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.

The gold price has risen above $1,500 an ounce for the first time after concerns about global economic recovery lifted the metal's appeal as a haven. In Hong Kong trade, gold hit a record $1,500.70 an ounce, which traders said was mainly due to Standard & Poor's downgrade of its outlook on US debt. Silver also touched a 31-year high of $44.34 an ounce. But analysts were divided about whether the price could go higher and are waiting to see if trading in Europe and the US continues the momentum seen in Asia. Some market watchers see gold consolidating at its current level as it waits for the next reason to push higher. Silver continued to soar, rising to a 31-year high for the fifth consecutive session. Not only is silver increasingly seen as a haven, but there is also rising demand for industrial consumption.

Note: Gold is one of the most highly manipulated of all commodities. As a glaring example, when gold first broke the $1,000 mark in Feb. 2009, just over two years before this article was published, almost no media reported on this major news. In 2004, gold was around $400 an ounce and has been soaring ever since. For reliable charts showing this, see the bottom of the webpage at this link. Key individuals with inside information on precious metal manipulations, like whistleblower Catherine Austin Fitts (Assistant Secretary of Housing and Urban Development under George H. W. Bush), have been predicting this rise for years.

A Senate panel has concluded that Goldman Sachs Group Inc. profited from the financial crisis by betting billions against the subprime mortgage market, then deceived investors and Congress about the firm's conduct. Some of the findings in the report by the Senate's Permanent Subcommittee on Investigations will be referred to the Justice Department and the Securities and Exchange Commission for possible criminal or civil action, said Sen. Carl Levin (D-Mich.), the panel's chairman. The giant investment bank was just one focus of the subcommittee's probe into Wall Street's role in the financial crisis. The 639-page report — based on internal memos, emails and interviews with employees of financial firms and regulators — casts broad blame, saying the crisis was caused by "conflicts of interest, heedless risk-taking and failures of federal oversight." Among the culprits cited by the panel are Washington Mutual, a major mortgage lender that failed in 2008, as well as the Office of Thrift Supervision, a federal bank regulator, and credit rating firms. Asked if he was disappointed that no Wall Street figures had gone to jail in connection with the crisis, Levin responded, "There's still time."

Note: For many key reports from major media sources illuminating how major financial corporations knowingly brought about the global financial crisis and profited from it, click here.

Analysts who reviewed complex mortgage bonds that ultimately collapsed and ruined the U.S. housing market were threatened with firing if they lost lucrative business, prompting faulty ratings on trillions of dollars worth of junk mortgage bonds, a Senate report said [on April 13]. The 639-page report by the Senate Permanent Subcommittee on Investigations confirms much of what McClatchy Newspapers first reported about mismanagement by credit ratings agencies in 2009. Credit rating agencies are supposed to provide independent assessments on the quality of debt being issued by companies or governments. Traditionally, investments rated AAA had a probability of failure of less than 1 percent. But in collusion with Wall Street investment banks, the Senate report concludes, the top two ratings agencies - Moody's Investors Service and Standard & Poor's - effectively cashed in on the housing boom by ignoring mounting evidence of problems in the housing market. Profits at both companies soared, with revenues at market leader Moody's more than tripling in five years. Then the bottom fell out of the housing market, and Moody's stock lost 70 percent of its value; it has yet to fully recover. More than 90 percent of AAA ratings given in 2006 and 2007 to pools of mortgage-backed securities were downgraded to junk status.

Note: For many key reports from major media sources illuminating how major financial corporations knowingly brought about the global financial crisis and profited from it, click 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.

Japanese officials have been forced to explain why it took them a month to disclose large-scale releases of radioactive material in mid-March at a crippled nuclear-power plant. The government announced [on April 12] that it had raised its rating of the severity of the accident at the Fukushima Daiichi nuclear complex to 7, the worst on an international scale, from 5. Japan's new assessment was based largely on computer models showing heavy emissions of radioactive iodine and cesium March 14-16, soon after a magnitude-9.0 earthquake and tsunami rendered the plant's emergency cooling system inoperative. The nearly monthlong delay in acknowledging the extent of these emissions is a fresh example of confused data and analysis from the Japanese and put authorities on the defensive about whether they have delayed or blocked the release of information to avoid alarming the public. Seiji Shiroya, a commissioner of Japan's Nuclear Safety Commission, an independent panel that oversees the country's nuclear industry, ... suggested a public-policy reason for having kept quiet. "Some foreigners fled the country even when there appeared to be little risk," he said. "If we immediately decided to label the situation as Level 7, we could have triggered a panicked reaction." The peak release in emissions of radioactive particles took place after hydrogen explosions at three Fukujima reactors.

