Corporate Corruption News Articles

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Richmond [CA] city officials took a giant leap forward for everyday people last week when they announced a program to purchase ailing residential mortgages and refinance them through a financial partnership and a bold new initiative that's already begun. To accomplish the task, the city said it will use its eminent domain powers in reverse: To save a home instead of condemn it. Much to the displeasure of the banking industry, the city sent offer letters to more than 600 homeowners whose mortgages are held by nongovernment lending institutions. The program offers to pay lenders the current market value of the property, not the higher value of the mortgage. Under the Richmond program, a bank that approved a $500,000 mortgage would be paid roughly 80 percent of its investment. Already, some lenders contend that such a law violates constitutionally protected property rights and sets a precedent that could open the floodgates for other cities in the same predicament. The mere exploration of similar programs in a half-dozen California cities and counties provoked a strong reaction from the banking industry. Financial experts have warned that the Richmond policy is certain to spawn legal challenges and a backlash from lenders who recalculate higher mortgages in Richmond to offset the risk of the city using a local law to claim a foreclosed property. That's interesting, because no measure was too extreme, no taxpayer sacrifice too great to come up with and fund a new financial model to bail out the bankers and brokerage firms in 2008. But that's what the federal government - and American taxpayers did.

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

Gray Butte, CA: The General Atomics drone base, way out in the wastelands of the Mojave Desert ... today ranks as possibly the largest private drone base in the United States. General Atomics took the base over in 2001 and converted it into a testing and quality control facility for its drone fleet. This is where the company tests experimental drone technology--like the newfangled stealth bomber jet drone. But mostly the base is where General Atomics techs assemble and test their Predator and Reaper drones before breaking them down again and shipping them to eager customers in the Air Force, Border Patrol, National Guard and the CIA. The Guardian estimated that U.S. armed forces had about 250 General Atomics drones in 2012. And a good number of them first came through Grey Butte. [The] brothers who make them: Linden Stanley and James Neal Blue, the mysterious Blue brothers who own and run General Atomics. General Atomics does not disclose its financial information, but stats gleaned from public data show that they took in just under $5 billion from U.S. taxpayers from 2000 to 2009. Current annual revenue is estimated to between $600 million and $1 billion, with about 80 percent coming from government defense contracts. Today, General Atomics dominates 25% of the UAV market--a market that will only keep getting bigger and bigger.

Note: For lots more excellent background to the Blue brothers and their predator-producing company, read the NY Times article at this link.

The world's biggest banks won a major victory on [March 29] when a U.S. judge dismissed a "substantial portion" of the claims in private lawsuits accusing them of rigging global benchmark interest rates. The 16 banks had faced claims totaling billions of dollars in the case. The banks include: Bank of America, Citigroup, Credit Suisse, Deutsche Bank, HSBC Holdings, JPMorgan Chase, [and others]. They had been accused by a diverse body of private plaintiffs, ranging from bondholders to the city of Baltimore, of conspiring to manipulate the London Interbank Offered Rate (Libor), a key benchmark at the heart of more than $550 trillion in financial products. In a significant setback for the plaintiffs, U.S. District Judge Naomi Reice Buchwald in Manhattan granted the banks' motion to dismiss federal antitrust claims and partially dismissed the plaintiffs' claims of commodities manipulation. She also dismissed racketeering and state-law claims. Buchwald did allow a portion of the lawsuit to continue that claims the banks' alleged manipulation of Libor harmed traders who bet on interest rates. Small movements in those rates can mean sizable gains or losses for those gambling on which way the rates move. Buchwald's decision may make it more likely that banks will talk settlement with a significant win in their pocket. The decision also could cast doubt on some of the highest analyst projections about potential Libor damages, and quell some concerns that the banks have not reserved enough for litigation expenses.

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

Why are ideas widely supported in most of the country so often portrayed as controversial, polarizing and divisive once they are taken up by legislatures? Why does the professional political class seem like a wholly separate society that does not understand the constituents it is supposed to be representing? These are the questions at the root of America's political dysfunction - and a new study marshaling reams of data finally provides some concrete answers. Conducted by graduate students David Broockman at UC Berkeley and Christopher Skovron at the University of Michigan, the survey of nearly 2,000 legislators from across America documents politicians' perceptions of their constituents' views on hot-button issues like universal health care and same-sex marriage. It then compares them with constituents' views. The juxtaposition reveals a jarring truth: Both Republican and Democratic lawmakers hugely overestimate the conservatism of the very people they are supposed to represent. In all, the report finds that "conservative politicians systematically believe their constituents are more conservative than they actually are by over 20 percentage points, while liberal politicians also typically overestimate their constituents' conservatism by several percentage points." Ultimately, that has resulted in a political system inherently hostile to mainstream proposals and utterly unrepresentative of public opinion. Ensconced in a bubble of conservative-minded corporate lobbyists and mega-donors, they come to wrongly assume that what passes for a mainstream position in that bubble somehow represents consensus in the larger world.

