Corporate Corruption News Articles

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Energy companies are fracking for oil and gas at far shallower depths than widely believed, sometimes through underground sources of drinking water, according to research released [on August 12] by Stanford University scientists. Fracking involves high-pressure injection of millions of gallons of water mixed with sand and chemicals to crack geological formations and tap previously unreachable oil and gas reserves. Fracking fluids contain a host of chemicals, including known carcinogens and neurotoxins. Fears about possible water contamination and air pollution have fed resistance in communities around the country. Fracking into underground drinking water sources is not prohibited by the 2005 Energy Policy Act, which exempted the practice from key provisions of the Safe Drinking Water Act. But the industry has long held that it does not hydraulically fracture into underground sources of drinking water because oil and gas deposits sit far deeper than aquifers. The study, however, found that energy companies used acid stimulation ... and hydraulic fracturing in the Wind River and Fort Union geological formations that make up the Pavillion gas field and that contain both natural gas and sources of drinking water. “Thousands of gallons of diesel fuel and millions of gallons of fluids containing numerous inorganic and organic additives were injected directly into these two formations during hundreds of stimulation events,” concluded Dominic DiGiulio and Robert Jackson of Stanford’s School of Earth Sciences.

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On current trends, we’re heading toward a world in which only the human people pay taxes. We’re not quite there yet: The federal government still gets a tenth of its revenue from corporate profits taxation. But it used to get a lot more — a third of revenue came from profits taxes in the early 1950s, a quarter or more well into the 1960s. Part of the decline since then reflects a fall in the tax rate, but mainly it reflects ever-more-aggressive corporate tax avoidance — avoidance that politicians have done little to prevent. Which brings us to the tax-avoidance strategy du jour: “inversion.” This refers to a legal maneuver in which a company declares that its U.S. operations are owned by its foreign subsidiary, not the other way around, and uses this role reversal to shift reported profits out of American jurisdiction to someplace with a lower tax rate. The most important thing to understand about inversion is that it does not in any meaningful sense involve American business “moving overseas.” Consider the case of Walgreen, the giant drugstore chain that, according to multiple reports, is on the verge of making itself legally Swiss. If the plan goes through, nothing about the business will change; your local pharmacy won’t close and reopen in Zurich. It will be a purely paper transaction — but it will deprive the U.S. government of several billion dollars in revenue that you, the taxpayer, will have to make up one way or another.

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Just how badly does the American Red Cross want to keep secret how it raised and spent over $300 million after Hurricane Sandy? The charity has hired [law firm Gibson Dunn] to fight a public request [ProPublica] filed with New York state, arguing that information about its Sandy activities is a “trade secret.” The Red Cross’ “trade secret” argument has persuaded the state to redact some material, though it’s not clear yet how much since the documents haven’t yet been released. The Red Cross releases few details about how it spends money after big disasters. That makes it difficult to figure out whether donor dollars are well spent. An attorney from [Gibson Dunn] appealed to the attorney general to block disclosure of some of the Sandy information, citing the state Freedom of Information Law’s trade secret exemption. Doug White, a nonprofit expert who directs the fundraising management program at Columbia University, said that it’s possible for nonprofits to have trade interests — the logo of a university, for example — but it’s not clear what a “trade secret” would be in the case of the Red Cross. He called the lawyer’s letter an apparent “delaying tactic.” Ben Smilowitz of the Disaster Accountability Project, a watchdog group, said, “Invoking a ‘trade secret’ exemption is not something you would expect from an organization that purports to be ‘transparent and accountable.’”

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WikiLeaks has published what it calls "the secret draft text for the Trade in Services Agreement (TISA) Financial Services Annex," apparently covering 50 countries and most of the world's trade in services. "The draft Financial Services Annex sets rules which would assist the expansion of financial multinationals — mainly headquartered in New York, London, Paris and Frankfurt — into other nations by preventing regulatory barriers," the website says in a statement. The draft deal is seen as a way to prevent more regulation of financial services, despite calls for tighter regulatory measures that followed the 2007-08 world financial crisis. That market meltdown set the world's biggest banks up against critics who said governments needed to rein them in. The last round of TISA talks took place April 28 to May 2 in Geneva. WikiLeaks also [stated] that the U.S. is "particularly keen on boosting cross-border data flow" and that this would include personal and financial data. During his teleconference, [Assange] urged U.S. Attorney General Eric Holder to end a four-year-long grand jury investigation of Assange and WikiLeaks. "National security reporters are required by their profession to have intimate interactions in order to assess and verify and investigate the nature of the material that they are dealing with," he said. "So I call on Eric Holder today to immediately drop the ongoing national security investigation against WikiLeaks or resign."

