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.

The Consumer Financial Protection Bureau (CFPB), the watchdog agency conceived of and established by Sen. Elizabeth Warren (D-Mass.) in the wake of the financial crisis, ... has issued dozens of protections shielding consumers from shady practices by mortgage lenders, student loan servicers, and credit card companies. Here are ten things the CFPB, which was created in 2011, has done to protect the little guy: 1. Mortgage lenders can no longer push you into a high-priced loan. 2. New homeowners are less likely to be hit by foreclosure. 3. If you are are delinquent on your mortgage payments, loan servicers have to try harder to help you avoid foreclosure. 4. Millions of Americans get a low-cost home loan counselor. 5. Borrowers with high-cost mortgages get an outside eye. 6. Fly-by-night financial players will be held accountable. 7. Folks scammed by credit card companies get refunds. 8. Student lenders face scrutiny. 9. Service members get extra protection. 10. Consumers get a help center: If your bank or lender does anything you think is unfair, the bureau has a division dedicated to fielding consumer complaints. The agency promises to work with companies to try to fix consumers' problems.

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

Federal prosecutors are trying to thwart the easy access that predatory lenders and dubious online merchants have to Americans’ bank accounts by going after banks that fail to meet their obligations as gatekeepers to the United States financial system. The Justice Department is weighing civil and criminal actions against dozens of banks, sending out subpoenas to more than 50 payment processors and the banks that do business with them, according to government officials. In the new initiative, called “Operation Choke Point,” the agency is scrutinizing banks both big and small over whether they, in exchange for handsome fees, enable businesses to illegally siphon billions of dollars from consumers’ checking accounts. The critical role played by banks largely plays out in the shadows because they typically do not deal directly with the Internet merchants. What they do is provide banking services to third-party payment processors, financial middlemen that, in turn, handle payments for their merchant customers. The new, more rigorous oversight could have a chilling effect on Internet payday lenders, which have migrated from storefronts to websites where they offer short-term loans at interest rates that often exceed 500 percent annually. As a growing number of states enact interest rate caps that effectively ban the loans, the lenders increasingly depend on the banks for their survival. With the banks’ help, the lenders that typically work with a third-party payment processor that has an account at the banks are able, authorities say, to automatically deduct payments from customers’ checking accounts even in states where the loans are illegal.

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

Fifty years ago, ... more than 42 percent of U.S. adults smoked, and there was a good chance your doctor was among them. The turning point came on Jan. 11, 1964 [when] U.S. Surgeon General Luther Terry released an emphatic and authoritative report that said smoking causes illness and death — and the government should do something about it. The report’s bottom-line message was hardly revolutionary. Since 1950, head-turning studies that found higher rates of lung cancer in heavy smokers had been appearing in medical journals. A widely read article in Reader’s Digest in 1952, “Cancer by the Carton,” contributed to the largest drop in cigarette consumption since the Depression. In 1954, the American Cancer Society announced that smokers had a higher cancer risk. But the tobacco industry fought back. Manufacturers came out with cigarettes with filters that they claimed would trap toxins before they settled into smokers’ lungs. And in 1954, they placed a full-page ad in hundreds of newspapers in which they argued that research linking their products and cancer was inconclusive. It was a brilliant counter-offensive that left physicians and the public unsure how dangerous smoking really was. Cigarette sales rebounded. In the decades that followed, warning labels were put on cigarette packs, cigarette commercials were banned, taxes were raised and new restrictions were placed on where people could light up. While the U.S. smoking rate has fallen by more than half to 18 percent, that still translates to more than 43 million smokers. Smoking is still far and away the leading preventable cause of death in the U.S.