An appeal by organic farmers [of] a court ruling last year turned into a wide-ranging protest this morning with speakers skewering Monsanto Co. for its policies and demanding labeling of genetically modified food. About 200 people, many from organic seed companies, rallied in a park directly across from the White House. The protest suggested an uptick in efforts to demand labeling, which was defeated in a California ballot initiative in November. Monsanto spent at least $8 million in an industry-wide effort to sink the California proposition. Organic farmers, who are pressing a lawsuit against Monsanto, often complain that their products are threatened by wind-blown pollen from genetically altered crops. "We want and demand the right of clean seed not contaminated by a massive biotech company that's in it for the profit," Carol Koury, who operates Sow True Seeds in Asheville, N.C., said at the rally. The gathering was held in conjunction with an appeal heard today before a three-judge U.S. Court of Appeals panel in Washington. The suit questions the legality of Monsanto's seed patents and seeks protection from patent-infringement suits against farmers in the event their fields are found to contain genetically modified seed. Last February, U.S. District Judge Naomi Buchwald in the Southern District of New York dismissed the suit.

Note: For deeply revealing reports from reliable major media sources on the risks from genetically modified organisms, click here.

Spire Law Group's national home owners' lawsuit [is] the largest money laundering and racketeering lawsuit in United States history, identifying $43 trillion of laundered money. [In] the federal lawsuit now [pending] in the United States District Court in Brooklyn, New York ... plaintiffs now establish the location of the $43 trillion of laundered money in a racketeering enterprise. [The] mass tort action [seeks] to halt all foreclosures nationwide pending the return of the $43 trillion, an audit of the Fed and audits of all the "bailout programs." The epicenter of this laundering and racketeering enterprise has been and continues to be Wall Street and continues to involve the very "Banksters" located there who have repeatedly asked in the past to be "bailed out" and to be "bailed out" in the future. The Havens for the money laundering schemes ... are located in such venues as Switzerland, the Isle of Man, Luxembourg, Malaysia, Cypress and [other entities] identified in both the United Nations and the U.S. Senate's recent reports on international money laundering. The case further alleges that through these obscure foreign companies, Bank of America, J.P. Morgan, Wells Fargo Bank, Citibank, Citigroup, One West Bank, and numerous other federally chartered banks stole trillions of dollars of home owners' and taxpayers' money during the last decade and then laundered it through offshore companies.

Note: CNBC also reported this astonishing news. Yet within hours the original page for the article was taken down, and CNBC senior vice president Kevin Krim received news that his children were killed under very suspicious circumstances. Could this have been a strong warning? For more in this, click here. For deeply revealing reports from reliable major media sources on financial corruption, click here.

Two prominent seismologists said on Tuesday that Japan is ignoring the safety lessons of last year's Fukushima crisis and warned against restarting two reactors next month. Japan has approved the restart of the two reactors at the Kansai Electric Power Ohi nuclear plant, northwest of Tokyo, despite mass public opposition. They will be the first to come back on line after all reactors were shut following a massive earthquake and tsunami last March that caused the worst nuclear crisis since Chernobyl at Tokyo Electric Power's Daiichi Fukushima plant. Seismic modeling by Japan's nuclear regulator did not properly take into account active fault lines near the Ohi plant, Katsuhiko Ishibashi, a seismologist at Kobe University, told reporters. "The stress tests and new safety guidelines for restarting nuclear power plants both allow for accidents at plants to occur," Ishibashi told reporters. "Instead of making standards more strict, they both represent a severe setback in safety standards." Experts advising Japan's nuclear industry had underestimated the seismic threat, Mitsuhisa Watanabe, a tectonic geomorphology professor at Tokyo University, said at the same news conference. "The expertise and neutrality of experts advising Japan's Nuclear Industrial Safety Agency are highly questionable," Watanabe said.

Note: For more from reliable sources on corruption on the nuclear power industry, click here.

