A continuation to infowarrior's post,
It also appears the ATF was also using the weapons that they allowed to be smuggled into Mexico, were "captured" and returned by the Mexican govt for tracing to pad their smuggling statistics, thereby justifying their operations along the border.
In short, the so called "River Of Guns" the ATF has been hyping, started at the ATF's offices.
They were right in the middle of blaming border gun shops, entrapping law abiding citizens in "stings" and requesting millions of dollars and new "special powers" from the Admin when "project gunrunner" blew up in their face.
Although Obama and his DHS lackey were about to approve the "special powers" and funding, they did an abrupt about-face when it was leaked by an ATF agent that ATF smuggled weapons were found at the Border Patrol Agent's murder site.
If the "Media" actually did their job, this would be the end of the ATF.
CBS just carried the story of "Project Gunrunner"... More info at Sipsey Street Irregulars, the website that broke the story.