Corporate Corruption News Articles

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For months, companies have been sitting on the sidelines with record piles of cash. Now they're starting to deploy some of that money - not to hire workers or build factories, but to prop up their share prices. Sitting on these unprecedented levels of cash, U.S. companies are buying back their own stock in droves. So far this year, firms have announced they will purchase $273 billion of their own shares, more than five times as much compared with this time last year, according to Birinyi Associates, a stock market research firm. But the rise in buybacks signals that many companies [do not plan to] spend their cash on the job-generating activities that could produce economic growth. "They don't know what they want to do with all the cash they're sitting on," said Zachary Karabell, president of RiverTwice Research. Historically low interest rates are also prompting some companies to borrow to repurchase shares. Microsoft, for instance, borrowed $4.75 billion last month by issuing new bonds at rock-bottom interest rates and announced it would use some of that money to buy back shares. The company already has nearly $37 billion in cash. A share buyback is a quick way to make a stock more attractive to Wall Street. It improves a closely watched metric known as earnings per share, which divides a company's profit by the total number of shares on the market. Such a move can produce a sudden burst of interest in a stock, improving its price.

Note: For lots more from reliable sources on the massive profiteering by corporate recipients of government financial largesse, click here.

Government scientists wanted to tell Americans early on how bad the BP oil spill could get, but the White House denied their request to make the worst-case models public, a report by the staff of the national panel investigating the spill said Wednesday. Although not a final report, it could raise questions over whether the Obama administration tried to minimize the extent of the BP oil spill, the worst man-made environmental disaster in U.S. history. The staff paper said that underestimating the flow rates "undermined public confidence in the federal government's response" by creating the impression that the government was either incompetent or untrustworthy. The paper said that the loss of trust "fuels public fears." In a separate report, the commission's staff concluded that despite the Coast Guard's insistence that it was always responding to the worst-case scenario, the failure to have an accurate flow rate slowed the response and lulled Obama administration officials into a false belief that the spill would be controlled easily. The first report said that the "decision to withhold worst-case discharge figures" may have been made at a high level. It said that in late April or early May, the National Oceanic and Atmospheric Administration "wanted to make public some of its long-term, worst-case discharge models for the Deepwater Horizon spill, and requested approval to do so from the White House's Office of Management and Budget. Staff was told that the Office of Management and Budget denied NOAA's request."

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Monsanto, the giant of agricultural biotechnology, has been buffeted by setbacks this year that have prompted analysts to question whether its winning streak of creating ever more expensive genetically engineered crops is coming to an end. The latest blow came last week, when early returns from this year’s harvest showed that Monsanto’s newest product, SmartStax corn, which contains eight inserted genes, was providing yields no higher than the company’s less expensive corn, which contains only three foreign genes. Monsanto has already been forced to sharply cut prices on SmartStax and on its newest soybean seeds, called Roundup Ready 2 Yield, as sales fell below projections. Sales of Monsanto’s Roundup, the widely used herbicide, has collapsed this year under an onslaught of low-priced generics made in China. Weeds are growing resistant to Roundup, dimming the future of the entire Roundup Ready crop franchise. And the Justice Department is investigating Monsanto for possible antitrust violations. Until now, Monsanto’s main challenge has come from opponents of genetically modified crops, who have slowed their adoption in Europe and some other regions. Now, however, the skeptics also include farmers and investors who were once in Monsanto’s camp.

Note: For those who are not aware of how Monsanto executives are quite consciously endangering your health, click here.

