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 business of housing, transporting and watching over migrant children detained along the southwest border is not a multimillion-dollar business. Its a billion-dollar one. Southwest Key Programs has won at least $955 million in federal contracts since 2015 to run shelters and provide other services to immigrant children in federal custody. Its shelter for migrant boys at a former Walmart Supercenter in South Texas has been the focus of nationwide scrutiny, but Southwest Key is but one player in the lucrative, secretive world of the migrant-shelter business. About a dozen contractors operate more than 30 facilities in Texas alone, with numerous others contracted for about 100 shelters in 16 other states. Trumps order ... calling for migrant families to be detained together likely means millions more in contracts. A small network of private prison companies already is operating family detention centers in Texas and Pennsylvania, and those facilities are likely to expand. Defense contractors and security firms are also building a presence in the system, including General Dynamics ... and MVM Inc.. In Harlingen, [Texas] one recent morning, the federal courthouse that hears immigration cases was packed. Teenagers who had been apprehended crossing the border sat in the courtrooms. In the lobby, a group of men and women ... patiently waited for the hearings to end. They were there for the migrant youth. But they were neither relatives nor lawyers. They were contractors.

Note: What this article doesn't include is the possibility that some of these children are being fed into secret mind control programs and possibly even clandestinely sold into sex trafficking. For more on this, read this essay . For more along these lines, see concise summaries of deeply revealing government corruption news articles from reliable major media sources.

German conglomerate Bayer on Thursday closed its $63 billion merger with Monsanto after getting the required nod from U.S. and EU regulators. The closing sets the stage for the ... brand name "Monsanto" to be dropped by Bayer. Monsanto's agricultural biotechnology research and development operations that are going to Bayer are the largest in the world. "The entire business is essentially going over to Bayer intact," said ... analyst Seth Goldstein. "Taking away the Monsanto name is more of a branding. It should allow for easier PR for Bayer." The annual Harris Poll of corporate reputation ratings among America's "100 most visible companies" has regularly shown Monsanto rank toward the lower end of the list. Monsanto ranked 97 on the list of 100 companies in 2017 and survey results this year put it at 95. Monsanto has spent upwards of $100 million in some years on advertising costs. Some of the corporate efforts have been in direct response to social media attacks ... against genetically modified organisms. Monsanto also has faced protests over the American company's Roundup herbicide product containing glyphosate. The International Agency for Research on Cancer classified glyphosate as "probably carcinogenic" back in 2015. "It's not a surprise Bayer is dropping the Monsanto name since the brand has so many issues and there was international rejection of GMOs," said Andrew Kimbrell, executive director of the Center for Food Safety.

Note: Monsanto has become the target of a negative publicity campaign for very good reasons because of it's huge support of GMOs and RoundUp. Now, Bayer is hoping to erase this negative image, yet they are far from a responsible company. See this post documenting how Bayer collaborated with the Nazis to kill Jews and much more. For more along these lines, see concise summaries of deeply revealing news articles on corruption in the corporate world and in the food system.

As Facebook sought to become the world’s dominant social media service, it struck agreements allowing phone and other device makers access to vast amounts of its users’ personal information. Facebook has reached data-sharing partnerships with at least 60 device makers - including Apple, Amazon, BlackBerry, Microsoft and Samsung. The partnerships ... raise concerns about the company’s privacy protections and compliance with a 2011 consent decree with the Federal Trade Commission. Facebook allowed the device companies access to the data of users’ friends without their explicit consent, even after declaring that it would no longer share such information with outsiders. Some device makers could retrieve personal information even from users’ friends who believed they had barred any sharing. In interviews, several former Facebook software engineers and security experts said they were surprised at the ability to override sharing restrictions. “It’s like having door locks installed, only to find out that the locksmith also gave keys to all of his friends so they can come in and rifle through your stuff without having to ask you for permission,” said Ashkan Soltani, a research and privacy consultant who formerly served as the F.T.C.’s chief technologist.

