Corporate Corruption News Stories

Excerpts of Key Corporate Corruption News Stories in Major Media

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: This comprehensive list of news stories is usually updated once a week. Explore our full index to revealing excerpts of key major media news stories on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.

Acting on the suggestion of her top data crunchers at the department’s Centers for Medicare and Medicaid Services (CMS), Health and Human Services Secretary Kathleen Sebelius released an enormous data file on May 8 that reveals the list—or “chargemaster”—prices of all hospitals across the country for the 100 most common inpatient treatment services in 2011. It then compares those prices with what Medicare actually paid hospitals for the same treatments—which was typically a fraction of the chargemaster prices. As a result, Americans are a big step closer to being able to compare what hospitals charge them for goods and services with what they actually cost. There are two reasons Sebelius’ release of this newly crunched, massive data file is a great first step toward a new transparency in health care costs. First, it reveals the vast disparity between what hospitals charge for pills, procedures and operations and the real cost of those services, as calculated by Medicare. The second reason the compilation and release of this data is a big deal is that it demonstrates [that] most hospitals’ chargemaster prices are wildly inconsistent and seem to have no rationale. Thus the release of this fire hose of data—which prints out at 17,511 pages—should become a tip sheet for reporters in every American city and town, who can now ask hospitals to explain their pricing. In the through-the-looking-glass world of health care economics, those who are asked to pay chargemaster rates are often under-insured or lack insurance altogether. Moreover, insurers typically negotiate discounts off the grossly inflated chargemaster prices ($77 for a box of gauze pads!), so the chargemaster matters for insured patients too.

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

Americans throw away 40 percent of the food they buy, often because of misleading expiration dates that have nothing to do with safety, said a study released [on September 18] by Harvard University Law School and the Natural Resources Defense Council, an environmental group. The report said 90 percent of Americans toss good food into the garbage because they mistakenly think that "sell by," "best before," "use by" or "packed on" dates on food containers indicate safety. One-fifth of consumers, the report said, "always" throw away food based on package dates. In fact, "sell by" dates are used by retailers for inventory control. "Best before" or "use by" dates usually reflect manufacturer estimates of peak quality. While some labels are intended to indicate freshness, none of them reflects edibility or safety, said Ted Labuza, a food science professor at the University of Minnesota who collaborated with the authors. "If food looks rotten and smells bad, throw it away, but just because it reaches a certain date does not mean the food is unsafe," Labuza said. "I don't know of any food poisoning outbreak that came from people eating food that was past its shelf-life date." The report estimated the value of food tossed away at $165 billion a year. Food waste is a big source of greenhouse gases. Wasting food also squanders vast quantities of water, land, fertilizers, petroleum, packaging and other resources that go into producing it. About a quarter of all fresh water used in the United States goes into the making of food that is thrown away, the report said.

Insecticide sales are surging after years of decline, as American farmers plant more corn and a genetic modification designed to protect the crop from pests has started to lose its effectiveness. It has sparked fresh concerns among environmental groups and some scientists that one of the most widely touted benefits of genetically modified crops—that they reduce the need for chemical pest control—is unraveling. At the same time, the resurgence of insecticides could expose both farmers and beneficial insects to potential harm. Until recently, corn farmers in the U.S. had largely abandoned soil insecticides, thanks mostly to a widely adopted genetic trait developed by Monsanto Co. that causes corn seeds to generate their own pest-killing toxins. Today, according to the U.S. Department of Agriculture, two-thirds of all corn grown in the U.S. includes a rootworm-targeting gene known as Bt. In 2011, however, entomologists at Iowa State University and the University of Illinois started to document rootworms that were immune to the Monsanto gene, and have found these resistant pests scattered across the Midwest. Now, many farmers have decided they need to spray their soil to kill any rootworms that have developed Bt resistance, as well as growing populations of other pests. Scott Greenlee, who farms 1,700 acres in Sac City, Iowa, said he planned to start using a soil insecticide this year after part of his crop succumbed to rootworms in 2012. The 53-year-old Mr. Greenlee, who had planted Monsanto's Bt corn, said the affected fields produced just 50 or 60 bushels per acre, about a third of his normal yield. "It was a train wreck," he added.

Note: For more on the destructive impacts of GMO crop technology, see the deeply revealing reports from reliable major media sources available here.

