseas. And that is going to be an expanding area of interest for us. Yes, sir? In the blue shirt. A turquoise shirt. >> (Asking question in the background.) -- in the wise words of spider man, with power comes responsibility. How does FBI -- what are some of the checks and balances both internal FBI to prevent the use of power within FBI? And related to that, what happens when there is corruption, let's say, within FBI? ROBERT MUELLER: The question is, we have a lot of power in our responsibilities to effect person's lives. And there's not a one of us that doesn't understand that. What do we do to prevent that abuse? Well, I mention two. First of all, the Attorney General guidelines. We operate within the Attorney General guidelines, applicable statutes in the Constitution. And basically that means we get an allegation, we can do minimal investigation to determine whether we should do further investigation. And so there are levels of predication that we have to meet before we institute or utilize additional investigative tools. The most intrusive investigative tools, listening to conversations and the like we can only do with the approval of a court showing appropriate probable cause. That's one aspect of it. Another aspect is a debate I've had with myself since -- to a certain extent since I've started. To be an agent in the FBI you have to be 23 years old, you have to be three years of work experience, and sparkly background and all the rest of that. The average age of our graduating class of new agents is 30 and almost all have had another career. You know, when I came in, one of the things that was problematic and still to a certain extent is problematic is we'd do very little recruiting on campuses because we want the three years' experience and you have to be 23. And so we're missing a lot of people. But on the other hand the argument is made and this is the one that I at this -- am persuaded about now is going to your point. We have a tremendous amount of power. We give an agent a badge and a gun and the ability to adversely impact a person's life. The most important thing for our people then are judgment, maturity, and an understanding of the power that we entrust to them. So I have gone back and forth and we're doing much more recruiting on college campuses that we've done before but I still think given what you point out the power that we have that maturity and judgment are absolutely essential in exercising that power. Yes, sir? Right -- actually, let me take somebody in back. In the blue sweater. Yep. Right under the camera. You can turn around you'll be on camera. No, no. The guy in front of you. >> Okay. Thank you, sir. >> [Laughing] [Clapping] ROBERT MUELLER: And that's only because he had a jacket on. Not to worry. >> [Laughing]. >> So you described how you went from a reactive force to a proactive force and you also said you have these 32,000 people. So going from reactive to proactive you have probably to increase your speed a lot and especially your speed of internal learning. Can you maybe give us an insight with these two groups you said, you have the geeks and the agents, what mechanisms you have internally to learn quickly and be ahead of things than just afterwards looking what happened. ROBERT MUELLER: Yeah. Well, let me say we have a number of agents who are geeks also because we have -- >> [Laughing] ROBERT MUELLER: When I was talking about it is those people that are instituting, putting together the networks, the hardware, the software in order for you to exchange the information. We have career paths now. We bring in people who have the experience in the cyber arena and teach 'em how to be agents and do the investigative work. And so we have a series of career paths where we build -- are building in -- are bringing in not only the maturity and the judgment but a particular degree of expertise what we need. I'll tell you with weapons of mass destruction we want chemists, we want biologists, we want the sigh -- not the cyber but the Anthrax attacks of 2002 and consequently we bring in persons with that baseline expertise which is in part contributes to the fact that the average age of our graduating class is 30. And within those particular components we have I would say a fairly good educational and training capability so that we stay ahead whether it be cyber or counterterrorism, counterintelligence that we stay ahead of our adversaries. One of the areas that we have not done as good a job on as I would like is developing leadership and leaders. When you talk about judgment and maturity you also want leadership and you want -- you need different persons to come in, they need differing experience at differing periods in their career. Military does a very good job. We do an okay job but we're putting substantial emphasis on building and maturing leadership throughout the Bureau for the next six months to the next year. And that in my mind is as important as anything else we do. Where we go in how about the gentleman in the blue -- right -- no. You both got glasses [Laughing]. Yes, sir. You. The one who went like that. >> You refer to the separations between the FBI and CIA. A separation that used to be noted particularly was the FBI was domestic, CIA was overseas. With the expansion of FBI presence overseas that line must be pretty blurred at times. And then as a followup, what about liaison with foreign intelligence organizations. ROBERT MUELLER: Well, it's actually one in the same question. The -- you will find that -- I don't know whether you're in the agency but you probably spent time overseas and have seen the back and forth between the Bureau and the agency prior to September 11th. Now we're embedded with the agencies, the agency's embedded in us. Number two person in my national security division is an agency person. And what you find overseas is you have law -- just about every country has intelligence components and law enforcement components. Law enforcement components are always leery of the intelligence components, intelligent components are somewhat leery of the law enforcement. And so we are very good partners now overseas and understanding that information has to be shared between us and that we have to develop informing from the law enforcement components as well as the intelligence components. If you look at the UK you have MI5, MI6. MI5 the domestic intelligence, MI6 the CIA, and then you have the Mets, Scotland Yard, for instance. And we maintain relationships with all three of them as does the CIA and we share between us understanding that we cannot let information develop between the cracks. One more question. Right -- yes, sir in. >> any use for intelligence from the interrogation program in. ROBERT MUELLER: That gets into -- I'm gonna give somebody another question because I can't get into -- [Laughing]. We always -- let me just say, whenever we do a debriefing of a back ward look we learn something. So you can assume that we learn something. One more. And the lady in back perhaps. >> how does the FBI attract the economy, what's happening in the economy, the behavior, the assistance, everything that goes wrong with it and how does FBI track and factor it and how does the economy factor FBI? ROBERT MUELLER: Let me -- people ask what contributed to the collapse of the economy two or three years ago. Some people are wanting to say it was fraud when you see all the mortgage fraud cases that we have but I think most independent observers will say it's a number of factors. The bailing out of the housing market, a number of factors contributed to it. But with that sliver of persons who have committed fraud and contributed to that we have ongoing investigations and we're locking them up day in and day out. And that'll continue to be our role. Those who committed fraud, they will get the cuffs slapped on them, they will go to jail, and they will serve time. And with that, thank you very much for the pleasure of being here. >> [Applause]