Note: For more along these lines, see concise summaries of deeply revealing news articles on corporate corruption and the disappearance of privacy.

Edward Snowden has no regrets five years on from leaking the biggest cache of top-secret documents in history. He is wanted by the US. He is in exile in Russia. But he is satisfied with the way his revelations of mass surveillance have rocked governments, intelligence agencies and major internet companies. What has happened in the five years since? The most important change, he said, was public awareness. “The government and corporate sector preyed on our ignorance. But now we know. People are aware now. People are still powerless to stop it but we are trying. The revelations made the fight more even.” He said he had no regrets. His own life is uncertain, perhaps now more than ever, he said. His sanctuary in Russia depends on the whims of the Putin government, and the US and UK intelligence agencies have not forgiven him. For them, the issue is as raw as ever. One of the disclosures to have most impact was around the extent of collaboration between the intelligence agencies and internet companies. In 2013, the US companies were outsmarting the EU in negotiations over data protection. Snowden landed like a bomb in the middle of the negotiations and the data protection law that took effect last month is a consequence. But he will not be marking the anniversary with a “victory lap”. There is still much to be done. “The fightback is just beginning,” said Snowden. “The governments and the corporates have been in this game a long time and we are just getting started.”

Note: For more along these lines, see concise summaries of deeply revealing news articles on intelligence agency corruption and the disappearance of privacy.

The largest government contractor you’ve never heard of [is] a company known simply by the nondescript initials SAIC (for Science Applications International Corporation). It is larger than the departments of Labor, Energy, and Housing and Urban Development combined. No contractor seems to exploit conflicts of interest in Washington with more zeal. And no contractor cloaks its operations in greater secrecy. SAIC has displayed an uncanny ability to thrive in every conceivable political climate. It is the invisible hand behind a huge portion of the national-security state—the one sector of the government whose funds are limitless. SAIC represents, in other words, a private business that has become a form of permanent government. Civilians at SAIC used to joke that the company had so many admirals and generals in its ranks it could start its own war. Some might argue that, in the case of Iraq, it did. 9/11 ... was very, very good for SAIC. In the aftermath of the attacks ... SAIC was ready. SAIC executives have been involved at every stage of the life cycle of the war in Iraq. SAIC personnel were instrumental in pressing the case that weapons of mass destruction existed in Iraq ... and that war was the only way to get rid of them. Then ... SAIC secured contracts for a broad range of operations in soon-to-be-occupied Iraq. When no weapons of mass destruction were found, SAIC personnel staffed the commission that was set up to investigate how American intelligence could have been so disastrously wrong.

Note: SAIC changed its name to Leidos in 2013. Lockheed Martin, which already ran a breathtakingly big part of the United States, and was reported in 2015 to be “engaged in deep and systemic corruption" including paying off a Congresswoman, merged with Leidos in 2016. The hidden war machine is consolidating. For more along these lines, see concise summaries of deeply revealing news articles about corruption in government and in the corporate world.

At the age of 46, DeWayne Johnson is not ready to die. But with cancer spread through most of his body, doctors say he probably has just months to live. Now Johnson, a husband and father of three in California, hopes to survive long enough to make Monsanto take the blame for his fate. Johnson will become the first person to take the global seed and chemical company to trial on allegations that it has spent decades hiding the cancer-causing dangers of its popular Roundup herbicide products – and his case has just received a major boost. Last week Judge Curtis Karnow issued an order clearing the way for jurors to consider not just scientific evidence related to what caused Johnson’s cancer, but allegations that Monsanto suppressed evidence of the risks of its weed killing products. “The internal correspondence noted by Johnson could support a jury finding that Monsanto has long been aware of the risk that its glyphosate-based herbicides are carcinogenic ... but has continuously sought to influence the scientific literature to prevent its internal concerns from reaching the public sphere and to bolster its defenses in products liability actions,” Karnow wrote. Johnson’s case ... is at the forefront of a legal fight against Monsanto. Some 4,000 plaintiffs have sued Monsanto alleging exposure to Roundup caused them, or their loved ones, to develop non-Hodgkin lymphoma (NHL).

