Government Corruption Media Articles

Excerpts of Key Government Corruption Media Articles in Major Media

Below are key excerpts of revealing news articles on government corruption from reliable news media sources. If any link fails to function, a paywall blocks full access, or the article is no longer available, try these digital tools.

Note: 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.

It's bizarre but, it turns out, Wall Street cut corners when it created those mortgage-backed investments that triggered the financial collapse. Now that banks want to evict people, they're unwinding these exotic investments to find, that often, the legal documents behind the mortgages aren't there. Caught in a jam of their own making, some companies appear to be resorting to forgery and phony paperwork to throw people - down on their luck - out of their homes. This past January in Los Angeles, 37,000 homeowners facing foreclosure showed up to an event to beg their bank for lower payments on their mortgage. In February in Miami, 12,000 people showed up to a similar event. For many that's when the real surprise comes in: these same banks have fouled up all of their own paperwork to a historic degree. There were a million foreclosures last year. And there will be another million this year - those lawsuits are forcing open those bundled, mortgage-backed securities that Wall Street cooked up in the mid 2000s, and exposing a lack of ownership documents all across the country. Banks are defensive because all 50 state attorneys general want to punish them: the states are seeking about $20 billion in damages for what they say is the irresponsible, perhaps criminal way, that some mortgage companies handled what is, for most folks, the most important investment of their lives.

Note: To watch the amazing 14-minute video of this article, click here. Learn how banks paid a company which hired people off the streets to pretend they were bank vice presidents and sign thousands of documents fraudulently. For lots more from reliable sources on the criminal practices of mortgage lenders, click here.

Igor Gramotkin is ... the manager of the Chernobyl nuclear power plant in Ukraine, and has spent more than two decades at the site of the most devastating nuclear accident in history, trying to stop further radiation emissions and cleaning the area. Mr Gramotkin admitted that the destroyed reactor, still full of radioactive waste and nuclear fuel, remains "a threat not only to Ukraine but to the whole world" until it is encased in a vast steel structure that is being built. In the months after the accident, a makeshift "sarcophagus" had been constructed to encase the reactor, but it is now unstable and, despite work to shore it up, experts say a new shelter is desperately needed in case the old one collapses. At more than 100m tall, the shelter will be the largest moveable structure ever built. Those building it still have to be extremely careful. Standing in the area immediately around the plant subjects a person to radiation equivalent to about one old-style chest X-ray per day. The human costs of the Chernobyl accident are ... horrific by any estimate. [Some] studies put the figure in the hundreds of thousands. There are incidences of genetic mutations, children born lacking organs, and dramatically elevated thyroid cancer levels in local children, who drank milk contaminated with radioactive iodine in the years after the accident.

Note: For many reports from major media sources on the government and corporate corruption that allows the nuclear industry to continue, click here and here.

Dexia SA (DEXB), based in Brussels and Paris, borrowed as much as $33.5 billion through its New York branch from the Fed’s “discount window” lending program, according to Fed documents released yesterday in response to a Freedom of Information Act request. Dublin-based Depfa Bank Plc, taken over in 2007 by a German real-estate lender later seized by the German government, drew $24.5 billion. The biggest borrowers from the ... discount window as the program reached its crisis-era peak were foreign banks, accounting for at least 70 percent of the $110.7 billion borrowed during the week in October 2008 when use of the program surged to a record. The disclosures may stoke a reexamination of the risks posed to U.S. taxpayers by the central bank’s role in global financial markets. Separate data disclosed in December on temporary emergency-lending programs set up by the Fed also showed big foreign banks as borrowers. Six European banks were among the top 11 companies that sold the most debt overall -- a combined $274.1 billion -- to the Commercial Paper Funding Facility. Those programs also loaned hundreds of billions of dollars to the biggest U.S. banks, including JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc. and Morgan Stanley.

Note: For a treasure trove of reports from reliable sources on the bailout of banks worldwide by the US taxpayer, click here.