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

A major U.S. bank has agreed to a settlement for transferring funds on the behalf of financiers for the militant group Hezbollah, the Treasury Department announced on Tuesday. Concluding that HSBC's actions "were not the result of willful or reckless conduct," Treasury's Office of Foreign Assets Control accepted a $32,400 settlement from the bank. Everett Stern, a former HSBC compliance officer who complained to his supervisors about the Hezbollah-linked transactions, told HuffPost he was ... satisfied that the government was taking action. But, he added, "Where I am upset was those were a handful of transactions, and I saw hundreds of millions of dollars" being transferred. Stern said he hopes the government's enforcement actions against HSBC have not come to an end with the latest settlement. "They admit to financing terrorism and they get fined $32,000. Where if I were to do that, I would go to jail for life," he said. HSBC's fine is less than the $40,165.07 covered in the settlement agreement that the bank transferred between December 2010 and April 2011 on behalf of a development company that Treasury says serves as a front for some of Hezbollah's biggest financiers in Africa. In December 2012, the bank agreed to pay a $1.9 billion settlement for moving money that a 2012 Senate report found had likely helped drug cartels and a Saudi Arabian bank the CIA has linked to al Qaeda. No one at HSBC was criminally charged.

Note: For more along these lines, see concise summaries of deeply revealing news articles about corruption in government and in the financial industry.

A proposal to require labeling of genetically engineered foods and seeds in Washington state enjoyed broad public support in polls this summer. That was before some of the largest food companies swooped in to spend more so consumers would know less about what they are eating. The Grocery Manufacturers Association, a Washington-based trade group that represents companies such as ConAgra Foods and Kraft Foods, was responsible for $11 million of the $22 million campaign against the initiative, compared with about $9 million by pro-labeling advocates. The GMA's campaign made the difference. The initiative, which had 66 percent support in a September survey, was defeated by 51 percent to 49 percent. The grocers, who opposed the proposal as arbitrary and costly for businesses, raised more than $2.3 million from PepsiCo Inc. and about $1.5 million each from Coca-Cola Co., [and] Nestle USA. Those groups also were part of a $45 million campaign that defeated a labeling initiative in California last year. "Spending is not a problem" for organizations opposed to labeling requirements, said Colin O'Neil, director of government affairs for the Center for Food Safety, which backed the Washington state initiative. "These companies will spend whatever it takes to defeat labeling at the state level." If that's the case, the trade associations and their members will be issuing a lot more checks as fights over labeling food are breaking out in other states and advocates are pressing the matter in Congress with proposed legislation from both sides awaiting action.

Note: For more on the risks from genetically-modified organisms in food and the environment, see the deeply revealing reports from reliable major media sources available here.

WikiLeaks has released the draft text of a chapter of the Trans-Pacific Partnership (TPP) agreement, a multilateral free-trade treaty currently being negotiated in secret by 12 Pacific Rim nations. Negotiations for the TPP have ... been conducted behind closed doors. Even members of the US Congress were only allowed to view selected portions of the documents under supervision. The 30,000 word intellectual property chapter contains proposals to increase the term of patents, including medical patents, beyond 20 years, and lower global standards for patentability. It also pushes for aggressive measures to prevent hackers breaking copyright protection, although that comes with some exceptions: protection can be broken in the course of "lawfully authorised activities carried out by government employees, agents, or contractors for the purpose of law enforcement, intelligence, essential security, or similar governmental purposes". WikiLeaks claims that the text shows America attempting to enforce its highly restrictive vision of intellectual property on the world – and on itself. "The US administration is aggressively pushing the TPP through the US legislative process on the sly," says Julian Assange, the founder and editor-in-chief of WikiLeaks. "If instituted," Assange continues, "the TPP’s intellectual property regime would trample over individual rights and free expression, as well as ride roughshod over the intellectual and creative commons. If you read, write, publish, think, listen, dance, sing or invent; if you farm or consume food; if you’re ill now or might one day be ill, the TPP has you in its crosshairs."

Note: To read the Wikileaks release of the secret agreements from the TPP, click here. For further critical analysis of the TPP text, click here.

