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 gusher unleashed in the Gulf of Mexico continues to spew crude oil. There are no reliable estimates of how much oil is pouring into the gulf. But it comes to many millions of gallons since the catastrophic blowout. Mike Williams, one of the last crewmembers to escape the inferno ... says the destruction of the Deepwater Horizon [oil rig] had been building for weeks in a series of mishaps. The tension in every drilling operation is between doing things safely and doing them fast; time is money and this job was costing BP a million dollars a day. But Williams says there was trouble from the start - getting to the oil was taking too long. Williams said they were told it would take 21 days; according to him, it actually took six weeks. With the schedule slipping, Williams says a BP manager ordered a faster pace. Williams says there was an accident on the rig that has not been reported before. He says, four weeks before the explosion, the rig's most vital piece of safety equipment was damaged ... the blowout preventer, or BOP. The spill has cost BP about $500 million so far. But consider, in just the first three months this year, BP made profits of $6 billion. There are plenty of accusations to go around that BP pressed for speed, Halliburton's cement plugs failed, and Transocean damaged the blowout preventer. Through all the red flags, they pressed ahead.

Note: For lots more from major media sources on corporate and government collusion and corruption, click here and here.

BP's estimate that only 5,000 barrels of oil are leaking daily from a well in the Gulf of Mexico, which the Obama administration hasn't disputed, could save the company millions of dollars in damages when the financial impact of the spill is resolved in court, legal experts say. Neither BP nor the federal government has tried to measure at the source the amount of crude pouring into the water. BP and the Obama administration have said they don't want to take the measurements for fear of interfering with efforts to stop the leaks. The amount of oil spilled is certain to be key evidence in the court battles that are likely to result from the disaster. The size of the Exxon Valdez spill in Alaska, for example, was a significant factor that the jury considered when it assessed damages against Exxon. "If they put off measuring, then it's going to be a battle of dueling experts after the fact trying to extrapolate how much spilled after it has all sunk or has been carried away," said Lloyd Benton Miller, one of the lead plaintiffs' lawyers in the Exxon Valdez spill litigation. "The ability to measure how much oil was released will be impossible."

Note: For lots more from major media sources on corporate and government collusion and corruption, click here and here.

BP, the company in charge of the rig that exploded last month in the Gulf of Mexico, hasn't publicly divulged the results of tests on the extent of workers' exposure to evaporating oil or from the burning of crude over the gulf, even though researchers say those data are crucial in determining whether the conditions are safe. Moreover, the company isn't monitoring the extent of the spill and only reluctantly released videos of the spill site that could give scientists a clue to the amount of the oil in the gulf. BP's role as the primary source of information has raised questions about whether the government should intervene to gather such data and to publicize them and whether an adequate cleanup can be accomplished without the details of crude oil spreading across the gulf. The company also hasn't publicly released air sampling for oil spill workers although Occupational Safety and Health Administration, the agency in charge of monitoring compliance with worker safety regulations, is relying on the information and has urged it to do so.

Note: For lots more from major media sources on corporate and government collusion and corruption, click here and here.

The owner of the oil rig that exploded in the Gulf of Mexico, killing 11 people and causing a giant slick, has made a $270 million profit from insurance payouts for the disaster. The revelation by Transocean, the world’s biggest offshore driller, will add to the political storm over the disaster. The company was hired by BP to drill the well. The “accounting gain” arose because the $560 million insurance policy Transocean took out on its Deepwater Horizon rig was greater than the value of the rig itself. Transocean has already received a cash payment of $401 million with the rest due in the next few weeks. The windfall, revealed in a conference call with analysts, will more than cover the $200 million that Transocean expects to pay to survivors and their families and for higher insurance costs. The total cost of the clean-up and compensation could reach $30 billion, according to some estimates. Transocean said that virtually all of that must be covered by BP and two smaller partners, Anadarko Petroleum and Mitsui of Japan.

Note: For lots more from major media sources on corporate and government collusion and corruption, click here and here.