Does Libya set a precedent? If a revolt breaks out again in Iran, and the regime cracks down with brutal force, will the United States support a Libya-style response? Is there an "Obama Doctrine" emerging? It looks like it. It appears that Obama is ready to use U.S. military force anytime, anywhere, for any reason that he — without Congressional approval or UN support — deems legitimate. During the course of the "War on Terror," now a decade old, there has been a constant barrage of efforts to disparage those who called Iraq, or Afghanistan, a "war for oil." It's not bizarre at all to argue that what animates nearly the entirety of American policy toward the region from Algeria to Iran is concern about oil and natural gas. That's been the driving force behind the creation of the Rapid Deployment Force by President Carter, the establishment of Centcom by President Reagan, the invasion of Kuwait by President Bush I and America's arming of Saudi Arabia and the other members of the so-called Gulf Cooperation Council. It's why Obama muses about "maintaining the flow of commerce" by military means. Which brings us to Iran. If the anti-Ahmadinejad forces rise up again, and perhaps take control of a city like Shiraz, or if Iranian oil workers strike and take control of a southern oil city such as Ahwaz, ... the regime would crack down brutally. And then what?

Note: For many reports exposing the real reasons behind the "endless war" policy of the Bush/Cheney and Obama administrations, click here.

General Electric marketed the Mark 1 boiling water reactors that were used in Japan's Fukushima Dai-ichi plant as cheaper to build than other reactors because they used a smaller and less expensive containment structure. Yet American safety officials have long thought the smaller design more vulnerable to explosion and rupture in emergencies than competing designs. Here's the problem: Profit-making corporations have every incentive to underestimate these probabilities and lowball the likely harms. This is why it's necessary to have such things as government regulators and why regulators need enough resources to enforce the regulations. And it's why recent proposals in Congress to cut the budgets of agencies charged with protecting public safety are so wrong-headed. It's also why regulators have to be independent of the industries they regulate. When there's a revolving door between regulatory agency and industry, officials are reluctant to bite the hands that will feed them. Finally, the tendency of corporations to understate the probabilities of public harms requires that limits be placed on corporate political power. The public cannot not be adequately protected as long as big corporations ... are allowed to bribe legislators with campaign donations and boondoggles.

Note: The author of this opinion, Robert Reich, is a professor at UC Berkeley and former Secretary of Labor.

General Electric, the nation’s largest corporation, had a very good year in 2010. The company reported worldwide profits of $14.2 billion, and said $5.1 billion of the total came from its operations in the United States. Its American tax bill? None. In fact, G.E. claimed a tax benefit of $3.2 billion. That may be hard to fathom for the millions of American business owners and households now preparing their own returns, but low taxes are nothing new for G.E. The company has been cutting the percentage of its American profits paid to the Internal Revenue Service for years, resulting in a far lower rate than at most multinational companies. Its extraordinary success is based on an aggressive strategy that mixes fierce lobbying for tax breaks and innovative accounting that enables it to concentrate its profits offshore. G.E.’s giant tax department, led by a bow-tied former Treasury official named John Samuels, is often referred to as the world’s best tax law firm. Indeed, the company’s slogan “Imagination at Work” fits this department well. The team includes former officials not just from the Treasury, but also from the I.R.S. and virtually all the tax-writing committees in Congress. While General Electric is one of the most skilled at reducing its tax burden, many other companies have become better at this as well.

Note: For key reports from major media sources on corporate and government corruption, click here and here.