The Goldman Sachs executive who didn't so much burn as firebomb his career bridges with a poisonous resignation letter in the New York Times wasn't the only former employee to go on a publicized rant this week. A couple of days earlier, James Whittaker, an engineering director at Google who recently moved to Microsoft, took direct aim at the Mountain View search giant in a blog post arguing that the company has lost its way in the desperate quest to funnel users into its social network. Later that day, in an opinion piece on Wired.com, Andy Baio assailed Yahoo's patent-infringement suit against Facebook ... calling it "extortion" and a betrayal of employees. Obviously these parting shots carried extra weight coming from onetime senior, internal sources. While it's hard to draw broad conclusions about the criticisms, we can safely draw some narrow ones: Goldman Sachs should stop being an awful, awful corporate citizen (but then we've known that). Google shouldn't undermine its culture and core product in search of the next big thing. And Yahoo should drop this embarrassing lawsuit over bogus patents and get to work on real innovation. Alas, the conclusion most companies will probably draw from these episodes is that they need to toughen up their nondisclosure agreements.

Note: For revealing reports from reliable sources on corruption and criminality at the biggest financial corporations, click here. For lots more on corporate corruption, click here.

More details about [a] preliminary agreement to settle an "Agent Orange" related class-action lawsuit filed against the Monsanto Company [have been released]. Monsanto agreed to settle a case over pollution claims made on behalf of current and former residents of the small town of Nitro, West Virginia. In a written statement today Monsanto says it's agreeing to pay up to $93 million dollars. $84 million of that would go toward medical monitoring for residents ($21 million up front and up to $63 million over 30 years). The company also is agreeing to spend up to $9 million to professionally clean homes in the affected area, which includes an estimated 4500 houses. Putnam Circuit Court Judge Derek Swope will now give the agreement a thorough review before giving the deal his final approval.

Note: For key reports from reliable sources on corporate corruption, click here. For information on a major lawsuit and settlement for U.S. veterans injured by the government's use of agent orange, click here.

A two-year-old Food and Drug Administration appointment is stirring up online protests once more. In 2009, President Obama appointed Michael Taylor as a senior adviser for the FDA. Consumer groups protested the appointment because Taylor had formerly served as a vice president for Monsanto, the controversial agricultural multinational at the forefront of genetically modified food. In recent days, a petition calling for the former Monsanto VP’s ouster is gaining steam. “President Obama, I oppose your appointment of Michael Taylor,” the petition on Signon.org reads. “Taylor is the same person who was Food Safety Czar at the FDA when genetically modified organisms were allowed into the U.S. food supply without undergoing a single test to determine their safety or risks. This is a travesty.” Signers of the petition argue that Monsanto should not have influence at the FDA because it will hurt farmers and threaten plants and animals. They cite scientific research that has found genetically modified foods could be a cause for chronic illnesses or cancer in the U.S. The petition calls Taylor’s appointment an example of a “fox watching the hen house.”

Note: To sign the petition, click here. For lots more on this danger to public health, click here. For how WantToKnow.info founder Fred Burks found himself blacklisted by Monsanto, click here.

More than 600,000 U.S. consumers have moved their money from big banks to community banks or credit unions, thanks to the much-publicized Bank Transfer Day last fall, according to an analysis released by Javelin Strategy & Research. The grassroots campaign to get people to shift out of big banks capitalized on the nationwide Occupy Wall Street movement, and picked up further momentum from a Bank of America plan in September to charge customers a $5 per month debit card fee. "It was a meaningful movement of people from big banks into small community banks and credit unions ..." said Jim Van Dyke, founder of Javelin. Historically, people don't switch banks easily, even if they are unhappy, Van Dyke says. Consumers have strong ties to their banks because of direct deposit, automated bill payments and habit -- making change more complex than simply going someplace else. "Individuals are really resistant to moving their money out of banks," Van Dyke says. Overall, about 5.6 million people moved their bank accounts in the last quarter of 2011, Javelin says. Account changes attributed to Bank Transfer Day represented about 11 percent of total moves.

Note: As the article mentions, people rarely change banks, so the fact that 6 million changed banks in three months is quite impressive!