The United States must curb consumption and credit and boost production and savings, but its citizens and leaders so far lack the will to change, economist Paul Volcker said. Volcker, 82, an adviser to the Obama administration, ... said the United States spiraled toward the Great Recession through an excess of debt that subsidized an appetite for consumer goods, many of them imported. The chief bugaboo, in Volcker's view, was a runaway financial sector that ... became a factory to make money by manipulating money. He said under-regulated financiers made big profits and bonuses by swapping derivatives and other exotic instruments that produced few of the widespread benefits - like better jobs and wages - that normally flow from investment. Now that this financial house of cards has collapsed, Volcker said, U.S. and world leaders must figure out how to stop powerful mega-banks and hedge funds from engaging in the same shenanigans that forced taxpayers to bail them out to prevent further catastrophe. "The central issue with which we have been grappling is the doctrine of 'too big to fail,' " Volcker said, alluding to how the United States bailed out institutions like insurer AIG to prevent their collapse from further damaging the economy.

Note: For a great collection of reports from major media sources on the hidden realities of the Wall Street crisis and the government bailout of big finance, click here.

AstraZeneca has completed a deal to pay $520 million to settle federal investigations into marketing practices for its blockbuster schizophrenia drug, Seroquel. AstraZeneca becomes the fourth pharmaceutical giant in the last three years to admit to federal charges of illegal marketing of antipsychotic drugs, a lucrative category of medications that have quickly risen to the top of United States sales charts. Aggressive sales and promotional practices have helped expand the use of powerful new antipsychotic drugs for children and the elderly. The company, based in London, has been accused of misleading doctors and patients by playing up favorable research and not adequately disclosing studies that show Seroquel increases the risk of diabetes. AstraZeneca still faces more than 25,000 civil lawsuits filed on behalf of patients contending that the company did not disclose the drug�s risks. As a result of aggressive marketing, Seroquel has been increasingly used for children and elderly people for indications not approved by the Food and Drug Administration. The drugs have caused rapid weight gain in children, and side effects including deaths have prompted warnings against giving the drugs to elderly patients for dementia.

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Its superfast, supersecret oil trading software was called the Hammer. And if the Commodity Futures Trading Commission is right, the name fit well with an intricate scheme that allowed commodity traders in Chicago working for Optiver, a little-known company based in Amsterdam, to put their orders first in line and subtly manipulate the price of oil to the company’s advantage. Transcripts and taped conversations of actions that took place in 2007 ... reveal the secretive workings of high-frequency trading, a fast-growing Wall Street business. Critics say this high-speed form of computerized trading, which is used in a wide range of financial markets, enables its practitioners to profit at other investors’ expense. Traders in the Chicago office of Optiver openly talked among themselves of “whacking” and “bullying up” the price of oil. But when called to account by officials of the New York Mercantile Exchange, they described their actions as just “providing liquidity.” In July 2008, the commission charged Optiver with manipulating the price of oil; negotiations over a settlement continue. The Securities and Exchange Commission has opened up an investigation into high-speed-trading practices, in particular the ability of some of the most powerful computers to jump to the head of the trading queue and — in a fraction of a millisecond — capture the evanescent trading spread before the rest of the market does.

Note: This and other reports likely show only the tip of the iceberg of how prices of key stocks and commodities are manipulated. For a great collection of reports from major media sources on the schemes and tricks used by financial corporations, click here.

Chris Paine´s documentary film "Who Killed the Electric Car?" argues convincingly that there was indeed a market for the cars — and a devoted one, ... but that GM [General Motors] squashed the EV1 because, quite simply, it threatened the livelihood of the entire automotive industry. The car used no gasoline, no oil and no mufflers, and it required only sporadic brake maintenance. Each of these components represents billions of dollars in profits for the industry. GM, the oil companies and various government agencies argued that the car wasn´t practical, didn´t have enough range for consumers and was less promising than the apparently imminent hydrogen technology. The reality was exactly the opposite, Paine´s film suggests — the viability of hydrogen as an automotive fuel source alone is in fact almost comically optimistic. The whisper-quiet EV1 was designed by [an] aviation pioneer, Paul MacCready of AeroVironment. In the 1970s, MacCready built the only successful human-powered aircraft, the Gossamer Condor and the Gossamer Albatross. His solar-powered electric car Sunraycer, built for GM, won the 1987 World Solar Challenge Race in Australia. His corporate mantra is "do more with less" — that is, focus on creating vehicles that require less energy to operate, not on finding ways to pump more power into inefficient systems. His team´s battery-powered EV1 was a triumph of engineering and a joy to operate.

Note: For lots more on key suppressed automotive and energy inventions, click here.