Hidden in the soil of Illinois and Iowa, a new generation of insect larvae appears to be munching happily on the roots of genetically engineered corn, according to scientists. It's bad news for corn farmers, who paid extra money for this line of corn, counting on the power of its inserted genes to kill those pests. It's also bad news for the biotech company Monsanto, which inserted the larvae-killing gene in the first place. In fact, the gene's apparent failure ... may be the most serious threat to a genetically modified crop in the U.S. since farmers first started growing them 15 years ago. The economic impact could be "huge," says the University of Arizona's Bruce Tabashnik, one of the country's top experts on the adaptation of insects to genetically engineered crops. Billions of dollars are at stake. The scientists who called for caution now are saying "I told you so," because there are signs that a new strain of resistant rootworms is emerging. In eastern Iowa, northwestern Illinois, and parts of Minnesota and Nebraska, rows of Bt corn have toppled over, their roots eaten by rootworms. Entomologist Aaron Gassmann at Iowa State University, who authored the [new] paper, collected insects from some of these fields and found many with a greater-than-expected ability to tolerate Bt. The EPA is now recommending that ... farmers in areas where such damage has been observed to stop planting this kind of Bt corn altogether. Instead, those farmers will have to use other methods, such as spraying chemical insecticides, to control the rootworm.

Note: For more on the destructive impacts of GMO crop technology, see the deeply revealing reports from reliable major media sources available here.

The Japanese government and TEPCO were scrambling to reassure people [on Sep. 13] that they have a lid on Fukushima after a senior utility executive said the nuclear plant was "not under control". The remarks by Kazuhiko Yamashita, who holds the executive-level title of "fellow" at Tokyo Electric Power, seem to flatly contradict assurances Prime Minister Shinzo Abe gave Olympic chiefs a week earlier. In a meeting with members of the opposition Democratic Party of Japan, Yamashita was asked whether he agreed that "the situation is under control" as Abe had declared at the International Olympic Committee meeting in Buenos Aires. He responded by saying, "I think the current situation is that it is not under control," according to major media, including national broadcaster NHK. News of his comment prompted a rush by the government and TEPCO to elaborate on Yamashita's remark, saying he was talking specifically about the plant's waste water problem, and not the facility's situation in general. TEPCO has poured thousands of tonnes of water on the Fukushima reactors to tame meltdowns sparked by the March 2011 earthquake and tsunami. The utility says they are now stable but need to be kept cool to prevent them running out of control again. Much of that now-contaminated water is being stored in temporary tanks at the plant, and TEPCO has so far revealed no clear plan for it. The problem has been worsened by leaks in some of those tanks that are believed to have seeped into groundwater, which runs out to sea.

Note: For an excellent ABC News article titled "A Never-Ending Disaster at Fukushima," click here. For more on the grave environmental impacts of nuclear power, see the deeply revealing reports from reliable major media sources available here.

Investigative journalist Greg Palast has obtained a secret memo authored by then deputy Treasury secretary Larry Summers and his protégé Timothy Geithner detailing their plans to roll back financial regulation. In the piece, titled "The Confidential Memo at the Heart of the Global Financial Crisis", [Palast] writes: "The Memo confirmed every conspiracy freak's fantasy: that in the late 1990s, the top U.S. Treasury officials secretly conspired with a small cabal of banker big-shots to rip apart financial regulation across the planet. When you see 26.3 percent unemployment in Spain, desperation and hunger in Greece, riots in Indonesia and Detroit in bankruptcy, go back to this End Game memo, the genesis of the blood and tears." [Palast:] This is really important right now because Larry Summers is President Obama's top choice to become head of a Federal Reserve Board. He would take Ben Bernanke's place. And what this memo is--they call it the "end game memo". Geithner calls it the "end game". And what's the game being played? The memo asks Summers to get back to the five biggest, most powerful bankers in the United States to act on and determine what our policy should be for world governance of the banking system. Basically, there were secret calls going between Larry Summers and the head of Bank of America, the head of Goldman Sachs, the head of Citibank and Merrill, the five big boys, to find out what should happen to the world financial policing order. And the answer was: smash it. Summers was holding secret meetings with the big bankers to come up with a scheme to eliminate financial regulation across the planet.

Note: Greg Palast is a New York Times-bestselling author and a freelance journalist for the British Broadcasting Corporation as well as the British newspaper The Observer. He is one of the few journalists uncovering the deepest layers of secrecy in our world. For a key past report of his on elections corruption, click here.

