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 "who knew?" defense [was] thrown down by financial institutions and their senior executives to ward off accusations that they were somehow responsible for the disaster that befell the country. That defense is now crumbling by the day, thanks in part to their own employees' admissions. Citing internal e-mails, California joined the federal government and 15 other states this week in filing multibillion-dollar civil fraud lawsuits against the nation's leading credit ratings agency, Standard & Poor's, for allegedly deliberately "downplaying and disregarding the true extent of the credit risks" of the financial instruments it had rated as rock-solid. S&P says the charges are "without factual or legal merit," while adding that it, "like everyone else, did not predict the speed and severity of the coming crisis and how credit quality would ultimately be affected." Stack that up against an S&P executive who warned in an internal memo in December 2006, "This market is a wildly spinning top which is going to end badly." Or the 2007 e-mail from an analyst that read, "Job's going great, aside from the fact that the MBS (residential mortgage-backed securities) is crashing." Foreknowledge seemed to be apparent at JPMorgan Chase and Morgan Stanley as well. Internal documents in a lawsuit filed by Dexia SA, a French-Belgian bank, alleging "egregious fraud" by JPMorgan in the sale of $1.7 billion of mortgage-backed bonds, suggested executives at JPMorgan, Bear Stearns and Washington Mutual ... intentionally covered up the unworthiness of the securities they were selling.

Note: For deeply revealing reports from reliable major media sources on the criminal practices of the financial industry, click here.

Since 2008, oil production in the United States has surged ... 28 percent as the controversial practice of fracking unlocks new supplies in North Dakota and Texas. At the same time, use of oil and petroleum products has fallen 4 percent, as Americans switch to more efficient cars. In theory at least, both of those factors should have pushed the price of crude down. Instead, it's gone up. Since bottoming out during the financial crisis, oil futures traded on the New York Mercantile Exchange have nearly tripled in value, climbing from $33.87 per barrel in December 2008 to roughly $95 this month. Oil still costs substantially more now than it did in 2007, before the recession began. The high price illustrates a brutal truth of today's interconnected world - oil is a global commodity, bought and sold in a global marketplace. Even while demand falls in the United States, it's growing in countries such as China and India. Critics say the price paradox undercuts the oil industry's efforts to drill in more of America's public lands and coastal waters. "It really debunks the myth of 'Drill, baby, drill,' that if we just produce more oil, prices will stay low or go lower," said Michael Marx, director of the Sierra Club's Beyond Oil campaign. Will all that extra petroleum finally mean lower prices? "It's a difficult question to answer, because there's not a one-for-one (relationship) between an increase in production and a decrease in prices," said Doug MacIntyre, director of the Energy Information Administration's office of petroleum statistics. "There are so many other factors."

Note: Though the author refers to "so many other factors," he doesn't even mention greed and corruption which almost everyone knows are rampant. When will the media focus their attention on these fundamental challenges of our world?

A defense contractor whose subsidiary was accused in a lawsuit of conspiring to torture detainees at the infamous Abu Ghraib prison in Iraq has paid $5.28 million to 71 former inmates held there and at other U.S.-run detention sites between 2003 and 2007. The settlement in the case involving Engility Holdings Inc. of Chantilly, Va., marks the first successful effort by lawyers for former prisoners at Abu Ghraib and other detention centers to collect money from a U.S. defense contractor in lawsuits alleging torture. Another contractor, CACI, is expected to go to trial over similar allegations this summer. The defendant in the lawsuit, L-3 Services Inc., now an Engility subsidiary, provided translators to the U.S. military in Iraq. The former detainees filed the lawsuit in federal court in Greenbelt, Md., in 2008. L-3 Services "permitted scores of its employees to participate in torturing and abusing prisoners over an extended period of time throughout Iraq," the lawsuit stated. The company "willfully failed to report L-3 employees' repeated assaults and other criminal conduct by its employees to the United States or Iraq authorities." A military investigation in 2004 identified 44 alleged incidents of detainee abuse at Abu Ghraib. No employee from L-3 Services was charged with a crime in investigations by the U.S. Justice Department.

