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Financial News Articles
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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 revealing excerpts of key major media news articles on dozens of engaging topics. And read excerpts from 20 of the most revealing news articles ever published.


Wall Street protest movement spreads to cities across US, Canada and Europe
2011-10-04, The Guardian (One of the UK's leading newspapers)
http://www.guardian.co.uk/world/2011/oct/04/wall-street-protest-movement-spreads

It began as the brainchild of activists across the border in Canada when an anti-consumerism magazine put out a call in July for supporters to occupy Wall Street. Now, three weeks after a few hundred people heeded that initial call and rolled out their sleeping bags in a park in New York's financial district, they are being joined by supporters in cities across the US and beyond. Protesters against corporate greed, unemployment and the political corruption that they say Wall Street represents have taken to the streets in Boston, Los Angeles, St Louis and Kansas City. The core group, Occupy Wall Street, claims people will take part in demonstrations in as many as 147 US cities this month, while the website occupytogether.org lists 47 US states as being involved. Around the world, protests in Canada, the UK, Germany and Sweden are also planned, they say. The speed of the leaderless movement's growth has taken many by surprise. The movement, which organisers say has its roots in the Arab spring and in Madrid's Puerta del Sol protests, has been galvanised by recent media attention. Last week, the Guardian reported that a NYPD police officer had been filmed spraying four women protesters with pepper spray. On Saturday, a peaceful march on Brooklyn bridge intended as a call to the other four boroughs of New York to join in resulted in 700 arrests. Some protesters claim the police trapped them.

Note: For insights into the reasons why people have decided they must occupy their cities in protest of the predations of financial corporations, check out our extensive "Banking Bailout" news articles.


Trader tells BBC 'millions of people's savings will vanish'
2011-09-26, The Telegraph (One of the UK's leading newspapers)
http://www.telegraph.co.uk/finance/financialcrisis/8790719/Trader-tells-BBC-m...

An independent trader, appearing on BBC News, reveal[ed] that he thinks banks and hedge funds believe the stock market 'is toast'. Alessio Rastani said that Goldman Sachs rules the world, not governments, and that Goldman Sachs “don't care about this rescue package” because they know “the stock market is finished” and they “don't really care” about the Euro. US Treasury Secretary Tim Geithner said over the weekend: "Sovereign and banking stresses in Europe are the most serious risk now confronting the world economy. Decisions cannot wait until the crisis gets more severe." He has proposed the so-called Geithner plan which will leverage the EU's €440bn bail-out fund (EFSF) from €440bn to €2 trillion to cope with Italy and Spain. But according to Mr Rastani it may already be too late as: “In less than twelve months, my prediction is, the savings of millions of people are going to vanish.”

Note: To watch the full BBC video of this most unusual interview, click here. For lots more on the fraudulent practices of major financial firms, click here.


Sharpton Appears to Win Anchor Spot on MSNBC
2011-07-21, New York Times
http://www.nytimes.com/2011/07/21/business/media/sharpton-close-to-being-msnb...

After giving a nearly six-month tryout for the Internet talk show host Cenk Uygur, the cable news channel MSNBC is preparing to instead hand its 6 p.m. time slot to the Rev. Al Sharpton. Cenk Uygur said MSNBC's management decided that they did not care for his aggressive style. Mr. Uygur, who had been made a paid contributor to MSNBC months earlier, was handed 6 p.m., a big coup given that he had earlier campaigned to have his progressive Web show “The Young Turks” picked up by MSNBC. Mr. Uygur, who by most accounts was well liked within MSNBC, said in an interview that he turned down the new contract because he felt [MSNBC President Phil] Griffin had been the recipient of political pressure. In April, he said, Mr. Griffin “called me into his office and said that he’d been talking to people in Washington, and that they did not like my tone.” He said he guessed Mr. Griffin was referring to White House officials, though he had no evidence for the assertion. He also said that Mr. Griffin said the channel was part of the “establishment,” and “that you need to act like it.”

Note: To understand why Uygur was forced out by powerful forces behind the scenes, watch the amazing 10-minute video of him exposing the blatant corruption of the bankers at this link. For an interview of MSNBC's Keith Olbermann on Uygur's resignation, click here.


Allied Irish Banks to pay €40m bonuses despite bailout
2010-12-08, The Guardian (One of the UK's leading newspapers)
http://www.guardian.co.uk/business/2010/dec/08/allied-irish-banks-pay-bonuses...