U.S. companies are rebounding quickly from the recession and posting near-historic profits, the result of aggressively re-tooling their operations to cope with lower revenue and an uncertain outlook. An analysis by The Wall Street Journal found that companies in the Standard & Poor's 500-stock index posted second-quarter profits of $189 billion, up 38% from a year earlier and their sixth-highest quarterly total ever, without adjustment for inflation. For all U.S. companies, the Commerce Department estimates second-quarter after-tax profits rose to an annual rate of $1.208 trillion, up 3.9% from the first quarter and up 26.5% from a year earlier. That annual rate is the highest on record, though it doesn't account for inflation. As a percentage of national income, after-tax profits were the third-highest since 1947, surpassed only by two quarters in 2006, near the peak of the last economic expansion. The data indicate that big companies are recovering from the downturn faster and more strongly than the overall economy, helping send stock prices higher this year. To achieve that performance, companies laid off hundreds of thousands of workers, closed less-profitable units, shifted work to cheaper regions and streamlined processes. Despite the hefty profits, executives aren't expected to boost spending on new employees, products and equipment anytime soon. "We've focused on permanent changes that won't have to be undone as sales improve," said John Riccitiello, chief executive of Electronic Arts.

Note: For highly revealing reports on income inequality, click here.

A Berkshire family say they are devastated at being forced to leave their pet dog in France after his pet passport microchip failed. Matt Roberts and his family returned to Arborfield, near Reading, without their dog Indy because the technology had stopped working. Indy has undergone surgery costing Ł1,000 to remove the chip. It could take up to six months for him to be issued with a new pet passport. Mr Roberts had just finished a two week holiday in the south of France with his wife Dorota and six-month-old daughter Harriet when he tried to return to the UK via Dunkirk. However, when the dogs tried to re-enter the country the scanners could not read Indy's microchip. The family had spent spent Ł400 on pet passports for his two Shih Tzu dogs, Indy and Buzz. Indy will remain in kennels in France unless the manufacturer can confirm that the chip they have removed from him matches the documentation on the pet passport. However, vets have said that the chip has corrupted and will be difficult to read. Mr Roberts may have to apply for a new pet passport for Indy or put the dog into quarantine. He said he was reluctant to do this, and was already spending Ł15 a night to keep his dog in kennels. A Defra spokesman said: "Around 100 pets a year have a failed or missing microchip on arrival to the UK. "In the majority of cases the microchip number can be removed and identified or read by the manufacturer, and the pet eventually allowed to enter."

Note: Another media article shows the same thing happened to a second couple. Explore an excellent website on the risks and dangers of microchipping your pets.

The federal government hired a New Orleans man for $18,000 to appraise whether news stories about its actions in the gulf oil spill were positive or negative for the Obama administration, which was keenly sensitive to comparisons between its response and former President George W. Bush's much-maligned reaction to Hurricane Katrina. The government also spent $10,000 for just over three minutes of video showing a routine offshore rig inspection for news organizations but couldn't say whether any ran the footage. While most of the contracts don't raise alarms, some could provide ammunition for critics of government waste. Among all the contracts, perhaps none is more striking than the Coast Guard's decision to pay $9,000 per month for two months to John Brooks Rice of New Orleans, an on-call worker for the Federal Emergency Management Agency, under a no-bid contract to monitor media coverage from late May through July. Rice told the AP that he compiled print and video news stories and offered his subjective appraisal of the tone of the coverage. "From reading and watching the media I would create reports," he said. "I reported either positive coverage, negative coverage, misinformation coverage."

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An intelligence analyst named Eitan Arusy [at the district attorney's office in Manhattan] began studying a slim lead. Suspicious money was flowing to and from an Iranian nonprofit. Mr. Arusy's probe, later merged with a Justice Department inquiry, ultimately widened to some of Europe's vaunted banks, helping spark a global inquiry that found they actively evaded U.S. law in aiding sanctioned countries, banks or other enterprises move some $2 billion undetected. Nine banks have been caught up in the probe. These weren't rogue operations. The investigators discovered that the banks ran dedicated units to systematically aid the undetected transfer of money through the U.S. banking system. They did that by removing identifying coding on fund transfers so they could evade automated U.S. bank computer systems designed to spot money flowing from a sanctioned state. The far-reaching inquiry started small. Mr. Arusy arrived at the district attorney's office in 2005 to help ferret out illegal financing tied to the Middle East. Though the office prosecutes everyday crime, it carved out a role infiltrating crimes tied to the city's financial markets and institutions. Its expertise dates to the 1990s, when it led the investigation of Bank of Credit & Commerce International, or BCCI, which collapsed in a fraud and money-laundering scandal.

