Corporate Corruption News Articles

Excerpts of key news articles on

Below are key excerpts of revealing news articles on corporate corruption from reliable news media sources. If any link fails to function, a paywall blocks full access, or the article is no longer available, try these digital tools.

Note: Explore our full index to revealing excerpts of key major media news articles on dozens of engaging topics. And read excerpts from 20 of the most revealing news articles ever published.

Wall Street has already watered down or delayed most of Dodd-Frank [financial reform act]. Now it wants to create a giant loophole, exempting its foreign branches from the law. Yet the overseas branches of Wall Street banks are where the banks have done some of their wilder betting. Four years ago, bad bets by American International Group's London office nearly unraveled the U.S. financial system. When the Commodity Futures Trading Commission, the main regulator of derivatives (bets on bets), recently proposed extending Dodd-Frank to the foreign branches of Wall Street banks, the banks screamed. "If JPMorgan overseas operates under different rules than our foreign competitors," warned Jamie Dimon, chairman and CEO of JPMorgan, Wall Street will lose financial business to the banks of nations with fewer regulations, allowing "Deutsche Bank to make the better deal." This is the same Jamie Dimon who chose London as the place to make highly risky derivatives trades that have lost the firm upward of $2 billion so far - and could leave American taxpayers holding the bag if JPMorgan's exposure to tottering European banks gets much worse. JPMorgan's risky betting in London is added proof that unless the overseas operations of Wall Street banks are covered by U.S. regulations, giant banks will hide irresponsible bets overseas. Squadrons of Wall Street lawyers and lobbyists have been pressing all the agencies charged with implementing Dodd-Frank to go easy on the Street.

Note: The author of this article, Robert Reich, is former U.S. secretary of labor, professor of public policy at UC Berkeley and the author of Aftershock: The Next Economy and America's Future. He blogs at www.robertreich.org.

Five of the biggest banks in the United States are putting finishing touches on plans for going out of business as part of government-mandated contingency planning that could push them to untangle their complex operations. The plans, known as living wills, are due to regulators no later than July 1 under provisions of the Dodd-Frank financial reform law designed to end too-big-to-fail bailouts by the government. The living wills could be as long as 4,000 pages. Since the law allows regulators to go so far as to order a bank to divest subsidiaries if it cannot plan an orderly resolution in bankruptcy, the deadline is pushing even healthy institutions to start a multi-year process to untangle their complex global operations, according to industry consultants. JPMorgan Chase, Bank of America, Citigroup, Goldman Sachs and Morgan Stanley are among those submitting the first liquidation scenarios to regulators at the Federal Reserve and the Federal Deposit Insurance Corp. The liquidation plans are coming amid renewed questions about the safety of big banks following JPMorgan's stunning announcement last month that a trading debacle has cost it more than $2 billion.

Note: For other key major media articles showing blatant financial corruption, click here. For more vitally important information on banking manipulations, explore the excellent, reliable information in our Banking Corruption Information Center available here.

When Jamie Dimon, CEO of JPMorgan Chase Bank, appeared before the Senate Banking Committee on June 13, he was wearing cufflinks bearing the presidential seal. “Was Dimon trying to send any particular message by wearing the presidential cufflinks?” asked CNBC editor John Carney. “Was he . . . subtly hinting that he’s really the guy in charge?” The groveling of the Senators was so obvious that Jon Stewart did a spoof news clip on it. JPMorgan Chase is the biggest campaign donor to many of the members of the Banking Committee. Financial analysts Jim Willie and Rob Kirby think it may be something far larger, deeper, and more ominous. They contend that the $3 billion-plus losses in London hedging transactions that were the subject of the hearing can be traced, not to European sovereign debt (as alleged), but to the record-low interest rates maintained on U.S. government bonds. The national debt is growing at $1.5 trillion per year. Ultra-low interest rates must be maintained to prevent the debt from overwhelming the government budget. Near-zero rates also need to be maintained because even a moderate rise would cause multi-trillion dollar derivative losses for the banks, and would remove the banks’ chief income stream, the arbitrage afforded by borrowing at 0% and investing at higher rates. The low rates are maintained by interest rate swaps, called by Willie a “derivative tool which controls the bond market in a devious artificial manner.”

