Corporate Corruption Media Articles

Excerpts of Key Corporate Corruption Media Articles in Major Media

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The Deepwater Horizon disaster caused headlines around the world, yet the people who live in the Niger delta have had to live with environmental catastrophes for decades. In fact, more oil is spilled from the delta's network of terminals, pipes, pumping stations and oil platforms every year than has been lost in the Gulf of Mexico, the site of a ... disaster which ... has made headlines round the world. By contrast, little information has emerged about the damage inflicted on the Niger delta. Yet the destruction there provides us with a far more accurate picture of the price we have to pay for drilling oil today. With 606 oilfields, the Niger delta supplies 40% of all the crude the United States imports and is the world capital of oil pollution. Life expectancy in its rural communities, half of which have no access to clean water, has fallen to little more than 40 years over the past two generations. Locals blame the oil that pollutes their land and can scarcely believe the contrast with the steps taken by BP and the US government to try to stop the Gulf oil leak and to protect the Louisiana shoreline from pollution. "If this Gulf accident had happened in Nigeria, neither the government nor the company would have paid much attention," said the writer Ben Ikari, a member of the Ogoni people. "This kind of spill happens all the time in the delta."

Note: For revealing reports from major media sources on government and corporate corruption and collusion, click here and here.

Prolonged exposure to crude oil and chemical dispersants is a public health danger, environmental scientists warned [on May 27]. With no immediate end in sight, there were growing concerns over the effects on public health of a prolonged exposure to the oil as well as to the more than 3,640,000 litres (800,000 gallons) of chemical dispersants sprayed on the slick. Environmentalists and fishing groups in Louisiana say prolonged exposure to the oil, in the form of tiny airborne particles as well as dispersants, could be wreaking devastating damage on public health. They also accuse BP of threatening to sack workers who try to turn up for clean-up duty wearing protective respirators, and the Obama administration of refusing to release results of air and water quality tests that would show the impact of crude oil and dispersants on the environment. Wilma Subra, a chemist who has served as a consultant to the Environmental Protection Agency, said "Every time the wind blows from the south-east to the shore, people are being made sick. It causes severe headaches, nausea, respiratory problems, burning eyes and sore throats." Long-term health effects include neurological disorders and cancer. Subra said there was even greater concern for those recruited to lay booms and skim crude off the water, since they were in closer proximity to the oil and the chemical dispersants. Clint Guidry, of the Louisiana Shrimp Association, has accused BP of threatening to sack workers who turn up wearing respirators.

Note: For revealing reports from major media sources on government and corporate corruption and collusion, click here and here.

Employees of the federal agency that regulates offshore drilling accepted lunches, football tickets, hunting trips and other gifts from the oil and gas companies they were in charge of policing, according to a report [on May 25] by the Interior Department's inspector general. The investigation, which zeroed in on the Lake Charles, La., office of the embattled Minerals Management Service, also found that at least one agency inspector also was actively negotiating employment with an oil and gas production company while simultaneously inspecting its platforms in the Gulf of Mexico. The oil spill in the gulf has focused intense scrutiny on the agency's oversight of offshore drilling and raised questions about whether it was lax in setting requirements for key safety devices and practices. But even before the spill, the agency had been singled out for ethical lapses and mismanagement. In 2008, the Interior Department's inspector general rapped workers in MMS' Lakewood, Colo., office for having sexual relationships with and accepting gifts from energy company representatives. Over a decade, there have been ten inspector general reports and nine from the Government Accountability Office that documented "failures within MMS," [Rep. Darrell Issa] said, "and yet it still took a massive catastrophe to get anyone to ... agree on the need for a massive bureaucratic overhaul."

Note: For an abundance of revealing articles from major media sources on government and corporate collusion and corruption, click here and here.

As BP makes its latest attempt to plug its gushing oil well, news photographers are complaining that their efforts to document the slow-motion disaster in the Gulf of Mexico are being thwarted by local and federal officials — working with BP — who are blocking access to the sites where the effects of the spill are most visible. More than a month into the disaster, a host of anecdotal evidence is emerging from reporters, photographers, and TV crews in which BP and Coast Guard officials explicitly target members of the media, restricting and denying them access to oil-covered beaches, staging areas for clean-up efforts, and even flyovers. Last week, a CBS TV crew was threatened with arrest when attempting to film an oil-covered beach. On Monday, Mother Jones published this firsthand account of one reporter’s repeated attempts to gain access to clean-up operations on oil-soaked beaches, and the telling response of local law enforcement.

Note: To see some of the devastating photos from this tragic spill, click here. For an abundance of revealing articles from major media sources on government and corporate collusion and corruption, click here and here.