Carlos Lam, a Republican activist and Indiana deputy prosecutor, has resigned amid revelations that he sent an email calling for a fake attack on Wisconsin Governor Scott Walker designed to discredit union protesters. Walker, a Republican, was the target of protests for his efforts to roll back many union collective bargaining rights in his state. In a Feb. 19 email uncovered by the Wisconsin Center for Investigative Journalism, Lam apparently told Walker he had a "good opportunity" to win public sympathy with a "'false flag' operation." "If you could employ an associate who pretends to be sympathetic to the unions' cause to physically attack you (or even use a firearm against you), you could discredit the unions," read the email. Lam initially denied having sent the email. He [claimed] he had been shopping for a minivan with his family when it was sent, and suggested his email account had been infiltrated by his political enemies. Lam resigned as deputy prosecutor on Thursday morning, however, reportedly telling his boss he had indeed sent the email. Last month, another Indiana official -- Deputy Attorney General Jeff Cox - lost his job for calling on law enforcement to "use live ammunition" on Wisconsin protesters. Also in February, Walker was the victim of a prank call by a liberal journalist pretending to be billionaire conservative activist David Koch. When the journalist suggested planting people among the protesters to stir up trouble, Walker responded that "we thought about that" but added that he had decided against it.

Note: To learn more about the prevalence of "false flag" operations in politics with links to reliable, verifiable sources, click here. For more on this official's call for a false-flag attack, click here.

The chaos at the Fukushima Daiichi nuclear plant — explosions, fires, ruptures — has not shaken the bipartisan support in partisan Washington for the U.S.'s so-called nuclear renaissance. Republicans have dismissed Japan's crisis as a once-in-a-lifetime fluke. President Obama has defended atomic energy as a carbon-free source of power, resisting calls to halt the renaissance and freeze construction of the U.S.'s first new reactors in over three decades. But there is no renaissance. Even before the earthquake-tsunami one-two punch, the endlessly hyped U.S. nuclear revival was stumbling, pummeled by skyrocketing costs, stagnant demand and skittish investors, not to mention the defeat of restrictions on carbon that could have mitigated nuclear energy's economic insanity. Obama has offered unprecedented aid to an industry that already enjoyed cradle-to-grave subsidies, and the antispending GOP has clamored for even more largesse. But Wall Street hates nukes as much as K Street loves them, which is why there's no new reactor construction to freeze. Once hailed as "too cheap to meter," nuclear fission turns out to be an outlandishly expensive method of generating juice for our Xboxes.

Note: For many reports from major media sources on the government and corporate corruption that allows the nuclear industry to continue, click here and here.

Aetna Inc. is suing six New Jersey doctors over medical bills it calls “unconscionable,” including $56,980 for a bedside consultation and $59,490 for an ultrasound that typically costs $74. The lawsuits could help determine what pricing limits insurers can impose on ”out-of-network” physicians who don’t have contracts with health plans that spell out how much a service or procedure can cost. One defendant billed $30,000 for a Caesarean birth, and another raised his fee for seeing a critically ill patient in a hospital to $9,000 in 2008 from $500 the year before, the insurer alleges in the suits. Aetna tried in 2007 to impose caps on some out-of-network payments, prompting doctor complaints to the New Jersey Department of Banking and Insurance. The agency sided with the doctors, fined the company $2.5 million, and ordered it to pay out-of-network practitioners enough so that patients wouldn’t be asked to pay balances other than co-pays. In 2009, Aetna, UnitedHealth Group Inc., Cigna Corp. and WellPoint Inc. were accused by the New York attorney general of underpaying out-of-network physicians by manipulating a database used to calculate payments. They paid a total of $90 million in settlements without admitting wrongdoing. UnitedHealthcare agreed that year to pay $350 million to settle a lawsuit by the American Medical Association over the same issues. Similar AMA lawsuits against Aetna, Cigna and Wellpoint are pending.

Note: Is the American health care system out of control? For lots more from reliable sources on corporate corruption, click here.