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

It's bizarre but, it turns out, Wall Street cut corners when it created those mortgage-backed investments that triggered the financial collapse. Now that banks want to evict people, they're unwinding these exotic investments to find, that often, the legal documents behind the mortgages aren't there. Caught in a jam of their own making, some companies appear to be resorting to forgery and phony paperwork to throw people - down on their luck - out of their homes. This past January in Los Angeles, 37,000 homeowners facing foreclosure showed up to an event to beg their bank for lower payments on their mortgage. In February in Miami, 12,000 people showed up to a similar event. For many that's when the real surprise comes in: these same banks have fouled up all of their own paperwork to a historic degree. There were a million foreclosures last year. And there will be another million this year - those lawsuits are forcing open those bundled, mortgage-backed securities that Wall Street cooked up in the mid 2000s, and exposing a lack of ownership documents all across the country. Banks are defensive because all 50 state attorneys general want to punish them: the states are seeking about $20 billion in damages for what they say is the irresponsible, perhaps criminal way, that some mortgage companies handled what is, for most folks, the most important investment of their lives.

Note: To watch the amazing 14-minute video of this article, click here. Learn how banks paid a company which hired people off the streets to pretend they were bank vice presidents and sign thousands of documents fraudulently. For lots more from reliable sources on the criminal practices of mortgage lenders, click here.

Do you know who really owns your mortgage? That question has become a nightmare for many homeowners since the invention of mortgage-backed securities. Yes, those were the exotic investments that sparked the financial collapse in this country. And they're still causing problems. As it turns out, Wall Street cut corners when it bundled homeowners' mortgages into securities that were traded from investor to investor. Now that banks are foreclosing on people, they're finding that the legal documents behind many mortgages are missing. So, what do the banks do? Some companies appear to be resorting to forgery and phony paperwork in what looks like a nationwide epidemic. Even if you're not at risk of foreclosure, there could be legal ramifications for a homeowner if the chain of title has been lost.

Note: Don't miss at the link above the most excellent, six-minute CBS video explaining more on this blatant deception and manipulation by many banks. You have to put up with a one-minute commercial shortly after the video starts. For lots more from reliable sources on the criminal practices of mortgage lenders, click here.

Scientists have created genetically modified cattle that produce "human" milk in a bid to make cows' milk more nutritious. The scientists have ... introduced human genes into 300 dairy cows to produce milk with [some of] the same properties as human breast milk. The scientists behind the research ... hope genetically modified dairy products from herds of similar cows could be sold in supermarkets. The research has the backing of a major biotechnology company. Genetically modified food has become a highly controversial subject and currently they can only be sold in the UK and Europe if they have passed extensive safety testing. The consumer response to GM food has also been highly negative, resulting in many supermarkets seeking to source products that are GM free. Helen Wallace, director of biotechnology monitoring group GeneWatch UK, said: "We have major concerns about this research to genetically modify cows with human genes. There are major welfare issues with genetically modified animals as you get high numbers of still births. There is a question about whether milk from these cows is going to be safe for humans and it is really hard to tell that unless you do large clinical trials like you would a drug, so there will be uncertainty about whether it could be harmful to some people. Ethically there are issues about mass producing animals in this way."

Note: For a powerful summary of the dangers of genetically modified foods, click here. And for other major media news articles exposing the serious risks and dangers of genetically modified foods, click here.