Note: Why is this important release getting so little news coverage? For more on this, see concise summaries of deeply revealing government corruption news articles from reliable major media sources.

It’s not enough, apparently, that some of the wealthiest Americans spend millions to elect their candidates to Congress. Now they are using their fortunes to lobby Congress against any limits on their ability to buy elections. Koch Companies Public Sector, part of the industrial group owned by a well-known pair of conservative brothers, has hired a big-name firm to lobby Congress on campaign-finance issues, according to a registration form filed a few weeks ago. The form doesn’t say what those issues are, but there are several bills in the House that would reduce the role of anonymous big money in campaigns, and restrict the kinds of super PACs and nonprofit groups that the Koch brothers and others have inflated with cash. Clearly, it’s vital to the Kochs and others like them to prevent such limits from being enacted; their network raised $400 million in 2012, and it has been extremely active again this year. To that end, they have done something ordinary citizens cannot do: They hired the lobbying firm of a well-known former senator, Don Nickles, Republican of Oklahoma, to press their interests. Mr. Nickles started his firm a few months after leaving the Senate in 2005, and he takes in up to $8 million a year from big firms like Exxon Mobil, General Motors and Walmart. This is a perfect illustration of the cumulative power of cash in today’s Washington. Members of Congress get elected with substantial help from check writers like the Kochs and others. Once there, they do the bidding of former members paid by the Kochs to preserve their business interests and fight off campaign-finance reforms.

Note: For more on this, see concise summaries of deeply revealing elections news articles from reliable major media sources.

Health care is a tempting target for thieves. Medicaid doles out $415 billion a year; Medicare (a federal scheme for the elderly), nearly $600 billion. Total health spending in America is a massive $2.7 trillion, or 17% of GDP. In 2012 Donald Berwick, a former head of the Centres for Medicare and Medicaid Services (CMS), and Andrew Hackbarth of the RAND Corporation, estimated that fraud ... added as much as $98 billion, or roughly 10%, to annual Medicare and Medicaid spending - and up to $272 billion across the entire health system. Federal prosecutors had over 2,000 health-fraud probes open at the end of 2013. A Medicare “strike force”, which was formed in 2007, boasts of seven nationwide “takedowns”. In the latest, on May 13th, 90 people, including 16 doctors, were rounded up in six cities - more than half of them in Miami, the capital city of medical fraud. Punishments have grown tougher: last year the owner of a mental-health clinic got 30 years for false billing. Yet the sheer volume of transactions makes it easier for miscreants to hide: every day, for instance, Medicare’s contractors process 4.5m claims. In this context the $4.3 billion recovered by fraud-busters in 2013, though a record, looks paltry. Some criminals are switching from cocaine trafficking to prescription-drug fraud because the risk-adjusted rewards are higher. This is the medical world’s “dirty secret”, says John Holcomb of the Texas Medical Association. Everyone talks about it in the doctor’s lounge, but few complain.

Note: For more along these lines, see concise summaries of deeply revealing news articles on corporate corruption and health.

A group of mothers, scientists and environmentalists met with U.S. Environmental Protection Agency regulators on [May 27] over concerns that residues of Roundup, the world's most popular herbicide, had been found in breast milk. The meeting ... followed a five-day phone call blitz of EPA offices by a group called Moms Across America demanding that the EPA pay attention to their demands for a recall of Roundup. "This is a poison and it's in our food. And now they've found it in breast milk," said Zen Honeycutt, founder of Moms Across America. "Numerous studies show serious harm to mammals. We want this toxic treadmill of chemical cocktails in our food to stop." Roundup is an herbicide developed and sold by Monsanto Co. since the 1970s, and used in agriculture and home lawns and gardens. The chief ingredient, glyphosate, is under a standard registration review by the EPA. The agency has set a deadline of 2015 for determining if glyphosate use should continue as is, be limited or halted. Environmentalists, consumer groups and plant scientists from several countries have said in recent years that heavy use of glyphosate is causing problems for plants, people and animals. They say some tests have raised alarms about glyphosate levels found in urine samples and breast milk. In 2011, U.S. government scientists said they detected significant levels of glyphosate in air and water samples. Glyphosate is sprayed on most of the corn and soybean crops in the United States, as well as over sugar beets, canola and other crops.