Stricken Allied Irish Banks is preparing to hand out €40m (Ł34m) of bonuses next week – despite being on the brink of receiving another emergency bailout from the Irish government. As many as 2,400 bankers in its Dublin capital markets division are to receive the payments on 17 December under agreements struck with the bank in 2008. The bank, 19% owned by Ireland's taxpayers but expected to reach 95% state-ownership, had originally been blocked from making the payments under one of the government's bailout programmes. But legal action by a trader, John Foy, over a deferred €161,000 bonus awarded in 2008 has led the bank to conclude it will need to pay bonuses to many of the staff to whom they were awarded for that year. The bonuses are being handed out at a time when the government is instigating four years of tax rises and brutal cuts to benefits. Bankers are receiving much of the blame for forcing Ireland to take international assistance and implement the austerity budgetary measures.

Note: For lots more from reliable sources on the worldwide bailout by taxpayers of failed banks, click here.


Mondragón Worker-Operatives Decide How to Ride Out a Downturn
2009-07-00, Yes! Magazine
http://www.yesmagazine.org/article.asp?id=3511

The Mondragón Cooperative Corporation (MCC), the largest consortium of worker-owned companies, has developed a different way of doing business—a way that puts workers, not shareholders, first. Here’s how it played out when one of the Mondragón cooperatives fell on hard times. The worker/owners and the managers met to review their options. After three days of meetings, the worker/owners agreed that 20 percent of the workforce would leave their jobs for a year, during which they would continue to receive 80 percent of their pay and, if they wished, free training for other work. This group would be chosen by lottery, and if the company was still in trouble a year later, the first group would return to work and a second would take a year off. The result? The solution worked and the company thrives to this day. The central importance of workers permeates every aspect of the Mondragón Cooperatives. Even though the MCC businesses are affected by the global financial crisis, there is no unemployment within the MCC businesses. People are moved around to other jobs, or hours are cut without cutting pay. The wages for unworked hours are to be repaid through extra hours worked later in the year. Contrary to what some advocates of top-down management say, this worker-centered focus hasn’t been an obstacle to growth. Founded in 1956 by Father Don Jose Arizmendi, a Basque Catholic priest, the Mondragón cooperatives today comprise more than 100 cooperatives, as well as more than 100 subsidiaries that MCC has purchased and hopes to convert. Altogether, MCC companies employ more than 100,000 worker/owners and in 2007 generated revenues of more than $24 billion.


Mystery of Fake U.S. Bonds Fuels Web Theories
2009-06-26, New York Times
http://www.nytimes.com/2009/06/26/business/global/26fake.html

Ever since two middle-aged men with Japanese passports were caught in Italy this month trying to smuggle a purported $134.5 billion in United States government bearer bonds into Switzerland, the Internet has been abuzz with theories. In all, the Italian financial police and customs guards confiscated 249 paper bonds, each supposedly worth $500 million, and 10 bonds with a face value of $1 billion each. After reports of the seizure began to trickle out of Italy, the blogosphere sprang into action, the ponderings fueled by suspicions that the mainstream media was willfully ignoring the tale. The story took on greater life after Italian authorities — who have refused to talk about the scandal — declined to declare the bonds fakes until they were examined by Washington. Col. Rodolfo Mecarelli, the provincial commander of the financial police in Como, said the investigations were focused on “understanding who these men were and where they were from.” Also unknown are the whereabouts of the two men, who were released after being stopped in early June. “The men were questioned, but not arrested,” said Naoki Oyakawa, an official at the Japanese consulate in Milan. He said the two men had valid Japanese passports, but he would not elaborate further on their identities. “We don’t know where they are now,” he said. “We have had no contact with the two men. They have not asked us for our help.” What the bonds were for remains unclear. “It’s not the sort of thing that you can just go into a bank and convert,” said Colonel Mecarelli. “But they may have been useful to guarantee business deals among people who don’t use cash.” Agencies that deal with financial crimes, including Europol, declined to comment while the Italian investigation was still under way.”

Note: Although this dismissive article asserts that the bonds seized are fakes, many odd circumstances remain unexplained, including the "unknown" identity of the smugglers and why they would smuggle fake securities. The US, Italian and Japanese authorities and mainstream media again have failed to report something of potential significance.