In May this year, a huge company listed on the London Stock Exchange found itself in the midst of controversy about a prison it runs for the government – Thameside, a newly built jail ... in south-east London. Two months later, the same company was the subject of a high- profile report published by the House Of Commons. Again, the verdict was damning: data had been falsified, national standards had not been met, there was a culture of "lying and cheating", and the service offered to the public was simply "not good enough". Three weeks ago, there came grimmer news. The company ... was one of two contractors that had somehow overcharged the government for its services, possibly by as much as Ł50m; The firm that links these three stories together is Serco. Its range of activities, here and abroad, is truly mind-boggling. As a private firm it's not open to Freedom of Information requests, so looking into the details of what it does is fraught with difficulty. But the basic facts are plain enough. As well as five British prisons and the tags attached to over 8,000 English and Welsh offenders, Serco sees to two immigration removal centres. You'll also see its logo on the Docklands Light Railway and Woolwich ferry. But even this is only a fraction of the story. Serco is responsible for air traffic control in the United Arab Emirates, parking-meter services in Chicago, driving tests in Ontario, and an immigration detention centre on Christmas Island.

Note: Serco is possibly the largest company you've never heard of. Did you know that the Obama administration awarded Serco a $1.25 billion contract to help implement online health insurance exchanges under Obamacare, as reported in this Reuters article? Watch this video to see just how powerful and pervasive they are.

Group of 20 nations, [which account] for almost 90 percent of the global economy, “fully endorse the ambitious and comprehensive” plan presented by the Organization for Economic Cooperation and Development to prevent the largest companies from using complicated ownership structures and transfer pricing to avoid paying taxes where they do most of their business. Strategies used at U.S. companies including Google, Apple and Yahoo! have been targeted in legislative hearings as governments look to improved tax collection to fill state coffers. Low tax rates paid by large multinational companies means smaller businesses and individuals are left with a disproportionately larger burden, OECD Secretary-General Angel Gurria told reporters yesterday. The OECD published its 40-page report as deficit-laden governments attempt to increase revenue collected from profitable enterprises. It follows hearings in the U.S. and U.K. that revealed how companies have avoided billions in taxes by attributing profits to mailbox subsidiaries in places like Bermuda and the Cayman Islands. Under current law, such offshore subsidiaries can take credit for profits arising from patents developed in countries like the U.S. and U.K. -- generally with cash the parent companies provided. Mountain View, California-based Google has avoided as much as $2 billion in worldwide income taxes annually by attributing profits to a subsidiary in Bermuda that holds the rights to its intellectual property for sales outside the U.S..

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

Senior employees at U.K. banks may face a 10-year wait for bonuses under proposals put forward by a committee investigating the failures of the industry, which also recommended making “reckless” management of lenders a crime. The Parliamentary Commission on Banking Standards' ... proposal to introduce a criminal offence for mismanagement, which could see executives of failed firms facing jail time, was endorsed by Prime Minister David Cameron. “The potential rewards for fleeting short-term success have sometimes been huge, but the penalties for failure, often manifest only later, have been much smaller or negligible,” the authors of the report said. "Performance should be assessed using a range of measures rather than just return on equity, which creates “perverse incentives,” the committee said. "Taxpayers have bailed out the banks. The public have the sense that advantage has been taken of them, that bankers have received huge rewards, that some of those rewards have not been properly earned, and in some cases have been obtained through dishonesty, and that these huge rewards are excessive, bearing little or no relationship to the value of the work done.” The committee recommended introducing an offence for “reckless misconduct” and potential prison time for bankers found responsible for the worst mismanagement, the first such sanctions."

Note: For a related article in the London Review of Books, which starts "the blame in Spain falls mainly on the banks – as it does in Ireland, in Greece, in the US, and pretty much everywhere else too," click here. For more on financial corruption, see the deeply revealing reports from reliable major media sources available here.

Unapproved genetically modified wheat found growing in the United States is threatening the outlook for U.S. exports of the world's biggest traded food commodity, with importers keenly aware of consumer sensitivity to gene-altered food. Major importer Japan has canceled a tender offer to buy U.S. western white wheat, while other top Asian wheat importers South Korea, China and the Philippines said they were closely monitoring the situation. The European Union is preparing to test incoming shipments, and will block any containing GM wheat. GM wheat was discovered this spring on a farm [in] Oregon, in a field that grew winter wheat in 2012. Scientists found the wheat was a strain field-tested from 1998 to 2005 and deemed safe before St. Louis-based biotech giant Monsanto withdrew it from the regulatory approval process on worldwide opposition to genetically engineered wheat. No GM wheat varieties are approved for general planting in the U.S. or elsewhere, the USDA said. The EU has asked Monsanto for a detection method to allow its controls to be carried out. With high consumer wariness to genetically-modified food, few countries allow imports of such cereals for direct human consumption. However, the bulk of U.S. corn and soybean crops are genetically modified.