During a 22-month investigation by agents from the US Drug Enforcement Administration, the Internal Revenue Service and others [beginning in 2006], it emerged [that drug cartels had laundered huge sums of money] through one of the biggest banks in the United States: Wachovia, now part of the giant Wells Fargo. In March 2010, Wachovia settled the biggest action brought under the US bank secrecy act, through the US district court in Miami. Now that the year's "deferred prosecution" has expired, the bank is in effect in the clear. The bank was sanctioned for failing to apply the proper anti-laundering strictures to the transfer of $378.4bn – a sum equivalent to one-third of Mexico's gross national product – into dollar accounts from ... currency exchange houses with which the bank did business. [The case demonstrates] the role of the "legal" banking sector in swilling hundreds of billions of dollars – the blood money from the murderous drug trade in Mexico and other places in the world – around their global operations, now bailed out by the taxpayer. At the height of the 2008 banking crisis, Antonio Maria Costa, then head of the United Nations office on drugs and crime, said he had evidence to suggest the proceeds from drugs and crime were "the only liquid investment capital" available to banks on the brink of collapse. "Inter-bank loans were funded by money that originated from the drugs trade," he said. "There were signs that some banks were rescued that way."

Note: For lots more from reliable sources on the illegal activities routinely engaged in by the largest banks and financial corporations, click here.

Igor Gramotkin is ... the manager of the Chernobyl nuclear power plant in Ukraine, and has spent more than two decades at the site of the most devastating nuclear accident in history, trying to stop further radiation emissions and cleaning the area. Mr Gramotkin admitted that the destroyed reactor, still full of radioactive waste and nuclear fuel, remains "a threat not only to Ukraine but to the whole world" until it is encased in a vast steel structure that is being built. In the months after the accident, a makeshift "sarcophagus" had been constructed to encase the reactor, but it is now unstable and, despite work to shore it up, experts say a new shelter is desperately needed in case the old one collapses. At more than 100m tall, the shelter will be the largest moveable structure ever built. Those building it still have to be extremely careful. Standing in the area immediately around the plant subjects a person to radiation equivalent to about one old-style chest X-ray per day. The human costs of the Chernobyl accident are ... horrific by any estimate. [Some] studies put the figure in the hundreds of thousands. There are incidences of genetic mutations, children born lacking organs, and dramatically elevated thyroid cancer levels in local children, who drank milk contaminated with radioactive iodine in the years after the accident.

Note: For many reports from major media sources on the government and corporate corruption that allows the nuclear industry to continue, click here and here.

The chaos at the Fukushima Daiichi nuclear plant — explosions, fires, ruptures — has not shaken the bipartisan support in partisan Washington for the U.S.'s so-called nuclear renaissance. Republicans have dismissed Japan's crisis as a once-in-a-lifetime fluke. President Obama has defended atomic energy as a carbon-free source of power, resisting calls to halt the renaissance and freeze construction of the U.S.'s first new reactors in over three decades. But there is no renaissance. Even before the earthquake-tsunami one-two punch, the endlessly hyped U.S. nuclear revival was stumbling, pummeled by skyrocketing costs, stagnant demand and skittish investors, not to mention the defeat of restrictions on carbon that could have mitigated nuclear energy's economic insanity. Obama has offered unprecedented aid to an industry that already enjoyed cradle-to-grave subsidies, and the antispending GOP has clamored for even more largesse. But Wall Street hates nukes as much as K Street loves them, which is why there's no new reactor construction to freeze. Once hailed as "too cheap to meter," nuclear fission turns out to be an outlandishly expensive method of generating juice for our Xboxes.

Note: For many reports from major media sources on the government and corporate corruption that allows the nuclear industry to continue, click here and here.

Transocean Ltd., owner of the Deepwater Horizon oil rig, awarded millions of dollars in bonuses to its executives after “the best year in safety performance in our company’s history,” according to an annual report and proxy statement released yesterday. Eleven people were killed, including nine Transocean employees, in the April 20 explosion and collapse of the rig, which gushed crude oil into the Gulf of Mexico for 86 days. “Notwithstanding the tragic loss of life in the Gulf of Mexico, we achieved an exemplary statistical safety record as measured by our total recordable incident rate and total potential severity rate,” Transocean states in the filing. Transocean President and Chief Executive Officer Steven L. Newman received about $4.3 million in cash bonuses and stock and option awards. With other compensation—such as pension increases and cost of living, housing, and automobile allowances—Newman earned $6.6 million in 2010, almost $1 million more than in 2009. His base salary, $900,000 in 2010, will increase 22 percent to $1.1 million in 2011. Transocean built and staffed the Deepwater Horizon. It was leased by BP, which denied most executives bonuses in 2010. In justifying the bonuses, Transocean cites the increased burden on executives of responding to the spill.

