Bruce Schneier talks about this, and a way round it:

An Air Force evaluation of Multics, and Ken Thompson's famous Turing award
lecture "Reflections on Trusting Trust," showed that compilers can be
subverted to insert malicious Trojan horses into critical software,
including themselves. If this attack goes undetected, even complete analysis
of a system's source code will not find the malicious code that is running,
and methods for detecting this particular attack are not widely known. This
paper describes a practical technique, termed diverse double-compiling
(DDC), that detects this attack and some unintended compiler defects as
well. Simply recompile the purported source code twice: once with a second
(trusted) compiler, and again using the result of the first compilation. If
the result is bit-for-bit identical with the untrusted binary, then the
source code accurately represents the binary. This technique has been
mentioned informally, but its issues and ramifications have not been
identified or discussed in a peer-reviewed work, nor has a public
demonstration been made. This paper describes the technique, justifies it,
describes how to overcome practical challenges, and demonstrates it.

[ http://www.schneier.com/blog/archives/2006/01/countering_trus.html ]

What was it you were referring to?
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