Stahl: It's a very sad picture. And that's propelled you?
Dagan: I think that should propel everyone in this country.
Stahl: When the Iranians, when Ahmadinejad talks about wiping Israel away, this is what you're thinking?
Dagan: No doubt that I have to take into consideration a scenario that a majority of Israelis are going to be killed if they're going to use a nuclear capability against Israel.
He came to Mossad with the Holocaust motto of "never again" on his mind. Soon after, Iranian cargo planes started falling from the sky, nuclear labs were catching fire, centrifuges were malfunctioning. And then, one by one, Iranian nuclear scientists started disappearing and getting killed, blown up by shadowy men on motorcycles. But no matter how hard we tried, whenever we asked about any of this, he stonewalled.
Dagan: I'm not going to discuss anything about this issue.
Stahl: Okay, but that's pretty well known.
Dagan: Nice try.
Stahl: Nice try! That must kill you not to take credit for it. I mean, even in the Arab world, do you know what they call you? They call you Superman!
Dagan: I don't have my costume.
In Superman's time, Mossad was credited with a string of daring, exquisitely executed, covert missions and assassinations from Damascus to Sudan.
But glory turned to scorn at a Dubai hotel in 2010 during an operation to kill a top arms courier for Hamas.
What the 27 Mossad agents didn't know was that the hotel was full of security cameras and while they succeeded in the assassination, the whole world got to watch their comings and goings including the two agents who conspicuously hung around the elevator in their tennis shorts. Pictures of the "secret agents" were on front pages around the world.
Stahl: This is considered kind of a disaster for the Mossad.
Dagan: I never heard that any Israeli was arrested.
Stahl: No, but the chief of police in Dubai called for your arrest. He challenged you to, quote, "be a man and take responsibility."
Dagan: What do they want? That I really would take seriously what the chief of police of Dubai is saying?
Stahl: I wonder if it is the reason that you are no longer at the Mossad. That it was seen as such a botched operation, that that basically ended your career.
Dagan: First of all, not true. I was requesting the prime minister to leave my office. After more then eight years, I believed it's enough.
Dagan says he retired, but it's widely believed in Israel that Netanyahu refused to renew his term and that's one reason Dagan has broken the Mossad code of silence to criticize the prime minister's stand on Iran.
Stahl: This is payback.