Corporate Corruption News Articles

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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..

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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.

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The rapidly spreading scandal of LIBOR (the London inter-bank offered rate) ... is beginning to assume global significance. The number that the traders were toying with determines the prices that people and corporations around the world pay for loans or receive for their savings. It is used as a benchmark to set payments on about $800 trillion-worth of financial instruments, ranging from complex interest-rate derivatives to simple mortgages. The number determines the global flow of billions of dollars each year. Yet it turns out to have been flawed. Over the past week damning evidence has emerged, in documents detailing a settlement between Barclays and regulators in America and Britain, that employees at the bank and at several other unnamed banks tried to rig the number time and again over a period of at least five years. And worse is likely to emerge. Investigations by regulators in several countries, including Canada, America, Japan, the EU, Switzerland and Britain, are looking into allegations that LIBOR and similar rates were rigged by large numbers of banks. As many as 20 big banks have been named in various investigations or lawsuits alleging that LIBOR was rigged. The scandal also corrodes further what little remains of public trust in banks and those who run them.

Note: For key investigative reports on the criminality and corruption in the financial industry and biggest banks, click here.

Jamie Dimon was reelected chairman and CEO of JPMorgan Chase yesterday afternoon. He got to keep his $23 million pay package, too. This means that at ... three of the top five bank holding companies dominating U.S. derivatives exposure, loans, assets, and deposits, the same man holds the chairman and CEO positions -— at Goldman Sachs, Wells Fargo, and JPM Chase. At the shareholders meeting there was no mention of the details behind the “mistake” that cost the bank $2 billion, just that it “should never have happened.” The fact that after a formal announcement, a friendly Meet the Press chat, and a face-to-face with the firm's shareholders, Dimon can still call it a mistaken hedge is ludicrous. It was a directional bet on the health of North American corporate bonds that the firm got wrong, enacted via the synthetic derivatives market, to worsen the blow. To the extent that it's betting wrong, it's a mistake, but it's not a hedge. Included in the proxy materials in the shareholder package that went out before the vote was ... a wealth of negativity about regulations. The letter stressed that ... two regulations would actively hurt the bank's “competitive ability, the Volker Rule and the derivatives rules.” JPM Chase holds nearly $70 trillion of derivatives exposure on $1.8 trillion of assets. Bank chairmen, like Jamie Dimon ... claim that regulation is too complex, too anti-competitive, and too un-American (putting U.S. banks at a disadvantage against other global banks). [Yet] pretending that it's okay to allow dormant volcanoes of risk to remain embedded in big bank balance sheets, supported by customer money and taxpayer guarantees is not sensible.

Note: 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. For disturbing news articles on the derivatives market time bomb, click here.

Goldman Sachs and Merrill Lynch employees discussed helping naked short-sales by market-maker clients in e-mails the banks sought to keep secret, including one in which a Merrill official told another to ignore compliance rules, Overstock.com ... said in a court filing. The online retailer accused Merrill, now part of Bank of America and Goldman Sachs of manipulating its stock from 2005 to 2007, causing its shares to fall. Lawyers for Overstock ... asked a judge to make public e-mails sent in 2005 and 2006 that it said “reflect business decisions to put profits and corporate ambition over compliance” at Goldman Sachs and Merrill. The banks’ decisions to intentionally fail to deliver Overstock shares caused large-scale naked short selling of the company’s stock, according to the filing. Four media organizations, including Bloomberg, the New York Times, Wenner Media and The Economist, intervened in the Overstock case and joined the company’s request to unseal court files. Bloomberg News obtained a copy of the filing describing the e-mails.

Note: For more on this from reporter Matt Taibbi, click here.