Fed to Buy Up to $300 Billion Long-Term Bonds
2009-03-18, CNBC/Reuters News
http://www.cnbc.com/id/29755961/

The Federal Reserve announced Wednesday it will spend up to $300 billion over the next six months to buy long-term government bonds, a new step aimed at lifting the country out of recession by lowering rates on mortgages and other consumer debt. Fed purchases should boost Treasury prices and drive down their rates. That would ripple through and lower rates on other kinds of debt. The last time the Fed set out to influence long-term interest rates was during the 1960s. The Fed also said it will buy more mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac to help that battered market. The central bank will buy an additional $750 billion, bringing its total purchases of these securities to $1.25 trillion. It also will boost its purchase of Fannie and Freddie debt to $200 billion. Pimco's Bill Gross tells CNBC that the move has expanded the Fed’s balance sheet by perhaps 50 percent, up to $3 trillion. In addition, the Fed said a $1 trillion program to jump-start consumer and small business lending could be expanded to include other financial assets. Across the Atlantic, the Bank of England last week began buying government bonds from financial institutions as it turned to other ways to help revive Britain's moribund economy. The Bank of England, like the Fed, already had lowered its key interest rate to a record low of 0.5 percent. Finance leaders from top economies have discussed coordinating actions from their governments and central banks to provide a more potent punch against the global financial crisis.

Note: The Fed is now buying long-term Treasury bonds because it cannot directly lower interest rates any further. Isn't this just a hidden form of increasing the money supply, with the risk of further devaluing the dollar and eventually causing high inflation? For lots more on the hidden realities of the Wall Street bailout, click here


Treasurys Are 'Disaster Waiting to Happen'
2009-03-17, CNBC
http://www.cnbc.com/id/29720589/

The Federal Reserve has no option but to start buying Treasurys as the government's needs for financing are huge, but the government bond market is a disaster in the making, Marc Faber, editor and publisher of The Gloom, Boom & Doom Report, told CNBC. "Other central banks have done it already around the world but basically what it amounts to is money printing and in fact I don't think that it will help the bond market at all in the long run," Faber told CNBC. "Yields have already backed up pretty substantially and I tell you, I think the US government bond market is a disaster waiting to happen for the simple reason that the requirements of the government to cover its fiscal deficit will be very, very high," Faber said. "The Federal Reserve will have to buy Treasurys, otherwise yields will go up substantially," he said, adding that as their reserves were dwindling, foreign investors were likely to scale down their purchases. But there will be a time when the Federal Reserve will have to increase interest rates to fight inflation, and it will be reluctant to do so because the cost of servicing government debt will rise substantially. "So we'll go into high inflation rates one day," Faber said. The stock market ... outlook is bleak, he added. "I think we may still have a rally ... until about the end of April and probably then a total collapse in the second half of the year sometimes, when it becomes clear that the economy is a total disaster," Faber said.

Note: For lots more on the hidden realities of the Wall Street bailout, click here


Regulatory reports show 5 big banks face huge loss risk
2009-03-09, Miami Herald/McClatchy News
http://www.miamiherald.com/news/politics/AP/story/940829.html

Five of America's largest banks, most of which have received $145 billion in taxpayer bailout dollars, still face potentially catastrophic losses from exotic investments if economic conditions substantially worsen, their latest financial reports show. Citibank, Bank of America, HSBC Bank USA, Wells Fargo Bank and J.P. Morgan Chase reported that their "current" net loss risks from derivatives — insurance-like bets tied to a loan or other underlying asset — surged to $587 billion as of Dec. 31 ... a jump of 49 percent in just 90 days. The banks' potentially huge losses ... shed new light on the hurdles that President Barack Obama's economic team must overcome to save institutions it deems too big to fail. While the potential loss totals include risks reported by Wachovia Bank, which Wells Fargo agreed to acquire in October, they don't reflect another Pandora's Box: the impact of Bank of America's Jan. 1 acquisition of tottering investment bank Merrill Lynch, a major derivatives dealer. The risks of these off-balance sheet investments, once thought minimal, have risen sharply. Fears are rising that a spate of corporate bankruptcies could deliver a new, crippling blow to major banks. Because of the trading in derivatives, corporate bankruptcies could cause a chain reaction that deprives the banks of hundreds of billions of dollars in insurance they bought on risky debt or forces them to shell out huge sums to cover debt they guaranteed. The biggest concerns are the banks' holdings of contracts known as credit-default swaps.

