Stephen R. Kappes
Stephen R. Kappes has announced his retirement as Deputy Director of the Central Intelligence Agency next month.

WaPo — New York Times

Kappes dramatically returned in triumph to the CIA as DDCIA in May of 2006, having come close to being appointed Director but being edged out by Leon Panetta. Kappes was the preferred candidate for the directorship of Senators Jay Rockefeller and Diane Feinstein, and his Deputy Directorship was a concession to Feinstein.

Kappes had earlier resigned as Deputy Director of Operations in November of 2004 after a brief interval of conflict with Porter Goss, who had been appointed CIA Director with a charter to reform the Agency in late September. Stephen Hayes describes what happened.

On November 5, Goss’s new chief of staff Patrick Murray confronted Mary Margaret Graham, then serving as associate deputy director for counterterrorism in the directorate of operations. The two discussed several items, including the prospective replacement for Kostiw, a CIA veteran named Kyle “Dusty” Foggo. Murray had a simple message: No more leaks.

Graham took offense at the accusatory warning and notified her boss, Michael Sulick, who in turn notified his boss, Stephen Kappes. A meeting of Goss, Murray, Sulick, and Kappes followed. Goss attended most of the meeting, in which the two new CIA leaders reiterated their concern about leaks. After Goss left, Murray once again warned the two career CIA officials that leaks would not be tolerated. According to a source with knowledge of the incident, Sulick took offense, called Murray “a Hill puke,” and threw a stack of papers in his direction.

Goss summoned Kappes the following day. Although others in the new CIA leadership believed Sulick’s behavior was an act of insubordination worthy of firing, Goss didn’t go quite that far. He ordered Kappes to reassign Sulick to a position outside of the building. Goss suggested Sulick be named New York City station chief. Kappes refused and threatened to resign if Sulick were reassigned. Goss accepted his resignation and Sulick soon followed him out the door.

William Safire referred at the time to the exodus of “a flock of pouting spooks at Langley who bet on a Kerry victory.”

Stephen Kappes had a distinguished career in CIA Operations, but he was one of the central figures in Agency efforts to oppose the policies of a Republican elected administration.

Scott Johnson, at Power-line, quotes the pseudononymous former CIA case officer and author “Ishmael Jones” on the reasons for Kappes’ resignation.

His departure suggests that the Obama administration understands that the status quo at the CIA is unacceptable.

The bomb attack at the CIA base in Khost helped push Kappes out. Kappes had personally briefed President Obama on the quality of the operation beforehand. Following the bombing, we learned that the operation had been a classic bureaucratic boondoggle: 14 people, many with little experience, had met the agent when there should have been only one. Espionage is a one on one business. With so many layers of management involved both in the field and at Headquarters, the chain of command was vague and no-one was really in charge. The CIA’s chief at Khost was set up for failure.

Kappes then attempted to recover from the Khost debacle by leaking news of the defection of an Iranian nuclear scientist. But closer examination showed this to be a hollow achievement. CIA officers are taught to keep agents operating in place because once they defect, their access to intelligence is lost. Defection is an option only when the agent’s life is at risk. And then, once an agent has defected, the news is not to be leaked to the press. The scientist in question turned out to be a low-level participant in the Iranian program who had left the program almost a year ago.

Kappes had outlived his usefulness and become a liability. And so, like Jeremiah Wright, under the bus he goes.

No longer pouting, but smiling with content, Bush administration adversaries in the CIA put their feet up and reminisce contemptuously about Porter Goss and his associates, referred to as “Goslings,” who tried to change the agency’s culture and were defeated.

“From day one, Goss and his people seemed to be punching above their weight,” reports Jeff Stein.

Stephen Hayes thinks that Porter Goss’s resignation as CIA Director and the pending appointment of Stephen Kappes, a prominent member of William Safire’s “flock of pouting spooks” that exited Langley in the aftermath of George W. Bush’s defeat of John Kerry in November of 2004, as Deputy Director signals the Bush Administration’s defeat by liberal mandarins in the CIA establishment.

PORTER GOSS’S TENURE as director of central intelligence began with a public spat between the new reform-minded CIA leadership and an intransigent bureaucracy. Now, 18 months later, it is ending in a cloud of confusion. Goss is gone and so are his agents of change. Two of the CIA officials at the heart of that opening battle–Mary Margaret Graham and Stephen Kappes–have been promoted. And the old guard is happy.

“The move was seen as a direct repudiation of Goss’s leadership and as an olive branch to CIA veterans disaffected by his 18-month tenure,” wrote Peter Baker and Charles Babington in the Washington Post. Yet Goss had taken to the CIA the high expectations of many top Washington policymakers who work on intelligence issues.

“Porter Goss’s confirmation . . . represents perhaps the most important changing of the guard for our intelligence community since 1947,” the year the CIA was created, said Pat Roberts, the Kansas Republican who chairs the Senate Select Intelligence Committee, on the day Goss was confirmed. “He will be the first director of central intelligence in a new, and hopefully better, intelligence community.”

And now he’s gone. So what happened?…

The White House took on the Agency. And the Agency won.