I ran across an article in the Hill blog that raised the same question, I initially scoffed at the idea, until I did some research.
In it, Brent Budowsky asserts that:
Before leaving office George W. Bush will issue a mass pardon, the largest collection of presidential pardons in American history. Bush will pardon himself, Vice President Cheney, and a long list of officials involved in torture, eavesdropping, destruction of evidence, the CIA leak case and a range of potential crimes.
Can he do this? It is legal and is there a precedent?
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