Note: For many powerful revelations from major media sources of the Wall Street bailout, click here.


Gold Climbs to Seven-Month High as Economy May Worsen
2009-02-17, Bloomberg News
http://www.bloomberg.com/apps/news?pid=20601082&sid=acerPa4tlqXg

Gold rose to its highest [price] in almost seven months in London as investors bought the precious metal to preserve their wealth on speculation the global economy will deteriorate. Bullion has climbed 33 percent since October as governments lowered interest rates and spent trillions of dollars to combat the recession. “The very big uncertainties in the stock market and economy are driving investors into gold and precious metals,” said Peter Fertig, owner of Quantitative Commodity Research Ltd. in Hainburg, Germany. Gold for immediate delivery rose as much as $25.40, or 2.7 percent, to $967.15 an ounce, the highest since July 22. April futures gained $22.10, or 2.4 percent, to $964.40. Some investors are buying precious metals on speculation government stimulus packages [and bank bailouts] will spur inflation, Fertig said. Treasury Secretary Timothy Geithner last week pledged as much as $2 trillion in financing for programs aimed at spurring new lending. The Treasury will likely borrow a record $2.5 trillion this fiscal year ending Sept. 30, according to Goldman Sachs Group Inc. “Investors have been aggressively adding physical gold to their portfolios as concerns about counterparty risk” increase, ETF Securities wrote in a report. Investors are hedging “against the risk of currency depreciation and longer term inflation risks as government debt projections balloon.” “Gold has become, for all intents, the world’s second reserve currency,” Dennis Gartman, an economist and the editor of the ... Gartman Letter, said.

Note: For many revealing reports on the realities of government bailouts of banks worldwide, click here.


Global economic crisis called biggest U.S. security threat
2009-02-13, Los Angeles Times
http://www.latimes.com/news/nationworld/nation/la-na-security-threat13-2009fe...

The nation's new intelligence chief [has warned] that the global economic crisis is the most serious security peril facing the United States, threatening to topple governments [and] trigger waves of refugees. The economic collapse "already looms as the most serious one in decades, if not in centuries," said Dennis C. Blair, director of national intelligence, in [testimony before the Senate Intelligence Committee]. Blair's focus on the economic meltdown represents a sharp contrast from the testimony of his predecessors in recent years, who devoted most of their attention in the annual threat assessment hearing to the issues of terrorism and the wars in Afghanistan and Iraq. "Time is probably our greatest threat," Blair said. "The longer it takes for the recovery to begin, the greater the likelihood of serious damage to U.S. strategic interests." He said that one-quarter of the world's nations had already experienced low-level instability attributed to the economic downturn, including shifts in power. He cited anti-government demonstrations in Europe and Russia, and he warned that much of Latin America and the former Soviet satellite states lacked sufficient cash to cope with the spreading crisis. "Countries will not be able to export their way out of this one because of the global nature" of the crisis, Blair said. U.S. intelligence analysts fear there could be a backlash against American efforts to promote free markets because the crisis was triggered by the United States. "We're generally held to be responsible," Blair said.

Note: For the complete text of Blair's testimony, click here. For an excellent analysis, click here. For more on the realities behind the economic crisis, click here.


Credit crunch may take out large US bank warns former IMF chief
2008-08-19, Times of London
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_f...

The deepening toll from the global financial crisis could trigger the failure of a large US bank within months, a respected former chief economist of the International Monetary Fund claimed today, fuelling another battering for banking shares. Professor Kenneth Rogoff, a leading academic economist, said there was yet worse news to come from the worldwide credit crunch and financial turmoil, particularly in the United States, and that a high-profile casualty among American banks was highly likely. “The US is not out of the woods. I think the financial crisis is at the halfway point, perhaps. I would even go further to say the worst is to come,” Prof Rogoff said at a conference in Singapore. In an ominous warning, he added: “We’re not just going to see mid-sized banks go under in the next few months, we’re going to see a whopper, we’re going to see a big one — one of the big investment banks or big banks". Professor Rogoff, who was chief economist at the IMF from 2001 to 2004, predicted that the crisis would foster a new wave of consolidation in the US financial sector before it was over, with mergers between large institutions. He also suggested that Fannie Mae and Freddie Mac, the struggling US secondary mortgage lending giants, were likely to cease to exist in their present form within a few years. His prediction over the fate of Fannie and Freddie came after investors dumped the two groups’ shares on Monday after reports suggested that the US Treasury may have no choice but to effectively nationalise them.