Note: For further studies showing the grave dangers of Roundup and Glyphosate, see this article.

Dr. Andres Carrasco, an Argentine neuroscientist who challenged pesticide regulators to re-examine one of the world’s most widely used weed killers, has died. He was 67. Dr. Carrasco, a molecular biologist at the University of Buenos Aires and past-president of Argentina’s CONICET science council, was a widely published expert in embryonic development. His 2010 study on glyphosate [became] a major public relations challenge for the ... Monsanto Company. Glyphosate is the key ingredient in Monsanto’s Roundup brand of pesticides, which have combined with genetically modified “Roundup-Ready” plants to dramatically increase the spread of industrial agriculture around the world. [The technology's] spread has increasingly exposed people to glyphosate and other chemicals. Dr. Carrasco, principal investigator at his university’s Cellular Biology and Neuroscience Institute, told The Associated Press in a 2013 interview that he had heard reports of increasing birth defects in farming communities after genetically modified crops were approved for use in Argentina, and so decided to test the impact of glyphosate on frog and chicken embryos in his laboratory. His team’s study, published in the peer-reviewed Chemical Research in Toxicology journal, found that injecting very low doses of glyphosate into embryos can change levels of retinoic acid, causing the same sort of spinal defects that doctors are increasingly registering in communities where farm chemicals are ubiquitous. “If it’s possible to reproduce this in a laboratory, surely what is happening in the field is much worse,” Dr. Carrasco told the AP.

Note: For further studies showing the grave dangers of Roundup and Glyphosate, see this article.

More Americans than ever believe the economy is rigged in favor of Wall Street and big business and their enablers in Washington. We’re five years into a so-called recovery that’s been a bonanza for the rich but a bust for the middle class. “The game is rigged and the American people know that. They get it right down to their toes,” says Senator Elizabeth Warren. Which is fueling a new populism on both the left and the right. While still far apart, neo-populists on both sides are bending toward one another and against the establishment. And it’s not only the rhetoric that’s converging. Populists on the right and left are also coming together around six principles: 1. Cut the biggest Wall Street banks down to a size where they’re no longer too big to fail. 2. Resurrect the Glass-Steagall Act, separating investment from commercial banking and thereby preventing companies from gambling with their depositors’ money. 3. End corporate welfare – including subsidies to big oil, big agribusiness, big pharma, Wall Street, and the Ex-Im Bank. 5. Scale back American interventions overseas. 6. Oppose trade agreements crafted by big corporations. Two decades ago Democrats and Republicans enacted the North American Free Trade Agreement. Since then populists in both parties have mounted increasing opposition to such agreements. Left and right-wing populists remain deeply divided over the role of government. Even so, the major fault line in American politics seems to be shifting, from Democrat versus Republican, to populist versus establishment — those who think the game is rigged versus those who do the rigging.

Note: For more on financial corruption, see the deeply revealing reports from reliable major media sources available here.

At long last, the Koch brothers and their conservative allies in state government have found a new tax they can support. Naturally it’s a tax on something the country needs: solar energy panels. For the last few months, the Kochs and other big polluters have been spending heavily to fight incentives for renewable energy, which have been adopted by most states. They particularly dislike state laws that allow homeowners with solar panels to sell power they don’t need back to electric utilities. So they’ve been pushing legislatures to impose a surtax on this increasingly popular practice, hoping to make installing solar panels on houses less attractive. Oklahoma lawmakers recently approved such a surcharge at the behest of the American Legislative Exchange Council, the conservative group that often dictates bills to Republican statehouses and receives financing from the utility industry and fossil-fuel producers, including the Kochs. [The] group is trying to repeal or freeze Ohio’s requirement that 12.5 percent of the state’s electric power come from renewable sources like solar and wind by 2025. Twenty-nine states have established similar standards that call for 10 percent or more in renewable power. These states can now anticipate well-financed campaigns to eliminate these targets or scale them back. The coal producers’ motivation is clear: They see solar and wind energy as a long-term threat to their businesses.

