Government Corruption News Articles

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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.

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."

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An Afghan warlord backed by US special forces faces persistent allegations that he launched a two-year spate of violence involving burglary, rape and murder of civilians, desecration of mosques and mutilation of corpses. Yet, despite repeated warnings about the atrocities Commander Azizullah is alleged to have committed, he has remained on the payroll of the US military as an "Afghan security guard", a select band of mercenaries. Interviews with religious leaders, tribal elders, villagers, contractors and Western and Afghan officials all pointed to a reign of terror in which they believe 31-year-old Azizullah, an ethnic Tajik, targeted Pashtun civilians while fighting the Taliban. The testimony also tallied with several independent reports documenting the allegations against Azizullah. The allegations of persistent abuses are embarrassing for Nato, and not just because of the closeness with an alleged war criminal. They also showcase the biggest drawbacks of militias, which US commander General David Petraeus wants to expand aggressively across Afghanistan. He wants to triple the size of "local defence initiatives" [militias] to 30,000 members nationwide.The consequences are too awful to contemplate: resurgent warlords, deepening ethnic tensions, widespread bloodletting and the erosion of what little authority the government in Kabul has left.

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

For 18 months, operators at the Diablo Canyon nuclear plant near San Luis Obispo didn't realize that a system to pump water into one of their reactors during an emergency wasn't working. It had been accidentally disabled by the plant's own engineers, according to a report ... from the Union of Concerned Scientists watchdog group, [which] lists 14 recent "near misses" - instances in which serious problems at a plant required federal regulators to respond. The report criticizes both plant operators and the Nuclear Regulatory Commission for allowing some known safety issues to fester. The problem at Diablo Canyon ... involved a series of valves that allow water to pour into one of the plant's two reactors during emergencies, keeping the reactor from overheating. A pair of remotely operated valves in the emergency cooling system was taking too long to move from completely closed to completely open. So engineers shortened the distance between those two positions, according to the report. Unfortunately, two other pairs of valves were interlocked with the first. They couldn't open at all until the first pair opened all the way. No one noticed until the valves refused to open during a test in October 2009, 18 months after the engineers made the changes.

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Police officer perjury in court to justify illegal dope searches is commonplace. One of the dirty little not-so-secret secrets of the criminal justice system is undercover narcotics officers intentionally lying under oath. It is a perversion of the American justice system that strikes directly at the rule of law. Yet it is the routine way of doing business in courtrooms everywhere in America. Why do police ... show contempt for the law by systematically perjuring themselves? The first reason is because they get away with it. They know that in a swearing match between a drug defendant and a police officer, the judge always rules in favor of the officer. Another reason is the nature of most drug cases and the likely type of person involved. The defendant is poor, uneducated, frequently a minority, with a criminal record, and he does have drugs. But the main reason is that the job of these cops is chasing drugs. Their professional advancement depends on nabbing dopers. It's reinforced by San Francisco's own sorry history of infamous undercover narcotics officers promoted to top levels in the department despite contempt for the law shown by bullying, brutality and perjury in carrying out illegal searches and arrests. So the modern narcotics officer is just following a well-worn path.

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Michigan lawmakers are on the verge of approving a bill that would enable the governor to appoint "emergency managers" -- officials with unilateral power to make sweeping changes to cities facing financial troubles. Under the legislation ... the governor could declare a "financial emergency" in towns or school districts. He could then appoint a manager to fire local elected officials, break contracts, seize and sell assets, eliminate services - and even eliminate whole cities or school districts without any public input. The measure passed in the state Senate this week; the House passed its own version earlier. Republican Gov. Rick Snyder has said he will sign the bill into law. U.S. Rep. John Conyers, a Democrat who represents Detroit, said in a statement that in a given city, the governor's new "financial czar" could "force a municipality into bankruptcy, a power that will surely be used to extract further concessions from hardworking public sector workers." He said the legislation raises "serious constitutional concerns."