Note: For revealing reports on banking and financial corruption from reliable sources, click here.


Every bank transaction triggers snooping
2008-03-26, Atlanta Journal-Constitution (Atlanta's leading newspaper)
http://www.ajc.com/blogs/content/shared-blogs/ajc/barrcode/entries/2008/03/26...

The sad saga of [Eliot] Spitzer should concern every American. The web of snooping in which federal investigators and regulators are now able to ensnare any person who engages in any form of financial transaction has become so complex and pervasive that almost no person anywhere in the world can escape its clutches. The seeds of this modern-day Orwellian financial web were sown in the late 1960s and early 1970s when such expansive federal laws as the Bank Secrecy Act were enacted. Designed as tools to ferret out organized crime figures, major drug traffickers and international money launderers, this family of far-reaching regulatory-cum-criminal laws initially was used largely as intended. Many of the “Suspicious Activity Reports” (or SARs) required by the Bank Secrecy Act of 1970, for example, were largely ignored by investigators and prosecutors, who viewed them as burdensome and difficult to catalog and utilize. Two events have conspired to change all that. First, the advent of digital technology has elevated dramatically the ability of the government to gather, analyze, manipulate, retrieve and disseminate the SAR data. The second factor ... was, of course, the events of 9/11 and the ensuing USA Patriot Act. These two things institutionalized fear as the driving force in virtually all federal policies, including those relating to financial reporting. [A section of] the Patriot Act — has been interpreted by banking examiners to require banks to profile their customers and the full range of their transactions, regardless of amount. These “know your customer” regulations are among the most insidious of this entire class of invasive federal laws and regulations.

Note: This informative article is by former US Congressman Bob Barr, who has become a crusader against the excesses of the PATRIOT Act.


Unintended Consequences
2008-03-24, Newsweek magazine
http://www.newsweek.com/id/123489

When Congress passed the Patriot Act in the aftermath of the 9/11 attacks, law-enforcement agencies hailed it as a powerful tool to help track down the confederates of Osama bin Laden. No one expected it would end up helping to snag the likes of Eliot Spitzer. In the fine print were provisions that gave the Treasury Department authority to demand more information from banks about their customers' financial transactions. But Treasury went further. It issued stringent new regulations that required banks themselves to look for unusual transactions (such as odd patterns of cash withdrawals or wire transfers) and submit SARs—Suspicious Activity Reports—to the government. Facing potentially stiff penalties if they didn't comply, banks and other financial institutions installed sophisticated software to detect anomalies among millions of daily transactions. They began ranking the risk levels of their customers ... based on complex formulas that included ... whether an account holder was a "politically exposed person" [PEP]. At first focused on potentially crooked foreign officials, the PEP lists expanded to include many U.S. politicians and public officials who were conceivably vulnerable to corruption. Federal prosecutors around the country routinely scour the SARs for potential leads. One of those leads led to Spitzer. Last summer New York's North Fork Bank, where Spitzer had an account, filed a SAR about unusual money transfers he had made. The governor called attention to himself by asking the bank to transfer money in someone else's name. The SAR was not itself evidence that Spitzer had committed a crime. But it made the Feds curious enough to follow the money.

Note: This story provides useful information about how the PATRIOT Act has been applied since its passage. The reasons for the investigation of Eliot Spitzer, leading to his resignation, may not have been so simple, however, given his many powerful enemies in government and on Wall Street.