Note: For a treasure trove of articles from reliable sources revealing the criminality of many major financial corporations, click here.

Goldman Sachs sent $4.3 billion in federal tax money to 32 entities, including many overseas banks, hedge funds and pensions, according to information made public [on July 23]. Goldman Sachs disclosed the list of companies to the Senate Finance Committee after a threat of subpoena from Sen. Chuck Grassley, R-Ia. Goldman Sachs received $5.55 billion from the government in fall of 2008 as payment for then-worthless securities it held in AIG. Goldman had already hedged its risk that the securities would go bad. It had entered into agreements to spread the risk with the 32 entities named in Friday's report. Overall, Goldman Sachs received a $12.9 billion payout from the government's bailout of AIG, which was at one time the world's largest insurance company. Goldman Sachs also revealed to the Senate Finance Committee that it would have received $2.3 billion if AIG had gone under. Other large financial institutions, such as Citibank, JPMorgan Chase and Morgan Stanley, sold Goldman Sachs protection in the case of AIG's collapse. Those institutions did not have to pay Goldman Sachs after the government stepped in with tax money. Shouldn't Goldman Sachs be expected to collect from those institutions "before they collect the taxpayers' dollars?" Grassley asked. "It's a little bit like a farmer, if you got crop insurance, you shouldn't be getting disaster aid."

Note: For lots more from reliable sources on the Wall Street bailout by taxpayers, click here.

Just when you thought the damage BP could cause was limited to beaches, marshes, oceans, people's livelihoods, birds and marine life, there's more. BP's favorite dispersant Corexit 9500 is being sprayed at the oil gusher on the ocean floor. Corexit is also being air sprayed across hundreds of miles of oil slicks all across the gulf. There have been widespread reports of oil cleanup crews reporting various injuries including respiratory distress, dizziness and headaches. Corexit 9500 is a solvent originally developed by Exxon. Corexit is four times more toxic than oil (oil is toxic at 11 ppm (parts per million), Corexit 9500 at only 2.61ppm). In a report written by Anita George-Ares and James R. Clark for Exxon Biomedical Sciences, Inc. titled "Acute Aquatic Toxicity of Three Corexit Products: An Overview," Corexit 9500 was found to be one of the most toxic dispersal agents ever developed. According to the Clark and George-Ares report, Corexit mixed with the higher gulf coast water temperatures becomes even more toxic. The UK's Marine Management Organization ... banned Corexit ... from a list of approved treatments for oil spills in the U.K. more than a decade ago. The simple question I ask is: If the UK bans Corexit ... why the hell are we using it on American waters?

Despite President Barack Obama's promises of better safeguards for offshore drilling, federal regulators continue to approve plans for oil companies to drill in the Gulf of Mexico with minimal or no environmental analysis. The Department of Interior's Minerals Management Service has signed off on at least five new offshore drilling projects since June 2, when the agency's acting director announced tougher safety regulations for drilling in the Gulf, a McClatchy review of public records has discovered. Three of the projects were approved with waivers exempting them from detailed studies of their environmental impact – the same waiver the MMS granted to BP for the ill-fated well that's been fouling the Gulf with crude for two months. Environmental groups [say] the administration is allowing oil companies to proceed with drilling plans that may be just as flawed as BP's, which concluded that a major spill was "unlikely" and that the company was equipped to manage even the worst-case blowout. "It's just outrageous," said Kieran Suckling, executive director of the Center for Biological Diversity, a conservation organization. "The whole world is screaming and ... they're just continuing to move this stuff through the system."