Note: We don't usually use alternet.org as a reliable source, but because the major media failed to ask the hard, very important questions posed in this article, we've included it here. For powerful reports on financial corruption, click here.

There's been a lot of speculation about the cufflinks [JPMorgan Chase CEO] Jamie Dimon wore during [his Congressional] testimony. They caught the eye of folks because they seemed to bear some sort of official government stamp. As it turns out, they were emblazoned with the seal of the President of the United States. CNN's Lizzie O'Leary first confirmed the story last night over Twitter. They were, in fact, a gift from a resident of the White House. But people close to the JPMorgan Chase CEO won't say which president gave them to him. Dimon's got a bunch of official U.S. government cufflinks. Search for images of him and you'll see FBI cufflinks, for example. Was Dimon trying to send any particular message by wearing the presidential cufflinks? Was he, for instance, trying to remind the Democrats he supported Obama? Or subtly hinting that he's really the guy in charge?

Note: For powerful reports on financial corruption, click here.

Congress gets into the JPMorgan Chase affair Tuesday with the first in a series of hearings into how a federally insured bank incurred [huge] losses on the kind of risky bets some, mistakenly, thought were a thing of the past. The losses, as suspected, look to be far higher than the $2 billion initially estimated. As of Friday, the number was $5 billion. What did CEO Jamie Dimon know, and when did he know it? "Dimon personally approved the concept behind the disastrous trades," according to the Wall Street Journal. Reportedly, similar trades, involving credit derivatives, date to 2006, ramping up with ever bigger bets as risk controls were eased in 2011.On the one hand, JPMorgan and other U.S. corporations are banking record profits and ever-growing piles of cash - $2 trillion at last count. On the other, U.S. unemployment remains unacceptably high, people are still losing their homes, small businesses are screaming for credit, local governments are cutting services left and right, and the nation's infrastructure is crumbling. Tons of money [are] sloshing around, courtesy of the Federal Reserve, but banks and corporations ... are hoarding it.

Note: For lots more from reliable sources on corruption and criminality in the finance industry, click here.

Large numbers of the famed Tennessee Walking Horses have been tortured and beaten in order to make them produce the high-stepping gait that wins championships, an ABC News investigation has found. "All too often, you have to cheat to win in this sport," said Keith Dane of the Humane Society of the United States. In the most recent example, an undercover video made by an investigator for the Humane Society documents the cruelty of one of the sport's leading trainers, Jackie McConnell of Collierville, Tennessee. The tape shows McConnell and his stable hands beating horses with wooden sticks and using electric cattle prods on them as part of a training protocol to make them lift their feet in the pronounced gait judges like to see. In another scene, McConnell oversees his hands as they apply caustic chemicals to the ankles of the horses and them wrap them with plastic wrap so the chemicals eat into the skin. "That creates intense pain and then the ankles are wrapped with large metal chains so the horses flinch, or raise their feet even higher," said Dane. Leaders of the Tennessee Walking Horse industry maintain that such brutality is rare and that trainers do not have to cheat to win championships, which can add millions of dollars to the value of horses. But a random inspection by the agents of the Department of Agriculture at last year's annual championship found that 52 of 52 horses tested positive for some sort of foreign substance around front hooves, either to cause pain or to hide it.

Note: The good news is that as a result of this report, Pepsi has dropped its support of the annual Tennessee Walking Horse championship. For more on this, click here.

What strikes Phil Angelides the most about the $2 billion (and counting) loss sustained by JPMorgan Chase on a big trade gone bad, is how little has changed since the financial crash of 2008. "The big banks continue to be casinos," said the chairman of the government-appointed Financial Crisis Inquiry Commission, which laid out how such trades, referred to in some quarters as "bets," contributed to the crash that the country is still struggling to pull itself out of. "It has to be stopped," he said. Trouble is - as Angelides, the former California state treasurer, and others point out - no one is stopping them. Jamie Dimon, JPMorgan's CEO, dismissed initial concerns about the trades last month as a "complete tempest in a teapot." His main concern, he told analysts, was how the affair "plays right into the hands of a bunch of pundits out there." Dimon was referring to those who have been pushing for regulations to prevent federally insured banks like JPMorgan from indulging in such trades in the first place. "They've been fighting a ferocious rear-guard, no-holds-barred action," said Angelides, referring to the army of lobbyists hired and millions of dollars spent to beat back the regulations. The Securities and Exchange Commission is investigating the trades, which involved the use of complex financial instruments called credit default swaps as a hedge against the value of U.S. bonds.