Documents reveal that the National Vaccine Injury Compensation Program (VICP) has paid out nearly $6 million in claims to victims of HPV (Human Papillomavirus) vaccine, including families of two dead. Judicial Watch announced today that it has received documents from the Department of Health and Human Services (HHS) revealing that its VICP has awarded $5,877,710 dollars to 49 victims in claims made against the highly controversial HPV vaccines. To date 200 claims have been filed with VICP, with barely half adjudicated. The documents came in response to a February 28, 2013, Judicial Watch lawsuit against HHS to force the department to comply with a November 1, 2012, Judicial Watch Freedom of Information Act (FOIA) request. From its inception, the use of HPV (human papillomavirus) vaccines for sexually transmitted diseases has been hotly disputed. According to the Annals of Medicine: "At present there are no significant data showing that either Gardasil or Cervarix (GlaxoSmithKline) can prevent any type of cervical cancer since the testing period employed was too short to evaluate long-term benefits of HPV vaccination." "This new information from the government shows that the serious safety concerns about the use of Gardasil have been well-founded," said Judicial Watch President Tom Fitton. "Public health officials should stop pushing Gardasil on children."

Note: For lots more on the risks and dangers of this vaccine being promoted by big pharma, click here.

The financial analyst who nine years ago discovered Bernard Madoff's multi-billion dollar ... fraud scheme today lambasted US securities officials who ignored his warnings, calling for a shakeup of the US securities and exchange commission's structure. Harry Markopolos, a Massachusetts financial analyst who since 2000 several times sought to alert the SEC to Madoff's fraud, told a House of Representatives committee that the agency should replace its lawyer-heavy enforcement staff with senior securities professionals who have years of industry experience and can understand cutting-edge financial instruments used by hedge fund traders. He said regulators should give fraud investigators a pay incentive to unearth large fraud, and eliminate the turf wars that he said kept New York-based regulators from heeding tips he fed to the Boston office. Markopolos discovered Madoff's alleged malfeasance in May 2000, after he became suspicious of his years-long record of success in all market conditions. Markopolos said it took him about five minutes perusing Madoff's marketing materials to suspect fraud, and another roughly four hours to develop mathematical models to prove it. He eventually delivered a detailed case to securities regulators in Boston and followed up several times over the next eight years as he continued to gather evidence. He said that important SEC officials in New York and Boston brushed his reports aside. In testimony before members of the House financial services committee, Markopolos described "an abject failure by the regulatory agencies we entrust as our watchdog".

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

The federal government is making progress on developing a surveillance system that would pair computers with video cameras to scan crowds and automatically identify people by their faces, according to newly disclosed documents and interviews with researchers working on the project. The Department of Homeland Security tested a crowd-scanning project called the Biometric Optical Surveillance System — or BOSS — last fall after two years of government-financed development. Although the system is not ready for use, researchers say they are making significant advances. That alarms privacy advocates, who say that now is the time for the government to establish oversight rules and limits on how it will someday be used. In a sign of how the use of such technologies can be developed for one use but then expanded to another, the BOSS research began as an effort to help the military detect potential suicide bombers. But in 2010, the effort was transferred to the Department of Homeland Security to be developed for use instead by the police in the United States. The effort to build the BOSS system involved a two-year, $5.2 million federal contract given to Electronic Warfare Associates, a Washington-area military contractor with a branch office in Kentucky. Significant progress is already being made in automated face recognition using photographs taken under ideal conditions, like passport pictures and mug shots. The Federal Bureau of Investigation is spending $1 billion to roll out a Next Generation Identification system that will provide a national mug shot database to help local police departments verify identities.

Note: For more on government and corporate threats to privacy, see the deeply revealing reports from reliable major media sources available here.

Michael Hayden, the former director of the National Security Agency, has invaded America’s television sets in recent weeks to warn about Edward Snowden’s leaks and the continuing terrorist threat to America. But what often goes unmentioned, as the Guardian’s Glenn Greenwald pointed out, is that Hayden has a financial stake in keeping Americans scared and on a permanent war footing against Islamist militants. And the private firm he works for, called the Chertoff Group, is not the only one making money by scaring Americans. Post-9/11 America has witnessed a boom in private firms dedicated to the hyped-up threat of terrorism. The drive to privatize America’s national security apparatus accelerated in the aftermath of the terrorist attacks, and it’s gotten to the point where 70 percent of the national intelligence budget is now spent on private contractors, as author Tim Shorrock reported [in Spies for Hire: the Secret World of Intelligence Outsourcing]. The private intelligence contractors have profited to the tune of at least $6 billion a year. In 2010, the Washington Post revealed that there are 1,931 private firms across the country dedicated to fighting terrorism. What it all adds up to is a massive industry profiting off government-induced fear of terrorism, even though Americans are more likely to be killed by a car crash or their own furniture than a terror attack. Here are five private companies cashing in on keeping you afraid. 1. The Chertoff Group 2. Booz Allen Hamilton 3. Science Applications International Corp. 4. Center for Counterintelligence and Security Studies 5. Security Solutions International.