Note: The bill was made law. For more, click here. For a treasure trove of reports from major media sources exposing the control exerted by financial powers on government officials, click here.

The U.S. government has 15 different agencies overseeing food-safety laws, more than 20 separate programs to help the homeless and 80 programs for economic development. These are a few of the findings in a massive study of overlapping and duplicative programs that cost taxpayers billions of dollars each year, according to the Government Accountability Office. A report from the nonpartisan GAO ... compiles a list of redundant and potentially ineffective federal programs. The GAO examined numerous federal agencies, including the departments of defense, agriculture and housing and urban development, and pointed to instances where different arms of the government should be coordinating or consolidating efforts to save taxpayers' money. The agency found 82 federal programs to improve teacher quality; 80 to help disadvantaged people with transportation; 47 for job training and employment; and 56 to help people understand finances. "Reducing or eliminating duplication, overlap, or fragmentation could potentially save billions of tax dollars annually and help agencies provide more efficient and effective services," the report said.

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The story of the privatization-obsessed Coalition Provisional Authority [created by Bush in Iraq in 2003] was the centerpiece of Naomi Klein’s best-selling book “The Shock Doctrine,” which argued that it was part of a broader pattern. From Chile in the 1970s onward, she suggested, right-wing ideologues have exploited crises to push through an agenda that has nothing to do with resolving those crises, and everything to do with imposing their vision of a harsher, more unequal, less democratic society. Which brings us to Wisconsin 2011, where the shock doctrine is on full display. In recent weeks, Madison has been the scene of large demonstrations against the governor’s budget bill, which would deny collective-bargaining rights to public-sector workers. Gov. Scott Walker claims that he needs to pass his bill to deal with the state’s fiscal problems. But his attack on unions has nothing to do with the budget. What’s happening in Wisconsin is, instead, a power grab — an attempt to exploit the fiscal crisis to destroy the last major counterweight to the political power of corporations and the wealthy. And the power grab goes beyond union-busting. The bill in question is 144 pages long, and there are some extraordinary things hidden deep inside. For example, the bill includes language that would allow officials appointed by the governor to make sweeping cuts in health coverage for low-income families without having to go through the normal legislative process. The state of Wisconsin owns a number of plants supplying heating, cooling, and electricity to state-run facilities. The language in the budget bill would ... let the governor privatize any or all of these facilities. Not only that, he could sell them, without taking bids, to anyone he chooses. And note that any such sale would, by definition, be “considered to be in the public interest.”

Note: For an abundance of major media articles revealing rampant government corruption, click here.

A review of the Federal Bureau of Investigation’s scientific work on the investigation of the anthrax letters of 2001 concludes that the bureau overstated the strength of genetic analysis linking the mailed anthrax to a supply kept by Bruce E. Ivins, the Army microbiologist whom the investigators blamed for the attacks. The review, by a panel convened by the National Academy of Sciences, says the genetic analysis “did not definitively demonstrate” that the mailed anthrax spores were grown from a sample taken from Dr. Ivins’s laboratory at Fort Detrick in Frederick, Md. The academy’s report faults the F.B.I. as failing to take advantage of scientific methods developed between the mailings in 2001 and its conclusion after Dr. Ivins’s suicide in 2008 that he was the sole perpetrator. The academy panel, which was paid $1.1 million by the F.B.I. for its review, assessed only the scientific aspects of the investigation and not the traditional detective work. Representative Rush D. Holt, a New Jersey Democrat and physicist who has followed the case, said he thought the academy’s review showed that “the F.B.I. attached too much certainty to the scientific parts of the case.” “I also think it shows the case was closed prematurely,” Mr. Holt said. He said he was reintroducing a bill to create a national commission, similar to the Sept. 11 panel, to take a more comprehensive look at the anthrax case and its implications.

Note: The government has seemed eager to pin this on Ivins, when evidence appears to point to the U.S. military. For more strange evidence on anthrax and dead researchers, click here.