Note: For a most excellent two-minute video of former U.S. Labor Secretary Robert Reich presenting five of the most urgent problems with the economy and an easy solution all in two minutes, click here. For an enlightening five-minute TED talks video further showing how the rich getting richer while they pay increasingly less taxes is at the root of most economic woes, click here. For a treasure trove of revealing reports from reliable sources on the criminality and corruption of major financial corporations and their "regulators" in government, click here.

The $2 billion trading loss that JPMorgan Chase disclosed late on Thursday provided ample ammunition for supporters of the Volcker Rule, which would restrict government-backed banks' ability to conduct proprietary trading. But it also prompted a fair amount of finger-wagging toward the company, given JPMorgan's stance as one of the rule's fiercest opponents. JPMorgan has been among the most outspoken detractors of the proposed financial regulation that is making its way through Washington. The firm has laid bare its feelings about the Volcker Rule several times, including in a Feb. 13 comment letter to the Federal Reserve. In that document, JPMorgan argued that the proposal would restrict its efforts to rein in risk-taking and would harm the firm's ability to compete against foreign rivals that did not face the same restrictions. In the letter, JPMorgan specifically mentions its chief investment office, the trading group which caused the $2 billion trading loss. JPMorgan also happens to run one of the most active and best-financed lobbying operations within the commercial banking industry. In the first four months of 2012, the firm has spent $1.92 million, barely trailing Wells Fargo in terms of banks' lobbying expenses. Last year, JPMorgan spent $7.62 million; two years ago, it spent $7.41 million, the most in its industry. And JPMorgan's chief, Jamie Dimon has been among the most frequent visitors to Washington to press his case.

Note: For lots more from major media sources on the corruption of major financial corporations, click here.

The Rothschild dynasty is to merge its British and French banking operations to secure long-term control of the business and to boost the firm's financial strength ahead of the introduction of tougher capital requirements for banks. The 200-year-old banks will be reunited under a single shareholding that will bring together the fortunes of the French and English sides of the renowned family as they attempt to safeguard the business against the effects of new regulation and the fallout from the global financial crisis. Paris Orleans, the Rothschild Group's Paris-based holding company, will convert into a French limited partnership, securing the families' control of the bank against potential takeovers. The new partnership will then buy out minority investors in NM Rothschild & Sons, the UK business, as well as outstanding minority interests in the French operations. Paris Orleans has a market value of more than €500m (Ł415m) and is about 30pc owned by outside investors. The Rothschild Group employs 3,000 people in 42 countries and is one of the world's leading independent investment banks, advising some of the largest international companies on capital raisings and mergers and acquisitions. The bank also remains a player in the private equity industry and operates several merchant banking operations that invest directly in business across Europe and the rest of the world.

Note: Why is that these two hugely wealthy families get so little press coverage? Could it be that their wealth and influence exerts control over the major media? For more on secret societies which command huge hidden power, see the deeply revealing reports from reliable major media sources available here.

Public anger over high gasoline prices is turning to a familiar target - Wall Street. The role of speculative investors in this year's price spike has come under increasing scrutiny in recent weeks, nowhere more so than in Washington. Nearly 70 members of Congress wrote a stern letter Monday to a federal commission that regulates the country's main market for crude oil, demanding that the commission crack down on speculation. President Obama, his energy policies under attack from Republicans, ordered a fresh look at speculation's role in the market on Tuesday. "This is just another example, in my view, of Wall Street playing the casino," said Rep. Jackie Speier, D-Hillsborough, who signed the letter to the Commodity Futures Trading Commission. "Everyone should be outraged that every time they're filling up their tank, they're paying a premium because of speculation." How big is that premium? One of the trading commission's five members estimated last month that speculative investors were adding 56 cents to the price of each gallon of gas. As a result, Honda Civic drivers pay an additional $7.39 per fill-up, said Commissioner Bart Chilton. Owners of the Ford F150 pickup pay an extra $14.56. Speculative investors include hedge funds and investment banks that buy contracts for the future delivery of oil but never intend to take possession of the fuel itself. They buy and sell strictly as a financial investment, and their presence in the market has swelled.