Foreclosure wave sweeps America
2007-11-05, BBC
http://news.bbc.co.uk/2/hi/business/7070935.stm

A wave of foreclosures and evictions is about to sweep the United States in the wake of the sub-prime mortgage lending crisis. This could destabilise the US housing market and may also lead to further turmoil in financial institutions, who collectively own $1 trillion (Ł480.6bn) worth of sub-prime debt. Cleveland, Ohio, is an industrial city on the banks of Lake Erie in the US "rust belt". It is the sub-prime capital of the United States. One in ten homes in the city is now vacant, and whole neighbourhoods have been blighted by foreclosed, vandalized and boarded-up homes. Cleveland is facing a rising crime wave, and the cost of demolishing the vacant houses alone will cost the city $100m of its tax base. According to Jim Rokakis, the County Treasurer for Cleveland's Cuyahoga County, "Wall Street strategies that made the cycle of no-money-down, no-questions-asked lending possible have sucked the life out of my city". As the credit crunch continues to bite "families all over the country continue to lose homes in record numbers, stripping families of their wealth and destroying entire neighbourhoods," says Michael Calhoun of the Center for Responsible Lending, which tracks these issues. There have already been 1.7 million foreclosure proceedings in the US in the first eight months of 2007, and up to 2 million families are expected to lose their homes over the next two years, according to estimates by the US Congress's Joint Economic Committee. Many of these mortgages were sold by unscrupulous and little regulated mortgage brokers, who received handsome commissions for selling expensive and unsuitable products. Some customers were not told that their interest rates would go up sharply after two years; others were promised they could refinance their home before higher rates took effect. Others found that when they had difficulties paying, huge unexplained fees were added to their bills, putting them further in debt.


Music Manager, Film Producer Dies at 64
2007-08-25, Washington Post
http://www.washingtonpost.com/wp-dyn/content/article/2007/08/25/AR20070825011...

Aaron Russo, who managed Bette Midler and went on to produce such films as "Trading Places," has died. He was 64. Russo died from cancer before dawn on Friday, surrounded by family at Cedars-Sinai Medical Center, said Heidi Gregg. Russo had been battling the disease for nearly six years. "He was my best friend for 27 years," said Gregg. "Aaron was a freedom fighter, a film maker and a lover of life." Russo ... began promoting rock and roll shows at a local theater while still in high school. He later ... promoted some of the most successful rock acts of the 1960s including Janis Joplin and The Grateful Dead. In the 1970s, Russo managed Bette Midler, producing the Tony award winning "Clams on the Half-Shell Revue" starring the singer. Russo eventually turned to producing feature films including "The Rose" which starred Midler in 1979 as a self destructive rock star, and later "Trading Places" in 1983 which starred Eddie Murphy and Dan Aykroyd. Russo was also a long time political activist. In 2006, Russo finished work on a documentary titled "America: Freedom to Fascism," which was billed as an expose of the Internal Revenue Service. "He was an absolutely amazing man," said Ilona Urban, his press secretary. "He was pointed and once he knew there was a direction to go, you couldn't get him to turn left or right. He was very committed."

Note: Aaron Russo was one of the few respected film makers who dared to reveal some of the major cover-ups going on behind the scenes in the world of banking and more. To view his highly popular, five-star-rated 2006 documentary on this topic, America: From Freedom to Fascism, click here.


Learn from the fall of Rome, US warned
2007-08-14, Financial Times
http://www.ft.com/cms/s/80fa0a2c-49ef-11dc-9ffe-0000779fd2ac.html

The US government is on a ‘burning platform’ of unsustainable policies and practices with fiscal deficits, chronic healthcare underfunding, immigration and overseas military commitments threatening a crisis if action is not taken soon, the country’s top government inspector has warned. David Walker, comptroller general of the US, issued the unusually downbeat assessment of his country’s future in a report that lays out what he called “chilling long-term simulations”. These include “dramatic” tax rises, slashed government services and the large-scale dumping by foreign governments of holdings of US debt. Drawing parallels with the end of the Roman empire, Mr Walker warned there were “striking similarities” between America’s current situation and the factors that brought down Rome, including “declining moral values and political civility at home, an over-confident and over-extended military in foreign lands and fiscal irresponsibility by the central government. In my view, it’s time to learn from history.” Mr Walker’s views carry weight because he is a non-partisan figure in charge of the Government Accountability Office, often described as the investigative arm of the US Congress. In an interview with the Financial Times, Mr Walker said he had mentioned some of the issues before but now wanted to “turn up the volume”. Some of them were too sensitive for others in government to “have their name associated with. I’m trying to sound an alarm and issue a wake-up call,” he said. “As comptroller general I’ve got an ability to look longer-range and take on issues that others may be hesitant, and in many cases may not be in a position, to take on."