The landmark Blackstone Hotel in downtown Chicago, which has hosted 12 U.S. presidents, opened in 2008 after a two-year, $116 million renovation. Buffed marble staircases greet guests spending up to $699 a night for rooms with views of Lake Michigan. What's surprising isn't the opulent makeover: It's how the project was financed. The work was subsidized by a federal development program intended to help poor communities. The biggest beneficiary of taxpayer help for the Blackstone revamp was Prudential Financial Inc., the second-largest U.S. life insurer. The company got $15.6 million in tax credits from the U.S. Department of the Treasury for helping to fund the project. JPMorgan Chase & Co., the second-largest U.S. bank by assets, also took in money by serving as a lender and the monitor of Blackstone construction financing, city records show. Since 2003, some of the world's biggest financial companies, including Goldman Sachs Group Inc., U.S. Bancorp, JPMorgan Chase and Prudential, have taken advantage of a federal subsidy that will cost taxpayers $10.1 billion -- and most of the public has never heard of it. Investors have used the program, called New Markets Tax Credits, to help build more than 300 upscale projects, including hotels, condominiums, office buildings and a car museum, on streets far from poverty, according to ... records released through a federal Freedom of Information Act request. JPMorgan spokesman Tom Kelly .. declines to discuss specifics. “We think these projects help the community,” Kelly says.

Note: For other revealing major media articles showing blatant corruption in the government and corporations, click here and here.

The International Monetary Fund issued a report Thursday on a possible replacement for the dollar as the world's reserve currency. The IMF said Special Drawing Rights, or SDRs, could help stabilize the global financial system. SDRs represent potential claims on the currencies of IMF members. They were created by the IMF in 1969 and can be converted into whatever currency a borrower requires at exchange rates based on a weighted basket of international currencies. The IMF typically lends countries funds denominated in SDRs While they are not a tangible currency, some economists argue that SDRs could be used as a less volatile alternative to the U.S. dollar. The goal is to have a reserve asset for central banks that better reflects the global economy since the dollar is vulnerable to swings in the domestic economy and changes in U.S. policy. In addition to serving as a reserve currency, the IMF also proposed creating SDR-denominated bonds, which could reduce central banks' dependence on U.S. Treasuries. The Fund also suggested that certain assets, such as oil and gold, which are traded in U.S. dollars, could be priced using SDRs. Fred Bergsten, director of the Peterson Institute for International Economics, said at a conference in Washington that IMF member nations should agree to create $2 trillion worth of SDRs over the next few years.

Of the 500 big companies in the well-known Standard & Poor’s stock index, 115 paid a total corporate tax rate — both federal and otherwise — of less than 20 percent over the last five years, according to an analysis of company reports done for The New York Times by Capital IQ, a research firm. Thirty-nine of those companies paid a rate less than 10 percent. Arguably, the United States now has a corporate tax code that’s the worst of all worlds. The official rate is higher than in almost any other country, which forces companies to devote enormous time and effort to finding loopholes. Yet the government raises less money in corporate taxes than it once did, because of all the loopholes that have been added in recent decades. Over the last five years ... Boeing paid a total tax rate of just 4.5 percent. Southwest Airlines paid 6.3 percent. And the list goes on: Yahoo paid 7 percent; Prudential Financial, 7.6 percent; General Electric, 14.3 percent. Economists have long pleaded for an overhaul of the corporate tax code. But it won’t be easy. Companies that use loopholes to avoid taxes don’t mind the current system, of course, and they have more than a few lobbyists at their disposal.

Note: For a treasure trove of reliable reports on corporate corruption, click here.