Note: For lots more reliable information from the major media on energy manipulations, click here.

[A] report from San Francisco auditors [shows] that 84 percent of foreclosures examined contained at least one violation of the law by the foreclosing party. The report is only the latest in a series of incidents involving bad actors in the foreclosure crisis. In fact, problems have been so rampant that banks now require many buyers of foreclosed homes to sign contracts absolving the bank of liability should irregularities appear with the original foreclosure. In light of these negligent practices, the $26 billion settlement last week between the U.S. Department of Justice, state attorneys general and the major banks raises as many questions as answers. For instance: If a house is illegally foreclosed upon and subsequently sold by the bank, who owns the home? The new buyer or the original owner? Untangling this mess might require new consumer protections, not just a payout from the banks accused of wrongdoing. The best way to prevent foreclosure problems, however, has always been to prevent foreclosures in the first place. Offering families facing foreclosure the same bankruptcy protections enjoyed by business speculators is one place to start. As it stands today, a single family that buys a home in a housing development is treated differently in bankruptcy court than a businessman who bought 10 units in the same project. If and when the housing bubble bursts, the underwater speculator is able to seek bankruptcy relief on all 10 units, while the owner of the single home is left out in the cold.

Note: For lots more from reliable sources on the impacts of the financial crisis on homeowners, click here.

Police swooped on eight individuals between 6am and 8am yesterday, arresting the five Sun journalists, two Ministry of Defence staff and a police officer. The arrests came hard on the heels of five related arrests two weeks ago when four senior Sun journalists and a police officer were questioned in connection with bribery allegations. The latest astonishing development ... prompted fury among the newspaper's staff, amid allegations that those arrested had been "thrown to the wolves" in an effort to bolster the embattled News Corp empire, and, particularly, to rekindle its hopes of taking over BSkyB. The police were acting on information provided by News International, owner of The Sun and Times newspapers. The investigation broke new ground yesterday: for the first time, the arrests broadened beyond payments to police, with a female member of the MoD and a member of the armed forces also held while their homes were searched. The journalists arrested were Geoff Webster, The Sun's deputy editor; John Kay, a former chief reporter who joined the title in 1974; Nick Parker, chief foreign correspondent; John Edwards, picture editor; and John Sturgis, a reporter.

Note: The fact that the The Sun's deputy editor and chief foreign correspondent were arrested along with a female member of the MoD and a member of the armed forces is astounding. Could the predictions of David Wilcock of mass arrests of key people involved in major corruption be coming true? Wilcock has written a thoroughly researched and amazingly deep and penetrating paper on all that is going on at this link.

European Union diplomats and the European Parliament agreed ... to overhaul regulation of the roughly $700 trillion derivatives market, a move that will make it easier to control one of the most opaque areas of finance. Under new EU laws, banks, hedge funds and other buyers and sellers of derivatives will be encouraged to move away from the unregulated 'over-the-counter' market, which accounts for almost 95 percent of all trades. In the past, it has been common for multi-million-euro contracts to be recorded by no more than a fax, with only the parties involved aware of the details. This will change under the new law, which would standardise most trading so it happens on open exchanges. Settlement of such deals will be cleared centrally, making them easier to monitor. Those that do not shift to exchanges or a central counterparty such as LCH Clearnet in London, which acts as an intermediary between buyer and seller, will face higher capital charges to reflect the extra risk. Crucially, the new rules mean that all deals must be recorded, whether conducted on or off an exchange. Supervisors hope that will make it easier to monitor the market and intervene, if necessary, to avoid a repeat of the chaos surrounding the 2008 collapse of Lehman Brothers, where it proved difficult to assess exposure to derivatives. By forcing increased transparency, the rules are likely to challenge the half a dozen or so large banks that dominate the market now.