Note: For more on the growth of the solar energy industry, see the deeply revealing reports from reliable major media sources available here.

The Koch brothers, anti-tax activist Grover Norquist and some of the nation's largest power companies have backed efforts in recent months to roll back state policies that favor green energy. The conservative luminaries have pushed campaigns in Kansas, North Carolina and Arizona, with the battle rapidly spreading to other states. Alarmed environmentalists and their allies in the solar industry have fought back, battling the other side to a draw so far. Both sides say the fight is growing more intense as new states, including Ohio, South Carolina and Washington, enter the fray. At the nub of the dispute are two policies found in dozens of states. One requires utilities to get a certain share of power from renewable sources. The other, known as net metering, guarantees homeowners or businesses with solar panels on their roofs the right to sell any excess electricity back into the power grid at attractive rates. Net metering forms the linchpin of the solar-energy business model. Without it, firms say, solar power would be prohibitively expensive. The American Legislative Exchange Council, or ALEC, a membership group for conservative state lawmakers, recently drafted model legislation that targeted net metering. The group also helped launch efforts by conservative lawmakers in more than half a dozen states to repeal green energy mandates. The group's campaign in [Kansas] compared the green energy mandate to Obamacare, featuring ominous images of Kathleen Sebelius, the outgoing secretary of Health and Human Services, who was Kansas' governor when the state adopted the requirement.

Note: For more on the growth of the solar energy industry, see the deeply revealing reports from reliable major media sources available here.

The Pentagon has failed to maintain a complete database of generals and other high-ranking officials who consider joining defense contracting firms after leaving the military. The database was required under a 2008 law passed by Congress because of concerns about a “revolving door” between the Defense Department and private industry. Despite that mandate, the Pentagon’s database remains “of marginal value,” according to [a] report released by the Defense Department’s Office of Inspector General, which concludes that the Pentagon “may not have fully complied with the intent of this law.” The report marks the second time that the IG has raised questions about compliance. In 2008, the Government Accountability Office found that 52 of the biggest defense contractors employed 2,435 former generals, senior executives and acquisition officers. Of those, 422 were in a position to work on defense contracts directly related to their former agencies and at least nine may have been working on the same contracts they previously oversaw. Top Pentagon officials involved in procurements that exceed $10 million are required to seek an ethics opinion from government attorneys before going to work for a defense contractor. Under the 2008 law, the Pentagon is supposed to keep those opinions for five years in a central database. Investigators found that some agencies were not uploading requests for ethics advice to the database. And a review of what was in the system revealed all sorts of problems.

Note: For more along these lines, see concise summaries of deeply revealing news articles about corruption in the military and in the corporate world.

Mainstream media, cued by corporate press releases, routinely claim that America’s schools are markedly inferior to schools in other developed nations. The claim is part of an organized, long-running, generously funded campaign to undermine confidence in public schools to “prove” the need to privatize them. Educators have been handicapped for more than a century by a curriculum adopted to serve a too-narrow purpose—admission to college—and failure to address that curriculum’s problems has made the institution vulnerable to destructive corporate and political manipulation. Below are brief descriptions of some of the more obvious of those problems. 1. The standard core curriculum is stuck in the past. Adopted in the late 19th Century, the curriculum now shaping America’s schools reflects the “big idea” of that earlier era—the factory system, standardization of parts, mass production, centralized decision making, and passive worker compliance. None of those fit the present era. 2. The standard core curriculum is so inefficient it leaves little or no time for apprenticeships, internships, co-op programs, projects, and other ways of “learning by doing” (which is how most of us learned most of what we know). 3. The standard core curriculum gives thought processes other than recall short shrift, or no attention at all. The ability to remember is, of course, important, but the main educational challenge—making better sense of real-world experience—requires the ability not merely to recall but to infer, generalize, hypothesize, relate, synthesize, value, and so on. 4. The standard core curriculum ignores vast and important fields of knowledge.