New rules allow investigators to hold domestic-terror suspects longer than others without giving them a Miranda warning, significantly expanding exceptions to the instructions that have governed the handling of criminal suspects for more than four decades. The move is one of the Obama administration's most significant revisions to rules governing the investigation of terror suspects in the U.S. The new rules give interrogators more latitude and flexibility to define what counts as an appropriate circumstance to waive Miranda rights. The Justice Department believes it has the authority to tinker with Miranda procedures. Making the change administratively rather than through legislation in Congress, however, presents legal risks. Before becoming president, Mr. Obama had criticized the Bush administration for going outside traditional criminal procedures to deal with terror suspects, and for bypassing Congress in making rules to handle detainees after 9/11. He has since embraced many of the same policies while devising additional ones—to the disappointment of civil-liberties groups that championed his election.

Note: For key reports from major media sources on government threats to civil liberties, click here.

The "war on drugs" has failed and should be abandoned in favour of evidence-based policies that treat addiction as a health problem, according to prominent public figures including former heads of MI5 and the Crown Prosecution Service. Leading peers – including prominent Tories – say that despite governments worldwide drawing up tough laws against dealers and users over the past 50 years, illegal drugs have become more accessible. Vast amounts of money have been wasted on unsuccessful crackdowns, while criminals have made fortunes importing drugs into this country. The increasing use of the most harmful drugs such as heroin has also led to “enormous health problems”, according to the group. The MPs and members of the House of Lords, who have formed a new All-Party Parliamentary Group on Drug Policy Reform, are calling for new policies to be drawn up on the basis of scientific evidence. It could lead to calls for the British government to decriminalise drugs, or at least for the police and Crown Prosecution Service not to jail people for possession of small amounts of banned substances.

Note: If you examine topics on which the government has declared war, what is being fought against often increases instead of decreasing. Could it be that the best way to deal with serious problems is not to wage war?

South of El Paso, Texas, on Mexico's side of the border, lies Juarez - the most dangerous city in the world. ATF [U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives] Special Agent Rene Jaquez has been stationed there for the past year, trying to keep U.S. guns from being trafficked into Mexico. "That's what we do as an agency," Jaquez said. "ATF's primary mission is to make sure that we curtail gun trafficking." That's why Jaquez tells CBS News he was so alarmed to hear his own agency may have done the opposite: encouraged U.S. gun dealers to sell to suspected traffickers for Mexico's drug cartels. Apparently, ATF hoped that letting weapons "walk" onto the street - to see where they'd end up - would help them take down a cartel. Jaquez is so opposed to the strategy, he's speaking out. "You don't let guns walk. I've never let a gun walk." Yet ATF agents told us they were ordered to let thousands of weapons walk. But ATF wasn't working alone on the case known as "Fast and Furious." Documents show ATF had conference calls with "DHS" (Homeland Security). "USMS" (U.S. Marshals) and DEA. An "ICE," or Customs agent, was on ATF's Fast and Furious team. They were advised by an "AUSA," or Assistant U.S. Attorney under the Justice Department. Jaquez says he's left wondering whether runaway violence in Mexico can be partly blamed on the agency tasked with stopping it.

Note: For many reports from reliable sources on government corruption, click here.

The Federal Reserve will disclose details of emergency loans it made to banks in 2008, after the U.S. Supreme Court rejected an industry appeal that aimed to shield the records from public view. The justices ... left intact a court order that gives the Fed five days to release the records, sought by Bloomberg News' parent company, Bloomberg. The order marks the first time a court has forced the Fed to reveal the names of banks that borrowed from its oldest lending program, the 98-year-old discount window. "I can't recall that the Fed was ever sued and forced to release information" in its 98-year history, said Allan H. Meltzer, the author of three books on the U.S central bank and a professor at Carnegie Mellon University in Pittsburgh. The disclosures, together with details of six bailout programs released by the central bank in December under a congressional mandate, would give taxpayers insight into the Fed's unprecedented $3.5 trillion effort to stem the 2008 financial panic. Under the trial judge's order, the Fed must reveal 231 pages of documents related to borrowers in April and May 2008, along with loan amounts. News Corp.'s Fox News is pressing a bid for 6,186 pages of similar information on loans made from August 2007 to November 2008.