Note: As major lawsuits like this one against Monsanto begin to unfold, the EPA continues to use industry studies to declare Roundup safe while ignoring independent scientists. A recent independent study published in a scientific journal found a link between glyphosate and gluten intolerance. Internal FDA emails suggest that the food supply contains far more glyphosate than government reports indicate. For more along these lines, see concise summaries of deeply revealing news articles on food system corruption and health.

The World Health Organization said on Monday it hoped to conduct a full review by the end of the year of a dengue vaccine that was suspended last week in the Philippines. On Friday, the department of health halted its dengue immunization program after the manufacturer, French drug company Sanofi Pasteur, announced the vaccine, [commonly known as Dengvaxia], must be strictly limited due to evidence it can worsen dengue in people not previously exposed to the infection. The government of Brazil, where dengue is common, confirmed it already had recommended restricted use of the vaccine. Amid mounting public concern, Sanofi explained its "new findings" at a news conference in Manila on Monday but did not say why action was not taken after a WHO report in mid-2016 that identified the risk the company was now flagging. Nearly 734,000 children ... in the Philippines have received one dose of the vaccine as part of a programme that cost 3.5 billion pesos (more than $80 million Cdn). The Philippines Department of Justice on Monday ordered the National Bureau of Investigation to look into "the alleged danger to public health ... and if evidence so warrants, to file appropriate charges." There was no indication that Philippines health officials knew of any risks. However, the WHO said in a July 2016 research paper that "vaccination may be ineffective or may theoretically even increase the future risk" of severe dengue illness in people who hadn't been exposed to it prior to their first vaccination.

Note: Read more about this and about the way vaccines dangers are being covered up on this webpage. For more along these lines, see concise summaries of deeply revealing vaccine controversy news articles from reliable major media sources.

Protesters – mainly women – are defying police and energy companies in non-violent environmental activism. Way out in the Appalachian hills ... an orderly clutch of tents were surrounded by a plastic yellow ribbon that read, “police line do not cross”. Past that, a woman sat on top of a 50ft pole. Opposite the knot of tents where the woman’s supporters kept 24-hour vigil lay an encampment of police, pipeline workers, and private security. On Wednesday 23 May, the protester, nicknamed Nutty, finally came down after a record-breaking 57 days spent in the trees ... to stop a fracked natural-gas pipeline from being built through the state. Her final three days in the trees were spent without food. There are others, too, who remain in the forest and are still blocking construction by putting their lives on the line. These activists hold the typical concerns of having a gas pipeline run through the yard: if it leaks it poisons the water, the font of the incredible biodiversity in the area; there’s a two-and-a-half-mile blast radius if it explodes; the pipeline is taking their land through eminent domain against their will for resource extraction. But they also say this is about more than just a pipeline, built by Mountain Valley Pipeline LLC. It is, they say, also about the erosion of democracy and the natural world. Virginia’s governor, Ralph Northam, took $50,000 from MVP’s largest shareholder, EQT Corp, and another $199,251 from Dominion Energy, [a] major shareholder of the Atlantic Coast Pipeline being built nearby.

Note: For more along these lines, see concise summaries of deeply revealing news articles on corruption in government and in the corporate world.

The US government missed the opportunity to curb sales of the drug that kickstarted the opioid epidemic when it secured the only criminal conviction against the maker of OxyContin a decade ago. Purdue Pharma hired Rudolph Giuliani, the former New York mayor and now Donald Trump’s lawyer, to head off a federal investigation in the mid-2000s into the company’s marketing of the powerful prescription painkiller at the centre of an epidemic estimated to have claimed at least 300,000 lives. While Giuliani was not able to prevent the criminal conviction over Purdue’s fraudulent claims for OxyContin’s safety and effectiveness, he was able to reach a deal to avoid a bar on Purdue doing business with the federal government which would have killed a large part of the multibillion-dollar market for the drug. The former New York mayor also secured an agreement that greatly restricted further prosecution of the pharmaceutical company and kept its senior executives out of prison. The US attorney who led the investigation, John Brownlee, has ... expressed surprise that Purdue did not face stronger action. Purdue is now facing ... civil lawsuits [in] New York, Texas and five other states. But Brownlee was the first, and so far only, prosecutor to secure a criminal conviction against the drug maker. Brownlee’s office discovered training videos in which reps acted out selling the drug using the false claims. “This was ... pushed from the highest levels of the company,” said Brownlee.