New York state’s top financial regulator has demanded documents from more than a dozen banks including Barclays, Deutsche, Goldman Sachs and RBS as a probe widened into trading practices in the $5.3tn-a-day global foreign exchange markets. Benjamin Lawsky, New York's financial services superintendent, made the move following the banks’ decision to fire or suspend at least 20 traders following reports that employees at some firms had shared information about their currency positions with counterparts at other companies. Lawsky’s move marks the latest escalation in a global investigation by regulators into the manipulation of benchmark rates. The currency probe comes as regulators are still investigating the manipulation of the Libor lending rate by traders at some of the world’s biggest banks. The Wall Street Journal reported that Goldman Sachs’ Steven Cho, formerly global head of spot and forward foreign exchange trading for major currencies, was retiring from the bank. His departure came a day after Citigroup announced that Anil Prasad, its global head of foreign exchange, was leaving the company. It is not know if his retirement is in any way linked to any investigation. Prasad’s exit comes a month after Rohan Ramchandani, formerly Citi’s head of European spot foreign exchange trading, was fired. Ramchandani had been a member of the Bank of England’s foreign exchange joint standing committee.

Note: For more on financial corruption, see the deeply revealing reports from reliable major media sources available here.

Vera Scroggins, an outspoken opponent of fracking, is legally barred from the new county hospital. Also off-limits, unless Scroggins wants to risk fines and arrest, are the Chinese restaurant where she takes her grandchildren, the supermarkets and drug stores where she shops, the animal shelter where she adopted her Yorkshire terrier, bowling alley, recycling centre, golf club, and lake shore. In total, 312.5 sq miles are no-go areas for Scroggins under a sweeping court order granted by a local judge that bars her from any properties owned or leased by one of the biggest drillers in the Pennsylvania natural gas rush, Cabot Oil & Gas Corporation. The ban represents one of the most extreme measures taken by the oil and gas industry to date against protesters like Scroggins, who has operated peacefully and within the law including taking Yoko Ono to frack sites in her bid to elevate public concerns about fracking. It was always going to be an unequal fight when Scroggins, now 63, made it her self-appointed mission five years ago to stop fracking in this, the richest part of the Marcellus Shale. The judge [granted] Cabot a temporary injunction barring Scroggins from all property owned or leased by the company. In court filings, Cabot said it holds leases on 200,000 acres of land, equivalent to 312.5 sq miles. That amounts to nearly 40% of the largely rural county in north-eastern Pennsylvania where Scroggins lives and where Cabot does most of its drilling.

Note: For more on government corruption, see the deeply revealing reports from reliable major media sources available here.

The paths that many of today’s wealthiest Americans have taken on their road to riches have not bettered most people’s lives. Many have actually hurt most people’s lives. Their riches have come at most other people’s expense. Since the recession officially ended in June 2009, for instance, the wages for all private-sector jobs have fallen, on average, by 0.5 percent. The wages for jobs in financial services, however, have risen by 5.5 percent. Inasmuch as the recession was brought about by the financial services industry, it’s understandable that this disparity would strike most people as unjust. Or consider the mechanisms by which some CEOs earn huge salaries. Last week, the board of directors of JPMorgan Chase voted to raise chief executive Jamie Dimon’s annual pay to $20 million — up from $11.5 million — despite the fact that the bank paid the federal government around $20 billion last year to settle charges stemming from its multiple misdeeds. Laying off workers and depressing their pay has become the key factor in boosting corporate profits in recent years. With profits at a record high as a share of the nation’s gross domestic product and wages at a record low, it’s entirely proper that Americans question the legitimacy of the 1 percent’s wealth.

Note: For more on income inequality, see the deeply revealing reports from reliable major media sources available here.

Despite the hoopla over the approval of the Volcker rule, which restricts banks from making certain types of speculative investments, our financial system isn't much safer than it was before 2008. A major reason for the continued complexity and risk in the financial system is lobbying power. The Volcker rule as it stands now has been turned into Swiss cheese by bank lobbyists, who represent the second biggest corporate special-interest bloc after the health care complex, spending nearly half a billion dollars a year on lobbying, according to the nonprofit, nonpartisan Center for Responsive Politics. So while the rule limits federally insured banks from trading for its own sake, they are still allowed to hedge their portfolios, which opens up a lot of gray territory for trading. Certainly having more lenders rather than fewer would help other kinds of businesses, and having trading walled off from lending would encourage that. The fact that the five largest U.S. financial holding companies control 55% of industry assets--compared with 20% in 1990--keeps competition low and credit constrained. In the next two to five years, there will likely be another crisis or trading loss of the kind that reignites the debate over closing trading loopholes and creating a truly safer financial system. Right now, banks complain about rules that would require them to hold a mere 5% of their assets in high-quality, low-risk capital (known as Tier 1 capital), despite the fact that in any other industry, doing business with less than 50% of your own cash would be considered extreme.