Note: For more on government and corporate corruption in pushing the terror hoax, see the deeply revealing reports from reliable major media sources available here.

Many of the chemicals found in America's most common foods are considered to be so unhealthy that they're actually illegal in other countries. Rich Food, Poor Food by [Dr.] Jayson Calton and Mira Calton, a certified nutritionist, features a list of what the authors call 'Banned Bad Boys' - a list of the ingredients, where they're banned and what caused governments to ban them. One of the most common 'Bad Boys' is different variations of food coloring, which actually is made from petroleum and is found in everyday items like soda, sports drinks, mac and cheese, cake, candy and several other common, American products. The chemicals used to make these different dyes have proven to cause various different cancers and can even potentially mutate healthy DNA. European countries like Norway, Finland, France and Austria all have banned at least one variation of petroleum-containing food coloring. Another common additive banned in other countries but allowed in the U.S. is Olestra, which essentially is a fat substitute found in products that traditionally have actual fat. For example, low-fat potato chips ... contain Olestra - which is shown to cause the depletion of fat-soluble vitamins. Olestra has been banned in several countries, including the United Kingdom and Canada. In 2003, the FDA lifted a requirement forcing companies that use Olestra in their products to include a label warning consumers that the food their eating could cause 'cramps and diarrhea,' despite the fact that the agency received more than 20,000 reports of gastrointestinal complaints among olestra eaters.

Note: We don't usually use the Daily Mail as a reliable source, but as this article is so important and no other major media is reporting it, we decided to include it here. For more on corporate and government corruption, see the deeply revealing reports from reliable major media sources available here and here.

It’s always been tough to start a new business, even when the bottom line was just making a profit to stay alive. A few years ago, a second focus of sustainability (“green”) was added as a requirement for respectability. Now I often hear a third mandate of social responsibility. Entrepreneurs are now measured against the “triple bottom line” (TBL or 3BL) of people, planet, and profit. The real challenge with the triple bottom line is that these three separate accounts cannot be easily added up. It’s difficult to measure the planet and people accounts in any quantifiable terms, compared to profits. How does any entrepreneur define the right balance, and then measure their performance against real metrics? Lots of people are trying to help. Current examples include the Conscious Capitalism movement led by John Mackey, The B Team, led by Sir Richard Branson, the 1% for the Planet organization, and the Benefit Corporation (B Corp) now available in 14 States. The reality is that you can’t help people or the environment, or yourself, if you don’t have any money. Businesses run by ethical people create value and prosperity based on voluntary exchange, while reducing poverty. The whole can be greater than the sum of the parts. The real opportunity for entrepreneurs is to provide solutions that solve a problem better than the competition, while also providing sustainability and social responsibility. Responsibility and integrity are still the key. A responsible entrepreneur promotes both loyalty and responsible consumption by educating consumers so they can make more informed decisions about their purchases, based on ecological footprints, and other sustainability criteria. That’s a win-win business for the customer and the entrepreneur.

Note: For more on the inspiring B Team, see the great three-minute video here and click here. For a treasure trove of great news articles which will inspire you to make a difference, click here.

In a sign that the corporate sustainability movement may be entering a new dynamic phase, Sir Richard Branson and Jochen Zeitz, former chief executive of Puma and current director of Kering, today launched a new global collaboration to drive transformational change in the business sector. The B Team brings together an initial 14 leaders from major corporations around the world, including Unilever, Natura, Celtel, Tata and Kering, in an attempt to enlarge projects that demonstrate that long-term business success can be built only by prioritising people and planet alongside profit. The collective ... has issued a declaration that places much of the blame for the world's problems directly on the doorstep of companies. Recognising that their views will be seen by many competitors as an "affront", the declaration states: "Business is now waking up to the reality that if we carry on using the natural resources of the world unsustainably, they'll quite simply run out. With a burgeoning population, more people are still living in poverty than ever before and inequalities are increasing in many parts of the world. Unemployment rates are at frightening levels. Non-Profits alone cannot solve the tasks at hand, while many governments are unwilling or unable to act. While there are myriad reasons we've arrived at this juncture, much of the blame rests with the principles and practices of business as usual." Rather than go it alone, the B Team is forging partnerships with other organisations such as the World Business Council for Sustainable Development and Ashoka, a leading light in the social enterprise movement.

