Financial Media Articles

Excerpts of Key Financial Media Articles in Major Media

Below are key excerpts of revealing news articles on financial 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.

For further exploration, delve into our comprehensive Banking Corruption Information Center.

Note: Explore our full index to key excerpts of revealing major media news articles on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.

Bangladeshi microcredit pioneer Muhammad Yunus and his Grameen Bank were awarded the Nobel Peace Prize on Friday for their work in advancing economic and social opportunities for the poor, particularly women. The economist and the bank he founded will share the prize. They were cited for their efforts to help "create economic and social development from below" ... by using innovative economic programs such as microcredit lending. Grameen Bank has been instrumental in helping millions of poor ... improve their standard of living by letting them borrow small sums to start businesses. Loans go toward buying items such as cows to start a dairy, chickens for an egg business, or mobile phones to start businesses where villagers who have no access to phones pay a small fee to make calls. "Every single individual on earth has both the potential and the right to live a decent life. Across cultures and civilizations, Yunus and Grameen Bank have shown that even the poorest of the poor can work to bring about their own development," the Nobel Committee said in its citation. Microcredit is the extension of small loans, typically US$50 to US$100, to entrepreneurs too poor to qualify for traditional bank loans. The bank claims to have 6.6 million borrowers, 97 percent of whom are women, and provides services in more than 70,000 villages in Bangladesh.

Note: If the above CNN link does not work, click here. To make a real difference in the world and to help reduce poverty in a dramatic way, see our empowering summary of this inspiring worldwide movement.

A new congressional analysis shows the Iraq war is now costing taxpayers almost $2 billion a week -- nearly twice as much as in the first year of the conflict three years ago and 20 percent more than last year -- as the Pentagon spends more on establishing regional bases. The total cost of military operations at home and abroad since 2001...will top half a trillion dollars. The spike in operating costs -- including a 20 percent increase over last year in Afghanistan, where the mission now costs about $370 million a week -- comes even though troop levels in both countries have remained stable. [A] major factor...is "the building of more extensive infrastructure to support troops and equipment in and around Iraq and Afghanistan," according to the report. Based on Defense Department data, the report suggests that the construction of so-called semi-permanent support bases has picked up in recent months, making it increasingly clear that the US military will have a presence in both countries for years to come. The United States maintains it is not building permanent military bases in Iraq or Afghanistan. "You would expect [operating costs] to level off if you have the same level of people," said the report's principal author, Amy Belasco, a national defense specialist at the Congressional Research Service. "It's a bit mysterious." The Pentagon has not provided Congress with a detailed accounting of all the war funds, making it impossible to conduct a full, independent estimate.

Note: Many hundreds of billions of dollars have been reported missing by top media sources. Do you think it's possible there might be some corruption going on here?

Public kept in dark as business leads talks about North American integration. Away from the spotlight, from Sept. 12 to 14, in Banff Springs, Minister of Public Safety Stockwell Day and Defence Minister Gordon O'Connor met with U.S. and Mexican government officials and business leaders to discuss North American integration at the second North American Forum. The guest list included such prominent figures as U.S. Defence Secretary Donald Rumsfeld, Mexican Secretary of Public Security Eduardo Medina Mora and Canadian Forces chief General Rick Hillier. The event was chaired by former U.S. secretary of state George Schultz, former Alberta premier, Peter Lougheed and former Mexican finance minister Pedro Aspe. Organizers did not alert the media about the event. Our government ... refuses to release any information about the content of the discussions or the actors involved. The event was organized by the Canadian Council of Chief Executives. The media have paid little attention to this far-reaching agreement, so Canadians are unaware that a dozen working groups are currently "harmonizing" Canadian and U.S. regulations on everything from food to drugs to the environment and even more contentious issues like foreign policy. This process ... is about priming North America for better business by weakening the impacts of such perceived obstacles as environmental standards and labour rights. This is why the public has been kept in the dark while the business elite has played a leading role in designing the blueprint for this more integrated North America.