Note: For more along these lines, see concise summaries of deeply revealing news articles on corruption in government and in Big Pharma.

The House’s bipartisan vote Tuesday to weaken Dodd-Frank, the banking and consumer reform legislation passed in the wake of the 2008 financial collapse and recession ... dramatically shrinks the number of institutions deemed important to the financial system and therefore subject to strict oversight. It raises the threshold automatically triggering such measures from $50 billion to $250 billion in assets. Small banks, defined as under $10 billion in assets, would also be exempt from the Volcker Rule, which prohibits certain risky investments of customers’ money. And an estimated 85 percent of banks would also be excused from reporting requirements meant to detect discrimination in home mortgage lending. Supporters of the regulatory retreat would have the public believe that Dodd-Frank constitutes a crushing burden on a struggling financial industry. Meanwhile, on the very day that the House approved the rollback, the Federal Deposit Insurance Corp. reported that the commercial banks and savings institutions it covers made $56 billion in the first quarter of the year, a 27.5 percent increase from a year earlier. Congress’ ... likely motivation is another figure: the $1.1 billion in contributions to federal campaigns attributed to financial institutions in the last two-year election cycle, according to the Center for Responsive Politics, more than any other sector spent. That haul favored Republicans only modestly, with 46 percent going to Democrats. Judging by this week’s vote, it was money well spent.

Note: For more along these lines, see concise summaries of deeply revealing news articles on corruption in government and in the financial industry.

In 2009, shortly after the housing market crashed and the markets melted down, the owners of a small community bank in New York City’s Chinatown discovered fraud within their loan department. The bank’s owners, the Chinese-American Sung family ... reported the fraud to their regulators. But two-and-a-half years later, the bank was accused of mortgage fraud by the Manhattan District Attorney’s Office — making Abacus Federal Savings the only U.S. bank to be prosecuted in relation to the financial collapse and the first bank indicted in New York since 1991. Why did Abacus face charges, while the biggest banks on Wall Street all avoided prosecution for fraud? That’s the question at the heart of [the new documentary film] Abacus: Small Enough to Jail. Abacus chronicles the Sung family’s quest to clear their names, the district attorney’s case against the bank — and how 19 of the bank’s ex-employees, largely immigrants, were treated by the justice system. When 12 ex-employees of the bank who refused to plead guilty were arraigned, [they were] handcuffed to each other, and in the words of one of their attorneys, “herded like cattle” down courthouse hallways. “Reporters ... were treated to this extraordinary photo opportunity, this almost Stalinist looking chain gang” of Asian Americans, says journalist Matt Taibbi. “I had never seen that in my entire time at the DA’s office,” says Chanterelle Sung, whose father, Thomas, is the bank’s founder. She had worked at the office as a prosecutor for seven years.

Note: You can watch the PBS special on this strange story on this webpage. A transcript of this documentary is available here. For more along these lines, see concise summaries of deeply revealing news articles on corruption in government and in the financial industry.