Julian Assange, the founder of WikiLeaks, said ... that his controversial website could be forced to shut down by the end of the year because a 10-month-old "financial blockade" had sharply reduced the donations on which it depends. Calling the blockade a "dangerous, oppressive and undemocratic" attack led by the United States, Assange said at a news conference that it had deprived his organization of "tens of millions of dollars," and warned, "If WikiLeaks does not find a way to remove this blockade, we will not be able to continue by the turn of the new year." Since the end of 2010, financial intermediaries - including Visa, MasterCard, PayPal and Western Union - have refused to allow donations to WikiLeaks to flow through their systems, he said, blocking "95 percent" of the website's revenue and leaving it to operate on its cash reserves for the past 10 months. An aide said that WikiLeaks was now receiving less than $10,000 a month in donations. Assange said that WikiLeaks had been forced to halt work on the processing of tens of thousands of secret documents that it has received, and to turn its attention instead to lawsuits it has filed in the United States, Australia, Scandinavian countries and elsewhere, as well as to a formal petition to the European Commission to try to restore donors' ability to send it money through normal channels.

Note: For more on this from BBC, click here.

It began as the brainchild of activists across the border in Canada when an anti-consumerism magazine put out a call in July for supporters to occupy Wall Street. Now, three weeks after a few hundred people heeded that initial call and rolled out their sleeping bags in a park in New York's financial district, they are being joined by supporters in cities across the US and beyond. Protesters against corporate greed, unemployment and the political corruption that they say Wall Street represents have taken to the streets in Boston, Los Angeles, St Louis and Kansas City. The core group, Occupy Wall Street, claims people will take part in demonstrations in as many as 147 US cities this month, while the website occupytogether.org lists 47 US states as being involved. Around the world, protests in Canada, the UK, Germany and Sweden are also planned, they say. The speed of the leaderless movement's growth has taken many by surprise. The movement, which organisers say has its roots in the Arab spring and in Madrid's Puerta del Sol protests, has been galvanised by recent media attention. Last week, the Guardian reported that a NYPD police officer had been filmed spraying four women protesters with pepper spray. On Saturday, a peaceful march on Brooklyn bridge intended as a call to the other four boroughs of New York to join in resulted in 700 arrests. Some protesters claim the police trapped them.

Note: For insights into the reasons why people have decided they must occupy their cities in protest of the predations of financial corporations, check out our extensive "Banking Bailout" news articles.

An independent trader, appearing on BBC News, reveal[ed] that he thinks banks and hedge funds believe the stock market 'is toast'. Alessio Rastani said that Goldman Sachs rules the world, not governments, and that Goldman Sachs “don't care about this rescue package” because they know “the stock market is finished” and they “don't really care” about the Euro. US Treasury Secretary Tim Geithner said over the weekend: "Sovereign and banking stresses in Europe are the most serious risk now confronting the world economy. Decisions cannot wait until the crisis gets more severe." He has proposed the so-called Geithner plan which will leverage the EU's €440bn bail-out fund (EFSF) from €440bn to €2 trillion to cope with Italy and Spain. But according to Mr Rastani it may already be too late as: “In less than twelve months, my prediction is, the savings of millions of people are going to vanish.”

Note: To watch the full BBC video of this most unusual interview, click here. For lots more on the fraudulent practices of major financial firms, click here.

Oil giant Royal Dutch Shell has reported a 77% jump in second-quarter profit, thanks to higher energy prices. Shell's profit for the three months to June came in at $8bn (Ł4.9bn) on a current cost of supplies basis, up from $4.5bn in the same period last year. Earlier this week, rival BP announced second-quarter profits of $5.3bn. Larger US rival Exxon Mobil said that net profit rose 41% to $10.7bn for the three months to June from the same period last year. The price of oil is much higher now than it was a year ago, in part inflated by political unrest in oil-producing countries such as Libya. Twelve months ago, US light sweet crude oil was trading at about $78 a barrel. It is currently trading at about $97 a barrel, having topped $110 at the end of April.

Note: Why aren't any of the major media questioning the practice of oil companies making huge profits from gas price increases, profits which come directly from the pockets of consumers? Shouldn't they all be responsible for at least part of the burden?

After giving a nearly six-month tryout for the Internet talk show host Cenk Uygur, the cable news channel MSNBC is preparing to instead hand its 6 p.m. time slot to the Rev. Al Sharpton. Cenk Uygur said MSNBC's management decided that they did not care for his aggressive style. Mr. Uygur, who had been made a paid contributor to MSNBC months earlier, was handed 6 p.m., a big coup given that he had earlier campaigned to have his progressive Web show “The Young Turks” picked up by MSNBC. Mr. Uygur, who by most accounts was well liked within MSNBC, said in an interview that he turned down the new contract because he felt [MSNBC President Phil] Griffin had been the recipient of political pressure. In April, he said, Mr. Griffin “called me into his office and said that he’d been talking to people in Washington, and that they did not like my tone.” He said he guessed Mr. Griffin was referring to White House officials, though he had no evidence for the assertion. He also said that Mr. Griffin said the channel was part of the “establishment,” and “that you need to act like it.”