When it comes to paychecks, Wall Street's law of gravity is back in full force: What goes down must come back up. In 2010, total compensation and benefits at publicly traded Wall Street banks and securities firms hit a record of $135 billion, according to an analysis by The Wall Street Journal. The total is up 5.7% from $128 billion in combined compensation and benefits by the same companies in 2009. At 25 large financial firms that have reported full-year results, revenue rose to $417 billion, another all-time high. "Things are shifting back to where they were before," said J. Robert Brown, a law professor at the University of Denver who studies compensation and corporate-governance issues. Buried in the numbers, though, are signs of how Wall Street's pay culture is bending in response to pressure from regulators and shareholders. Last year, deferred compensation made up as much as half of total pay, up from about a third previously, estimates Alan Johnson, managing director of Johnson Associates Inc., a New York pay consultant. Banks and securities firms are deferring a larger percentage of compensation than they used to, trying to counter criticism that yearly cash bonuses encourage unwise risk-taking by executives, traders and other employees aiming for a big payday.

Note: For the NY State Comptroller's analysis of Wall Street bonuses in 2010, click here and here.

The FBI disclosed to a presidential board that it was involved in nearly 800 violations of laws, regulations or policies governing national security investigations from 2001 to 2008, but the government won't provide details or say whether anyone was disciplined, according to a report by a privacy watchdog group. The San Francisco-based Electronic Frontier Foundation sued under the Freedom of Information Act to obtain about 2,500 documents that the FBI submitted to the President's Intelligence Oversight Board. Most of the records were so heavily censored that they couldn't be properly evaluated. Nevertheless, the documents "constitute the most complete picture of post-9/11 FBI intelligence abuses available to the public," says the report. "The documents suggest," the report says, "that FBI intelligence investigations have compromised the civil liberties of American citizens far more frequently, and to a greater extent, than was previously assumed." The records obtained by the foundation go beyond national security letters. About a third of the reports of violations involved rules governing internal oversight of intelligence investigations, and about a fifth involved potential violations of the Constitution, the Foreign Intelligence Surveillance Act or other laws governing criminal investigations or intelligence-gathering activities, the report says.

Note: For lots more from major media sources on government attacks on civil liberties, click here.

The Obama administration Thursday abandoned a proposal to restrict planting of genetically engineered alfalfa, the latest rule-making proposal shelved as part of the administration's review of "burdensome" regulation. Agriculture Secretary Tom Vilsack's decision not to regulate alfalfa genetically modified to survive applications of the Monsanto Co. herbicide Roundup is a victory for the big seed and agri-chemicals company and the American Farm Bureau Federation. The Obama administration said earlier this month it is reviewing all proposed government regulation to weed out proposals that are overly burdensome to businesses—part of a broader effort to repair relations with employers and industry. The administration has also shelved two proposed workplace-safety rules opposed by business. Alfalfa is raised as hay on about 20 million acres, making it the fourth-biggest U.S. crop by acreage. Only about 250,000 acres of alfalfa is raised organically, however. Some biotechnology officials have predicted that U.S. farmers will use genetically modified seeds to grow half of the nation's alfalfa. The vast majority of the nation's corn, soybeans and cotton are grown from genetically modified varieties.

Note: The US government once again sides with big business and endangers public health. For a powerful, well researched essay which shows how these genetically engineered crops have been proven to cause cancer and kill lab animals in many studies, click here. For more reliable information, click here and here.

Fifty years ago this month, President Dwight D. Eisenhower, in his farewell address to Americans, cautioned that the "military-industrial complex" must never be allowed to "endanger our liberties or democratic processes." Despite his warning, William Hartung argues, defense contractors like Lockheed Martin have ballooned in size, scope, and influence. Hartung, the director of the Arms and Security Initiative at the New America Foundation, recently spoke with U.S. News about his new book, Prophets of War. "The military-industrial complex [is] really about the conjunction between the military itself, the weapons contractors, and in some degree the Congress. And it deals with how they kind of work in tandem to lobby for perhaps higher levels of military spending than we might otherwise need," [explained Hartung]. "The biggest Pentagon contractor [is} Lockheed Martin. They got $29 billion in Pentagon awards, which is about $6 billion more than the next company. And they are involved in almost the full gamut of weapons programs. Other than pistols or semi-automatic rifles, they make almost everything the Pentagon would want." Defense contractors ... actually help to finance think tanks that then advocate policies - whether it be regime change in Iraq or a different approach to nuclear weapons policy - that, if pursued, would be of benefit to the company. Then there's the relationship with Congress. They are very strategic in how they give money." Military spending is twice what it was under Eisenhower.

