Government Corruption Media ArticlesExcerpts of Key Government Corruption Media Articles in Major Media
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The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression. Among the [Government Accountability Office] investigation's key findings is that the Fed unilaterally provided trillions of dollars in financial assistance to foreign banks and corporations from South Korea to Scotland, according to the GAO report. The [report] also determined that the Fed lacks a comprehensive system to deal with conflicts of interest, despite the serious potential for abuse. In fact, according to the report, the Fed provided conflict of interest waivers to employees and private contractors so they could keep investments in the same financial institutions and corporations that were given emergency loans. For example, the CEO of JP Morgan Chase served on the New York Fed's board of directors at the same time that his bank received more than $390 billion in financial assistance from the Fed. The investigation also revealed that the Fed outsourced most of its emergency lending programs to private contractors, many of which also were recipients of extremely low-interest and then-secret loans.
Note: We don't normally use the website of a member of the U.S. Senate as a source, but as amazingly none of the media covered this vitally important story other than one blog on Forbes, we are publishing this here. The GAO report to back up these claims is available for all to see at this link. For how the media is so controlled, don't miss the powerful two-page summary with reports by many award-winning journalists at this link. For another good article on the Fed's manipulations, click here.
The phone hacking scandal in Britain claimed another high-profile casualty on [July 18] when John Yates, the deputy commissioner of the Metropolitan Police in London, resigned his post. His departure comes a day after the country’s top police officer quit and Rebekah Brooks, the former chief executive of Rupert Murdoch’s News International, was arrested on suspicion of illegally intercepting phone calls and bribing the police. Such is the severity of the crisis swirling around the Murdoch empire and Britain’s public life that Prime Minister David Cameron cut short an African trip on Monday and, bowing to opposition pressure, called a special parliamentary session on Wednesday to debate the widening scandal. Mr. Murdoch, his son James and Ms. Brooks are set to testify before a parliamentary inquiry into the scandal on Tuesday. The home secretary, Theresa May, said on Monday that the country’s Inspectorate of Constabulary, a police oversight body that reports to her, would investigate possible corruption in the links between the police and journalists. Mr. Yates has been criticized for his decision not to reopen the investigation even though the police under his command possessed some 11,000 pages of largely unexamined evidence. “I’m not going to go down and look at bin bags,” Mr. Yates said.
Note: For lots more on media and government corruption click here and here.
David Cameron flew abroad last night for a long-arranged trip to Africa leaving behind the carnage inside Britain's most important police force, tumult inside the news organisation with which he has closest links, and open disdain from his deputy prime minister, Nick Clegg, over his appointment of Andy Coulson to No 10. The "firestorm" he himself described is still raging, and as the body count rises in the form of arrests or resignations, he looks increasingly exposed. Every day as the crisis continues, his judgment, and that of the chancellor, George Osborne, in appointing the former editor of the News of the World Andy Coulson as his director of communications looks increasingly inexplicable. The problems Cameron faces come from all directions. There is no evidence that the Conservative party either in the Home Office or in the London mayoralty of Boris Johnson took seriously the suggestion, repeatedly raised by Labour, that the connections between News International and the Met were unhealthy. Thirdly, the record of meetings between Cameron and News International executives released on Friday does not reveal a modernising prime minister governing in the national interest, but a victim of a vested interest. His meetings with News International executives in a year exceed those with all other news organisations put together. Not a single figure from the BBC was granted an audience.
Note: For key reports from major media sources on corporate and government corruption, click here and here.