It is the Wall Street equivalent of a perfect game of baseball — 27 up, 27 down, the final score measured in millions of dollars a day. Despite the running unease in world markets, four giants of American finance managed to make money from trading every single day during the first three months of the year. Their remarkable 61-day streak is one for the record books. Perfect trading quarters on Wall Street are about as rare as perfect games in Major League Baseball. But Bank of America, Citigroup, Goldman Sachs and JPMorgan Chase & Company produced the equivalent of four perfect games during the first quarter. Each one finished the period without losing money for even one day. Their showing ... underscored the outsize — and controversial — role that trading has assumed at major financial institutions. It also drives home the widening lead that a handful of big banks are enjoying over lesser rivals on post-bailout Wall Street. The four banks ... reaped big rewards without necessarily placing big bets that stocks or bonds would go up or down. “This is not about hitting home runs,” said Jaidev Iyer, who runs his own risk management consulting firm, J-Risk Advisors. “This is just, as we call it, milking the market and your captive client base.”

Note: For an astounding list on the Forbes website of the richest companies in the world by assets, click here. All of the top 10 companies are banks, with collective assets of over $22 trillion! Yet we as taxpayers continue to pay to bail them out when they have problems. Is something wrong with this picture? For a graphic representation of this, click here. And for an abundance of deep reporting in major media articles on the hidden realities of Wall Street's shadowy operations, click here.

The federal Minerals Management Service gave permission to BP and dozens of other oil companies to drill in the Gulf of Mexico without first getting required permits from another agency that assesses threats to endangered species — and despite strong warnings from that agency about the impact the drilling was likely to have on the gulf. Those approvals, federal records show, include one for the well drilled by the Deepwater Horizon rig, which exploded on April 20, killing 11 workers and resulting in thousands of barrels of oil spilling into the gulf each day. The Minerals Management Service, or M.M.S., also routinely overruled its staff biologists and engineers who raised concerns about the safety and the environmental impact of certain drilling proposals in the gulf and in Alaska, according to a half-dozen current and former agency scientists. Those scientists said they were also regularly pressured by agency officials to change the findings of their internal studies if they predicted that an accident was likely to occur or if wildlife might be harmed. “M.M.S. has given up any pretense of regulating the offshore oil industry,” said Kierán Suckling, director of the Center for Biological Diversity, ... which filed notice of intent to sue the agency over its noncompliance with federal law concerning endangered species. “The agency seems to think its mission is to help the oil industry evade environmental laws.”

Note: For lots more from reliable souces on government corruption and collusion with industries it is supposed to be regulating, click here.

The amount of oil spilling into the Gulf of Mexico may be at least 10 times the size of official estimates, according to an exclusive analysis conducted for NPR. At NPR's request, experts examined video that BP released Wednesday. Their findings suggest the BP spill is already far larger than the 1989 Exxon Valdez accident in Alaska, which spilled at least 250,000 barrels of oil. BP has said repeatedly that there is no reliable way to measure the oil spill in the Gulf of Mexico by looking at the oil gushing out of the pipe. But scientists say there are actually many proven techniques for doing just that. Steven Wereley, an associate professor of mechanical engineering at Purdue University, analyzed videotape of the seafloor gusher using a technique called particle image velocimetry. A computer program simply tracks particles and calculates how fast they are moving. Wereley put the BP video of the gusher into his computer. He made a few simple calculations and came up with an astonishing value for the rate of the oil spill: 70,000 barrels a day — much higher than the official estimate of 5,000 barrels a day. The method is accurate to a degree of plus or minus 20 percent. This new, much larger number suggests that capturing — and cleaning up — this oil may be a much bigger challenge than anyone has let on.

Note: For lots more from reliable souces on government corruption and collusion with industries it is supposed to be regulating, click here.

In a move that will stoke a battle over the future of the Internet, the federal government plans to propose regulating broadband lines under decades-old rules designed for traditional phone networks. The decision, by Federal Communications Commission Chairman Julius Genachowski, is likely to trigger a vigorous lobbying battle, arraying big phone and cable companies and their allies on Capitol Hill against Silicon Valley giants and consumer advocates. He wants to adopt "net neutrality" rules that require Internet providers like Comcast Corp. and AT&T Inc. to treat all traffic equally, and not to slow or block access to websites. Internet giants like Google Inc., Amazon.com Inc. and eBay Inc., which want to offer more Web video and other high-bandwidth services, have called for stronger action by the FCC to assure free access to websites. Cable and telecommunications executives have warned that using land-line phone rules to govern their management of Internet traffic would lead them to cut billions of capital expenditure for their networks, slash jobs and go to court to fight the rules. Consumer groups hailed the decision ..., an abrupt change from recent days, when they [had] bombarded the FCC chairman with emails and phone calls imploring him to fight phone and cable companies lobbyists.