Note: For more on the inspiring B Team, see the great three-minute video here and click here. For a treasure trove of great news articles which will inspire you to make a difference, click here.

Tons of contaminated groundwater from the stricken Fukushima nuclear plant have overwhelmed an underground barrier and are emptying daily into the Pacific, creating what a top regulator has called a crisis. The water contains strontium and cesium, as well as tritium. The plant was already struggling to store hundreds of thousands of tons of contaminated water that flowed through the buildings housing three reactors where [three] meltdowns occurred in 2011. But the contamination in this new groundwater problem is from different sources, Tepco said. The company has admitted that it failed to respond quickly enough to the latest groundwater contamination, saying it was preoccupied with more pressing issues like cooling the damaged reactors. “Tepco appears overwhelmed in dealing with what is a very serious problem,” said Akio Yamamoto, a professor of nuclear engineering at Nagoya University, who serves as outside expert for the Nuclear Regulation Authority, Japan’s nuclear watchdog. Critics contend that the plant has emitted far more radioactive materials than it is saying, based in part on levels of contaminants discovered in the harbor, which are well above safe levels in some places. The contamination appears to be spreading, with tests last month by Tepco showing high levels of tritium and other radioactive elements like strontium starting at other locations near the two other crippled reactors.

Note: Declaring the situation an "emergency", the Japanese government has stepped in to take over control of the response from Tepco. For more on this, click here. For a National Geographic article on what you need to know about the radioactive contamination of the Pacific Ocean by the Fukushima disaster, click here. It reports that scientists have estimated that contaminated seawater could reach the West Coast of the United States in five years or less. For more on the environmental devastation of nuclear power, see the deeply revealing reports from reliable major media sources available here.

Despite his age, 63-year-old Kazuo Niitsuma believes there are many more years of fishing ahead of him. The sea is in his family's blood, he says. His octogenarian father began working on boats when he was 12, and only retired three years ago. But ... Niitsuma knows he may never again get the chance to board his boat and head out into the Pacific in search of sole, whitebait, flounder and greenling. The greatest threat to Niitsuma's livelihood, and that of other fishermen in Hisanohama ... lies just up the coast at the Fukushima Daiichi nuclear power plant. The environment ministry recently announcement that 300 tonnes of contaminated groundwater from Fukushima Daiichi is still seeping over or around barriers into the Pacific every day, more than two years after it was struck by a tsunami in March 2011. Government officials said they suspected the leaks had started soon after the accident. The admission by the ministry, confirmed by Tokyo Electric Power (Tepco), which runs the plant, is likely to keep Hisanohama's 40 fishing boats in port for the foreseeable future. Tepco's failure to handle the contaminated water – and accusations that it tried to cover up the leaks – is a serious setback to attempts to clean up Fukushima Daiichi, 18 months after the government declared it had reached a "safe" state known as cold shutdown. "I haven't been able to fish since the tsunami," Niitsuma said. "People want to be reassured that they are buying fish that is safe to eat, and we can't give them that guarantee at the moment."

Note: Declaring the situation an "emergency", the Japanese government has stepped in to take over control of the response from Tepco. For more on this, click here. For a National Geographic article on what you need to know about the radioactive contamination of the Pacific Ocean by the Fukushima disaster, click here. It reports that scientists have estimated that contaminated seawater could reach the West Coast of the United States in five years or less. For more on the environmental devastation of nuclear power, see the deeply revealing reports from reliable major media sources available here.

Computers and networks inherently produce data, and our constant interactions with them allow corporations to collect an enormous amount of intensely personal data about us as we go about our daily lives. Sometimes we produce this data inadvertently simply by using our phones, credit cards, computers and other devices. Sometimes we give corporations this data directly on Google, Facebook, [or] Apple’s iCloud ... in exchange for whatever free or cheap service we receive from the Internet in return. The NSA is also in the business of spying on everyone, and it has realized it’s far easier to collect all the data from these corporations rather than from us directly. The result is a corporate-government surveillance partnership, one that allows both the government and corporations to get away with things they couldn’t otherwise. There are two types of laws in the U.S., each designed to constrain a different type of power: constitutional law, which places limitations on government, and regulatory law, which constrains corporations. Historically, these two areas have largely remained separate, but today each group has learned how to use the other’s laws to bypass their own restrictions. The government uses corporations to get around its limits, and corporations use the government to get around their limits. This partnership manifests itself in various ways. The government uses corporations to circumvent its prohibitions against eavesdropping domestically on its citizens. Corporations rely on the government to ensure that they have unfettered use of the data they collect.