Britain’s top police official resigned on [July 17], the latest casualty of the phone-hacking scandal engulfing British public life, just hours after Rebekah Brooks, the former chief executive of Rupert Murdoch’s News International, was arrested on suspicion of illegally intercepting phone calls and bribing the police. The official, Sir Paul Stephenson, commissioner of the Metropolitan Police Service, commonly known as the Met or Scotland Yard, said that he had decided to step down [but] that he had done nothing wrong and that he would not “lose sleep over my personal integrity.” The commissioner’s resignation came as the London political establishment was still digesting the stunning news about the arrest of Ms. Brooks — who apparently was surprised herself. A consummate networker who has always been assiduously courted by politicians and whose friends include Prime Minister David Cameron, Ms. Brooks, 43, is the 10th and by far the most powerful person to be arrested so far in the phone-hacking scandal. The arrest was a shock to the News Corporation, the parent company of News International, and the other properties in Mr. Murdoch’s media empire, which is reeling from the traumas of last week: the forced withdrawal of its cherished $12 billion takeover bid for British Sky Broadcasting and the resignations not only of Ms. Brooks but also of Les Hinton, a longtime Murdoch ally and friend who was the chairman of Dow Jones and the publisher of The Wall Street Journal.
Note: For lots more on media and government corruption click here and here.
Sean Hoare, the former News of the World showbusiness reporter who was the first named journalist to allege that Andy Coulson was aware of phone hacking by his staff, has been found dead. Hertfordshire police would not confirm his identity, but said in a statement: "The death is currently being treated as unexplained but not thought to be suspicious." There was an unexplained delay in the arrival of forensics officers at the scene. There was no police presence at the scene at all for several hours. Hoare was in his mid-40s. He first made his claims in a New York Times investigation into the phone-hacking allegations at the News of the World. He told the newspaper that not only did Coulson know of the hacking, but he also actively encouraged his staff to intercept the calls of celebrities in the pursuit of exclusives. In a subsequent interview with the BBC he alleged he was personally asked by his editor at the time, Coulson, to tap into phones. Hoare returned to the spotlight last week, after he told the New York Times that reporters at the NoW were able to use police technology to locate people using their mobile phone signals, in exchange for payments to police officers. He said journalists were able to use "pinging", which measured the distance between a mobile handset and a number of phone masts to pinpoint its location.
Note: For lots more from major media sources on corporate and government corruption, click here and here.
The Justice Department has called into question a key pillar of the FBI's case against Bruce Ivins, the Army scientist accused of mailing the anthrax-laced letters that killed five people and terrorized Congress a decade ago. Shortly after Ivins committed suicide in 2008, federal investigators announced that they had identified him as the mass murderer who sent the letters to members of Congress and the media. The case was circumstantial, with federal officials arguing that the scientist had the means, motive and opportunity to make the deadly powder at a U.S. Army research facility at Fort Detrick, in Frederick, Md. On July 15, however, Justice Department lawyers acknowledged in court papers that the sealed area in Ivins' lab -- the so-called hot suite -- did not contain the equipment needed to turn liquid anthrax into the refined powder that floated through congressional buildings and post offices in the fall of 2001. The government's statements deepen the questions about the case against Ivins. Searches of his car and home in 2007 found no anthrax spores, and the FBI's eight-year, $100 million investigation never proved he mailed the letters or identified another location where he might have secretly dried the anthrax into an easily inhaled powder.
Note: For more doubts on the FBI's case against Ivins, click here. For a detailed analysis of the anthrax attacks by Prof. Graeme MacQueen of McMaster University, showing that it was an integral part, with the 9/11 attacks, of a larger operation to launch two wars, click here.
For nearly four years they lay piled in a Scotland Yard evidence room, six overstuffed plastic bags gathering dust and little else. Inside was a treasure-trove of evidence: 11,000 pages of handwritten notes listing nearly 4,000 celebrities, politicians, sports stars, police officials and crime victims whose phones may have been hacked by The News of the World, a now defunct British tabloid newspaper. Yet from August 2006, when the items were seized, until the autumn of 2010, no one at the Metropolitan Police Service, commonly referred to as Scotland Yard, bothered to sort through all the material and catalog every page. During that same time, senior Scotland Yard officials assured Parliament, judges, lawyers, potential hacking victims, the news media and the public that there was no evidence of widespread hacking by the tabloid. After the past week, that assertion has been reduced to tatters, torn apart by a spectacular avalanche of contradictory evidence. The testimony and evidence that emerged last week, as well as interviews with current and former officials, indicate that the police agency and News International, the British subsidiary of Rupert Murdoch’s News Corporation and the publisher of The News of the World, became so intertwined that they wound up sharing the goal of containing the investigation. Members of Parliament said in interviews that they were troubled by a “revolving door” between the police and News International.