Note: For a treasure trove of reports from major media sources on the hidden activities of the Fed and the biggest Wall Street and international banks, click here.

Commanders in Afghanistan are bracing themselves for possible riots and public fury triggered by the publication of "trophy" photographs of US soldiers posing with the dead bodies of defenceless Afghan civilians they killed. Senior officials at Nato's International Security Assistance Force in Kabul have compared the pictures published by the German news weekly Der Spiegel to the images of US soldiers abusing prisoners in Abu Ghraib in Iraq which sparked waves of anti-US protests around the world. They fear that the pictures could be even more damaging as they show the aftermath of the deliberate murders of Afghan civilians by a rogue US Stryker tank unit that operated in the southern province of Kandahar last year. The case has already created shock around the world, particularly with the revelations that the men cut "trophies" from the bodies of the people they killed. An investigation by Der Spiegel has unearthed approximately 4,000 photos and videos taken by the men. The US military has strived to keep the pictures out of the public domain. The lengthy Spiegel article that accompanies the photographs contains new details about the sadistic behaviour of the men.

Note: For many reports from reliable sources on atrocities and illegal activities by US military forces in Afghanistan and Iraq, click here.

It turns out that nuclear waste has more in common with the financial world than being a metaphor for the worst of its toxic assets. Nuclear waste — some of which remains disastrously radioactive for 100,000 years — turns out to be the ultimate tail risk. Tail risk, of course, is the statistical term much in vogue in the financial press for describing unlikely events. (The 'tail' in tail risk refers to the tail-shaped edges in the bell curve of a normal distribution.) These allegedly unlikely events are sometimes referred to as black swans. Black swans are occurring with such regularity in these volatile times that they can no longer be considered true statistical outliers. [Take] a look at these outlier events within the context of building nuclear waste containment vessels. Repository builders have to take into account a tail risk of future humans disturbing the site and not realising the danger facing themselves and their ecology. People might regress towards a pre-industrial state or lose language over a timescale like that. So you have to design a marker that scares people away, but doesn't flip them over into morbid curiosity towards exploring further and, potentially, dooming an entire civilisation with radioactive poisoning.

Anonymous, an online hacker group, released a string of e-mails last week that purportedly show mortgage document fraud at Bank of America. Many people yawned. After all, there have been well-documented cases of mortgage fraud and illegal foreclosures, and little has been done to punish Bank of America or any of the banks for their behavior. But just because the federal government has been slow to act on the mortgage crisis doesn't mean that these e-mails are any less valuable. The e-mails are a chain showing requests for Balboa Insurance employees to remove document tracking numbers from the system of record. Balboa Insurance became a division of Bank of America after the bank bought the bankrupt home loan company Countrywide Financial. The idea suggested in the e-mails was to misplace individual documents away from matching loans. This would make it harder for federal auditors to investigate individual loans. It would also make it far more difficult for individual homeowners to dispute or question bank action on their loans - and therefore obtain mortgage modifications or a stay on bank foreclosure. The Anonymous e-mails are serious indeed. They're a snapshot into why the mortgage mess spiraled out of control. While they don't tell the whole story, they point to the need for further investigation and possible action on behalf of the federal government. When people are losing their homes, the banks shouldn't be allowed to get away with deception.

Note: For a treasure trove of reports by major media sources on the collusion between government and banks against the public interest, click here.