Note: For abundant reports from reliable sources on government corruption, click here.

Tony Hayward cashed in about a third of his holding in the company one month before a well on the Deepwater Horizon rig burst, causing an environmental disaster. Mr Hayward, whose pay package is Ł4 million a year, then paid off the mortgage on his family's mansion in Kent, which is estimated to be valued at more than Ł1.2 million. His decision ... means he avoided losing more than Ł423,000 when BP's share price plunged after the oil spill began six weeks ago. Since he disposed of 223,288 shares on March 17, the company's share price has fallen by 30 per cent. About Ł40 billion has been wiped off its total value. The spill, which has still not been stemmed, has caused a serious environmental crisis and is estimated to cost BP up to Ł40 billion to clean up. Mr Hayward, whose position is thought to be under threat, risked further fury by continuing plans to pay out a dividend to investors next month.

Images and reports of oil-drenched wildlife that's dead or slowly dying are starting to emerge. At least one cleanup worker alleges that BP is trying to keep such disturbing pictures out of the public eye. CBS News has gut-wrenching video of oil-covered birds in distress, including the brown pelican, Louisiana's state bird, which for many years was on the Endangered Species List. An unidentified cleanup worker took a New York Daily News reporter on a clandestine tour of the hidden wildlife carnage in Louisiana, accusing the BP of keeping the media at bay. "There is a lot of coverup for BP. They specifically informed us that they don't want these pictures of the dead animals. They know the ocean will wipe away most of the evidence. It's important to me that people know the truth about what's going on here," the contractor said. "The things I've seen: They just aren't right. All the life out here is just full of oil. When you see some of the things I've seen, it would make you sick," the contractor said. "No living creature should endure that kind of suffering." More oil-soaked birds arrived at cleaning stations today, as Louisiana officials continued to patrol the marshes and beaches.

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

The thing about the Bilderberg group’s top secret meetings: you never know quite what is going on behind the police checkpoints. Across the world, secretaries to the rich and the powerful have blocked out the next three days in their bosses’ calendars for their annual gathering, this time at the Dolce in Sitges, one of Spain’s most exclusive resorts. Normally, every minute of their working lives is accounted for but, each year, a couple of hundred of the world’s financial elite and the more business-friendly members of the political class disappear from view. It is all terribly confidential — breathe a word about it and you’re out of the club — but the Bilderberg watcher Daniel Estulin claims to have a copy of the agenda. The big question this time around is whether the euro will survive. “They are afraid that the countries in trouble will leave and the euro will fall apart,” said Mr Estulin. The Bilderbergers are nervous that the erosion of the euro could nudge the world back into recession while public services cuts could trigger unrest and radicalise the political climate.

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Despite the global financial crisis, world military spending almost doubled in the past decade to reach $1.53 trillion in 2009, a Swedish think-tank said Wednesday. In its 2010 yearbook, the Stockholm International Peace Research Institute, or SIPRI, said that spending between 2008 and 2009 grew 5.9 percent. The United States remains the biggest spender, accounting for some 54 percent of the increase, the report said. China, which became the second biggest military spender in 2008, retained that position last year. Data also showed that Asia and Oceania are increasing their military expenditures the fastest. The global financial turmoil had little effect on governments upgrading their armed forces, even in countries whose economies were hit the hardest, SIPRI spokesman Sam Perlo-Freeman said. Perlo-Freeman, who heads the think-tank's military-expenditure project [commented] "For major or intermediate powers ďż˝ such as the USA, China, Russia, India and Brazil ďż˝ military spending represents a long-term strategic choice, which they are willing to make even in hard economic times."

Note: Very few major media picked up this eye-opening article. With all of the threatened budget cuts around the world, why is no one talking about the fact that military spending has literally doubled in the last 10 years? Could it be that those who own the media don't want you to know this information? For a powerful essay by a top US general revealing the deeper causes of war and military spending, click here.

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.

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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.

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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.

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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.

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.