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

The system of so-called "shadow banking" ... grew to a new high of $67 trillion globally last year, a top regulatory group said, calling for tighter control of the sector. A report by the Financial Stability Board (FSB) [states] that shadow banking is set to thrive, beyond the reach of a regulatory net tightening around traditional banks and banking activities. The FSB, a task force from the world's top 20 economies, also called for greater regulatory control of shadow banking. The study by the FSB said shadow banking around the world more than doubled to $62 trillion in the five years to 2007 before the crisis struck. But the size of the total system had grown to $67 trillion in 2011 — more than the total economic output of all the countries in the study. The multitrillion-dollar activities of hedge funds and private equity companies are often cited as examples of shadow banking. But the term also covers investment funds, money market funds and even cash-rich firms that lend government bonds to banks, which in turn use them as security when taking credit from the European Central Bank. The United States had the largest shadow banking system, said the FSB, with assets of $23 trillion in 2011, followed by the euro area — with $22 trillion — and the United Kingdom — at $9 trillion.

Note: That's $10,000 for every man, woman, and child on the planet. Do you think the bankers are somehow manipulating the system? For deeply revealing reports from reliable major media sources on financial corruption, click here.

October's record-setting jump in gasoline prices cost Californians $320 million, and yet state officials lack some of the basic information needed to ensure that refineries aren't playing games with the fuel market. That was the testimony [on November 15] at a hearing that explored the causes of the price spike, which saw the state's average price for a gallon of regular reach $4.67. The hearing could lead to legislation. With its own specialized gasoline blends made by just a handful of refineries, California has long been prone to price spikes. But four of the most severe on record happened in 2012. The October price spike began after an electrical outage suddenly shut down an ExxonMobil refinery in Los Angeles County. Fuel supplies in California had already been strained by the Aug. 6 fire at Chevron Corp.'s Richmond refinery, as well as the closure of a crude-oil pipeline in the Central Valley. Severin Borenstein, director of the University of California Energy Institute in Berkeley, noted that the state's reliance on just a few refining companies gives those businesses significant power over the market, even if they don't conspire to raise prices. No pipelines connect California to refineries in the Midwest or on the Gulf Coast, leading many analysts to label the state an "energy island." "Unfortunately, we've created a situation in the California market where because we're an island and because it's pretty concentrated, we actually do have companies that are in a pretty strong position to raise prices by putting less (gas) on the market. There is no law against them doing that," [Borenstein said].

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

In the early 14th century, Venice was one of the richest cities in Europe. By 1500, Venice’s population was smaller than it had been in 1330. In the 17th and 18th centuries, as the rest of Europe grew, the city continued to shrink. The story of Venice’s rise and fall is told by the scholars Daron Acemoglu and James A. Robinson, in their book Why Nations Fail: The Origins of Power, Prosperity, and Poverty, as an illustration of their thesis that what separates successful states from failed ones is whether their governing institutions are inclusive or extractive. Extractive states are controlled by ruling elites whose objective is to extract as much wealth as they can from the rest of society. Inclusive states give everyone access to economic opportunity; often, greater inclusiveness creates more prosperity, which creates an incentive for ever greater inclusiveness. The history of the United States can be read as one such virtuous circle. But as the story of Venice shows, virtuous circles can be broken. Elites that have prospered from inclusive systems can be tempted to pull up the ladder they climbed to the top. Eventually, their societies become extractive and their economies languish. That ... is the danger America faces today, as the 1 percent pulls away from everyone else and pursues an economic, political and social agenda that will increase that gap even further — ultimately destroying the open system that made America rich and allowed its 1 percent to thrive in the first place.

Note: The author of this article, Chrystia Freeland, wrote the book Plutocrats: The Rise of the New Global Super-Rich and the Fall of Everyone Else, from which this essay is adapted. For deeply revealing reports from reliable major media sources on income inequality, click here.