The federal agency responsible for regulating U.S. offshore oil drilling repeatedly ignored warnings from government scientists about environmental risks in its push to approve energy exploration activities quickly, according to numerous documents and interviews. Minerals Management Service officials, who can receive cash bonuses in the thousands of dollars based in large part on meeting federal deadlines for leasing offshore oil and gas exploration, frequently changed documents and bypassed legal requirements aimed at protecting the marine environment, the documents show. This has dramatically weakened the scientific checks on offshore drilling that were established under landmark laws such as the Marine Mammal Protection Act and the National Environmental Policy Act. Interviews and documents show numerous examples in which senior officials discounted scientific data and advice -- even from scientists elsewhere in the federal government -- that would have impeded oil and gas companies drilling offshore.

Note: For an abundance of revealing articles from major media sources on government and corporate collusion and corruption, click here and here.

The United States must curb consumption and credit and boost production and savings, but its citizens and leaders so far lack the will to change, economist Paul Volcker said. Volcker, 82, an adviser to the Obama administration, ... said the United States spiraled toward the Great Recession through an excess of debt that subsidized an appetite for consumer goods, many of them imported. The chief bugaboo, in Volcker's view, was a runaway financial sector that ... became a factory to make money by manipulating money. He said under-regulated financiers made big profits and bonuses by swapping derivatives and other exotic instruments that produced few of the widespread benefits - like better jobs and wages - that normally flow from investment. Now that this financial house of cards has collapsed, Volcker said, U.S. and world leaders must figure out how to stop powerful mega-banks and hedge funds from engaging in the same shenanigans that forced taxpayers to bail them out to prevent further catastrophe. "The central issue with which we have been grappling is the doctrine of 'too big to fail,' " Volcker said, alluding to how the United States bailed out institutions like insurer AIG to prevent their collapse from further damaging the economy.

Note: For a great collection of reports from major media sources on the hidden realities of the Wall Street crisis and the government bailout of big finance, click here.

BP's estimate that only 5,000 barrels of oil are leaking daily from a well in the Gulf of Mexico, which the Obama administration hasn't disputed, could save the company millions of dollars in damages when the financial impact of the spill is resolved in court, legal experts say. Neither BP nor the federal government has tried to measure at the source the amount of crude pouring into the water. BP and the Obama administration have said they don't want to take the measurements for fear of interfering with efforts to stop the leaks. The amount of oil spilled is certain to be key evidence in the court battles that are likely to result from the disaster. The size of the Exxon Valdez spill in Alaska, for example, was a significant factor that the jury considered when it assessed damages against Exxon. "If they put off measuring, then it's going to be a battle of dueling experts after the fact trying to extrapolate how much spilled after it has all sunk or has been carried away," said Lloyd Benton Miller, one of the lead plaintiffs' lawyers in the Exxon Valdez spill litigation. "The ability to measure how much oil was released will be impossible."

Note: For lots more from major media sources on corporate and government collusion and corruption, click here and here.

BP, the company in charge of the rig that exploded last month in the Gulf of Mexico, hasn't publicly divulged the results of tests on the extent of workers' exposure to evaporating oil or from the burning of crude over the gulf, even though researchers say those data are crucial in determining whether the conditions are safe. Moreover, the company isn't monitoring the extent of the spill and only reluctantly released videos of the spill site that could give scientists a clue to the amount of the oil in the gulf. BP's role as the primary source of information has raised questions about whether the government should intervene to gather such data and to publicize them and whether an adequate cleanup can be accomplished without the details of crude oil spreading across the gulf. The company also hasn't publicly released air sampling for oil spill workers although Occupational Safety and Health Administration, the agency in charge of monitoring compliance with worker safety regulations, is relying on the information and has urged it to do so.

Note: For lots more from major media sources on corporate and government collusion and corruption, click here and here.

Inside the humdrum offices of a tiny trading firm called Tradeworx, workers ... tend high-speed computers that typically buy and sell 80 million shares a day. But on the afternoon of May 6, as the stock market began to plunge in the “flash crash,” someone here walked up to one of those computers and typed the command HF STOP: sell everything and shutdown. Across the country, several of Tradeworx’s counterparts did the same. In a blink, some of the most powerful players in the stock market — high-frequency traders — went dark. The result sent chills through the financial world. After the brief 1,000-point plunge in the stock market that day, the growing role of high-frequency traders in the nation’s financial markets is drawing new scrutiny. Over the last decade, these high-tech operators have become sort of a shadow Wall Street — from New Jersey to Kansas City, from Texas to Chicago. Depending on whose estimates you believe, high-frequency traders account for 40 to 70 percent of all trading on every stock market in the country. Some of the biggest players trade more than a billion shares a day. These are short-term bets. Very short. The founder of Tradebot, in Kansas City, Mo., told students in 2008 that his firm typically held stocks for 11 seconds. Tradebot, one of the biggest high-frequency traders around, had not had a losing day in four years, he said.