Note: If the above link fails, click here. Why has the U.S. media not covered this key topic? For a second article discussing this secret meeting on a top Canadian TV website, click here. To learn about other secret meetings of the power elite, click here

With its dollar hoard rising at $17 billion a month and about to pass the $1 trillion mark, Beijing is finding out that it is possible to have too much money. Beijing's growing dollar hoard represents the most dangerous imbalance in today's global economy. The United States is both importing heavily from China and borrowing heavily from the country to finance those purchases, pushing the dollar down and putting the two economic superpowers on a collision course.

So many super-rich Americans evade taxes using offshore accounts that law enforcement cannot control the growing misconduct, according to a Senate report that provides the most detailed look ever at high-level tax schemes. Cheating now equals about 7 cents out of each dollar paid by honest taxpayers, as much as $70 billion a year, the report estimated. "The universe of offshore tax cheating has become so large that no one, not even the United States government, could go after all of it," said Sen. Carl Levin, D-Mich., whose staff ran the investigation. The report details how the Quellos Group, a tax shelter boutique based in Seattle, "concocted a tax shelter" using $9.6 billion "worth of fake securities transactions that were used to generate billions of dollars of fake capital losses." When investigators asked for trading records, Levin said, they were first told the trades were private, over-the-counter transactions. He said investigators asked for trading tickets or other evidence of who owned the $9.6 billion worth of stock and were told the stocks were never owned by the parties involved. "They just wrote down numbers on paper and claimed losses," he said. "It was just like fantasy baseball, except the taxes not paid were for real."

Note: Up to $70 billion is lost to the U.S. Treasury each year, yet law enforcement "cannot control" the problem. Hmmmm. If just $10 million were directed to stop the losses, I suspect things might change and the investment would be paid back many fold. Could pressure from high places be preventing such an investigation?

The average American house size has more than doubled since the 1950s; it now stands at 2,349 square feet. Whether it's a McMansion in a wealthy neighborhood, or a bigger, cheaper house in the exurbs, the move toward ever large homes has been accelerating for years. Consider: Back in the 1950s and '60s, people thought it was normal for a family to have one bathroom, or for two or three growing boys to share a bedroom. Well-off people summered in tiny beach cottages. Now, many of those cottages have been replaced with bigger houses. Six-room apartments in cities like New York or Chicago have been combined. Is it wealth? Is it greed? Or are there more subtle things going on? "Big picture is, they are fueling the local economy," says Pat Trunzo, a local builder. Trunzo says there's a different mindset among the wealthy today, compared to when his father started the family business. "Most of the big houses were visible from the road," he says. Now ... the wealthy "want their own private little enclave. And they don't even want the general public to know that they are there." For Trunzo, it's just a bit strange. But for John Stilgoe, a professor ... at Harvard University, it's emblematic. "The big house represents the atomizing of the American family," he says. "Each person not only has his or her own television - each person has his or her own bathroom. The family members rarely have to interact. And the notion of compromise is simply out one of the very many windows these houses sport."

Note: The year after this article was published, big banks were profiting immensely from record numbers of home foreclosures. The year after that, Wall Street was given a massive taxpayer-funded bailout.

Under a secret Bush administration program initiated weeks after the Sept. 11 attacks, counterterrorism officials have gained access to financial records from a vast international database and examined banking transactions involving thousands of Americans and others in the United States. The program, run out of the Central Intelligence Agency and overseen by the Treasury Department ... is a significant departure from typical practice in how the government acquires Americans' financial records. Treasury officials did not seek individual court-approved warrants or subpoenas to examine specific transactions, instead relying on broad administrative subpoenas for millions of records. That access to large amounts of confidential data was highly unusual, several officials said, and stirred concerns inside the administration about legal and privacy issues. "The capability here is awesome or, depending on where you're sitting, troubling," said one former senior counterterrorism official who considers the program valuable. While tight controls are in place, the official added, "the potential for abuse is enormous." The program is separate from the National Security Agency's efforts to eavesdrop without warrants and collect domestic phone records, operations that have provoked fierce public debate and spurred lawsuits against the government and telecommunications companies.