Note: For a powerful summary of the dangers to health and the environment from genetically modified foods, click here. For major media news articles revealing the risks and dangers of GMOs, click here.

Wall Street investors hungry for advance information on upcoming federal health-care decisions repeatedly held private discussions with Obama administration officials, including a top White House adviser helping to implement the Affordable Care Act. The private conversations show that the increasingly urgent race to acquire “political intelligence” goes beyond the communications with congressional staffers that have become the focus of heightened scrutiny in recent weeks. White House records show that Elizabeth Fowler, then a top health-policy adviser to President Obama, met with executives from half a dozen investment firms in 2011 and 2012. Among them was Kris Jenner, a stock picker with T. Rowe Price Investment Services who managed its $6 billion Health Sciences Fund. Separately, [Andrew Shin,] an official in the agency that oversees Medicare and Medicaid spoke in December with managers of hedge funds, pension plans and mutual funds in a conference call. That call and the White House meetings Fowler attended were arranged by political-intelligence firms, an expanding class of consultants in Washington that specialize in providing government information to Wall Street. Hedge fund executives and other investors are increasingly interested in the timing and nature of health-policy decisions in Washington because they directly affect the profits and stock prices of pharmaceutical, insurance, hospital and managed-care companies. Similar interest surrounds other industry sectors, such as defense, agriculture and energy, whose fortunes are especially dependent on government decisions.

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

Two years after a triple meltdown that grew into the world’s second worst nuclear disaster, the Fukushima Daiichi nuclear power plant is faced with a new crisis: a flood of highly radioactive wastewater that workers are struggling to contain. Groundwater is pouring into the plant’s ravaged reactor buildings at a rate of almost 75 gallons a minute. It becomes highly contaminated there, before being pumped out to keep from swamping a critical cooling system. A small army of workers has struggled to contain the continuous flow of radioactive wastewater, relying on ... storage tanks sprawling over 42 acres of parking lots and lawns. The tanks hold the equivalent of 112 Olympic-size pools. But even they are not enough to handle the tons of strontium-laced water at the plant — a reflection of the scale of the 2011 disaster. In a sign of the sheer size of the problem, the operator of the plant, Tokyo Electric Power Company, or Tepco, plans to chop down a small forest on its southern edge to make room for hundreds more tanks, a task that became more urgent when underground pits built to handle the overflow sprang leaks in recent weeks. While the company has managed to stay ahead, the constant threat of running out of storage space has turned into what Tepco itself called an emergency, with the sheer volume of water raising fears of future leaks at the seaside plant that could reach the Pacific Ocean. Two years after the meltdowns, the plant remains vulnerable to the same sort of large earthquake and tsunami that set the original calamity in motion.

Note: For deeply revealing reports from reliable major media sources on risks and corruption in the nuclear power industry, click here.

Over the last two years, President Obama and Congress have put the country on track to reduce projected federal budget deficits by nearly $4 trillion. Yet when that process began, in early 2011, only about 12% of Americans in Gallup polls cited federal debt as the nation's most important problem. Two to three times as many cited unemployment and jobs as the biggest challenge facing the country. So why did policymakers focus so intently on the deficit issue? One reason may be that the small minority that saw the deficit as the nation's priority had more clout than the majority that didn't. We recently conducted a survey of top wealth-holders (with an average net worth of $14 million) in the Chicago area, one of the first studies to systematically examine the political attitudes of wealthy Americans. Our research found that the biggest concern of this top 1% of wealth-holders was curbing budget deficits and government spending. When surveyed, they ranked those things as priorities three times as often as they did unemployment — and far more often than any other issue. Our Survey of Economically Successful Americans [found that] two-thirds of the respondents had contributed money (averaging $4,633) in the most recent presidential election, and fully one-fifth of them "bundled" contributions from others. About half recently initiated contact with a U.S. senator or representative, and nearly half (44%) of those contacts concerned matters of relatively narrow economic self-interest rather than broader national concerns. This kind of access to elected officials suggests an outsized influence in Washington.