Note: For key reports on the grave risks posed by the unregulated derivatives market, click here.

British police arrested four current and former staff of Rupert Murdoch's best-selling Sun tabloid plus a policeman ... as part of an investigation into suspected payments by journalists to officers. Police also searched the paper's London offices at publisher News International, News Corp.'s British arm, in a corruption probe linked to a continuing investigation into phone hacking at its now closed News of the World weekly tabloid. The arrests included The Sun's crime editor Mike Sullivan, its head of news Chris Pharo, and former deputy editor Fergus Shanahan Also arrested was the paper's former managing editor Graham Dudman, now a columnist and media writer. Thirteen people have now been arrested over allegations that journalists paid police in return for information. Last week, News International settled a string of legal claims after it admitted that people working for the tabloid had hacked in to the private phones of celebrities and others to find stories. The phone hacking scandal drew attention to the level of political influence held by editors and executives at News International, and other newspapers in Britain. It embarrassed British politicians for their close ties with newspaper executives and also the police, who repeatedly failed to investigate allegations of illegal phone hacking.

Note: If researcher David Wilcock is right, this may be the beginning of mass arrests of key people involved in major corruption in our world. For lots more, see David's very well researched article at this link.

“I am not here to cheer you up. The situation is about as serious and difficult as I’ve experienced in my career,” [George] Soros tells Newsweek. “We are facing an extremely difficult time, comparable in many ways to the 1930s, the Great Depression. We are facing now a general retrenchment in the developed world, which threatens to put us in a decade of more stagnation, or worse. The best-case scenario is a deflationary environment. The worst-case scenario is a collapse of the financial system.” Soros draws on his past to argue that the global economic crisis is as significant, and unpredictable, as the end of Communism. To Soros, the spectacular debunking of the credo of efficient markets — the notion that markets are rational and can regulate themselves to avert disaster — “is comparable to the collapse of Marxism as a political system.” Understanding, he says, is key. “Unrestrained competition can drive people into actions that they would otherwise regret. The tragedy of our current situation is the unintended consequence of imperfect understanding. A lot of the evil in the world is actually not intentional. A lot of people in the financial system did a lot of damage without intending to.” Still, Soros believes the West is struggling to cope with the consequences of evil in the financial world just as former Eastern bloc countries struggled with it politically. Is he really saying that the financial whizzes behind our economic meltdown were not just wrong, but evil? “That’s correct.”

Note: For lots more from major media sources on the criminal practices of the biggest banks and financial firms and the collusion of government agencies, see our "Banking Bailout" newsarticles.

The corporate barbarians are through the gate of American democracy. Not satisfied with their all-pervasive influence on our culture, economy and legislative processes, they want more. They want it all. Two years ago, the United States supreme court betrayed our Constitution. In its now infamous decision in the Citizens United case, five justices declared that corporations must be treated as if they are actual people under the Constitution when it comes to spending money to influence our elections, allowing them for the first time to draw on the corporate checkbook – in any amount and at any time – to run ads explicitly for or against specific candidates. What's next … a corporate right to vote? When the supreme court says ... that corporations are people, that writing checks from the company's bank account is constitutionally-protected speech and that attempts by the federal government and states to impose reasonable restrictions on campaign ads are unconstitutional, our democracy is in grave danger. Corporations are not people with constitutional rights equal to flesh-and-blood human beings. Corporations are subject to regulation by the people.

Note: For key reports on the overpowering influence of corporate money on the US political system, click here and here.

Johnson & Johnson will pay more than $1 billion to the U.S. and most states to resolve a civil investigation into marketing of the antipsychotic Risperdal. Negotiations over a possible criminal plea are still under way. The U.S. government has been investigating Risperdal sales practices since 2004, including allegations the company marketed the drug for unapproved uses. J&J, the world’s largest health products company ... disclosed in August that it reached an agreement to settle a misdemeanor criminal charge related to Risperdal marketing. The company is discussing paying about $400 million more to settle that portion of the investigation. Risperdal, once J&J’s best-selling drug, generated worldwide sales of $24.2 billion from 2003 to 2010, reaching $4.5 billion in 2007. After that, J&J lost patent protection and sales declined. The settlement represents ... about 5.6 percent of the drug’s cumulative sales since 2003. The Food and Drug Administration approved Risperdal in 1993 for psychotic disorders including schizophrenia. That market is limited, and J&J’s Janssen unit sought to sell Risperdal for bipolar disorder, dementia, mood and anxiety disorders and other unapproved uses.