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

Imagine the dilemma of having so much cash in your bank account that you didn't know what to do with it. This pipe dream for the average American is now reality for the country's biggest corporations. The industrial companies that make up the Standard & Poor's 500 index...have a staggering $643 billion in cash and equivalents. "We're in a time that is out of whack with all historical numbers," said Howard Silverblatt, equity market analyst at Standard & Poor's. "People are demanding why corporations need so much cash, what are they going to do with it?" Companies began propping up their reserves through 16 straight quarters of double-digit profit growth. Leading the pack with the most cash is Exxon Mobil Corp., which has about $36.55 billion on its balance sheet. That amount is nearly equal to its 2005 profit of $36.13 billion, the highest ever for a U.S. company. Some results of the cash riches: An unprecedented $500 billion of stock buybacks. Last year, ExxonMobil spent $18.2 billion buying its shares. One of the biggest avenues in which companies have spent this excess money has been through mergers and acquisitions. Some 75.4 percent of all deals under $1 billion so far this year were done purely with cash.

Note: A Google search reveals that though this Associated Press article was widely picked up by medium-sized newspapers in the U.S., none of the top 10 papers picked it up. The Seattle newspaper above also removed the word "huge" from the title after it was published. $36 billion means that more than $100 for every man, woman, and child in the U.S. went into ExxonMobil profits last year, and another $100 for each person went into their cash reserves. If ExxonMobil and other oil companies have so much extra cash, why are gas prices so high? It's also quite interesting that the advertisements of these mega-corporations continually invite us to go into debt buying their products, while their profits and cash reserves grow ever higher.

President George W. Bush has bestowed on his intelligence czar, John Negroponte, broad authority, in the name of national security, to excuse publicly traded companies from their usual accounting and securities-disclosure obligations. Notice of the development came in a brief entry in the Federal Register, dated May 5, 2006, that was opaque to the untrained eye. Unbeknownst to almost all of Washington and the financial world, Bush and every other President since Jimmy Carter have had the authority to exempt companies working on certain top-secret defense projects from portions of the 1934 Securities Exchange Act. Administration officials told BusinessWeek that they believe this is the first time a President has ever delegated the authority to someone outside the Oval Office. It couldn't be immediately determined whether any company has received a waiver under this provision. The timing of Bush's move is intriguing. On the same day the President signed the memo, Porter Goss resigned as director of the Central Intelligence Agency. Only six days later ... USA Today reported that the National Security Agency had obtained millions of calling records of ordinary citizens provided by three major U.S. phone companies. Negroponte oversees both the CIA and NSA in his role as the administration's top intelligence official. In addition to refusing to explain why Bush decided to delegate this authority to Negroponte, the White House declined to say whether Bush or any other President has ever exercised the authority and allowed a company to avoid standard securities disclosure and accounting requirements.

Note: For many revealing reports on government secrecy from major media sources, click here.

GAO is required by law to annually audit the consolidated financial statements of the U.S. government. Until the problems discussed in GAO's audit report on the U.S. government's consolidated financial statements are adequately addressed, they will continue to...hinder the federal government from having reliable financial information to operate in an economical, efficient, and effective manner. For the ninth consecutive year, certain material weaknesses in internal control and in selected accounting and financial reporting practices resulted in conditions that continued to prevent GAO from being able to provide the Congress and American people an opinion as to whether the consolidated financial statements of the U.S. government are fairly stated in conformity with U.S. generally accepted accounting principles. Major impediments to an opinion on the consolidated financial statements continued to be (1) serious financial management problems at the Department of Defense. The federal government's fiscal exposures now total more than $46 trillion, representing close to four times gross domestic product (GDP) in fiscal year 2005 and up from about $20 trillion or two times GDP in 2000.

Note:For the official .pdf version on the GAO website click here. Why didn't this become headline news? Why isn't anyone being assigned to seriously investigate these continually unresolved core issues and report to the public that the largest, most powerful country in the world is a long way from being able to track its own finances. For lots more major media articles on major government corruption, click here. You can help to build a better world by sharing this vital information with your friends and colleagues and contacting members of the media and your government representatives asking them to address this pervasive problem. Thanks for caring.