Note: For deeply revealing reports from reliable major media sources on the collusion between the US government and corrupt financial corporations, click here.

Pat Guillet is a food addict. She has finally wrestled her addiction under control and now she counsels other food addicts to avoid processed food. "Yeah, just the sight of the packages will trigger cravings," she said. Craving. It doesn't just happen to food addicts. "These companies rely on deep science and pure science to understand how we're attracted to food and how they can make their foods attractive to us," Michael Moss said. The New York Times investigative reporter spent four years prying open the secrets of the food industry’s scientists. "This was like a detective story for me, getting inside the companies with thousands of pages of inside documents and getting their scientists and executives to reveal to me the secrets of how they go at this," he said. What he found became the title of his new book, Salt, Sugar Fat: How the food giants hooked us. "I spent time with the top scientists at the largest companies in this country and it's amazing how much math and science and regression analysis and energy they put into finding the very perfect amount of salt, sugar and fat in their products that will send ... their products flying off the shelves and have us buy more, eat more and …make more money for them."

Note: For deeply revealing reports from reliable major media sources on corporate corruption, click here.

Tobacco companies have been ordered by a federal judge to publicly admit, through advertisements and package warnings, that they deceived American consumers for decades about the dangers of smoking. Federal Judge Gladys Kessler issued her ruling [on November 27] in one of the last legal steps settling liability in the long-running government prosecution of cigarette makers. "By ensuring that consumers know that [tobacco companies] have misled the public in the past on the issue of secondhand smoke in addition to putting forth the fact that a scientific consensus on this subject exists," said Kessler, "defendants will be less likely to attempt to argue in the future that such a consensus does not exist." Several other lawsuits over cigarette labeling are pending in federal court, part of a two-decade federal and state effort to force tobacco companies to limit their advertising, and settle billions of dollars in state and private class-action claims over the health dangers of smoking. The judge, six years ago, concluded that tobacco companies were guilty of racketeering, and had ordered them to put tougher warning labels and other language in their marketing.

Note: For deeply revealing reports from reliable major media sources on corporate corruption, click here.

Federal and state authorities are investigating [several] major American banks for failing to monitor cash transactions in and out of their branches, a lapse that may have enabled drug dealers and terrorists to launder tainted money. Regulators, led by the Office of the Comptroller of the Currency, are close to taking action against JPMorgan Chase for insufficient safeguards. The agency is also scrutinizing several other Wall Street giants, including Bank of America. In addition to the comptroller, prosecutors from the Justice Department and the Manhattan district attorney’s office are investigating several financial institutions in the United States. The surge in investigations, compliance experts say, is coming now because authorities were previously inundated with problems stemming from the 2008 financial turmoil. Until now, investigators have primarily focused on financial transactions at European banks. The authorities accused several foreign banks of flouting American law by transferring billions of dollars on behalf of sanctioned nations. As the investigation shifts to American shores, the Justice Department and the Manhattan district attorney’s office are moving beyond those violations to focus on money-laundering, in which criminals around the globe try to hide illicit funds in United States bank accounts.

Note: For deeply revealing reports from reliable major media sources on financial corruption, click here.

The international security contractor formerly known as Blackwater [and now called Academi LLC] has agreed to pay a $7.5 million fine to settle federal criminal charges related to arms smuggling and other crimes. The list of 17 violations includes possessing automatic weapons in the United States without registration, lying to federal firearms regulators about weapons provided to the king of Jordan, passing secret plans for armored personnel carriers to Sweden and Denmark without US government approval, and illegally shipping body armor overseas. Federal prosecutors said the company, which has held billions in US security contracts in Iraq and Afghanistan, repeatedly flouted US laws. ‘‘Compliance with these laws is critical to the proper conduct of our defense efforts and to international diplomatic relations,’’ said Thomas G. Walker, the US attorney for the Eastern District of North Carolina. ‘‘This prosecution is an important step to ensuring that our corporate citizens comply with these rules in every circumstance.’’ Blackwater was founded in 1997 by former Navy SEAL Erik Prince. The company rose to national attention after winning massive no-bid security contracts from the US government at the Iraq War’s start. In 2010, after several high-profile controversies, the company reached a $42 million settlement with the Department of State over repeated violations of the Arms Export Control Act and the International Trafficking in Arms Regulations.