Note: Media and government corruption could hardly get worse than seen in this case of the Murdoch phone hacking scandal. Scotland Yard's primary responsibility is to protect the UK public from criminal activity; instead it enabled the activity to continue and shared high-level information and personnel with News Corporation. For lots more on media and government corruption click here and here.
With the first anniversary of the Dodd-Frank financial reform law on July 21, ... what has it accomplished? Consumer advocates, many congressional Democrats and some economists say banks are still too big, the derivatives market remains untamed and opaque, and regulators have been slow to write hundreds of rules. Rules forcing most derivatives trades to be processed through clearinghouses, and backed by collateral, should ... be accepted globally to avoid regulatory arbitrage, in which trading firms move to countries with the least intrusive, and lowest cost, oversight. Less than three years ago, the financial system almost buckled under the weight of worthless mortgages, and the country narrowly avoided another Great Depression. Regulators had been blind to the credit boom and bust; banks took huge risks that exploited regulatory gaps. Today, the economy remains weak ... because of the lingering fallout of the financial crisis. Dodd-Frank isn’t perfect, but already its influence on the financial system has been positive, in ways big and small. Accounting is more transparent; off-balance-sheet assets are largely a thing of the past. [Yet] with the top 10 U.S. banks holding 77 percent of the industry’s domestic assets, compared with 55 percent in 2002, too-big-to-fail is an even bigger worry today. Thomas M. Hoenig, the Kansas City Federal Reserve president, has said that the incentives for risk-taking that existed before the crisis all remain in place.
Note: For many of the most informative reports from major media sources on the financial meltdown and government bailout of the biggest banks, click here.
The Obama administration is facing criticism for prosecutions brought under the US Espionage Act against government employees accused of leaking sensitive information. Mark Feldstein, professor of media at the University of Maryland, sees a worrying trend of espionage prosecutions since President Obama took office. "To everyone's surprise, the Obama administration has escalated the war against whistleblowers and the attacks on information that journalists and the public were depending on to get evidence of wrongdoing by powerful institutions and individuals," Prof Feldstein says. On Friday, Thomas Drake, a former senior official at the National Security Agency, a highly secretive US spy agency, was sentenced to one year's probation, after the Department of Justice's case against him collapsed. He had been accused of passing on information to a journalist about a government computer programme he considered wasteful. Outside court, Mr Drake said the government's prosecution had been "vindictive and malicious". According his lawyer Jesselyn Radack, the charge that he passed on secret information was a ''bald-faced lie''. Critics say the US classification system is often arbitrary, with documents often stamped ''classified'' when the content is not secret or that sensitive.
Note: For key reports from major media sources on government threats to civil liberties, click here.
U.S. officials ... defended a tactic used by the CIA to attempt to verify the whereabouts of Osama bin Laden — the covert creation of a vaccine program in Abbottabad, the town in Pakistan where he was later killed in a U.S. raid. The vaccine drive was conducted shortly before the raid in early May ... and was overseen by a Pakistani doctor who traveled to Abbottabad. A senior U.S. official said the campaign involved actual hepatitis vaccine and should not be construed as a “fake public health effort. The vaccination campaign was part of the hunt for the world’s top terrorist, and nothing else.” The doctor who oversaw the effort has since been arrested by Pakistan’s Inter-Services Intelligence agency for cooperating with the CIA. U.S. officials have said they are seeking to have him released. The senior U.S. official declined to say whether DNA from bin Laden’s relatives was collected as part of the vaccine program. Officials have previously said, however, that they used DNA analysis to confirm bin Laden’s identify after he was killed. In doing so, they used samples taken from known relatives.
Note: For information about a disturbing Pentagon program using vaccinations to combat religious fundamentalism, click here.