In 2017, officials at the Stewart immigration detention center in Georgia placed Shoaib Ahmed, a 24-year-old immigrant from Bangladesh, in solitary confinement for encouraging fellow workers to stop working. His punishment was solitary confinement for 10 days. Stewart is operated by the largest prison corporation in the US, CoreCivic (formerly Corrections Corporation of America), under a contract with Immigration and Customs Enforcement (Ice). A growing number of detained immigrants ... are subjected to forced labor. In April, we filed a lawsuit ... against CoreCivic, alleging that the prison corporation violates human trafficking laws and employs a deprivation scheme to force immigrants detained at Stewart to work for sub-minimum wages, and then threatens to punish them for refusing to work through solitary confinement or loss of access to necessities. A lawsuit against Geo Group, another prison corporation, is moving forward for using similar practices. CoreCivics abuse and exploitation ... constitute a contemporary form of slavery as we detailed in a submission to the UN special rapporteur on the human rights of migrants. None of this bothered a group of 18 Republican lawmakers ... who sent a letter to Jeff Sessions, Ice, and the Department of Labor asking them to help ... Geo Group defend itself against the lawsuits. These legislators support for the prison corporations perhaps should not come as a surprise. Private prison companies contributed $1.6m during the 2016 federal election cycle.

Note: The federal class action lawsuit described in the article above was filed against CoreCivic by Project South jointly with the Southern Poverty Law Center, attorney Andrew Free, and the law firm Burns Charest LLP. For more along these lines, see concise summaries of deeply revealing news articles on prison industry corruption and the erosion of civil liberties.

About five decades ago, the core values that make America great began to bring America down. The First Amendment became a tool for the wealthy to put a thumb on the scales of democracy. America’s rightly celebrated dedication to due process was used as an instrument to block government from enforcing job-safety rules ... and otherwise protecting the unprotected. Election reforms ... wound up undercutting democracy. Ingenious financial and legal engineering turned our economy ... into a casino with only a few big winners. Distinctly American ideas became the often unintended instruments for splitting the country into two classes: the protected and the unprotected. The protected overmatched, overran and paralyzed the government. The unprotected were left even further behind. Income inequality has soared: Middle-class wages have been nearly frozen for the last four decades, while earnings of the top 1% have nearly tripled. For adults in their 30s, the chance of earning more than their parents dropped to 50% from 90% just two generations earlier. Many of the most talented, driven Americans used what makes America great - the First Amendment, due process, financial and legal ingenuity, free markets and free trade, meritocracy, even democracy itself - to chase the American Dream. And they won it, for themselves. Then, in a way unprecedented in history, they were able to consolidate their winnings ... and pull up the ladder so more could not share in their success or challenge their primacy.

Note: For more along these lines, see concise summaries of deeply revealing news articles on government corruption and income inequality.

Theres something eating at Google employees. Roughly one dozen employees of the search giant have resigned in the wake of reports that the ... company is providing artificial intelligence to the Pentagon. The employees resigned because of ethical concerns over the companys work with the Defense Department that includes helping the military speed up analysis of drone footage by automatically classifying images of objects and people, Gizmodo reported. Many of the employees who quit have written accounts of their decisions to leave the company. Their stories have been gathered and shared in an internal document. Google is helping the DoDs Project Maven implement machine learning to classify images gathered by drones, according to the report. Some employees believe humans, not algorithms, should be responsible for this sensitive and potentially lethal work - and that Google shouldnt be involved in military work at all. The 12 resignations are the first known mass resignations at Google in protest against one of the companys business decisions - and they speak to the strongly felt ethical concerns of the employees who are departing. In addition to the resignations, nearly 4,000 Google employees have voiced their opposition to Project Maven in an internal petition that asks Google to immediately cancel the contract and institute a policy against taking on future military work.

Note: You can read the full employee petition on this webpage. An open letter in support of google employees and tech workers was signed by more than 90 academics in artificial intelligence, ethics, and computer science. The New York Times also published a good article on this. For more along these lines, see concise summaries of deeply revealing news articles on corporate corruption and war