"The facts in the report speak for themselves, but the principles it describes could apply to funds throughout the United States and overseas." That's attorney Philip Khinda, talking about the 75-page report he delivered last week to the California Public Employees' Retirement System on dealings involving former senior executives and board members with so-called placement agents, and how the latter got tens of millions of dollars in questionable fees for their services. The report is the culmination of a 17-month investigation headed by Khinda, a partner at the Washington law firm Steptoe & Johnson, which was hired by CalPERS for the job. Citing the $800 million a year CalPERS was paying out in fees, the report concludes that "the excessive nature created an environment in which external managers were willing and able to pay fees at a level that bore little or no relationship to the services apparently provided by the placement agents ... Many of the abuses relating to placement agent arrangements were, in a sense, a symptom of a larger problem." That larger problem applies, in part, to funds throughout the United States and overseas, ranging from other public pension funds to sovereign wealth funds investing in the United States. With the amount of money at stake, the fat fees involved, and the various middlemen looking for a piece, events similar to what transpired at CalPERS could just as easily appear elsewhere.

Note: For a treasure trove of reports by major media sources on the collusion between government and financial corporations against the public interest, click here.

U.S. government officials, in private sessions on Capitol Hill [on Friday, March 18], repeatedly declined to give details of radiation measurements at the stricken Japanese nuclear complex, saying the situation is shrouded in a "fog of war." Separately, the Obama administration said ... "miniscule quantities" of radiation from the Japanese nuclear accident were detected Friday at a monitoring station in Sacramento, Calif., a day after similar traces of radiation were detected in Washington state. The administration said the levels of the radioactive isotope xenon 133 were approximately equivalent to one-millionth the dose received from the sun, rocks or other natural sources. The Obama administration's reluctance to detail in public what it is learning from radiation-detection operations around the damaged Fukushima Daiichi complex in Japan ... comes after statements Wednesday by the head of the U.S. Nuclear Regulatory Commission that painted a grimmer picture of the nuclear crisis than Japanese officials had offered, and suggested that the U.S. didn't trust the information coming from the Japanese government.

Note: Shouldn't the title be something more like "U.S. Refuses to Give Radiation Details for Fear of Industry Repercussions"? How sad that money often continues to trump public health in matters like this.

This week, the Michigan legislature passed – and the governor signed into law – a bill that would permit Governor Rick Snyder to push aside elected city officials and replace them with emergency financial managers in any municipality or school district facing financial difficulties. The law would include virtually every town and city in the state as those cities that aren’t bankrupt already soon will be once the governor’s proposed budget – which cuts billions in aid to municipalities and school districts – is approved by the legislature. One of the most shocking, Draconian, democracy-destroying measures in the history of this country has became law – and the nation has seemingly slept through it. The new law, described by one of the GOP legislators sponsoring the bill as “financial martial law”, empowers the governor’s appointees [referred to as ‘Emergency Financial Managers’] to fire duly elected local officials, cancel labor contracts and even dissolve entire communities and school districts. This is about so much more than collective bargaining agreements and unions. This law gives an appointee of the governor – which, by the way, may be a corporation – the authority to dismiss any or all of a municipality’s elected government officials.

Note: For a treasure trove of reports by major media sources on the collusion between government and financial powers against the public interest, click here.

Nuclear plants in the United States last year experienced at least 14 "near misses," serious failures in which safety was jeopardized, at least in part, due to lapses in oversight and enforcement by US nuclear safety regulators, says a new report. They occurred with alarming frequency – more than once a month – which is high for a mature industry, said the study of nuclear plant safety performance in 2010 by the Union of Concerned Scientists, a Washington-based nuclear watchdog group. The report, the first in what the UCS expects will become an annual study, details both successes and failures by the US Nuclear Regulatory Commission, which it calls "the cop on the beat." Charged with overseeing America's fleet of 104 nuclear reactors, the NRC made some "outstanding catches," but was also inconsistent in its oversight, seeming at times to nod off when most needed. "The chances of a disaster at a nuclear plant are low," the report states. "But when the NRC tolerates unresolved safety problems – as it did last year at Peach Bottom, Indian Point, and Vermont Yankee – this lax oversight allows that risk to rise. The more owners sweep safety problems under the rug and the longer safety problems remain uncorrected, the higher the risk climbs."

Note: For many reports from reliable sources on government corruption, 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.