Note: For more on government collusion with the biggest banks, see the deeply revealing reports from reliable major media sources available here.

The Trans-Pacific Partnership (TPP) free trade agreement is being negotiated in Singapore this week between Australia, New Zealand, the US, Peru, Chile, Mexico, Canada, Singapore, Brunei, Malaysia, Vietnam and Japan. The countries have a combined gross domestic product (GDP) of US$28,136bn on 2012 figures, which represents almost 40% of the world’s GDP. There have been many contentious issues around the TPP: critics are particularly concerned about the secrecy around the agreement given it has the capacity to change many local laws and regulations. The majority of public criticism has centred on arguments relating to intellectual property and the cost of medicines, though many have concerns about environmental issues including climate change, investment, e-commerce and labour laws. The US has been rigid in its demands for stronger intellectual property protection to champion the rights of its global giants such as IT companies and its film and music industries. The US position on [the] investor-state dispute settlement provision ... grants foreign companies the right to sue [a] government under international law. All countries accepted there needed to be agreement on privacy obligations with regard to information-sharing, apart from the US, which reserved its position on privacy. The US position has left people wondering whether the TPP will undermine privacy, particularly in the wake of the NSA revelations from the Snowden documents. There appear to be deep divisions on environment and climate change, with the US and Australia opposing any extension of the text on climate matters.

Note: For more on government corruption, see the deeply revealing reports from reliable major media sources available here.

An alliance of corporations and conservative activists is mobilising to penalise homeowners who install their own solar panels – casting them as "freeriders" – in a sweeping new offensive against renewable energy. Over the coming year, the American Legislative Exchange Council (ALEC) will promote legislation with goals ranging from penalising individual homeowners and weakening state clean energy regulations, to blocking the Environmental Protection Agency, [the government's] main channel for climate action. Details of ALEC's strategy to block clean energy development at every stage – from the individual rooftop to the White House – are revealed as the group gathers for its policy summit in Washington this week. About 800 state legislators and business leaders are due to attend the three-day event, which begins ... with appearances by the Wisconsin senator Ron Johnson and the Republican budget guru and fellow Wisconsinite Paul Ryan. Other ALEC speakers will be a leading figure behind the recent government shutdown, US senator Ted Cruz of Texas, and the governors of Indiana and Wyoming. For 2014, ALEC plans to promote a suite of model bills and resolutions aimed at blocking Barack Obama from cutting greenhouse gas emissions, and state governments from promoting the expansion of wind and solar power through regulations known as Renewable Portfolio Standards. ALEC [wants] to lower the rate electricity companies pay homeowners for direct power generation – and maybe even charge homeowners for feeding power into the grid.

Note: For more on government corruption, see the deeply revealing reports from reliable major media sources available here.

Chicago Mayor Rahm Emanuel wants to introduce a mandatory prison sentence for anyone caught with an illegal firearm. But reams of data shows that incarceration creates more crime. One in 100 adults in the U.S. lives behind bars. One in nine African-American men are imprisoned. This country’s addiction to incarceration has not made us safer, but has instead imposed upon us an untenable, senseless tax while unfairly targeting poor communities of color and perpetuating crime and violence in our neighborhoods. Lawmakers on both sides of the aisle and activists on the left and the right are taking action to roll back imprisonment rates. Chicago’s communities have been ravaged by mass imprisonment. The U.S. currently has the dubious distinction of having the highest per capita incarceration rate in the world. And communities on Chicago’s West and South sides have incarceration rates that are double—and sometimes triple—the national average. This is not because more crime occurs in these neighborhoods. A National Institute of Health study that focused on the effects of mass incarceration on Chicago’s neighborhoods found that communities marked by poverty and racial segregation experience incarceration rates that are more than three times higher communities with similar crime rates.

Note: For more on the devastating impacts on society of the government-prison-industrial complex, see the deeply revealing reports from reliable major media sources available here.

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