The real question (and I didn't expect it to come up) is whether or not it's legal.

Frankly, under US wire tapping law it's not. If Clinton had done this and it was know, he's be run out on the rails.

The question is what happens now?

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[On update]
This story isn't new btw. It first came out back in 2006.

There's still a question of whether or not it's happening (there is only the whistleblower).

Finally, the reason why this is coming out now is that the whistleblower is advocating no immunity for the telecos.

Which actually make me believe the whistleblower. If the telecos did nothing wrong, why do they need immunity?