For the ninth consecutive year, certain material weaknesses in internal control and in selected accounting and financial reporting practices resulted in conditions that continued to prevent GAO from being able to provide the Congress and American people an opinion as to whether the consolidated financial statements of the U.S. government are fairly stated in conformity with U.S. generally accepted accounting principles. Until the problems discussed in GAO's audit report on the U.S. government's consolidated financial statements are adequately addressed, they will...hinder the federal government from having reliable financial information to operate in an economical, efficient, and effective manner. The cost to operate the federal government--increased to $760 billion in fiscal year 2005 from $616 billion in fiscal year 2004. This represents an increase of about $144 billion or 23 percent. The federal government's gross debt was about $8 trillion as of September 30, 2005. The federal government's fiscal exposures now total more than $46 trillion, representing close to four times gross domestic product (GDP) in fiscal year 2005 and up from about $20 trillion...in 2000.

Note: For the full 20-page GAO report on the sad state of U.S. government finances, click here. For the text-only version, click here. The GAO is one of the few branches of government which works hard to prevent corruption. Why didn't this devastating report get any press coverage? Why does the media fail to inform the public that the Pentagon cannot account for literally trillions of dollars? (see CBS article on this) For possible answers, see our highly informative mass media summary.

In his 18 years as chairman of the Federal Reserve, Greenspan has occasionally drawn criticism, but no one disputes his technical prowess or sniffs at his track record of low inflation and steady, almost uninterrupted growth. Enter Ben S. Bernanke, President Bush's nominee to take Greenspan's place. The former Princeton economics professor is currently the chairman of the president's Council of Economic Advisers. The following are excerpts from [a speech] by Ben S. Bernanke. "On Milton Friedman's Ninetieth Birthday," Nov. 8, 2002: "I first read 'A Monetary History of the United States' early in my graduate school years at M.I.T. I was hooked, and I have been a student of monetary economics and economic history ever since. Friedman and [his co-author Anna J.] Schwartz made the case that the economic collapse of 1929-33 was the product of the nation's monetary mechanism gone wrong. What I take from their work is the idea that monetary forces, particularly if unleashed in a destabilizing direction, can be extremely powerful. "I would like to say to Milton and Anna: Regarding the Great Depression. You're right, we did it. We're very sorry. But thanks to you, we won't do it again."

Note: The chairman of the Federal Reserve Board admits here that the Federal Reserve caused the Great Depression. The Federal Reserve is owned by powerful private banks. It was created in 1913 largely in secrecy and fought by many who understood the dangers involved. For more reliable information on this, click here.

They're tax havens: 70 mostly tiny nations that offer no-tax or low-tax status to the wealthy so they can stash their money. Usually, the process is so secret that it draws little attention. But the sums - and lost tax revenues - are growing so large that the havens are getting new and unaccustomed scrutiny. There are about 3 million shell companies (set up largely to duck taxes) in offshore tax havens, Komisar reckons. These tiny tax havens hold 31 percent of total world assets and 26 percent of the stock of US multinationals.

ENRON: The Smartest Guys in the Room [is] the inside story of one of history’s greatest business scandals, in which top executives of America’s seventh largest company walked away with over one billion dollars while investors and employees lost everything. Based on the best-selling book ... this tale of greed, hubris and betrayal reveals the outrageous personal excesses of the Enron hierarchy and the moral vacuum that led CEO Ken Lay - along with other players including accounting firm Arthur Andersen, Chief Operating Officer Jeffrey Skilling and Chief Financial Officer Andy Fastow - to manipulate securities trading, bluff the balance sheets and deceive investors. By 2000, the company has grown into the largest natural gas merchant in North America, eventually branching out into trading other commodities. Jeff Skilling is named CEO, and the company stock skyrockets. Meanwhile, Skilling’s “black box” accounting results in declared earnings of 53 million dollars for a collapsing deal that doesn’t profit a cent. And Enron’s West Coast power desk has its most profitable month ever as California citizens become casualties of Enron’s scheme to artificially increase demand for electricity, resulting in rolling blackouts and two deaths. When Enron’s sleight of hand accounting and unethical trading eventually meet the realities of balance sheets that don’t balance and products that don’t exist, unwitting employees who have anchored their financial futures to the Enron ship watch in horror as water rushes in overhead.