Note: For key reports on the dubious practices which underlay the financial crisis and the impoverishment of the public treasury, click here.

The gusher unleashed in the Gulf of Mexico continues to spew crude oil. There are no reliable estimates of how much oil is pouring into the gulf. But it comes to many millions of gallons since the catastrophic blowout. Mike Williams, one of the last crewmembers to escape the inferno ... says the destruction of the Deepwater Horizon [oil rig] had been building for weeks in a series of mishaps. The tension in every drilling operation is between doing things safely and doing them fast; time is money and this job was costing BP a million dollars a day. But Williams says there was trouble from the start - getting to the oil was taking too long. Williams said they were told it would take 21 days; according to him, it actually took six weeks. With the schedule slipping, Williams says a BP manager ordered a faster pace. Williams says there was an accident on the rig that has not been reported before. He says, four weeks before the explosion, the rig's most vital piece of safety equipment was damaged ... the blowout preventer, or BOP. The spill has cost BP about $500 million so far. But consider, in just the first three months this year, BP made profits of $6 billion. There are plenty of accusations to go around that BP pressed for speed, Halliburton's cement plugs failed, and Transocean damaged the blowout preventer. Through all the red flags, they pressed ahead.

Note: For lots more from major media sources on corporate and government collusion and corruption, click here and here.

The amount of oil spilling into the Gulf of Mexico may be at least 10 times the size of official estimates, according to an exclusive analysis conducted for NPR. At NPR's request, experts examined video that BP released Wednesday. Their findings suggest the BP spill is already far larger than the 1989 Exxon Valdez accident in Alaska, which spilled at least 250,000 barrels of oil. BP has said repeatedly that there is no reliable way to measure the oil spill in the Gulf of Mexico by looking at the oil gushing out of the pipe. But scientists say there are actually many proven techniques for doing just that. Steven Wereley, an associate professor of mechanical engineering at Purdue University, analyzed videotape of the seafloor gusher using a technique called particle image velocimetry. A computer program simply tracks particles and calculates how fast they are moving. Wereley put the BP video of the gusher into his computer. He made a few simple calculations and came up with an astonishing value for the rate of the oil spill: 70,000 barrels a day — much higher than the official estimate of 5,000 barrels a day. The method is accurate to a degree of plus or minus 20 percent. This new, much larger number suggests that capturing — and cleaning up — this oil may be a much bigger challenge than anyone has let on.

Note: For lots more from reliable souces on government corruption and collusion with industries it is supposed to be regulating, click here.

The federal Minerals Management Service gave permission to BP and dozens of other oil companies to drill in the Gulf of Mexico without first getting required permits from another agency that assesses threats to endangered species — and despite strong warnings from that agency about the impact the drilling was likely to have on the gulf. Those approvals, federal records show, include one for the well drilled by the Deepwater Horizon rig, which exploded on April 20, killing 11 workers and resulting in thousands of barrels of oil spilling into the gulf each day. The Minerals Management Service, or M.M.S., also routinely overruled its staff biologists and engineers who raised concerns about the safety and the environmental impact of certain drilling proposals in the gulf and in Alaska, according to a half-dozen current and former agency scientists. Those scientists said they were also regularly pressured by agency officials to change the findings of their internal studies if they predicted that an accident was likely to occur or if wildlife might be harmed. “M.M.S. has given up any pretense of regulating the offshore oil industry,” said Kierán Suckling, director of the Center for Biological Diversity, ... which filed notice of intent to sue the agency over its noncompliance with federal law concerning endangered species. “The agency seems to think its mission is to help the oil industry evade environmental laws.”

Note: For lots more from reliable souces on government corruption and collusion with industries it is supposed to be regulating, click here.