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

Dexia SA (DEXB), based in Brussels and Paris, borrowed as much as $33.5 billion through its New York branch from the Fed’s “discount window” lending program, according to Fed documents released yesterday in response to a Freedom of Information Act request. Dublin-based Depfa Bank Plc, taken over in 2007 by a German real-estate lender later seized by the German government, drew $24.5 billion. The biggest borrowers from the ... discount window as the program reached its crisis-era peak were foreign banks, accounting for at least 70 percent of the $110.7 billion borrowed during the week in October 2008 when use of the program surged to a record. The disclosures may stoke a reexamination of the risks posed to U.S. taxpayers by the central bank’s role in global financial markets. Separate data disclosed in December on temporary emergency-lending programs set up by the Fed also showed big foreign banks as borrowers. Six European banks were among the top 11 companies that sold the most debt overall -- a combined $274.1 billion -- to the Commercial Paper Funding Facility. Those programs also loaned hundreds of billions of dollars to the biggest U.S. banks, including JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc. and Morgan Stanley.

Note: For a treasure trove of reports from reliable sources on the bailout of banks worldwide by the US taxpayer, click here.

Aetna Inc. is suing six New Jersey doctors over medical bills it calls “unconscionable,” including $56,980 for a bedside consultation and $59,490 for an ultrasound that typically costs $74. The lawsuits could help determine what pricing limits insurers can impose on ”out-of-network” physicians who don’t have contracts with health plans that spell out how much a service or procedure can cost. One defendant billed $30,000 for a Caesarean birth, and another raised his fee for seeing a critically ill patient in a hospital to $9,000 in 2008 from $500 the year before, the insurer alleges in the suits. Aetna tried in 2007 to impose caps on some out-of-network payments, prompting doctor complaints to the New Jersey Department of Banking and Insurance. The agency sided with the doctors, fined the company $2.5 million, and ordered it to pay out-of-network practitioners enough so that patients wouldn’t be asked to pay balances other than co-pays. In 2009, Aetna, UnitedHealth Group Inc., Cigna Corp. and WellPoint Inc. were accused by the New York attorney general of underpaying out-of-network physicians by manipulating a database used to calculate payments. They paid a total of $90 million in settlements without admitting wrongdoing. UnitedHealthcare agreed that year to pay $350 million to settle a lawsuit by the American Medical Association over the same issues. Similar AMA lawsuits against Aetna, Cigna and Wellpoint are pending.

Note: Is the American health care system out of control? For lots more from reliable sources on corporate corruption, click here.

General Electric, the nation’s largest corporation, had a very good year in 2010. The company reported worldwide profits of $14.2 billion, and said $5.1 billion of the total came from its operations in the United States. Its American tax bill? None. In fact, G.E. claimed a tax benefit of $3.2 billion. That may be hard to fathom for the millions of American business owners and households now preparing their own returns, but low taxes are nothing new for G.E. The company has been cutting the percentage of its American profits paid to the Internal Revenue Service for years, resulting in a far lower rate than at most multinational companies. Its extraordinary success is based on an aggressive strategy that mixes fierce lobbying for tax breaks and innovative accounting that enables it to concentrate its profits offshore. G.E.’s giant tax department, led by a bow-tied former Treasury official named John Samuels, is often referred to as the world’s best tax law firm. Indeed, the company’s slogan “Imagination at Work” fits this department well. The team includes former officials not just from the Treasury, but also from the I.R.S. and virtually all the tax-writing committees in Congress. While General Electric is one of the most skilled at reducing its tax burden, many other companies have become better at this as well.