Note: Watch this revealing documentary on this webpage. Enron was American's seventh-largest public company and controlled 25 percent of the nation's energy before it failed in 2002. Its stock plummeted from $90 a share to 9 cents a share in a matter of months after fraud was uncovered. For more along these lines, see concise summaries of deeply revealing corporate corruption news articles from reliable major media sources.

George Bush's grandfather, the late US senator Prescott Bush, was a director and shareholder of companies that profited from their involvement with the financial backers of Nazi Germany. Newly discovered files in the US National Archives [confirm] that a firm of which Prescott Bush was a director was involved with the financial architects of Nazism. His business dealings ... continued until his company's assets were seized in 1942 under the Trading with the Enemy Act. There has been a steady internet chatter about the "Bush/Nazi" connection, much of it inaccurate and unfair. But the new documents, many of which were only declassified last year, show that even after America had entered the war ... he worked for and profited from companies closely involved with the very German businesses that financed Hitler's rise to power. Remarkably, little of Bush's dealings with Germany has received public scrutiny, partly because of the secret status of the documentation involving him. But now [a] multibillion dollar legal action for damages by two Holocaust survivors against the Bush family, and the imminent publication of three books on the subject are threatening to make Prescott Bush's business history an uncomfortable issue for his grandson. Three sets of archives spell out Prescott Bush's involvement. All three are readily available, thanks to the efficient US archive system. Like his son, George, and grandson, George W, he went to Yale where he was, again like his descendants, a member of the secretive and influential Skull and Bones student society.

The effective tax rate for America's largest and most profitable corporations has sharply declined in recent years, and one third of such companies paid zero taxes -- or less -- in at least one of the last three years. In 2003 alone, 46 of the 275 companies...paid no taxes at all in 2003, despite reporting a total of $42.6 billion in pre-tax profits. Indeed, these companies received $5.4 billion in tax rebates that year. Half of the "tax-break dollars" over the three-year period went to just 25 companies. All told, 82 companies paid zero or negative taxes in at least one of the last three years and 28, including Boeing, paid negative taxes for the entire period. The largest beneficiaries were some of the most profitable companies: General Electric, SBC Communications, Citigroup, IBM and Microsoft. Of the 10 most profitable U.S.-based companies on the Forbes 2000, only Wal-Mart and Freddie Mac do not appear on the study's list of top 25 tax break beneficiaries. At the same time, IRS data indicates that the overall share of federal taxes paid by corporations in now less than 10 percent, down from nearly 13 percent in 1997. This trend occurred against a backdrop of rising corporate earnings. The study attributes the trend to the widening availability of offshore tax shelters and other lawful avoidance techniques.

The Defense Department spent an estimated $100 million for airline tickets that were not used over a six-year period and failed to seek refunds even though the tickets were reimbursable, congressional investigators say. The GAO estimated that between 1997 and 2003, the Defense Department bought at least $100 million in tickets that were not used or used only partially by a passenger who did not complete all legs of a flight. The waste went undetected because the department relied on individuals to report the unused tickets. They did not do so. "The millions of dollars wasted on unused airline tickets provides another example of why DOD financial management is one of our high-risk areas, with DOD highly vulnerable to fraud, waste and abuse," the GAO said. Two of the three lawmakers who asked for the study were Republicans, and both were highly critical of the Pentagon's lack of financial control. Sen. Charles Grassley, R-Iowa, said, "It's outrageous that the Defense Department would be sending additional federal tax dollars to the airlines by way of unused passenger tickets." While one GAO report focused on the unused tickets, the second investigation found potential fraud. It said the department paid travelers for tickets the department already bought and reimbursed employees for tickets that had not been authorized. It is a crime for a government employee knowingly to request reimbursement for goods and services he or she did not buy. To demonstrate how easy it was to have the Pentagon pay for airline travel, the investigators posed as Defense employees, had the department generate a ticket and showed up at the ticket counter to pick up a boarding pass.