The new stealth campaign against three Florida Supreme Court justices is being backed by those meddling right-wing billionaires from Wichita, Charles and David Koch. Last week they uncorked the first of a series of commercials from their political action committee, Americans for Prosperity. The targets are Justices R. Fred Lewis, Barbara Pariente and Peggy Quince. They were three of the five-vote majority that in 2010 knocked down a half-baked amendment slapped together by state lawmakers seeking to nullify the federal Affordable Health Care Act. The Florida Supreme Court upheld lower court decisions in finding that the proposed amendment contained “misleading and ambiguous language,” the hallmark of practically everything produced by this Legislature. On the November ballot, Lewis, Pariente and Quince are up for merit retention, meaning voters can choose to retain them or not. This simple system was put in place to keep the state’s high court above the sleaze of political races. The mission of the Kochs, hiding as always behind their super PAC, is to get the three justices dumped at the polls so that Gov. Rick Scott can appoint replacements. The last thing these guys want is fair judges who know the law; they want partisan judges who’ll obediently support their political agenda. It’s worse than just trying to buy an election. It’s trying to hijack Florida’s justice system at the highest levels.

Note: For deeply revealing reports from reliable major media sources on the control of elections by corporations and rich individuals, click here.

A growing number of patients are paying directly most, or all, of their medical bills these days. One problem they face: Finding out what health care services really cost before they make the decision to buy. Even though it accounts for one-sixth of the U.S. economy, health care is difficult to shop for in all but a small percentage of health care purchases. For the most part, no one ever sees a real price for health care services - not doctors, not patients, not employers, not employees. The reason patients never see the prices is because third-party payers (insurance companies, employers and government) negotiate with providers - leaving patients with a small co-pay under traditional insurance. And without real prices, there is no basis for third-party payers or anyone to negotiate the lowest possible prices. Recently, however, more and more employers are encouraging their employees to shop for health care the way they shop for groceries. To encourage that activity, employers are allowing their employees to manage more of their own health care dollars by means of a health savings account. The idea behind an HSA is a simple one: Instead of giving all of your health dollars to an insurance company or the government, you put some of those dollars into an account that you own and control. This reduces wasteful health care spending because individuals ... spending their own money often get the lowest prices, and they also can decide whether they really want to buy those services. A recent Rand Corp. study found that patients with HSA plans reduced medical spending by about 30 percent, without adversely affecting their health.

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

A federal appeals court blocked San Francisco on [September 10] from requiring cell phone dealers to tell customers the products may expose them to dangerous levels of radiation, saying the city can't force retailers to pass along messages they dispute. The ordinance, the first of its kind in the nation, had been scheduled to take effect last October, but has remained on hold during an industry challenge. It would require retailers to give each cell phone buyer a fact sheet saying the World Health Organization had classified the phones' radio-frequency emissions as a "possible carcinogen." The sheet also shows human silhouettes absorbing radiation and suggests protective measures, like wearing headsets, making shorter calls and limiting use by children. Stores would have to put similar messages on large wall posters and on stickers attached to display ads. The U.S. Supreme Court has ruled that the government can require businesses to display factual, undisputed information about their products. The city's lawyers and policymakers will review the ruling before deciding their next steps.

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

For the last year, whistle-blowers deep inside corporate America have been dishing dirt on their employers under a U.S. Securities and Exchange Commission program that could give them a cut of multimillion-dollar penalties won by financial regulators. A new bounty program has been an intelligence boon to the securities industry regulator, which has struggled to redeem itself after failing to stop Bernard Madoff's epic Ponzi scheme and rein in Wall Street before the 2008 financial crisis. Motivated by cash and the chance to rat out wrongdoers, tipsters are dropping more than names. Whistle-blowers and their attorneys are turning over boxes of documents, copies of emails and even audio recordings of alleged fraud or illegal overseas bribery. "We are getting very, very high-quality information from whistle-blowers," said Sean McKessy, director of the SEC's whistle-blower office. In the program's first year, 2,870 tips — or about eight a day — rolled in as of Aug. 12. And on Tuesday, one of them finally led to the agency's first payout: $50,000 to an informant who alerted regulators to an investment fraud. They declined to specify the case, careful to avoid identifying the whistle-blower. Some say shielding identities could pose a challenge for publicizing the program, but the anonymity probably will yield more information. The flood of new information doesn't necessarily mean the SEC will be more effective. In the case of Madoff, one whistle-blower repeatedly sounded the alarm years before the scheme blew up — to no avail.