A new study of dolphins living close to the site of North America's worst ever oil spill – the BP Deepwater Horizon catastrophe two years ago – has established serious health problems afflicting the marine mammals. The report, commissioned by the National Oceanic and Atmospheric Administration [NOAA], found that many of the 32 dolphins studied were underweight, anaemic and suffering from lung and liver disease. More than 200m gallons of crude oil flowed from the well after a series of explosions on 20 April 2010, which killed 11 workers. The spill contaminated the Gulf of Mexico and its coastline in what President Barack Obama called America's worst environmental disaster. The research follows the publication of several scientific studies into insect populations on the nearby Gulf coastline and into the health of deepwater coral populations, which all suggest that the environmental impact of the five-month long spill may have been far worse than previously appreciated. The study of the dolphins ... followed two years in which the number of dead dolphins found stranded on the coast close to the spill had dramatically increased. Although all but one of the 32 dolphins were still alive when the study ended, lead researcher Lori Schwacke said survival prospects for many were grim. A study of deep ocean corals seven miles from the spill source jointly funded by the NOAA and BP has found dead and dying corals coated "in brown gunk". Chemical analysis of oil found on the dying coral showed that it came from the Deepwater Horizon spill.

Note: For other informative major media articles dealing with dolphins and whales, click here.

A "strictly confidential" report on Greece's debt projections prepared for eurozone finance ministers reveals Athens' rescue programme is way off track. The ... debt sustainability analysis ... found that even under the most optimistic scenario, the austerity measures being imposed on Athens risk a recession so deep that Greece will not be able to climb out of the debt hole over the course of a new three-year, €170bn bail-out. It warned that two of the new bail-out's main principles might be self-defeating. Forcing austerity on Greece could cause debt levels to rise by severely weakening the economy. The report made clear why the fight over the new Greek bail-out has been so intense. A German-led group of creditor countries -- including the Netherlands and Finland -- has expressed extreme reluctance to go through with the deal since they received the report. A "tailored downside scenario" in the report suggests Greek debt could fall far more slowly than hoped, to only 160 per cent of economic output by 2020 -- well below the target of 120 per cent set by the International Monetary Fund. Under such a scenario, Greece would need about €245bn in bail-out aid, far more than the €170bn under the "baseline" projections eurozone ministers were using in all-night negotiations in Brussels on Monday.

Note: For key reports from major media sources exposing the interests served by the imposition of austerity on Greece and other countries, click here.

California's ban on the sale of pork from "downer" pigs, those that were too feeble to walk before being slaughtered, can't be enforced because a less stringent federal law regulates slaughterhouse inspections, the U.S. Supreme Court ruled unanimously [on January 23]. State lawmakers enacted the ban in 2008 after a Humane Society video showed immobile cows being kicked, dragged, shocked and rammed with forklifts at a warehouse in San Bernardino County. Advocates said meat from those animals was more likely to be diseased. Federal law forbids the sale of meat from animals suffering from serious diseases, a ban that recent regulations extended to cattle that were unable to walk. But federal law allows meat sales from downer pigs and other nonambulatory animals, like sheep and goats, that pass federal inspection. Court challenges from meat processors and packers prevented the California law from taking effect. A federal appeals court upheld the California statute in 2010, but the Obama administration joined the National Meat Association in a successful Supreme Court appeal. The ruling dismayed the Humane Society of the United States, which has unsuccessfully lobbied Congress and the U.S. Department of Agriculture for nationwide rules like California's. "The meat industry has the USDA and Congress in its tight grips," said the society's president, Wayne Pacelle.

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A federal judge on [January 19] blocked Vermont from forcing the Vermont Yankee nuclear reactor to shut down when its license expires in March, saying that the state is trying to regulate nuclear safety, which only the federal government can do. The judge [said] in his ruling that ... state lawmakers and witnesses made clear that their effort to close the plant was "grounded in radiological safety concerns" - the province of the federal Nuclear Regulatory Commission. The commission has already granted Vermont Yankee a 20-year license extension. The ruling is almost certain to be appealed by the state and an array of private groups that want the plant shut down because of leaks of radioactive tritium and other issues. Since Entergy bought Vermont Yankee 10 years ago, public opinion has turned sharply against the plant. After several plants around the country suffered leaks of radioactive water into the soil, state officials asked Vermont Yankee executives in 2009 whether their plant might be susceptible to that problem. The executives said that Vermont Yankee had no underground pipes carrying radioactive material. But it did - and the pipes leaked. The State Senate voted 26 to 4 in 2010 not to authorize the needed certificate.

Note: How convenient for the nuclear power industry that federal judges can block state legislation to shut down dangerous nuclear power plants. For more on corporate and government 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.