Note:To read this astonishing article on the New York Times website, click here.

Queuing to get into one nightclub in Spain could soon be a thing of the past for regular customers thanks to a tiny computer chip implanted under their skin. The technology, known as a VeriChip, also means nightclubbers can leave their cash and cards at home and buy drinks using a scanner. The bill can then be paid later. Clubbers who want to join the scheme at Baja Beach Club in Barcelona pay 125 euros (about US $150) for the VeriChip -- about the size of a grain of rice -- to be implanted in their body. Then when they pass through a scanner the chip is activated and it emits a signal containing the individual's number, which is then transmitted to a secure data storage site. The club's director, Conrad Chase, said he began using the VeriChip, made by Applied Digital Solutions, in March 2004 because he needed something similar to a VIP card and wanted to provide his customers with better service. He said 10 of the club's regular customers, including himself, have been implanted with the chip, and predicted more would follow. "I know many people who want to be implanted," said Chase. "Almost everybody now has a piercing, tattoos or silicone. Why not get the chip and be original?" Chase said VeriChip could also boost security by speeding up checks at airports, for example. He denied the scheme had any drawbacks. The VeriChip is an in-house debit card and contains no personal information.

Note: Why is the media so upbeat about this? The article raises very few questions, yet seems to promote microchip implants in humans as the wave of the future for commerce.

The news that the bankers Rothschild are to withdraw from the gold market, in which they have been a major player for two centuries, has been hailed as the end of an era. In one sense, of course, it is. But in another way it marks out the continuation of an even older tradition - the ability of the family which has founded one of the world's largest private banking dynasties to sustain their secretive fortune, which industry insiders count not in billions but in trillions, and keep it within the family. Secrecy has been a hallmark of the Rothschilds from the outset. The Rothschilds created the world of banking as we know it today. [They] invented, or at any rate popularised, the government bond, which allowed investors, big and small, to buy bits of the debts of sovereign states by purchasing fixed-interest bearer bonds. It brought investment in railways, the industrial revolution and ventures like the Suez Canal. The Rothschilds got a cut of everything. They made billions in the 1980s from Margaret Thatcher's privatisations of state-owned industries on which they advised. In France after their bank was nationalised by the Socialist president Francois Mitterrand they slowly built a new business which, under Baron David de Rothschild, has risen to the top ranks of the merger and acquisition league tables. They have pulled out of retail fund management - into which they went with much fanfare only three years back - and now they are pulling out of oil and gold in favour of the higher-margin areas of private banking and wealth management

Note: For some reason this article was removed from the website of the Independent, which is why the above link takes you to a cached version of this revealing article. For more on financial corruption, see the deeply revealing reports from reliable major media sources available here.

NM Rothschild, one of the City's oldest merchant banks, has decided that profit takes precedence over history and is to withdraw from London's gold market. The move is part of Rothschild's plans to halt all commodities trading out of London as it becomes less profitable. Last year, the business generated just 2.2% of the bank's income, down from more than 8% five years earlier. Rothschild's departure will leave a big gap, not least because it hosts the twice-daily gold price fixing. Started in 1919, it is a prized and bizarre tradition. Every day at 1030 and 1500 local time, five representatives of investment banks meet in a small room at Rothschild's London headquarters on St Swithin's Lane. They are charged by the London Gold Market to agree a price for the bullion on offer. Each sits behind a desk and gets a phone and small Union Jack. In the centre is the chairperson, who for the past 85 years has come from Rothschild. A price is given and relayed via phone lines to customers. Then the haggling begins. When the price is right and buyers are matched with sellers, the flags are lowered and the price is fixed. While the whole process harks to a bygone age, the economics of the modern gold market are far less quaint. Many producers are no longer hedging their exposure to both currency and commodity price movements and that has taken a large chunk of business off the table. According to bank chairman David de Rothschild, "our income from commodities trading in London has fallen as a percentage of our total income in each of the past five years".

Note: For more on commodity price rigging, see the deeply revealing reports from reliable major media sources available here.

Important Note: Explore our full index to key excerpts of revealing major media news articles on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.