Note: For deeply revealing reports from reliable major media sources on the collusion between government and the big banks, click here.

Don Barrett, a Mississippi lawyer, took in hundreds of millions of dollars a decade ago after suing Big Tobacco and winning record settlements from R. J. Reynolds, Philip Morris and other cigarette makers. So did Walter Umphrey, Dewitt M. Lovelace and Stuart and Carol Nelkin. More than a dozen lawyers who took on the tobacco companies have filed 25 cases against industry players like ConAgra Foods, PepsiCo, Heinz, General Mills and Chobani. The suits, filed over the last four months, assert that food makers are misleading consumers and violating federal regulations by wrongly labeling products and ingredients. "[Mislabeling of a product is] a crime - and that makes it a crime to sell it," said Mr. Barrett. "That means these products should be taken off the shelves." Mr. Barrett said his group could seek damages amounting to four years of sales of mislabeled products - which could total many billions of dollars. In recent weeks, the Center for Science in the Public Interest has sued General Mills and McNeil Nutritionals over their claims on Nature Valley and Splenda Essentials products, and warned Welch's it would sue unless the company changed the wording on its juice and fruit snacks. The Federal Trade Commission won settlements from companies like Dannon and Pom Wonderful for claims about their products' health benefits. And PepsiCo and Coca-Cola face lawsuits over claims that their orange juice products are "100% natural."

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

Kevin Ferry: There are Libor subpoenas raining down on the New York branches of these foreign banks today. So I think you really have to watch it. The [British Bankers' Association] is now saying they are going to go into ‘overhaul’ mode. So as if we don’t have enough things going on, you’re going to start opening up a Pandora’s Box here in the Libor sector of the market. I think what they’re going to do ... is basically put the old system in a coma, and work to devise something that’s a little bit better, and it’s going to be tricky. Doug Dachille: So what are they going to do with the euro/dollar futures and all the outstanding notion of principal of contracts linked to Libor? I mean is everybody going to convert their Libor interest rate swaps to cost of fund funds or Fed fund basis swaps or some other index? KF: Are you asking me? I’ve asked that question as high as I could ask it and I get blank stares. DD: It’s not clear that every bank has exactly the same Libor exposure, so it’s not clear that that cartel, in setting Libor and manipulating it, actually is as powerful as the cartel that manages oil prices. Yet I don’t hear any outrage of people routinely trading commodity derivatives and commodity futures, as much as I hear the outrage over euro/dollar futures and Libor-based interest rate swaps. Everybody assumes that’s what goes on when you trade commodity futures, but nobody ever really thought that was going on when you were trading euro/dollar futures.

Note: The text above is an excerpt from a CNBC news video. Click on the link above for the full report. For deeply revealing reports from reliable major media sources on corruption in the financial sector, click here.

In a welcome about-face Tuesday morning, Twitter restored the account of journalist Guy Adams, who posted a series of critical comments about NBC's handling of the Olympics. While it's encouraging to hear NBC backed away - even if it required an enormous online backlash - it remains disturbing that Twitter revoked the account in the first place. Let's be perfectly clear: Twitter suspended a user for committing an act of journalism. The mind-boggling move undermines the San Francisco startup's credibility as a supposed advocate of open communications, and whittles away the goodwill of professional and citizen journalists who are the lifeblood of the service. In a series of tweets in recent days, Adams colorfully assailed, among other things, NBC's ridiculous decision to force West Coast viewers to watch the Olympics on a time delay, presumably so the network could charge prime-time advertising rates. It's been an infuriating experience for fans who can't duck the spoilers blasting at them from all quarters of the Internet. Adams, a correspondent for London's Independent newspaper, simply supplied them an appropriate outlet for those frustrations in the tweet that supposedly got his account deactivated.