Note: For deeply revealing reports from reliable major media sources on corporate corruption, click here.

Rejecting entreaties from consumers and activists, Wal-Mart Stores Inc. says it has no objection to selling a new crop of genetically modified sweet corn created by biotech giant Monsanto. Environmental and health activists expressed surprise and disappointment at Wal-Mart’s decision. Earlier this year, Whole Foods, Trader Joe’s and General Mills said they would not carry or use the genetically modified sweet corn. “A lot of people who were their customers explicitly said we don’t want you to carry this product, and I think it’s unfortunate that they chose not listen to that feedback,” said Patty Lovera, assistant director of the consumer group Food and Water Watch. In March, the group presented Wal-Mart with a petition signed by 463,000 people asking it to boycott the product, she said. Monsanto’s genetically modified sweet corn is resistant to a common herbicide, which allows farmers to kill weeds without killing the corn. It also contains a toxin that fends off certain pests. Critics say they would like the U.S. Food and Drug Administration to require some pre-market safety testing and labeling of genetically modified foods, saying the lack of study makes it impossible to know whether they pose health risks. “There has been a doubling of food allergies in this country since 1996,” said Michael Hansen, a senior scientist at Consumers Union, the policy arm of Consumer Reports. “Is it connected to genetically engineered foods? Who knows when you have no labeling? That is the problem.”

Note: Strangely, this article was taken down from the Tribune website shortly after its original posting. To read the complete article, click here. For deeply revealing reports from reliable major media sources on the dangers of genetically modified foods, click here.

Pennsylvania remains the largest U.S. state without a tax on natural gas production, thanks in part to a study released under the banner of the Pennsylvania State University. The 2009 report predicted drillers would shun Pennsylvania if new taxes were imposed, and lawmakers cited it the following year when they rejected a 5 percent tax proposed by then-Governor Ed Rendell. What the study didn’t do was note that it was sponsored by gas drillers and led by an economist with a history of producing industry-friendly research on economic and energy issues. As the U.S. enjoys a natural-gas boom from a process called hydraulic fracturing, or fracking, producers are taking a page from the tobacco industry playbook: funding research at established universities that arrives at conclusions that counter concerns raised by critics. Cary Nelson, president of the American Association of University Professors, who made the tobacco analogy, said companies and their trade associations are “buying the prestige” of universities that are sometimes not transparent about funding nor vigilant enough to prevent financial interests from shaping research findings. The Penn State report is not the only example. A professor at the University of Texas at Austin led a February study that found no evidence of ground-water contamination from fracking. He did not reveal that he is a member of the board of a gas producer. Company filings examined by Bloomberg indicate that in 2011, he received more than $400,000 in compensation from the company, which has fracking operations in Texas.

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

The U.S. Department of Justice has reached a settlement in the largest health care fraud case in U.S. history. The ruling, which included accusations of false advertising, forced the once widely respected British drugmaker, GlaxoSmithKline ... to pay a record-shattering $3 billion to various plaintiffs and the Department of Justice. Despite this $3 billion settlement, advertising fraud is on the rise in the United States. Expert public relations teams are called in to spin stories and confuse consumers. It is clear there is not enough being done to prevent, stop or resolve matters of false advertising in this country. The effect of the GlaxoSmithKline case has yet to be fully seen. If GlaxoSmithKline is [creative and deceptive] then we might see it roll out ads that skew the $3 billion loss in its favor - blatantly distorting the ruling as an endorsement of its products. At this point, even as regulators secure record-breaking settlements, the American people are losing, and the corporate spin teams are winning, the fight. Record settlements mean little if the deception continues. While winning lawsuits is a first step, what really matters is changing corporate behavior.

Note: For lots more from reliable sources on corporate corruption, 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.