At a warehouse in New Jersey, 6,000 used copy machines sit ready to be sold. Almost every one of them holds a secret. Nearly every digital copier built since 2002 contains a hard drive ... storing an image of every document copied, scanned, or emailed by the machine. In the process, it's turned an office staple into a digital time-bomb packed with highly-personal or sensitive data. If you're in the identity theft business it seems this would be a pot of gold. "The type of information we see on these machines with the social security numbers, birth certificates, bank records, income tax forms," John Juntunen said, "that information would be very valuable." Juntunen's Sacramento-based company Digital Copier Security developed software called "INFOSWEEP" that can scrub all the data on hard drives. He's been trying to warn people about the potential risk - with no luck. All the major [digital copier] manufacturers told us they offer security or encryption packages on their products. One product from Sharp automatically erases an image from the hard drive. It costs $500. But evidence keeps piling up in warehouses that many businesses are unwilling to pay for such protection, and that the average American is completely unaware of the dangers posed by digital copiers.

Note: For lots more from reliable sources on threats to privacy, click here.

Federal regulators warned offshore rig operators more than a decade ago that they needed to install backup systems to control the giant undersea valves known as blowout preventers, used to cut off the flow of oil from a well in an emergency. The warnings were repeated in 2004 and 2009. Yet the Minerals Management Service, the Interior Department agency charged both with regulating the oil industry and collecting royalties from it, never took steps to address the issue comprehensively, relying instead on industry assurances that it was on top of the problem, a review of documents shows. In the intervening years, numerous blowout preventers and their control systems have failed, though none as catastrophically as those on the well the Deepwater Horizon drilling rig was preparing when it blew up on April 20, leaving tens of thousands of gallons of oil a day spewing into the Gulf of Mexico. Agency records show that from 2001 to 2007, there were 1,443 serious drilling accidents in offshore operations, leading to 41 deaths, 302 injuries and 356 oil spills. Yet the federal agency continues to allow the industry largely to police itself. Critics say that, then and now, the minerals service has been crippled by this dependence on industry and by a climate of regulatory indulgence.

Note: For lots more from reliable souces on government corruption and collusion with industries it is supposed to be regulating, click here.

Since the Deepwater Horizon oil drilling rig exploded on April 20, the Obama administration has granted oil and gas companies at least 27 exemptions from doing in-depth environmental studies of oil exploration and production in the Gulf of Mexico. The waivers were granted despite President Barack Obama’s vow that his administration would launch a “relentless response effort” to stop the leak and prevent more damage to the gulf. One of them was dated Friday — the day after Interior Secretary Ken Salazar said he was temporarily halting offshore drilling The exemptions, known as “categorical exclusions,” were granted by the Interior Department’s Minerals Management Service (MMS) and included waiving detailed environmental studies for a BP exploration plan to be conducted at a depth of more than 4,000 feet and an Anadarko Petroleum Corp. exploration plan at more 9,000 feet. “Is there a moratorium on off shore drilling or not?” asked Peter Galvin, conservation director with the Center for Biological Diversity, the environmental group that discovered the administration’s continued approval of the exemptions. “Possibly the worst environmental disaster in U.S. history has occurred and nothing appears to have changed.”

Note: For lots more from reliable souces on government corruption and collusion with industries it is supposed to be regulating, click here.

Petrochemical giant BP didn't file a plan to specifically handle a major oil spill from an uncontrolled blowout at its Deepwater Horizon project because the federal agency that regulates offshore rigs changed its rules two years ago to exempt certain projects in the central Gulf region, according to an Associated Press review of official records. The Minerals Management Service, an arm of the Interior Department known for its cozy relationship with major oil companies, says it issued the rule relief because some of the industrywide mandates weren't practical for all of the exploratory and production projects operating in the Gulf region. Robert Wiygul, an Ocean Springs, Miss., environmental lawyer, said the lack of a blowout scenario "is kind of an outrageous omission, because you're drilling in extremely deep waters, where by definition you're looking for very large reservoirs to justify the cost. If the MMS was allowing companies to drill in this ultra-deep situation without a blowout scenario, then it seems clear they weren't doing the job they were tasked with," he said. "The MMS can't change the law just by telling people that they don't have to comply with it."