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

The tale of how the Obama economic team was recruited en masse from Robert Rubin acolytes who either facilitated Wall Street’s pre-crash recklessness while in the Clinton administration or cashed in on it later (or, like Rubin, did both) never loses its power to shock. Michael Froman, Rubin’s chief of staff as Clinton Treasury secretary, not only served as the Obama transition team’s personnel director but moonlighted as a Citigroup managing director while doing so. “Obama essentially entrusted the repairing of the china shop to the bulls who’d helped ransack it,” [Jeff] Connaughton writes [in The Payoff: Why Wall Street Always Wins]. [In This Town Mark] Leibovich updates the story of the tacky prehistory of the Obama White House with its aftermath—the steady parade of Obama alumni who traded change we can believe in for cash on the barrelhead as soon as they left public service. The starry list includes, among many others, Peter Orszag (director of the White House’s Office of Management and Budget, now at Citi), Jake Siewert (the Treasury Department counselor turned chief flack for Goldman Sachs), and David Plouffe (the campaign manager and senior presidential adviser who did consulting for Boeing and General Electric). “When I am president,” Obama had said in 2008, “I will start by closing the revolving door in the White House that’s allowed people to use their administration job as a stepping-stone to further their lobbying careers.” Puzzling over how so many colleagues have strayed from this credo, the former press secretary Robert Gibbs has theorized that either “somehow we have all changed” or, alternatively, “maybe Washington changed us.”

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

JPMorgan Chase & Co. has agreed to pay federal regulators $410 million to settle allegations that the giant bank manipulated energy markets in California and Michigan. About $285 million of the settlement will go to the U.S. Treasury for civil penalties, and about $124 million will be refunded to California ratepayers. The remainder will be refunded to Michigan ratepayers. If this story sounds familiar, that's because it is. Californians who remember the Enron energy debacle of 2000-01 won't be surprised to learn that JPMorgan's traders have been accused of fraudulent behavior. Once again, the fraud was performed by manipulating the auction system that was developed by a quasi-state agency, the California Independent System Operator, to handle California's electricity needs. The Federal Energy Regulatory Commission found that JPMorgan engaged in 12 manipulative bidding strategies, which wound up forcing ratepayers to pay higher amounts than they should have - all because the bank wanted to find a cheap way to profit off of aging power plants in Southern California. JPMorgan used a variety of bait-and-switch strategies - duping Cal-ISO into paying exorbitant fees for running the plants at a low level, for instance, or manipulating the bidding system so that Cal-ISO was forced to pay rates that were many times higher than market rate. The fact that this kind of manipulation is still happening is upsetting. And while $410 million is a record settlement for the FERC, it's a drop in the bucket to JPMorgan, which reported $6.5 billion in quarterly profits this month.

Note: Remember Enron, which scammed millions and then went bankrupt, wiping out pensions of its many employees? To read CBS reports on how Enron purposely shut down power plants so they could cause and then cash in on the energy crisis, click here.

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.

A British university is delaying the release of an academic paper on how the anti-theft systems of millions of Volkswagen vehicles are at risk of being hacked after the German carmaker took legal action against it. In a statement, the University of Birmingham said it would "defer publication" of the paper — which explains how researchers were able to subvert Volkswagen's security system — after an interim injunction issued by England's High Court. It said it was "disappointed with the judgment which did not uphold the defense of academic freedom and public interest, but respects the decision." The paper ... revealed three ways to bypass a brand of computer chip used by several auto manufacturers to fight vehicle theft. Often referred to as immobilizers, such chips use a secret algorithm to ensure that a car can only be started with the right key, and they've been a mandatory in all new vehicles sold in Britain over the past 15 years. Crucially, the researchers planned to reveal how they were able to reverse-engineer the algorithm — and publish a copy of it in their paper. Volkswagen said that publishing the formula would be "highly damaging" and "facilitate theft of cars," according to a ruling handed down last month by High Court Justice Colin Birss. The judge said that millions of Volkswagen vehicles were issued with the chip, including high-end cars such as Porsches, Audis, Bentleys, and Lamborghinis. The researchers countered that Volkswagen's claim that the paper would be a boon to car thieves was overblown, that they had warned the chip's manufacturer about the vulnerability six months ago, and that a gag order would interfere with their legitimate academic work.

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

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