Note: For highly-illuminating reports from reliable sources on the corruption in the pharmaceutical industry, click here.

The Japanese government [has] declared that the Fukushima Daiichi nuclear plant had reached a stable state known as “cold shutdown.” But the formal status change at the plant, experts cautioned, means only that its problems have become less dire; they have not disappeared. The plant still leaks radiation into the sea. Its makeshift cooling system is vulnerable to earthquakes. And the cleanup work remains dangerous, with many flooded and debris-strewn areas of the reactor buildings difficult even for robots to access. In normal circumstances, a reactor in cold shutdown mode is entirely stable, its fuel intact, with no chance of a chain reaction. To achieve its version of a cold shutdown at Fukushima Daiichi, ... Japan had to loosen the definition. Fukushima now meets the government’s requirements because temperatures at the bottom of the three damaged reactor pressure vessels have dropped below 100 degrees Celsius (212 degrees Fahrenheit). Airborne leaks into the environment have also been almost halted. The declaration poses new questions for many of the 80,000 people who fled towns around the plant ... since the government had made the cold shutdown a precondition for even considering reopening parts of the no-go zone to residents. Many areas within the no-entry zone — a 12-mile radius around the plant — will be uninhabitable for decades, maybe longer.

Note: For further information on the claim of "cold shutdown" at Fukushima, click here and here.

Silicon Valley technology firms that are lobbying Congress to slash taxes on money they bring home from abroad, arguing that doing so would help them create millions of jobs, already send more than half that money back to the United States without paying taxes, according to a Senate investigation. The corporate tax code permits Google, Cisco, Apple, Adobe Systems, Oracle and other U.S. multinational corporations surveyed to invest nearly $250 billion in the United States without paying the 35 percent corporate tax rate that applies to repatriated foreign earnings, according to the report by the Senate's Permanent Subcommittee on Investigations. The corporations, which are not allowed to invest the money in their own companies, can escape the 35 percent tax if they invest in other domestic assets, such as stocks, bonds and bank deposits. Silicon Valley's technology giants have banded together with pharmaceutical companies and other multinationals in the Win America Coalition in an attempt to get Congress to cut their tax rate from 35 percent to just over 5 percent on overseas earnings they bring home. The survey data showed that Adobe, Apple, Broadcom, Cisco and Google have invested 76 to 100 percent of their foreign earnings in U.S. stocks, bonds, bank deposits and other domestic assets, a greater share than the other companies surveyed.

Note: For lots more on corporate and government corruption, click here and here.

At a packed City Council meeting ... Los Angeles lawmakers Tuesday called for more regulations on how much corporations can spend on political campaigns. The vote in support of state and federal legislation that would end so-called "corporate personhood” is largely symbolic. The council resolution includes support for a constitutional amendment that would assert that corporations are not entitled to constitutional rights, and that spending money is not a form of free speech. City Council President Eric Garcetti, the resolution's sponsor, said such actions are necessary because “big special interest money” is behind much of the gridlock in Washington. He blamed a 2010 U.S. Supreme Court decision, Citizens United vs. the Federal Election Commission, which rolled back legal restrictions on corporate spending on the grounds that political speech by a business entity should receive the same 1st Amendment protections that people do. It allows corporations and other groups to spend unlimited money on behalf of candidates. Councilman Richard Alarcon, who also supported the resolution, said corporations are “trying to take over every aspect of our lives.” “Corporations are at the wheel of America,” Alarcon said. “And they are driving us to destruction.”

Note: Why was this key decision only reported in a blog and hardly covered by the media elsewhere? To understand how the media controls public debate, as reported by top journalists, click here.

Important Note: Explore our full index to revealing excerpts of key 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.