Sen. Warren: We Need Regulators Who 'Work For The American People'
2014-10-01, NPR Blog
http://www.npr.org/blogs/thetwo-way/2014/10/01/352852976/sen-warren-we-need-r...

Sen. Elizabeth Warren, a Democrat from Massachusetts, says newly released recordings of conversations between Federal Reserve officials show that the same kind of cozy relationships that led to the 2008 financial crisis still dominate Wall Street. "You really do, for a moment, get to be the fly on the wall that watches all of it, and there it is to be exposed to everyone: the cozy relationship, the fact that the Fed is more concerned about its relationship with a too-big-to-fail bank than it is with protecting the American public," Warren says. The recordings don't reveal anything outright illegal. Instead, they reveal Fed officials discussing "legal but shady" transactions and then wringing their hands over how to delicately bring them up with the bank. Warren, who before coming into office led an effort to create the U.S. Consumer Financial Protection Bureau, says that trepidation is another thing wrong with regulators today. "The fact that Goldman could mount a legal defense here is not really the point of these tapes. The point of these tapes is that the regulators are backing off long before anyone's in court making a legal argument about whether or not they came right up to the line or they crossed over the line." The bottom line, Warren says, is that the United States needs regulators "who understand that they work for the American people, not for the big banks."

Note: For more on this, see concise summaries of deeply revealing financial corruption news articles from reliable major media sources.


Warren Calls for Hearings on New York Fed Allegations
2014-09-27, BloombergBusinessweek
http://www.businessweek.com/news/2014-09-26/new-york-fed-denies-allegations-o...

U.S. Senator Elizabeth Warren called for congressional hearings into allegations that the Federal Reserve Bank of New York has been too deferential to the firms it regulates. A radio program about the regional Fed bank raised “disturbing issues.” “It’s our job to make sure our financial regulators are doing their jobs,” Warren, a Massachusetts Democrat and member of the Senate Banking Committee, said in a statement yesterday. The program “This American Life” released the transcript of a broadcast that includes excerpts of conversations it said were secretly recorded by Carmen Segarra, a former New York Fed bank examiner who was fired in 2012, with some of her colleagues and her supervisor. In the transcript, Segarra described how she felt that her Fed colleagues were afraid of Goldman Sachs Group Inc. and handled it with kid gloves. Senator Sherrod Brown, an Ohio Democrat who’s also on the banking committee, backed Warren’s call for a probe. Segarra sued the New York Fed last October, alleging she was fired in May 2012 after refusing to change her findings on the conflict-of-interest policy. In 2009, New York Fed President William C. Dudley commissioned a probe into his own institution’s practices by David Beim, a finance professor at Columbia Business School. In a report submitted that year and released by the Financial Crisis Inquiry Commission in 2011, Beim wrote that a number of people he interviewed at the reserve bank “believe that supervisors paid excessive deference to banks and as a result they were less aggressive in finding issues or in following up on them in a forceful way.”

Note: Listen to these revealing recordings and more. For more on this, see concise summaries of deeply revealing financial corruption news articles from reliable major media sources.


Heads or Tails, Some CEOs Win the Pay Game
2012-10-04, Bloomberg Businessweek
http://www.businessweek.com/articles/2012-10-04/heads-or-tails-some-ceos-win-...

Most companies in the Standard & Poor’s 500-stock index pay their CEOs annual bonuses that are conditional on meeting specific goals. Yet companies often find ways to lower or reset the performance benchmarks to ensure that their CEOs get at least a portion of their bonus. The practice, which has become more frequent since the 2007 economic downturn, risks turning bonus plans into a “meaningless exercise,” says Carol Bowie, head of Americas research at ISS Governance. Bonus plans are “not simply a mechanism to deliver pay,” she says, “but they should be designed to focus executives on the kinds of operational metrics that are going to deliver value.” Companies often justify moving the goal posts as a way to protect executives from events out of their control—bad luck, such as a hurricane or rising fuel costs. Yet CEOs also benefit financially when good luck strikes. Departing from a bonus plan “only works if a board is willing to use it on the upside and the downside,” says Blair Jones of Semler Brossy Consulting Group. “If it’s only used for the downside, it calls into question the process.” Several studies of U.S. CEO pay have confirmed the lopsided practice. One study, from researchers at Claremont Graduate University and Washington University in St. Louis, found that executives lost far less pay for bad luck than they gained for good luck.

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