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

Faulty computer modeling caused the equipment problems that are expected to keep the San Onofre nuclear plant dark through the summer, federal regulators said Monday. The plant has been out of service since Jan. 31, when operators discovered a small leak in one of the thousands of steam generator tubes that carry hot, radioactive water used to create steam to turn turbines that generate electricity. That led to the discovery that other tubes were rubbing against support structures and adjacent tubes, and wearing out more quickly than expected. Eight tubes failed pressure testing, which NRC officials said ... is the first time in the nuclear industry that more than one tube at a plant has failed. The wear is a safety concern because tube ruptures can release radiation. The plant's operator, Southern California Edison; the NRC; and Mitsubishi Heavy Industries, the manufacturer of the steam generators, have been studying the cause and extent of the wear. The NRC has ordered Edison to keep the plant shuttered until it has determined the cause and how to fix it. "This is a significant, serious safety issue," said NRC regional administrator Elmo Collins. "This is a very difficult technical issue, and to be honest, it's not one we've seen before." NRC officials said it appears that simulations by Mitsubishi underpredicted the velocity of steam and water flowing among the tubes by a factor of three or four. The high rate of flow caused the tubes to vibrate and knock against each other, leading to the wear. It was not clear why the computer modeling was so far off.

Note: For lots more on corruption in the nuclear power industry, click here.

Slashing spending while the economy is deeply depressed is a self-defeating strategy, because it just deepens the depression. So why is Britain doing exactly what it shouldn’t? Unlike the governments of, say, Spain or California, the British government can borrow freely, at historically low interest rates. So why is that government sharply reducing investment and eliminating hundreds of thousands of public-sector jobs, rather than waiting until the economy is stronger? The great American economist Irving Fisher explained it all the way back in 1933, summarizing what he called “debt deflation” with the pithy slogan “the more the debtors pay, the more they owe.” Recent events, above all the austerity death spiral in Europe, have dramatically illustrated the truth of Fisher’s insight. So why have so many politicians insisted on pursuing austerity in [the] slump? And why won’t they change course even as experience confirms the lessons of theory and history? When you push “austerians” ... they almost always retreat to assertions along the lines of: “But it’s essential that we shrink the size of the state.” These assertions often go along with claims that the economic crisis itself demonstrates the need to shrink government. So the austerity drive in Britain isn’t really about debt and deficits at all; it’s about using deficit panic as an excuse to dismantle social programs. And this is, of course, exactly the same thing that has been happening in America.

Note: For lots more on the devastating impacts created by the corruption of governments and financial corporations, click here.

Drug maker Novartis is taking legal action in Britain to make state-run hospitals use an eye drug that costs about 700 pounds ($1,130) per shot instead of a cheaper one that costs 60 pounds ($97). In a statement, Novartis said it was calling for a judicial review “as a last resort” because it believed patient safety was being potentially compromised. According to the U.K.’s health watchdog, Novartis’ Lucentis is the only drug recommended to treat the eye problem macular degeneration in the country’s state-run National Health Service hospitals. However, several NHS hospitals have been prescribing the much cheaper Avastin, a cancer drug made by Genentech Inc., a subsidiary of Roche, for the same problem even though it has not been officially approved. A study published in the New England Journal of Medicine last year showed Avastin worked just as well as Lucentis for treating the eye disorder. Lucentis and Avastin act on the same biological protein in the body to spur blood vessel growth. In the U.S., eye doctors have often used tiny amounts of Avastin and billed the government for the cost, rather than buying Lucentis. Patient groups called for an independent analysis to determine which drug should be used.

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

Dr. Arnold S. Relman [is] 88; Dr. Marcia Angell, 72. But their voices are as strong as ever. Colleagues for decades, late-life romantic partners, the pair has occasionally, wistfully, been called American medicine’s royal couple. In fact, controversy and some considerably less complimentary labels have dogged them as well. From 1977 to 2000, one or both of them filled top editorial slots at The New England Journal of Medicine as it grew into perhaps the most influential medical publication in the world, with a voice echoing to Wall Street, Washington and beyond. Many of the urgent questions in the accelerating turmoil surrounding health care today were first articulated during their tenure. Or, as Dr. Relman summarized one recent afternoon ..., Dr. Angell nodding in agreement by his side: “I told you so.” Their joint crusade ... is against for-profit medicine, especially its ancillary profit centers of commercial insurance and drug manufacture — in Dr. Relman’s words, “the people who are making a zillion bucks out of the commercial exploitation of medicine.” Some have dismissed the pair as medical Don Quixotes, comically deluded figures tilting at benign features of the landscape. Others consider them first responders in what has become a battle for the soul of American medicine.