Note: To understand why Uygur was forced out by powerful forces behind the scenes, watch the amazing 10-minute video of him exposing the blatant corruption of the bankers at this link. For an interview of MSNBC's Keith Olbermann on Uygur's resignation, click here.

Exxon Mobil and Royal Dutch Shell today reported first-quarter profit increases of 69 percent and 30 percent, respectively, from the same period last year. With rising gas and oil prices, analysts expected the five biggest oil companies -- with Exxon as the largest -- to report that they are swimming in revenue. Exxon earned $10.7 billion in the first quarter, up from $6.3 billion. Shell announced profit of $6.3 billion in the first quarter this year, up from $4.8 billion. ConocoPhillips said its first quarter earnings increased 43 percent to $3 billion from $2.1 billion in the same period last year. BP's first quarter earnings dipped this year -- $5.48 billion compared with $5.60 billion during the first quarter a year ago -- including a charge of $384 million related to the oil spill in the Gulf of Mexico. Valero Energy, based in San Antonio, Texas, and the largest independent U.S. refiner, announced ... a first quarter profit of $98 million "primarily due to higher margins for diesel and jet fuel," compared to a first quarter loss last year of $113 million.

Note: Why are oil companies raising their profit margins to drive gas prices even higher? For lots more from reliable sources on corporate corruption, click here.

A month after a devastating earthquake sent a wall of water across the Japanese landscape, the global terrain of the atomic power industry has been forever altered. The ongoing drama at the power plant in Fukushima ... has erased the momentum the nuclear industry has seen in recent years. Before Fukushima, a "nuclear renaissance" - as it was termed in the press - seemed well underway, except for this point: Nuclear power, as a total of world energy supply, has been in steady decline for the past decade. From 2000 to 2008, nuclear energy dropped from 16.7% to 13.5% of global energy production, according to the World Nuclear Industry Status Report 2009. The 2010-11 preliminary report, expected to be released [on April 20], will show the downward trend has continued. Costs of nuclear power plants can be as high as $10 billion. The average construction time is seven years, but with licensing approval new builds often take a decade. Nuclear power reactors are dependent on government subsidies and loan guarantees to be built, cover costs in case of accidents and assume long-term responsibility for storage of spent radioactive fuel, critics say, which artificially lowers the cost of production. Market reaction has been swift against the nuclear industry after the Fukushima disaster. Companies on the Standard & Poor's Clean Energy Index rose on average 17% in the wake of the disaster, while companies on the S&P Nuclear Index fell 8.7%.

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

Radiation from Japan has been detected in drinking water in 13 more American cities, and cesium-137 has been found in American milk -— in Montpelier, Vermont -— for the first time since the Japan nuclear disaster began, according to data released by the Environmental Protection Agency [on April 8]. Milk samples from Phoenix and Los Angeles contained iodine-131 at levels roughly equal to the maximum contaminant level permitted by EPA, the data shows. The cesium-137 found in milk in Vermont is the first cesium detected in milk since the Fukushima-Daichi nuclear accident occurred last month. The sample contained 1.9 picoCuries per liter of cesium-137, which falls under the [EPA's] 3.0 standard. Airborne contamination continues to cross the western states, the new data shows, and Boise has seen the highest concentrations of radioactive isotopes in rain so far. A rainwater sample collected in Boise on March 27 contained 390 picocures per liter of iodine-131, plus 41 of cesium-134 and 36 of cesium-137. EPA released this result for the first time yesterday. Typically several days pass between sample collection and data release because of the time required to collect, transport and analyze the samples. In most of the data released Friday the levels of contaminants detected are far below the standards observed by EPA and other U.S. agencies.

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

Oil from the BP spill remains stuck on the bottom of the Gulf of Mexico, according to a top scientist's video and slides that she says demonstrate the oil isn't degrading as hoped and has decimated life on parts of the sea floor. That report is at odds with a recent report by the BP spill compensation czar that said nearly all will be well by 2012. At a science conference in Washington Saturday, marine scientist Samantha Joye of the University of Georgia aired early results of her December submarine dives around the BP spill site. She went to places she had visited in the summer and expected the oil and residue from oil-munching microbes would be gone by then. It wasn't. "There's some sort of a bottleneck we have yet to identify for why this stuff doesn't seem to be degrading," Joye told the American Association for the Advancement of Science annual conference in Washington.

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.