More than a year and a half after Iceland's major banks failed, all but sinking the country's economy, police have begun rounding up a number of top bankers while other former executives and owners face a $US2 billion ($2.24 billion) lawsuit. Since Iceland's three largest banks - Kaupthing, Landsbanki and Glitnir - collapsed in late 2008, their former executives and owners have largely been living untroubled lives abroad. But the publication last month of a parliamentary inquiry into the island nation's profound financial and economic crisis signalled a turning of the tide, laying much of the blame for the downfall on the former bank heads who had taken "inappropriate loans from the banks" they worked for. Overnight, the administrators of Glitnir's liquidation announced they had filed a $US2 billion lawsuit in a New York court against former large shareholders and executives for alleged fraud. "I think this lawsuit is without precedence in Iceland," Steinunn Gudbjartsdottir, who chairs Glitnir's so-called winding-up board, told reporters in Reykjavik. The bank also said it was "taking action against its former auditors PricewaterhouseCoopers (PwC) for facilitating and helping to conceal the fraudulent transactions engineered by [its principal shareholder] and his associates, which ultimately led to the bank's collapse in October 2008."

Note: Yet American and British bankers who played a major role in the economic collapse are getting record pay. For an incisive article in Rolling Stone titled "Why Isn't Wall Street in Jail?" click here. For key reports on financial fraud from major media sources, click here.

It is the Wall Street equivalent of a perfect game of baseball — 27 up, 27 down, the final score measured in millions of dollars a day. Despite the running unease in world markets, four giants of American finance managed to make money from trading every single day during the first three months of the year. Their remarkable 61-day streak is one for the record books. Perfect trading quarters on Wall Street are about as rare as perfect games in Major League Baseball. But Bank of America, Citigroup, Goldman Sachs and JPMorgan Chase & Company produced the equivalent of four perfect games during the first quarter. Each one finished the period without losing money for even one day. Their showing ... underscored the outsize — and controversial — role that trading has assumed at major financial institutions. It also drives home the widening lead that a handful of big banks are enjoying over lesser rivals on post-bailout Wall Street. The four banks ... reaped big rewards without necessarily placing big bets that stocks or bonds would go up or down. “This is not about hitting home runs,” said Jaidev Iyer, who runs his own risk management consulting firm, J-Risk Advisors. “This is just, as we call it, milking the market and your captive client base.”

Note: For an astounding list on the Forbes website of the richest companies in the world by assets, click here. All of the top 10 companies are banks, with collective assets of over $22 trillion! Yet we as taxpayers continue to pay to bail them out when they have problems. Is something wrong with this picture? For a graphic representation of this, click here. And for an abundance of deep reporting in major media articles on the hidden realities of Wall Street's shadowy operations, click here.

Even the world’s most savvy stock-market giants (e.g., Warren E. Buffett) have warned over the past decade that derivatives are the fiscal equivalent of a weapon of mass destruction. And the consequences of such an explosion would make the recent global financial and economic crisis seem like penny ante. But generously lubricated lobbyists for the unrestricted, unsupervised derivatives markets tell congressional committees and government regulators to butt out. While banks all over the world were imploding and some $50 trillion vanished in global stock markets, the derivatives market grew by an estimated 65 percent, according the Bank for International Settlements. BIS convenes the world’s 57 most powerful central bankers in Basel, Switzerland, for periodic secret meetings. Occasionally, they issue a cry of alarm. This time, derivatives had soared from $414.8 trillion at the end of 2006 to $683.7 trillion in mid-2008 - 18 months’ time. The derivatives market is now estimated at $700 trillion. What’s so difficult to understand about derivatives? Essentially, they are bets for or against the house - red or black at the roulette wheel. Or betting for or against the weather in situations in which the weather is critical (e.g., vineyards). Forwards, futures, options and swaps form the panoply of derivatives. Credit derivatives are based on loans, bonds or other forms of credit. Over-the-counter (OTC) derivatives are contracts that are traded and privately negotiated directly between two parties, outside of a regular exchange. All of this is unregulated.

Note: Though not from one of the top U.S. newspapers, this incisive article lays bare severe market manipulations that greatly endanger our world. The entire article is highly recommended. $700 trillion is equivalent to $100,000 for every man, woman, and child in the world! Do you think the financial industry is out of control? For lots more powerful, reliable information on major banking manipulations, click here. For a powerful analysis describing just how crazy things have gotten and giving some rays of hope by researcher David Wilcock, click here.

The owner of the oil rig that exploded in the Gulf of Mexico, killing 11 people and causing a giant slick, has made a $270 million profit from insurance payouts for the disaster. The revelation by Transocean, the world’s biggest offshore driller, will add to the political storm over the disaster. The company was hired by BP to drill the well. The “accounting gain” arose because the $560 million insurance policy Transocean took out on its Deepwater Horizon rig was greater than the value of the rig itself. Transocean has already received a cash payment of $401 million with the rest due in the next few weeks. The windfall, revealed in a conference call with analysts, will more than cover the $200 million that Transocean expects to pay to survivors and their families and for higher insurance costs. The total cost of the clean-up and compensation could reach $30 billion, according to some estimates. Transocean said that virtually all of that must be covered by BP and two smaller partners, Anadarko Petroleum and Mitsui of Japan.