Note: For lots more from reliable souces on government corruption and collusion with industries it is supposed to be regulating, click here.

You'd think that General Motors Co., having been rescued by U.S. taxpayers, would be more up-front with them. In an ad that has been blanketing the airwaves since last week, General Motors Chairman and chief executive Ed Whitacre boasts that "we have repaid our government loan, in full, with interest, five years ahead of the original schedule." In a press release, Whitacre said GM was able to repay the loans "because more customers are buying vehicles like the Chevrolet Malibu and Buick LaCrosse." Neither the ad nor the press release mentioned that GM repaid its government loan with other government money, or that U.S. taxpayers could lose money on the roughly $50 billion they still have invested in General Motors. In a letter to Treasury Secretary Timothy Geithner last week, Sen. Chuck Grassley, R-Iowa, said the repayment "appears to be nothing more than an elaborate TARP money shuffle."

Note: For lots more on the bailout shell game from reliable sources, click here.

The Securities and Exchange Commission suspected Texas financier R. Allen Stanford of running a Ponzi scheme as early as 1997 but took more than a decade to pursue him seriously. The report by the SEC's inspector general says SEC examiners concluded four times between 1997 and 2004 that Mr. Stanford's businesses were fraudulent, but each time decided not to go further. It singles out the former head of the SEC's enforcement office in Fort Worth, Texas, accusing him of repeatedly quashing Stanford probes and then trying to represent Mr. Stanford as a lawyer in private practice. The former SEC official, Spencer Barasch, is now a partner at law firm Andrews Kurth LLP. The inspector general referred Mr. Barasch for possible disbarment from practicing law. Mr. Stanford was indicted last June and accused of orchestrating a Ponzi scheme that swindled investors out of $7 billion. SEC Inspector General David Kotz's report suggests the agency's mistakes in the Stanford case were in part the result of a culture that favored easily resolved cases over messier ones. Cases such as the alleged Stanford fraud weren't considered "quick-hit" and "slam-dunk," and examiners were discouraged from pursuing them, Mr. Kotz found.

Note: For many more examples from major media sources of the astonishing performance of the SEC in the runup to the Wall Street crisis, click here.

Sempra Energy has agreed to pay about $410 million to settle claims that it played Enron-style games with California's electricity market during the 2000-01 energy crisis, state officials said. Houston's Enron, as well as other companies, used a variety of tactics to create the appearance of congested power lines in some instances and energy shortages in others. Electricity prices soared, and rolling blackouts rippled across the state. Enron traders were caught on audio tape bragging about how much their trading schemes were costing "Grandma Millie," their derisive term for the California utility customer. The crisis forced the state to buy expensive long-term power contracts that Californians are still paying off, month by month, on their utility bills. Pacific Gas and Electric Co., the state's largest utility, tumbled into bankruptcy as a result of soaring wholesale power prices. And Gov. Gray Davis lost his job in a recall election fueled by public anger over his handling of the crisis. Since then, the state government has reached 39 settlement agreements with energy companies for a total of $3.2 billion.

Note: To see how blatant the corruption is, watch the tapes of Enron traders laughing at causing traffic accidents at this link. For many more examples of corporate corruption reported by reliable, verifiable sources, click here.

Why is it so hard to hold Wall Street accountable? Even as we speak the banking industry and corporate America are fighting against financial reform with all the money and influence at their disposal. Their effort is to preserve a system that would enable them to ransack the country once again. What can ordinary Americans do? That's the question I want to put to my guests, Simon Johnson and James Kwak. They have written this new book, 13 Bankers: The Wall Street Takeover and the Next Financial Meltdown. It's a must read - already a best seller -- and it couldn't have come at a better time. This book could change the debate over financial reform by tipping it in favor of the public. Together James Kwak and Simon Johnson run the indispensable economic website BaselineScenario.com. [Moyers:] Let me get to the blunt conclusion you reach in your book. You say that two years after the devastating financial crisis of '08 our country is still at the mercy of an oligarchy that is bigger, more profitable, and more resistant to regulation than ever. Correct? SIMON JOHNSON: Absolutely correct, Bill. The big banks became stronger as a result of the bailout. That may seem extraordinary, but it's really true. They're turning that increased economic clout into more political power. And they're using that political power to go out and take the same sort of risks that got us into disaster in September 2008.

Note: For a treasure trove of reports from reliable sources on the hidden methods used by financial corporations to manipulate the world economy and gain huge profits at the expense of taxpayers, 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.