A few days ago, the United Nations chose North Korea ... as the new president of the U.N.'s Conference on Disarmament, which describes itself as "the single multilateral disarmament negotiating forum of the international community." Most of the conference's 65-nation membership publicly welcomed the new president, and U.N. Secretary-General Ban Ki-moon endorsed his ascension. Well, not to worry. The new Disarmament Conference president, North Korean So Se Pyong, promised to become "very engaged in moving the conference forward" so that it can "achieve concrete results." How reassuring. Perhaps his country would like to set an example for the world? Actually, North Korea is ... the only state that stubbornly holds on to a nuclear-weapons arsenal even though its leaders know full well that millions of their people are starving to death as a result. Right now, North Korea is facing a famine, and not for the first time. A calamitous food shortage in the late 1990s killed an estimated 2 million people. That time, once the world learned of the problem, months too late, it provided copious aid. This time, almost no one seems willing to help.
The Obama administration approved the secret detention of a Somali terror suspect on board a US navy ship, where for two months he was subjected to military interrogation in the absence of a lawyer and without charge. The capture and treatment of Ahmed Abdulkadir Warsame has rekindled the debate within the US about the appropriate handling of terror suspects. Civil rights groups have objected to the secret questioning of Warsame on board a navy vessel, an innovation that they fear could see a new form of the CIA's widely discredited "black site" detention centres around the world. The US government is turning to detention at sea as a way of avoiding legal and political impediments in the treatment of terror suspects, both domestically and on the international stage. Last week Admiral William McRaven, soon to become head of US Special Operations Command, told his confirmation hearing that militants captured outside Afghanistan were often "put on a naval vessel" to be held until they could be sent to a third country or a case was compiled against them for prosecution in the US courts. Officials told the Washington Post that Warsame was interrogated on "all but a daily basis" on board the ship. The right to a lawyer was withheld along with other habeas corpus rights known in the US as Miranda rights. Civil rights groups have said the secret interrogation was a blatant violation of the Geneva conventions that prohibit prolonged detention of suspects at sea.
Note: For key reports from major media sources on the illegal actions taken by the US government in its "global war on terror", click here.
Early one morning, 50 years ago today, while his wife, Mary, slept upstairs, Ernest Hemingway went into the vestibule of his Ketchum, Idaho, house, selected his favorite shotgun from the rack, inserted shells into its chambers and ended his life. There were many differing explanations at the time: that he had terminal cancer or money problems, that it was an accident, that he’d quarreled with Mary. None were true. As his friends knew, he’d been suffering from depression and paranoia for the last year of his life. This man, who had stood his ground against charging water buffaloes, who had flown missions over Germany, who had refused to accept the prevailing style of writing but, enduring rejection and poverty, had insisted on writing in his own unique way, this man, my deepest friend, was afraid — afraid that the F.B.I. was after him. Decades later, in response to a Freedom of Information petition, the F.B.I. released its Hemingway file. It revealed that beginning in the 1940s J. Edgar Hoover had placed Ernest under surveillance because he was suspicious of Ernest’s activities in Cuba. Over the following years, agents filed reports on him and tapped his phones. In the years since, I have tried to reconcile Ernest’s fear of the F.B.I., which I regretfully misjudged, with the reality of the F.B.I. file. I now believe he truly sensed the surveillance, and that it substantially contributed to his anguish and his suicide.
Note: The view that FBI harassment contributed to Hemingway's suicide is similar to the conclusion of many observers that the FBI hounded microbiologist Bruce Ivins to death by investigating him for involvement in the anthrax attacks that occurred just after 9/11. For an important analysis of the reality of the anthrax attacks by Prof. Graeme MacQueen of McMaster University, which makes it clear they could not have been carried out by a "lone nut" as claimed by the FBI, click here.
The CIA is reported to have used unmanned drones to target ... Somalia for the first time, attacks coinciding with the unveiling of a new US counterterrorism strategy shifting the war on terror away from costly battlefields and toward expanded covert operations. The strikes in Somalia ... bring to six the number of countries where the missile-armed drones have been deployed: Afghanistan, Pakistan, Yemen, Libya and Iraq, and now [Somalia]. US officials quoted by The Washington Post yesterday claimed the two individuals targeted had "direct ties" to Anwar al-Awlaki, the US-born cleric now based in Yemen. In May, al-Alwaki himself was targeted by a drone attack, but managed to escape. If confirmed, the strikes in Somalia would fit the new approach set out in the 19-page "National Strategy for Counterterrorism" released this week by the White House, and presented by John Brennan, President Barack Obama's top anti-terrorism adviser. There is no mention of the Bush era "global war on terror". In this campaign, America's main tools would be intelligence and Special Operations forces, backed up by the rapid deployment of what he called "unique assets", a reference to the drones that are becoming smaller and deadlier.