Note: For a powerful summary of Dr. Marcia Angell's critique of corruption in the medical industry, click here.

A French court has declared the US biotech giant Monsanto guilty of chemical poisoning of a French farmer, a judgment that could lend weight to other health claims against pesticides. In the first such case heard in court in France, the grain grower Paul Francois, 47, said he suffered neurological problems including memory loss, headaches and stammering after inhaling Monsanto's Lasso weedkiller in 2004. He blames Monsanto for not providing adequate warnings on the product label. "It is a historic decision in so far as it is the first time that a [pesticide] maker is found guilty of such a poisoning," Francois Lafforgue, Francois's lawyer, told Reuters. Francois and other farmers suffering from illness set up an association last year to make a case that their health problems should be linked to their use of crop protection products. The agricultural branch of the French social security system says that since 1996, it has gathered farmers' reports of sickness potentially related to pesticides, with about 200 alerts a year. The Francois case goes back to a period of intensive use of crop-protection chemicals in the European Union. The EU and its member countries have since banned a large number of substances considered dangerous.

Note: For key reports from major media sources on corporate corruption, click here.

Medicines to treat attention deficit hyperactivity disorder are in such short supply that hundreds of patients complain daily to the Food and Drug Administration (FDA) that they are unable to find a pharmacy with enough pills to fill their prescriptions. The shortages are a result of a troubled partnership between drug manufacturers and the Drug Enforcement Administration (DEA), with companies trying to maximize their profits and drug-enforcement agents trying to minimize abuse by people. Shortages, particularly of cheaper generics, have become so endemic that some patients say they worry almost constantly about availability. The DEA sets manufacturing quotas that are designed to control supplies and thwart abuse. Every year, the DEA ... allots portions of the expected demand to various companies. How each manufacturer divides its quota among its own ADHD medicines — preparing some as high-priced brands and others as cheaper generics — is left up to the company. Officials at the FDA say the shortages are a result of overly strict quotas set by the DEA, which, for its part, questions whether there really are shortages or whether manufacturers are simply choosing to make more of the expensive pills than the generics, creating supply and demand imbalances.

Note: This curious story reveals an astonishing level of government manipulation of the manufacturing and availability of medications, and corporations appear to go along with it because it keeps profits high. For lots more on government and corportate corruption from reliable sources, click here and here.

The stunning reality is that five years into the financial meltdown, it's business as usual on Wall Street - outlandish rewards for insiders with downside for almost everyone else. Occupy Wall Street protesters are right - something is wrong - but they're not sure what. Let's revisit the latest debacle - the implosion of yet another Wall Street darling, MF Global. The fallout of its bad bets on European bonds is hitting home hard, even in rural America, where many of its agricultural customers work. As the eighth-largest bankruptcy filing in U.S. history, MF Global represents just about everything that is wrong on Wall Street. 1. The cult of a Wall Street superstar. 2. Gambling disguised as investing. 3. The bail-me-out syndrome. 4. Enormous conflicts of interest. 5. Leverage on a grand scale. 6. Failure of regulators and the reform law. 7. Misappropriation of client funds. 8. Worthless rating agencies. 9. Golden parachutes soaring high. 10. Breakdown of morality. Wall Street will keep sucking huge sums out of our economy and putting 100 percent of us at risk unless the rules change. Most important, we must stop gambling and start investing again to build valuable companies. The next crisis will make 2008 look like a warm-up. Imagine how big the Occupy camps will be if that happens.

Note: For a treasure trove of reports from reliable sources which provide detailed information on all the problematic dimensions of Wall Street's operations described in the article above, 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.