Note: For lots more from major media sources on corporate and government collusion and corruption, click here and here.

Federal regulators warned offshore rig operators more than a decade ago that they needed to install backup systems to control the giant undersea valves known as blowout preventers, used to cut off the flow of oil from a well in an emergency. The warnings were repeated in 2004 and 2009. Yet the Minerals Management Service, the Interior Department agency charged both with regulating the oil industry and collecting royalties from it, never took steps to address the issue comprehensively, relying instead on industry assurances that it was on top of the problem, a review of documents shows. In the intervening years, numerous blowout preventers and their control systems have failed, though none as catastrophically as those on the well the Deepwater Horizon drilling rig was preparing when it blew up on April 20, leaving tens of thousands of gallons of oil a day spewing into the Gulf of Mexico. Agency records show that from 2001 to 2007, there were 1,443 serious drilling accidents in offshore operations, leading to 41 deaths, 302 injuries and 356 oil spills. Yet the federal agency continues to allow the industry largely to police itself. Critics say that, then and now, the minerals service has been crippled by this dependence on industry and by a climate of regulatory indulgence.

Note: For lots more from reliable souces on government corruption and collusion with industries it is supposed to be regulating, click here.

Since the Deepwater Horizon oil drilling rig exploded on April 20, the Obama administration has granted oil and gas companies at least 27 exemptions from doing in-depth environmental studies of oil exploration and production in the Gulf of Mexico. The waivers were granted despite President Barack Obama’s vow that his administration would launch a “relentless response effort” to stop the leak and prevent more damage to the gulf. One of them was dated Friday — the day after Interior Secretary Ken Salazar said he was temporarily halting offshore drilling The exemptions, known as “categorical exclusions,” were granted by the Interior Department’s Minerals Management Service (MMS) and included waiving detailed environmental studies for a BP exploration plan to be conducted at a depth of more than 4,000 feet and an Anadarko Petroleum Corp. exploration plan at more 9,000 feet. “Is there a moratorium on off shore drilling or not?” asked Peter Galvin, conservation director with the Center for Biological Diversity, the environmental group that discovered the administration’s continued approval of the exemptions. “Possibly the worst environmental disaster in U.S. history has occurred and nothing appears to have changed.”

Note: For lots more from reliable souces on government corruption and collusion with industries it is supposed to be regulating, click here.

Petrochemical giant BP didn't file a plan to specifically handle a major oil spill from an uncontrolled blowout at its Deepwater Horizon project because the federal agency that regulates offshore rigs changed its rules two years ago to exempt certain projects in the central Gulf region, according to an Associated Press review of official records. The Minerals Management Service, an arm of the Interior Department known for its cozy relationship with major oil companies, says it issued the rule relief because some of the industrywide mandates weren't practical for all of the exploratory and production projects operating in the Gulf region. Robert Wiygul, an Ocean Springs, Miss., environmental lawyer, said the lack of a blowout scenario "is kind of an outrageous omission, because you're drilling in extremely deep waters, where by definition you're looking for very large reservoirs to justify the cost. If the MMS was allowing companies to drill in this ultra-deep situation without a blowout scenario, then it seems clear they weren't doing the job they were tasked with," he said. "The MMS can't change the law just by telling people that they don't have to comply with it."

Note: For lots more from reliable souces on government corruption and collusion with industries it is supposed to be regulating, click here.

In a move that will stoke a battle over the future of the Internet, the federal government plans to propose regulating broadband lines under decades-old rules designed for traditional phone networks. The decision, by Federal Communications Commission Chairman Julius Genachowski, is likely to trigger a vigorous lobbying battle, arraying big phone and cable companies and their allies on Capitol Hill against Silicon Valley giants and consumer advocates. He wants to adopt "net neutrality" rules that require Internet providers like Comcast Corp. and AT&T Inc. to treat all traffic equally, and not to slow or block access to websites. Internet giants like Google Inc., Amazon.com Inc. and eBay Inc., which want to offer more Web video and other high-bandwidth services, have called for stronger action by the FCC to assure free access to websites. Cable and telecommunications executives have warned that using land-line phone rules to govern their management of Internet traffic would lead them to cut billions of capital expenditure for their networks, slash jobs and go to court to fight the rules. Consumer groups hailed the decision ..., an abrupt change from recent days, when they [had] bombarded the FCC chairman with emails and phone calls imploring him to fight phone and cable companies lobbyists.

Important Note: Explore our full index to key excerpts of revealing major media news articles on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.