Note: Could it be that high-level members of the Obama administration believe that if they do not use the "global war on terror" slogan, the public will not perceive the continuation of the Bush administration's policies and methods by Pres. Obama? For critical reports from major media sources on the illegal and unjustified "global war on terror", click here.
British government officials approached nuclear companies to draw up a co-ordinated public relations strategy to play down the Fukushima nuclear accident just two days after the earthquake and tsunami in Japan and before the extent of the radiation leak was known. Internal emails seen by the Guardian show how the business and energy departments worked closely behind the scenes with the multinational companies EDF Energy, Areva and Westinghouse to try to ensure the accident did not derail their plans for a new generation of nuclear stations in the UK. "This has the potential to set the nuclear industry back globally," wrote one official at the Department for Business, Innovation and Skills (BIS), whose name has been redacted. "We need to ensure the anti-nuclear chaps and chapesses do not gain ground on this. We need to occupy the territory and hold it. We really need to show the safety of nuclear." Officials stressed the importance of preventing the incident from undermining public support for nuclear power. Louise Hutchins, a spokeswoman for Greenpeace, said the emails looked like "scandalous collusion". "This highlights the government's blind obsession with nuclear power and shows neither they, nor the industry, can be trusted when it comes to nuclear," she said.
Note: For lots more from reliable sources on government and corporate corruption, click here and here.
More than 100 days after the United States and NATO allies launched what was supposed to be a quick air campaign in Libya, Pentagon officials concede that the effort has little strategic value for the U.S., and the alliance’s desired outcome there remains unclear. What’s become an open-ended conflict, military officers and experts say, illustrates ill-defined U.S. objectives, the limits of relying solely on air power and the lack of diplomatic tools to broker an end to Moammar Gadhafi’s regime. The NATO effort is almost exclusively an air campaign, which is designed to ground Gadhafi’s warplanes and strike at his weapons sites. But at times it appears that NATO has tried to topple Gadhafi, which experts said demands ground forces, a larger air campaign and a clear plan for who will lead Libya in the aftermath of the regime. The hope was that by only using air power, NATO would reduce the costs and risk to troops. But experts say that air power only rarely leads to regime change and isn’t always cheaper. NATO believed that without Gadhafi’s air power, the rebels could claim control of the country within weeks — as quickly as the regimes fell in neighboring Egypt and Tunisia. But instead, the rebels now control less ground than they did when the NATO intervention began.
Note: For lots more from reliable sources on the US/NATO wars of aggression, click here.
When President Barack Obama cited cost as a reason to bring troops home from Afghanistan, he referred to a $1 trillion price tag for America's wars. Staggering as it is, that figure grossly underestimates the total cost of wars in Iraq, Afghanistan and Pakistan to the U.S. Treasury and ignores more imposing costs yet to come, according to a study released on [June 29]. The final bill will run at least $3.7 trillion and could reach as high as $4.4 trillion, according to the research project "Costs of War" by Brown University's Watson Institute for International Studies. In the 10 years since U.S. troops went into Afghanistan ... spending on the conflicts totaled $2.3 trillion to $2.7 trillion. Those numbers will continue to soar when considering often overlooked costs such as long-term obligations to wounded veterans and projected war spending from 2012 through 2020. The estimates do not include at least $1 trillion more in interest payments coming due. In human terms, 224,000 to 258,000 people have died directly from warfare, including 125,000 civilians in Iraq. Many more have died indirectly, from the loss of clean drinking water, healthcare, and nutrition. An additional 365,000 have been wounded and 7.8 million people -- equal to the combined population of Connecticut and Kentucky -- have been displaced. In one sense, the report measures the cost of 9/11. What followed were three wars in which $50 billion amounts to a rounding error. For every person killed on September 11, another 73 have been killed since.