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

The Federal Reserve will disclose details of emergency loans it made to banks in 2008, after the U.S. Supreme Court rejected an industry appeal that aimed to shield the records from public view. The justices ... left intact a court order that gives the Fed five days to release the records, sought by Bloomberg News' parent company, Bloomberg. The order marks the first time a court has forced the Fed to reveal the names of banks that borrowed from its oldest lending program, the 98-year-old discount window. "I can't recall that the Fed was ever sued and forced to release information" in its 98-year history, said Allan H. Meltzer, the author of three books on the U.S central bank and a professor at Carnegie Mellon University in Pittsburgh. The disclosures, together with details of six bailout programs released by the central bank in December under a congressional mandate, would give taxpayers insight into the Fed's unprecedented $3.5 trillion effort to stem the 2008 financial panic. Under the trial judge's order, the Fed must reveal 231 pages of documents related to borrowers in April and May 2008, along with loan amounts. News Corp.'s Fox News is pressing a bid for 6,186 pages of similar information on loans made from August 2007 to November 2008.

Note: For a treasure trove of reports from major media sources on the hidden activities of the Fed and the biggest Wall Street and international banks, click here.

General Electric marketed the Mark 1 boiling water reactors that were used in Japan's Fukushima Dai-ichi plant as cheaper to build than other reactors because they used a smaller and less expensive containment structure. Yet American safety officials have long thought the smaller design more vulnerable to explosion and rupture in emergencies than competing designs. Here's the problem: Profit-making corporations have every incentive to underestimate these probabilities and lowball the likely harms. This is why it's necessary to have such things as government regulators and why regulators need enough resources to enforce the regulations. And it's why recent proposals in Congress to cut the budgets of agencies charged with protecting public safety are so wrong-headed. It's also why regulators have to be independent of the industries they regulate. When there's a revolving door between regulatory agency and industry, officials are reluctant to bite the hands that will feed them. Finally, the tendency of corporations to understate the probabilities of public harms requires that limits be placed on corporate political power. The public cannot not be adequately protected as long as big corporations ... are allowed to bribe legislators with campaign donations and boondoggles.

Note: The author of this opinion, Robert Reich, is a professor at UC Berkeley and former Secretary of Labor.

It turns out that nuclear waste has more in common with the financial world than being a metaphor for the worst of its toxic assets. Nuclear waste — some of which remains disastrously radioactive for 100,000 years — turns out to be the ultimate tail risk. Tail risk, of course, is the statistical term much in vogue in the financial press for describing unlikely events. (The 'tail' in tail risk refers to the tail-shaped edges in the bell curve of a normal distribution.) These allegedly unlikely events are sometimes referred to as black swans. Black swans are occurring with such regularity in these volatile times that they can no longer be considered true statistical outliers. [Take] a look at these outlier events within the context of building nuclear waste containment vessels. Repository builders have to take into account a tail risk of future humans disturbing the site and not realising the danger facing themselves and their ecology. People might regress towards a pre-industrial state or lose language over a timescale like that. So you have to design a marker that scares people away, but doesn't flip them over into morbid curiosity towards exploring further and, potentially, dooming an entire civilisation with radioactive poisoning.

The Supreme Court closed the courthouse door ... to parents who want to sue drug makers over claims their children developed autism and other serious health problems from vaccines. The ruling was a stinging defeat for families dissatisfied with how they fared before a special no-fault vaccine court. The court voted 6-2 against the parents of a child who sued the drug maker Wyeth in Pennsylvania state court for the health problems they say their daughter, now 19, suffered from a vaccine she received in infancy. Justice Antonin Scalia, writing for the court, said Congress set up a special vaccine court in 1986 to ... create a system that spares the drug companies the costs of defending against parents' lawsuits. Justices Ruth Bader Ginsburg and Sonia Sotomayor dissented. Nothing in the 1986 law ''remotely suggests that Congress intended such a result,'' Sotomayor wrote, taking issue with Scalia. Scalia's opinion was the latest legal setback for parents who felt they got too little from the vaccine court or failed to collect at all. Such was the case for Robalee and Russell Bruesewitz of Pittsburgh, who filed their lawsuit after the vaccine court rejected their claims for compensation. According to the lawsuit, their daughter, Hannah, was a healthy infant until she received the diphtheria, tetanus and pertussis vaccine in April 1992. Within hours of getting the DPT shot, the third in a series of five, the baby suffered a series of debilitating seizures.

Note: Vaccines have been strongly promoted for decades, yet the research supporting many vaccines is amazingly weak. For more powerful information questioning the efficacy of vaccines, click here.

Important Note: 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.