Last year an American company microchipped dozens of its workers. Of the 90 people who work at [Three Square Market] headquarters, 72 are now chipped. Two months ago, the company ... started chipping people with dementia. If someone wanders off and gets lost, police can scan the chip “and they will know all their medical information, what drugs they can and can’t have, they’ll know their identity.” So far, Three Square Market has chipped 100 people, but plans to do 10,000. The company has just launched a mobile phone app that pairs the chip with the phone’s GPS, enabling the implantee’s location to be tracked. Last week, it started using it with people released from prison on probation. Some Chinese companies are using sensors in helmets and hats to scan workers’ brainwaves. There are tech companies selling products that can ... monitor keystrokes and web usage, and even photograph [employees] using their computers’ webcams. All this can be done remotely. Monitoring is built into many of the jobs that form the so-called “gig economy”. It’s not easy to object to the constant surveillance when you’re desperate for work. What has surprised [Cass Business School professor André Spicer] is how willingly people in better-paid jobs have taken to it. Spicer has watched the shift away from “monitoring something like emails to monitoring people’s bodies – the rise of bio-tracking basically. The monitoring of your vital signs, emotions, moods.”

Note: Author James Bloodworth describes the high tech monitoring of workers at Amazon warehouses in his new book, "Hired: Six Months Undercover in Low-Wage Britain". For more along these lines, see concise summaries of deeply revealing news articles on microchip implants and the disappearance of privacy.

For decades, Don Anderson of Seattle has been taking the same drug to help control the temporary bouts of immobility and muscle weakness caused by a rare and frightening genetic illness called periodic paralysis. The drug Anderson has been taking all these years was originally approved in 1958 and used primarily to treat the eye disease glaucoma under the brand name Daranide. The price has been on a roller coaster in recent years — zooming from a list price of $50 for a bottle of 100 pills in the early 2000s up to $13,650 in 2015, then plummeting back down to free, before skyrocketing back up to $15,001 after a new company, Strongbridge Biopharma, acquired the drug and relaunched it this spring. The zigzagging trajectory of the price of Daranide, now known as Keveyis, shows just how much freedom drug companies have in pricing therapies — and what a big business opportunity selling extremely-rare-disease drugs has become. In 2016, after The Washington Post asked questions about the high price of the drug, Sun Pharmaceutical said it would give the drug away free. Late last year, Sun agreed to sell Keveyis to a biotech company, Strongbridge Biopharma. In April, Strongbridge relaunched the drug. In August, it jacked the list price ... to $15,001 for a bottle of 100 pills. In a PowerPoint presentation for investors, Strongbridge Biopharma estimated that the annual price of treatment for the drug, Keveyis, would range from $109,500 to $219,000.

Note: For more along these lines, see concise summaries of deeply revealing Big Pharma corruption news articles from reliable major media sources.

One very expensive prescription drug threatened to financially cripple an entire city. Rather than using a health insurance company, Rockford, [Illinois] has, for years, paid its own health care costs for its 1,000 employees and their dependents. When Rockford got hit with the drug bill it was so enormous the mayor at the time set out to understand why. In 2015, two small children of Rockford employees were treated with Acthar, a drug that's been on the market since 1952. In 2001, Acthar sold for about $40 a vial. Today: more than $40,000. [Rockford Mayor Larry Morrissey] wanted to know how that could've happened. His investigation got nowhere until last year, when the Federal Trade Commission charged the drug manufacturer, Mallinckrodt, with violating antitrust laws. [The company] bought another drug that was Acthar's main competitor ... and put it on the shelf. Many of the doctors who prescribed a lot of Acthar also were getting money from the company that makes Acthar ... adding up to huge sums. Cities like Rockford [hire pharmacy benefit managers or PBMs] to negotiate down the price of drugs. The company negotiating prices for Rockford is Express Scripts. Express Scripts is many companies, not just the PBM. It also owns a pharmacy that sells expensive drugs, [as well as] a company that ships and packs expensive drugs. The city of Rockford was able to find out one more piece of the puzzle: that Express Scripts ... had a contract to be the exclusive distributor of Acthar.

Note: For more along these lines, see concise summaries of deeply revealing Big Pharma corruption news articles from reliable major media sources.