Note: To watch a video of WantToKnow team member Dr. David Ray Griffin's explanation that the war in Afghanistan was not justified by the 9/11 attacks, click here. For lots more from reliable sources on the US/NATO wars of aggression, click here.
The secretive business havens of Cyprus and the Cayman Islands face a potent rival: Cheyenne, Wyoming. At a single address in this sleepy city of 60,000 people, more than 2,000 companies are registered. The building, 2710 Thomes Avenue, isn't a shimmering skyscraper filled with A-list corporations. It's a 1,700-square-foot brick house with a manicured lawn, a few blocks from the State Capitol. A Reuters investigation has found the house at 2710 Thomes Avenue serves as a little Cayman Island on the Great Plains. It is the headquarters for Wyoming Corporate Services, a business-incorporation specialist that establishes firms which can be used as "shell" companies, paper entities able to hide assets. Wyoming Corporate Services will help clients create a company, and more: set up a bank account for it; add a lawyer as a corporate director to invoke attorney-client privilege; even appoint stand-in directors and officers as high as CEO. Among its offerings is a variety of shell known as a "shelf" company, which comes with years of regulatory filings behind it, lending a greater feeling of solidity. All the activity at 2710 Thomes is part of a little-noticed industry in the U.S.: the mass production of paper businesses. Scores of mass incorporators like Wyoming Corporate Services have set up shop.
Note: For lots more from reliable sources on corporate corruption, click here.
The amount the U.S. military spends annually on air conditioning in Iraq and Afghanistan: $20.2 billion, according to a former Pentagon official. That's more than NASA's budget. "When you consider the cost to deliver the fuel to some of the most isolated places in the world — escorting, command and control, medevac support — when you throw all that infrastructure in, we're talking over $20 billion," Steven Anderson tells ... All Things Considered. He's a retired brigadier general who served as chief logistician for Gen. David Petraeus in Iraq. The Pentagon rejects Anderson's estimate. Still his claims raise questions about how much the US footprint in Afghanistan really costs – especially something like air conditioning. To power an air conditioner at a remote outpost in landlocked Afghanistan, a gallon of fuel has to be shipped into Karachi, Pakistan, then driven 800 miles over 18 days to Afghanistan on roads that are sometimes little more than "improved goat trails," Anderson says. "And you've got risks that are associated with moving the fuel almost every mile of the way." Anderson calculates that more than 1,000 troops have died in fuel convoys, which remain prime targets for attack. Freestanding tents equipped with air conditioners in 125-degree heat require a lot of fuel.
Note: For lots more from reliable sources on government corruption, click here.
India's innovative "I Paid a Bribe" website – which puts a spotlight on government corruption – may become a model for rooting out corruption around the world. Co-founder Ramesh Ramanathan told The Hindu news site that he had received requests from seven countries to start similar sites for them. "I Paid a Bribe," begun last August, invites people to post anonymous reports on instances in which they have had to bribe an official. They can also share ways that they have been able to avoid paying a bribe. "Bribery is routinely expected in interactions with government officials – to register your house, to get your driving license, domestic water connection, even a death certificate," Swati Ramanathan, the other co-founder, told the BBC. "We said, 'It's not enough to moralize, we need to find out what exactly is this corruption? What's the size of it?'" The site has recorded more than 10,000 incidences of bribery. Some results are already being seen. "I Paid a Bribe" has already been copied in China by a number of sites ... reports Reuters news agency. Although the Chinese government is officially in favor of anti-corruption efforts, it's not clear whether the authoritarian regime will allow such citizen-led efforts to go forward. In Transparency International's 2010 survey of perceived corruption, India ranked 87th among 178 nations on the list and China ranked 78th. Denmark, New Zealand, and Singapore were listed as the least-corrupt countries. The United States ranked 22nd.
Note: Isn't it inspiring to see activism around government corruption? For lots more from reliable sources on this serious issue, click 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.