Note: For more on Lockheed's near stranglehold on business, see this NY Times article and another article on Donald Trump's full support of the military-industrial complex. For more along these lines, see concise summaries of deeply revealing news articles about corruption in government and in the corporate world.

The Royal Family is to be granted absolute protection from public scrutiny in a controversial legal reform designed to draw a veil of secrecy over the affairs of the Queen, Prince Charles and Prince William. Letters, emails and documents relating to the monarch, her heir and the second in line to the throne will no longer be [publicly] disclosed. Sweeping changes to the Freedom of Information Act will reverse advances which had briefly shone a light on the royal finances – including an attempt by the Queen to use a state poverty fund to heat Buckingham Palace – and which had threatened to force the disclosure of the Prince of Wales's prolific correspondence with ministers. Lobbying and correspondence from junior staff working for the Royal Household and Prince Charles will now be held back from disclosure. The Government buried the plan for "added protection" for the Royal Family in the small print of plans called "opening up public bodies to public scrutiny". A spokesman for Buckingham Palace said that the change to the law was necessary because the Freedom of Information Act had failed to protect the constitutional position of the monarch and the heir to the throne. He explained that the sovereign has the right and duty to be consulted, [and that] "This constitutional position relies on confidentiality."

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Two of the US's biggest mortgage lenders have had mortgage foreclosures cancelled in a case that could affect other banks. The Supreme Court in Massachusetts ruled against US Bancorp and Wells Fargo in a widely watched case. Backing a lower court ruling made in 2009, it said two foreclosure sales were invalid because the banks did not prove that they owned them at the time. The decision is among the earliest to address the validity of foreclosures done without proper documentation - so-called robo-loans because they were carried out by people who were unqualified and who often did not check a single line in the paperwork. Marty Mosby, an analyst at Guggenheim Securities said: "A ruling like this will slow down the foreclosure process. They're going to have to be really precise and get everything in order. It doesn't leave a lot of wiggle room." The case also applies retrospectively to people who have already been foreclosed. Glenn Russell, a lawyer for one of the couples in the case said: "I'm ecstatic. The fact the decision applies retroactively could mean thousands of homeowners can seek recovery for homes wrongfully foreclosed upon." Analysts said the decision may also threaten banks' ability to package mortgages into securities, and may raise the spectre that loans transferred improperly will need to be bought back.

Note: For lots more from major media sources on the criminal profiteering by the largest banks and Wall Street financial firms, click here.

Chris Liu is an Army veteran and a helicopter pilot who rose to the rank of captain before leaving the military to pursue a career in commercial aviation - first as an instructor, ultimately as a pilot for a major airline. He volunteered for the Federal Flight Deck Officer program, begun after 9/11, that trains and deputizes select pilots to carry firearms in the cockpit. After psychological and background checks, he was accepted. Now Liu is in trouble with the government that only a few weeks ago entrusted him with the lives of airline passengers. On Dec. 2, six federal agents and sheriff's deputies arrived at his home outside Sacramento to confiscate his FFDO credentials and his government-issued handgun. Days later, the Transportation Security Administration sent Liu a letter stating that he had violated the FFDO's rules for nondisclosure and standards of conduct. How? In November, Liu anonymously posted videos on YouTube, since removed, showing security weaknesses at San Francisco International Airport. While passengers and even flight crews endure body scans and pat-downs, ground crews face limited screening. "The doors, gates and other access points where they can access the tarmac are not being manned by TSA and certainly do not have the same metal detectors, body scanners, x-ray equipment, dogs or other security measures that the rest of us are all too painfully forced to undergo," Liu writes on his website.

Note: The government is happy to spend billions on invasive body scans (think big profits), yet fails to even consider huge holes in airport security. Could this be about money?

Important Note: Explore our full index to revealing excerpts of key 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.