Pharmaceutical companies that spend billions of dollars to develop new drugs do not want competitors to profit from inexpensive generic copies of blockbuster medicines. To avoid rivals, they ... sometimes prevent generic drug companies from obtaining samples. Dr. Scott Gottlieb, the commissioner of the Food and Drug Administration, calls this “gaming the system,” and has vowed to stop it. On Thursday, the F.D.A. took a new tack and began posting a list of makers of brand-name drugs that have been the target of complaints, to persuade them to “end the shenanigans,” in the commissioner’s words. Congressional efforts to force the companies to hand over samples of their drugs to generic competitors have not been successful. Generic drug developers usually need between 1,500 to 5,000 units of the brand drug to develop their product and test it. Both the F.D.A. and the Federal Trade Commission say securing the samples can be difficult. The F.D.A.’s new list includes drug companies the agency said may be pursuing gaming tactics to delay generic competition. Along with the name of each business, the agency noted how many inquiries it received from generic drug companies seeking supplies. Celgene, [which makes drugs to treat cancer and immune-inflammatory diseases], tops the list. Other companies ... included GlaxoSmithKline, Pfizer, Valeant Pharmaceuticals International, BioMarin Pharmaceutical, Gilead Sciences and Novartis Pharmaceuticals.

Note: For more along these lines, see concise summaries of deeply revealing Big Pharma corruption news articles from reliable major media sources.

On Thursday, the Wall Street Journal reported that Wells Fargo recently discovered that employees were improperly altering the documents of business borrowers, adding information to the accounts without the consent or notifying the clients. The latest issue comes only a week after news came out that Wells Fargo admitted it had improperly collected fees on a Tennessee public pension fund. Improper fees could be a widespread problem in its pension fund business. The bank’s wealth management unit is also under investigation for pressuring clients into rolling over their low-cost 401(k) accounts into more expensive alternatives. Wells Fargo has regularly said its problems are in the past, without spending the money it should to actually put those problems in the past. Wells Fargo, like other banks, doesn’t break out what it spends on compliance, and says it’s generally spending more, but in its most recent quarter it’s hard to see where. In February, the Federal Reserve sanctioned Wells Fargo for not having proper risk controls in place. The bank has since told shareholders it plans to cut costs, not raise them in order to improve compliance. The most recent problem ... appears to have come as Wells Fargo raced to comply with an order from regulators that it collect information on more than 100,000 accounts that it was supposed to have. It appears employees improperly altered the files, potentially adding false information, as part this regulatory review, once again showing a lack of oversight.

Note: Last year, it was reported that a Wells Fargo insurance scam defrauded 570,000 customers. The year before, this bank was caught opening millions of fake accounts using stolen customer identities. Wells Fargo fires employees and pays fines whenever these crimes are uncovered. But no bank executives are criminally prosecuted. And new problems continue coming to light. For more along these lines, see concise summaries of deeply revealing financial industry corruption news articles from reliable major media sources.

The first comprehensive study of the massive pay gap between the US executive suite and average workers has found that the average CEO-to-worker pay ratio has now reached 339 to 1, with the highest gap approaching 5,000 to 1. The study, titled "Rewarding Or Hoarding?," was published [by] US congressman Keith Ellison. Just the summary makes for sober reading. In 188 of the 225 companies in the report’s database, a single chief executive’s pay could be used to pay more than 100 workers; the average worker at 219 of the 225 companies studied would need to work at least 45 years to earn what their CEO makes in one. “Now we know why CEOs didn’t want this data released,” says Ellison, who championed the implementation of the pay ratio disclosure rule as it was written into the Dodd-Frank financial reform bill of 2010. “I knew inequality was a great problem in our society but I didn’t understand quite how extreme it was.” The requirements, long resisted by some of the largest US companies, simply tells companies to identify a median worker and then calculate how much the CEO makes in comparison to that person. According to a recent Bloomberg analysis of 22 major world economies, the average CEO-worker pay gap in the US far outpaces that of other industrialized nations. The average US CEO makes more than four times his or her counterpart in the other countries analyzed. Ellison said the data remains imperfect, as companies are still able to exclude contracted workers from their reporting.

Note: For more along these lines, see concise summaries of deeply revealing income inequality news articles from reliable major media sources.

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.