AG Eric Holder ordered to find a different venue for KSM 9/11 Mastermind trial

Another failure for Obama. Rudy Giuliani was right back in November when he said Khalid Sheikh Mohammed will NEVER be brought to trial in NYC.

The White House ordered the Justice Department on Thursday night to consider other places to try the 9/11 terror suspects after a wave of opposition to holding the trial in lower Manhattan.

The dramatic turnabout came hours after Mayor Bloomberg said he would “prefer that they did it elsewhere” and then spoke to Attorney General Eric Holder “It would be an inconvenience at the least, and probably that’s too mild a word for people that live in the neighborhood and businesses in the neighborhood,” Bloomberg told reporters.

Bloomberg, who initially supported a Lower Manhattan trial, was influenced by a behind-the-scenes campaign to change the venue led by New York police commissioner Ray Kelly and area business leaders.

“What turned this around was when Ray made a presentation to the Police Foundation,” the source said. “Everyone went from thinking, ‘Justice will be served’ to thinking ‘We are screwed.'”

The order reportedly does not change the administration’s position that Mohammed should be tried in federal criminal court. But it has caught the Justice Department off-guard:

“They’re in a tizzy at Justice over Bloomberg,” a federal law enforcement official said. “It’s like a half-baked souffle — the plan is collapsing.”

“There are places that would be less expensive for the taxpayers and less disruptive for New York City.” State and city leaders have increasingly railed against a plan to try Khalid Shaikh Mohammed in Manhattan federal court since Holder proposed it last month.

“(Stubborn as a mule) President Obama is still committed to trying Mohammed and four other terrorist detainees in federal court,” spokesman Bill Burton said yesterday. READ MORE: NY DAILY NEWS